The hon. Gentleman makes an important point, and I very much value his contribution to the work of the Select Committee. He is quite right, and I hope that we will be able to look at some of those structural issues over the course of the inquiry.
If universal credit did meet basic needs, other demands—including on food banks—would decrease. When the £20 a week uplift to universal credit was introduced, there was a significant drop in food bank use; when that uplift was removed, food bank use went straight back up again. Universal credit was intended to make work pay, but how can it achieve that aim if people do not have the means to pay a bus fare, for example? In evidence to the Committee, the Trussell Trust, the Joseph Rowntree Foundation and the Public Law Project all highlighted not being able to buy public transport tickets as a significant barrier to work. As far as we can tell, the Government have made no assessment at all of whether benefit levels are adequate. If I am wrong about that, I would very much welcome the Minister telling us, but there is certainly no evidence of such an assessment ever having been made. I hope the Department will look very carefully at the findings of our report when they are published in due course.
One other point was highlighted in a briefing for this debate prepared by the charity Barnardo’s. That charity describes the two-child limit as the single biggest policy driver of child poverty in the UK, and says that ending it would be the most cost-effective way of reducing child poverty, lifting a quarter of a million children out of poverty and easing the poverty of a further 850,000 children. The cost of doing so would be £1.3 billion per year. I must say that I am puzzled about the justification
for the two-child limit: it presumably reflects a belief that parents should not have more than two children, but as far as I understand it, that is not the Government’s view. Indeed, Government Members are understandably starting to worry about our falling birth rate, so why do we refuse to provide support for children beyond the first two? Is it not time to just scrap that limit, which does not seem to make any sense?
Another reason for higher DWP expenditure this year is the continuation of cost of living support. Expenditure is forecast to increase by just over £2 billion this year, due to higher payments—£900 in this financial year, compared with £650 last year—and higher take-up. Those payments have been crucial, but they do not fully meet need, particularly the £150 disability support payment. Last month, Maddy Rose of Mencap told the Select Committee that the payment is “clearly not commensurate” with the extra costs that those eligible incur, and we have heard other strong evidence to the Committee along those lines. Helen Barnard of the Trussell Trust told us last month that the cost of living payment
“has certainly helped the families that have got it, but of course, it is a flat payment. It is not calibrated for the number of people you are trying to feed, so it has clearly gone less far if you are a family with children than if you are a single person or a couple.”
That is one of the reasons why the Trussell Trust data shows a faster rise in food bank demand among families with children than among families without.
The lump sum nature of the payment is problematic. Citizens Advice, speaking for many, told the Committee that increments to universal credit would be better than one-off payments. Our colleagues on the Treasury Committee called on the Government last December to provide monthly payments over a six-month period to give more households support at the time of their greatest need and reduce the severity of the disincentives to work. The Government rejected that proposal, essentially due to the limitations of the IT system, but as we know from the pandemic, monthly universal credit can be increased overnight.
The need to meet a specific qualifying period for each payment window has led to what evidence to the Committee has described as
“a cliff edge where receiving a nil UC award one month—maybe due to a sanction or a higher salary due to backpay or a bonus—caused recipients to become ineligible for the entire cost of living support payment in that qualification period.”
I am looking forward to discussing cost of living support further with the Minister responsible for social mobility, youth and progression—the Under-Secretary of State for Work and Pensions, the hon. Member for Mid Sussex (Mims Davies)—at the Committee tomorrow morning.
A very important aim in achieving effective spending is transparency over how the money is being spent and what is being achieved. The Department has had a very poor record in recent years, so I warmly welcome signs of a new commitment to transparency since the appointment of the new Secretary of State. Keeping things hidden, which has been the Department’s practice, has the short-term advantage for Ministers of avoiding having to answer sometimes awkward questions, but over the medium and long term, people depending on the Department form the impression that it is conspiring against them. The result is terrible mistrust, causing the Department very serious problems over time—for example,
the very serious lack of confidence in the DWP among disabled people at the moment. It does not have to be like that, but changing things requires deliberate effort on the Department’s behalf.
None of the recently introduced employment support initiatives had regular performance reporting on introduction. I warmly welcome the Minister’s announcement of six-monthly performance reports for the restart scheme. That is one of the signs of welcome change in the Department’s approach, but it should be the norm and part of the arrangements built in at the outset, not something that has to be dragged from the Department kicking and screaming subsequently. Greater openness could deliver a wholly different relationship between the Department and the people depending on its services, with the Department seen to be working with those it serves, rather than conspiring against them.
An interesting suggestion in the Child Poverty Action Group report I mentioned earlier, “You reap what you code”, is that the source code for the universal credit computer system should be published. There would no doubt be some security concerns about doing that, but could not a small team—with experts from disability groups, Citizens Advice and software experts—be charged with reviewing that software and proposing improvements, perhaps in an annual report, a little bit along the lines of what the Social Security Advisory Committee does at the moment?
Let me briefly say a word about a different aspect of the Committee’s work. We have been worried by the cuts to the funding of the Health and Safety Executive, and one result has been drastically fewer inspections of workplace asbestos. We published a report on this last year, and called in particular for two things—a target to remove all workplace asbestos within 40 years together with a plan to deliver it, and a central digital register of all workplace asbestos and of its condition. The Government rejected those recommendations, although I do welcome the agreement of the Under-Secretary of State for Work and Pensions, the hon. Member for Mid Sussex, to meet a group of us, together with three industry groups and the Health and Safety Executive, to discuss further the idea for a register. That meeting will take place later this month.
I very warmly welcome the launch of the campaign by The Sunday Times at the weekend drawing attention to the continuing scale of the tragedy being inflicted by asbestos even now, a quarter of a century after its use was banned. It is still the biggest source of workplace-related deaths. The Sunday Times campaign headlines in particular our two recommendations, and I do hope that Ministers will now recognise the need to act. I welcome the fact that The Sunday Times will be running this campaign on a consistent basis.
I again thank the Backbench Business Committee for recommending today’s debate. I would be very interested to hear from the Minister specifically how Ministers are assessing whether the different cost of living support payments meet needs and whether they are reaching the right people, and also how and when Ministers will decide whether payments along these lines will be needed next year. I look forward to the debate we are about to have.
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