Oral Answers to Questions

Debate between Will Quince and Neil Gray

Monday 29th June 2020 Commons Chamber

[Neil Gray (Airdrie and Shotts) (SNP) [V]]

My hon. Friends have highlighted the range of expert reports out over the past couple of weeks showing that the DWP has no idea how universal credit impacts child poverty. It has done precious little to address it and could have made it worse through systematic cuts, leaving families and children worse off since 2011. The Joseph Rowntree Foundation and Save the Children say that families need an extra £20 a week in the child element of universal credit and child tax credits. Will the Minister ask the Chancellor to make that happen?

[Will Quince]

As I just said, in 2020-21, we will spend more than £120 billion on benefits for working-age people. We spend more on family benefits than any other country in the G7 at 3.5% of GDP. The measure that the hon. Gentleman raises would alone add another several billion to that bill. We will continue to reform the welfare system so that it encourages work while supporting those who need help. It is an approach that is based on the clear evidence that work offers families the best opportunity to get out of poverty.

[Neil Gray]

I note that the Minister did not answer my question. There is growing pressure on the UK Government to act here. The former DWP Secretary of State, the right hon. Member for Preseli Pembrokeshire (Stephen Crabb), has called on the Minister and his colleagues to accept the recommendations of the Joseph Rowntree Foundation and Save the Children and to uprate legacy benefits, too. Poverty Alliance’s report today shows that UC is pulling people into poverty rather than acting as a lifeline, so will he agree to convene a cross-party meeting, including the former Secretary of State and a Treasury Minister, to look at ways to make that recommendation happen?

[Will Quince]

For a start, the hon. Gentleman knows that that is well above my pay grade, but I gently remind him that universal credit will be over £2 billion a year more generous when fully rolled out compared with the legacy benefits system that it replaces. He also fails to recognise the £6.5 billion to £7 billion that this Government have put in place to support people through covid-19. As the Chancellor has said, we will do “whatever it takes”, and this Government are doing that: we are supporting people and this Department is getting that support to those who need it quickly.

Universal Credit: Court of Appeal Judgment

Debate between Will Quince and Neil Gray

Thursday 25th June 2020 Commons Chamber

[Will Quince]

I thank my hon. Friend, who is a firm champion of his constituents in this place. He is absolutely right that we have introduced a series of changes during the covid-19 pandemic, targeted at those facing the most financial disruption, that could be operationalised as quickly as possible, ensuring that people get the support that they need. He is right that that is close to £7 billion in the welfare system alone and it will benefit approximately 10 million families.

[Neil Gray (Airdrie and Shotts) (SNP) [V]]

I pay tribute to the four women who brought this case and all those who supported them, including the Child Poverty Action Group, and I thank the Work and Pensions Committee Chair, the right hon. Member for East Ham (Stephen Timms), for securing this question. This really is damning for the Government and successive Secretaries of State, who have belligerently fought this in the courts. Why should women and disabled people have to go to court to get basic fairness? I am sorry that the Secretary of State is not here to respond.

The issue of people getting paid salaries on irregular but predictable days of the month is something that the Scottish National party has been raising as an issue with UC for years, and the Court of Appeal has ruled that it was irrational for the Work and Pensions Secretary not to act to resolve the problem. Why should claimants lose UC support simply because of the day of the month that they are paid? That question has not been answered. As part of the process of accepting this ruling, will the Minister at the very least ensure that the predicted 85,000 people thought to be directly impacted have their situations resolved? Will the Minister work with the Chancellor to finally add flexibility to the monthly assessment period to resolve this issue and the five-week wait, which is also impoverishing people?

[Will Quince]

I thank the hon. Gentleman for his question. I stress that we received the judgment only on Monday and it is a hugely complex issue. That is recognised by the court—it is not a simple fix, as the hon. Gentleman points out. He knows that we are facing unprecedented demand, because he has raised this question with me before. I said that I will keep the House and the right hon. Member for East Ham (Stephen Timms), the Chair of the Work and Pensions Committee, updated as we progress.

On the hon. Gentleman’s points relating to assessment periods, there are some aspects of the universal credit system that are fundamental to its design and are deliberately designed to achieve its original objectives—to mirror the world of work. This includes the mechanism of a monthly assessment period and, of course, the initial assessment period at the beginning of a claim. It is important to stress that over 75% of people in this country are paid monthly and the majority of countries in the European Union also have systems that operate on a monthly basis.

Oral Answers to Questions

Debate between Will Quince and Neil Gray

Monday 11th May 2020 Commons Chamber

[Neil Gray (Airdrie and Shotts) (SNP) [V]]

The two areas of universal credit causing the greatest hardship are the five-week wait and the two-child cap—both need scrapping. Taking a UC advanced loan means that payments will be lower than the already impossible to live on levels, so why will the Government not look at the idea of making the advance loan a grant when a person has been confirmed as eligible for UC? That stops the fraud excuse. The only barrier is political will.

[Will Quince [V]]

I thank the hon. Gentleman for his question. As I have said, we have announced measures that can be quickly and effectively put in place that will benefit as many disadvantaged families as possible who are facing financial disruption. We are under huge increased demand, and I have had to prioritise the safety and stability of the benefits system overall and put that above any structural change. I will always prioritise ensuring that people get their money in full and on time, over and above system change.

Oral Answers to Questions

Debate between Will Quince and Neil Gray

Monday 9th March 2020 Commons Chamber

[Will Quince]

I thank the hon. Lady for her question. As the Prime Minister set out last week, we will introduce, as part of the Department of Health and Social Care’s emergency Bill, provisions for statutory sick pay to be made from day one. Employers have been urged to make sure they use their discretion and respect the medical need to self-isolate in making decisions about sick pay. People not eligible to receive sick pay may be able to claim UC and/or contributory employment and support allowance, and staff at our jobcentres are ready to support people affected and can rebook any assessment or appointment that is necessary.

[Neil Gray (Airdrie and Shotts) (SNP)]

That just does not answer the question, does it? Will the Minister therefore outline what happens where someone on UC has to self-isolate but has to go through work searches and is unable to attend a jobcentre? Will he expect that person to be sanctioned if she cannot turn up?

[Will Quince]

Absolutely not, and discretion will, of course, be used.

[Neil Gray]

The Minister said last month that he of course thought that improvements could be made to UC. I agree, so perhaps he could outline some, starting with ending the two-child cap, ending the five-week wait and fully restoring the work allowances. Have those conversations been had between his Department and the Treasury, ahead of the Budget?

[Will Quince]

I thank the hon. Gentleman for his question. We are a Government who listen. Let us look at the improvements that have already been made to UC: increased advances, of up to 100% of a full monthly payment; cutting the taper rate, so people keep more of their salary; increasing the amount someone can earn before their UC is reduced; scrapping the seven-day waiting times; introducing a two-week overlap of housing benefit; and, as of July, we are introducing a two-week overlap of various legacy benefits. There are lots of improvements to be made. They do, of course, require Treasury approval, and I am looking at these in a lot of detail.

Universal Credit: Delayed Roll-Out

Debate between Will Quince and Neil Gray

Tuesday 4th February 2020 Commons Chamber

[Neil Gray (Airdrie and Shotts) (SNP)]

(Urgent Question): To ask the Secretary of State for Work and Pensions to make a statement regarding the delay to the full roll-out of universal credit.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

The Secretary of State and I informed Parliament yesterday that we had revisited our forecast for universal credit and were extending its completion date to 2024. Our planning for universal credit relies on assumptions about the number of people whose circumstances will change each day, thereby naturally migrating. Our forecasts to date have relied on 50,000 households experiencing a change in circumstances each month. Based on this, we had predicted that the process of natural migration to universal credit would be completed by December 2023.

Information collected on changes to people’s circumstances suggests that natural migration is happening less frequently than we expected. This suggests broad stability in people’s lives and can be attributed to a number of reasons, including the robustness of the labour market. We now estimate that 900,000 fewer households will naturally migrate between now and December 2023 than we had forecast. Given that we expect to manage about 100,000 households to universal credit each month, it necessarily follows that if we are to protect the interests of claimants and move them to universal credit safely it will take a further nine months to complete the implementation of universal credit.

I can assure colleagues that claimants will not lose money from their universal credit award owing to this forecasting change. We will always put the best interests of our claimants first, and as we move into the managed migration phase protecting the vulnerable will be our utmost concern.

[Neil Gray]

Thank you, Mr Speaker, for granting this urgent question, which I believe is the first to be granted to the SNP under your speakership.

The UK Government still have no respect for the House. They let the BBC announce this delay as part of a news trail for the documentary being aired tonight, without a written ministerial statement—I have not seen one, so can the Minister tell the House where it is?

I feel for the Minister, being forced to stand here today, because I know it was not his decision to withhold that information from colleagues. Where is the Secretary of State? This should have been an oral ministerial statement.

Quotes from the documentary seem to suggest that this decision was taken by a senior official, not the Secretary of State. Has she abandoned decision-making oversight? When did she sanction this decision? Perhaps there was no oral ministerial statement because she found out only last night, like the rest of us—what an absolute shambles.

Universal credit was supposed to have been fully rolled out by 2017. This further delay means that it will have been delayed by a further seven years at a potential cost of £500 million. It highlights how far universal credit is from getting it right, as does the fact that this delay is needed to avoid further hardship to those in receipt of the benefit.

Ministers say, as the Minister said again just now, that the delay is needed because people are scared to go on universal credit. They say it like they are actually surprised. The great irony is that if this Tory Government were to listen and do what expert charities and those actually in receipt of universal credit were saying, these delays would not be needed.

Will the UK Government use this delay productively by making a meaningful investment in universal credit to see it fixed, scrapping the two-child cap and rape clause, ending the debt and poverty-inducing five-week wait and making work pay by fully restoring work allowances?

Finally, will the Minister confirm that this delay means that more people will be part of the natural rather than the managed migration process, which in turn will mean that those recipients will lose out on transitional payments, thus saving the Government more money at the expense of people who actually need it?

[Will Quince]

I have not yet seen the BBC documentary, and I suspect that the hon. Gentleman has not done so either, because it is due to be aired shortly. However, it is important to stress that officials discussed advice to be sent to Ministers late in 2019, and the final discussions were held with Ministers in 2020. Parliament was then informed. This relates to the back end of the timetable, which concerns people moving to universal credit in 2024-25, so the change was communicated in good time.

The hon. Gentleman referred to cost, and it is important to put that in context. This is additional money that will go into the pockets of our claimants, some of the most vulnerable and disadvantaged in our country. About 900,000 people could now receive transitional protection who would not have been able to receive it through natural migration.

Oral Answers to Questions

Debate between Will Quince and Neil Gray

Monday 27th January 2020 Commons Chamber

[Will Quince]

As far as I am concerned, one person or family in poverty is one too many, and I will work to tackle that while I am in this role. The statistics show that full-time work substantially reduces the chances of poverty. The absolute poverty rate of a child when both their parents work full time is only 4%, compared with 44% when one or both parents are in part-time work. We are supporting people into full-time work where possible by offering, for example, 30 hours of free childcare to parents of three and four-year-olds. The jobcentre in the hon. Lady’s constituency is doing incredible work in this area, and I strongly recommend that she visit.

[Neil Gray (Airdrie and Shotts) (SNP)]

What impact does the five-week wait for universal credit have on levels of in-work poverty and on poverty overall?

[Will Quince]

Nobody needs to wait for an initial payment. An emergency or urgent payment of up to 100% of the first indicative award can be made within the first day in many cases. It is interest free and repayable over 12 months, increasing to 16 months as of next year.

[Neil Gray]

I am unsurprised that the Minister did not know the answer to that question because, in response to a freedom of information request from the Poverty Alliance, the Government said that they did not hold that information. Following on from the National Audit Office saying that there is no evidence that universal credit has any link to increased employment levels, we now know that the Government have done precisely nothing in an area in which MPs, expert charities, the Scottish Government and local authorities are screaming for change. Will this Minister encourage the UK Government to open their tin ears and fix universal credit?

[Will Quince]

I recommend that the hon. Gentleman visits his local jobcentre and speaks to work coaches, because they will tell him about the impact of universal credit. More people are getting into and staying in work. Importantly, we do listen to hon. Members from across the House and to stakeholders within the Department. In addition to the measures I mentioned earlier, we now have a two-week run-on for housing benefit and will have a run-on for other legacy benefits as of October next year.[Official Report, 30 January 2020, Vol. 670, c. 8MC.]