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Estimates Day
04 July 2023
Lead MP
Stephen Timms
Debate Type
General Debate
Tags
Foreign AffairsBenefits & Welfare
Other Contributors: 15
At a Glance
Stephen Timms raised concerns about estimates day in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
I am very grateful to have been granted today’s debate about DWP spending. I will focus in particular on universal credit, whose roll-out started 10 years ago in 2013. The DWP is forecast to have £279.3 billion in expenditure this financial year. Universal credit spending is forecast to be £50.8 billion. However, the five-week wait between applying for the benefit and receiving the first payment remains a fundamental flaw. The rigidity of the digital system also presents issues like missed entitlements due to early claims not being accommodated. Benefit levels are very low, with the Joseph Rowntree Foundation and the Trussell Trust estimating that a single adult needs £120 per week to cover essentials, while Universal Credit's standard allowance is only £85 per week for a single adult over 25.
Stephen Timms
Lab
East Ham
I have highlighted significant concerns regarding the DWP spending and Universal Credit system. The system's flaws, such as the five-week wait period and rigidity of digital systems leading to missed entitlements, are detrimental to those in need. Additionally, benefit levels are inadequate, with a shortfall of at least £35 per week for a single adult over 25. I have also raised issues regarding food bank usage and the two-child limit policy, which disproportionately affects child poverty.
Wendy Chamberlain
Lib Dem
North East Fife
Chamberlain highlights the significant amount of money spent by the DWP on pensioner and universal credit benefits, emphasising the need for efficient use of funds. She mentions inefficiencies in the system including errors leading to underpayments and low uptake of pension credits. She raises concerns about home responsibilities protection errors affecting women and missing national insurance credits for people receiving universal credit. Chamberlain also discusses the gender pension gap and advocates for better support for carers, highlighting the economic value of unpaid care and the need to address financial hardships faced by carers. Additionally, she calls for an awareness campaign regarding child benefit thresholds and national insurance credits.
MacNeil intervenes to support Chamberlain's point about the role of benefits in creating a wealthy society, referencing a TED talk that highlights Norway, Sweden, and Denmark as examples where a robust benefits system enables wealth creation.
Debbie Abrahams
Lab
Oldham East and Saddleworth
Ms Abrahams discussed the inadequacy of support for working-age adults, highlighting a cumulative reduction in social security support equivalent to £33 billion. She also pointed out that over 28% of children in the UK live in poverty, with nearly half living in her constituency. She emphasised that despite the reduction in overall incomes during the pandemic leading to lower poverty levels temporarily, the long-term cuts have led to higher relative poverty. Ms Abrahams stressed the inadequacy of social security spending compared to post-war standards and European neighbours, advocating for a new social contract with an essentials guarantee to ensure basic financial support for families.
Eleanor Laing
unknown constituency
Ms Laing briefly intervened to clarify that the previous speaker had all the time she needed to conclude her speech.
David Linden
SNP
Glasgow East
Sent thanks to the Chair for setting the scene and highlighted the cost of living crisis exacerbated by Westminster's economic mismanagement. Emphasised that inflation disproportionately impacts lower-income groups, with families facing hunger due to lack of money. Cited research showing millions of low-income households cutting down on meals or going without essentials. Criticised the Government's refusal to address mortgage costs and food prices rising sharply. Called for bold measures to fix universal credit by reversing cuts and reinstating the £25 per week uplift.
Chris Stephens
SNP
Glasgow North East
Intervened to highlight issues with benefit deductions, noting that constituents lose more than £60 a month due to advances and excessive deductions, contributing to cycles of poverty.
Wendy Chamberlain
Lib Dem
North East Fife
Agreed with the previous speaker's stance on differential treatment of under-25s in benefits, describing it as a spurious argument from the Department. Highlighted the disproportionate impact of the benefit cap and two-child limit on lone-parent families.
Blackpool North and Cleveleys
Emphasised the detrimental mental health impacts of sanctions, linking it to a broader mental health crisis. Suggested that poverty's impact on small children's brain development is concerning, impacting their future learning capabilities.
Alison McGovern
Lab
Birkenhead
This has been a good, important and timely debate. I congratulate my right hon. Friend the Member for East Ham on bringing the debate to the Floor of the House. Given the economic situation, the work of his Committee has never been more important. On its introduction, universal credit was claimed to be a kind of cure-all which would release everyone from the so-called trap of poverty. However, I did not think that was going to be true when it was introduced and I do not think it is true now. The Department for Work and Pensions has to be far more than just universal credit and social security; it must also be the department for dignity: the dignity of work and the dignity of well-functioning, decent social protection. On both work and social protection, the Department is failing. We have fewer people in work now than before the pandemic, businesses are crying out for staff, yet our employment rate has not recovered from the pandemic. Pay has been stagnant for a decade. The Government have claimed that they want to tackle our productivity crisis but what research has the DWP published on why pay levels remain stagnant? There have also been failed employment schemes like Kickstart, and we hear about restart and the work and health programme without knowing their outcomes. Finally on social security, at every turn, the political turbulence created by the Conservative Government has had an economic cost for our country as a whole.
Guy Opperman
Con
Hexham
The Government have spent £30 billion to support renters in 2022-23 and increased benefits, state pensions, the national living wage, and childcare support. They are extending cost of living payments for another year.
David Linden
SNP
Falkirk East
Asked about delays or errors in setting up direct payments for universal credit claimants and poor communication between the DWP, landlords, and claimants leading to people falling into arrears. He questioned what the Government plans to do about it.
Blackpool North and Cleveleys
Asked about delays or errors in setting up direct payments for universal credit claimants, poor communication between the DWP, landlords, and claimants leading to people falling into arrears. She questioned what the Government plans to do about it.
Stephen Timms
Lab
East Ham
Asked when a decision will be made on whether cost of living payments will continue for another year in 2023-24 and which month it is likely to be decided upon.
Stephen Timms
Lab
East Ham
The hon. Member thanked the Backbench Business Committee and those who participated in the debate, including Wendy Chamberlain for discussing the gender pensions gap and welcoming the Pensions Minister's definition of it while agreeing on the need for a target to reduce it. He also praised Debbie Abrahams for her work on disability issues and acknowledged David Linden’s contribution as well as the work of Christians Against Poverty. Timms thanked several members for their interventions, including Margaret Greenwood, Chris Stephens, and Angus Brendan MacNeil. He emphasised the importance of proper uprating of benefits to combat food bank demand, lamenting the removal of security from social security over recent years due to low benefit levels and insufficient uprating. The speaker expressed gratitude towards the Minister's confirmation about reviewing transparency arrangements and recruiting staff to tackle fraud and error.
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Assessment & feedback
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