Seema Malhotra
MP for Feltham and Heston · Labour (Co-op) · United Kingdom
“Public sector productivity is improving, with the latest Office for National Statistics figures showing output continuing to grow faster than inputs, and Departments being challenged to improve efficiency and modernise outdated processes.”
“I was proud to support the Feltham Convening Partnership’s young leaders summer programme last month. What struck me was their ambition for themselves and their community, as well as their call for more work experience opportunities.”
“We will be working to commence the socioeconomic duty on public bodies in section 1 of the Equality Act to require public authorities to put addressing socioeconomic disadvantage at the heart of their strategic decision making. There will be more on that to follow. Let me again thank my hon.”
“For generations, the message to those who want to enter public life or elite professions has been that if they want to get on, they must sound like everybody else. When Margaret Thatcher became leader of her party in the 1970s, she famously underwent intensive elocution lessons with a tutor from the National Theatre.”
“Whether a young person chooses a degree or a trade, their journey must be determined by merit and their potential—never by whether they have to change their voice or pretend to be someone else to fit in.”
“Interestingly, studies also regularly show that regional accents such as Welsh or Yorkshire are rated by the public as trustworthy, warm and honest. Yet when those same studies measure perceived intelligence or employability, standard southern English and received pronunciation invariably top the metrics.”
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“The camaraderie, friendship and values of teamwork are all crucial in helping to shape people’s identities, supporting emotional wellbeing and dealing with difficult times, and I will illustrate that through the particular stories of two local clubs. I thank all involved in grassroots football clubs in Hounslow and across the country, on behalf of myself and my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury). Clubs in our constituencies are supported by the Brentford FC Community Sports Trust, which delivered more than 1,000 activity packs to children and families, supported more than 100 young carers who were shielding, ran virtual youth clubs and provided mentoring support.”
“The Football Association’s latest report on the social health and economic value of grassroots football found that more than 14 million people play grassroots football in England alone, which equates to a quarter of the population. It contributes more than £10 billion to society each year, while childhood football participation helps with the reduction of more than 60,000 cases of depression and anxiety, and more than 200,000 cases of childhood obesity. The grassroots game, as we emerge from the pandemic, is uniquely positioned to have a positive impact on not only the nation’s mental and physical health, but our economy. The benefits extend further, with social interactions that will help people to develop confidence, communication and resilience.”
“Football is so much more than just a sport, and it begins at grassroots level. When we talk about grassroots football, we need to truly appreciate what that means. Grassroots football is about every park and every playing field across the UK. It is about giving every club and every individual of all ages and genders who has the desire to be involved in the game the opportunity to do so. Even in the face of financial pressures and the disappointment of not being able to play due to the covid pandemic, the response from football clubs at all levels has been remarkable. It shows the integral place that clubs have at the heart of our communities, bringing people together and supporting one another on and off the pitch.”
“I am very grateful to Mr Speaker for granting me this Adjournment debate. Covid-19 has had a serious and detrimental impact on football, from premier league teams all the way down through the pyramid structure of football. The giants of the game have received much media attention recently, and not all for the right reason. I joined colleagues on both sides of the House in condemning proposals for a new European super league. It is one of the reasons why I sought this debate. May I start by sharing our deepest condolences with the family of Jordan Banks, a nine-year-old boy who was killed in a tragic incident last night playing football in Blackpool? Our hearts go out to him and his whole family at this time. That could have been anybody, anywhere. It is a tragic incident, and our thoughts are with them.”
“I am grateful for the Minister’s responses on some of the issues raised. I wonder whether he would say a little more about mental health support and the experience of clubs at the moment, and whether more can be done to give advice, training and guidance on what they are clearly now doing on the frontline, which is supporting children in our community.”
“While the Minister commissions yet another review, every month mortgage prisoners struggle to make their monthly payment due to high interest rates. The delays will mean that more homes will be lost. As the consumer champion Martin Lewis has said, an SVR cap on closed-book mortgages “would provide immediate emergency relief to those most at risk of financial ruin. No one should underestimate the threat to wellbeing and even lives if this doesn’t happen, and happen soon.” We welcome support for the amendment from Martin Lewis and from Surviving Economic Abuse. The Government have the option of coming up with an alternative proposal to provide the relief that mortgage prisoners so desperately need. So far, they have failed to do so. That is why I hope that all colleagues will support Lords amendment 8 tonight.”
“When their mortgage finishes when they are in their 60s or 70s, these mortgage loan sharks often put pressure on them to sell and threaten to repossess their home. The FCA and the Government claim to have helped mortgage prisoners by changing the rules on affordability tests, but there has been very slow take-up of those new flexibilities. The FCA’s cost-benefit analysis, published when the rules were proposed, estimated that somewhere between 2,000 and 14,000 mortgage prisoners would switch using the new rules. The APPG has received reports from campaign groups that only 40 mortgage prisoners have been able to switch so far. Mortgage prisoners have been neglected for more than 10 years. Families have been destroyed and homes have been lost.”
“It is inappropriate to compare the rates that borrowers with inactive lenders are currently paying with those paid by SVR customers at other active lenders. If mortgage prisoners were with an active lender and up to date with payments, they would have access to a product transfer, giving them a lower fixed rate. The Treasury has said that the amendment cannot be supported because it would not be fair to borrowers in the active market, but more than 75% of borrowers in the active market move off the SVR within six months as they are able to access a new deal. Mortgage prisoners have been stuck on high SVRs for more than 10 years. Their mortgages were sold by the Government without their consent and without the proper protections. People trapped on these high interest rates do not have much chance to reduce the amount they owe.”
“When the Government sold on the loans, they gave some of the purchasers, such as Tulip Mortgages, complete discretion on interest rate policy after 12 months. Protections for later packages of mortgages sold required only that the SVR be kept at the level of the third highest of a basket of 15 SVRs, which was higher than the current rate charged to mortgage prisoners. If mortgage prisoners were entitled to new deals on the same basis as other customers, the average rate they would be paying would be 1.8% below the level of the proposed SVR cap of 2.1%. The Minister suggested that the SVRs paid by mortgage prisoners are just 0.4% higher than SVRs at other lenders. As I said on Report, our case studies, which include nurses, teachers, members of the armed forces and small business people, tell another story.”
“The amendment would apply a cap on the standard variable rate for mortgage prisoners with inactive lenders and unregulated entities and ensure that they can access fixed-rate deals. It would be a targeted intervention that would have no impact on the wider market of active lenders, such as the main high street banks, which compete to offer their existing customers new deals. The margins on these Northern Rock mortgages increased significantly after the financial crisis. As interest rates available to those at active lenders fell, the Government kept mortgage prisoners on high SVRs and then sold them off to inactive lenders and vulture funds, who also kept them on high SVRs. Prior to the financial crisis, the gap between the Northern Rock SVR and the base rate was 2.09%. Since 2009, it has been 4.29% above the base rate.”
“The arguments for that were made powerfully and movingly in the other place, and indeed by my right hon. Friend the Member for Wolverhampton South East (Mr McFadden) from the Front Bench tonight. The Minister said that he wants to be guided by the facts. I thank him for his commitment to addressing this issue, but perhaps I can share some other data and another interpretation of the same facts to show why I and others believe that the solution proposed in Lords amendment 8 would indeed be both proportionate and practical. The 250,000 mortgage prisoners took out their mortgages prior to the financial crisis with fully regulated high street banks such as Northern Rock. They were then kept trapped on high standard variable rates before being sold to mortgage loan sharks such as Cerberus, Tulip and Heliodor.”
“I start by paying tribute to Rachel Neale and the UK Mortgage Prisoners group for their incredible resilience and the way that they have worked for the last two years with the all-party parliamentary group on mortgage prisoners, which I co-chair, to help to get a pragmatic solution to the problems that we know they face. I also pay tribute to my constituent Mohammed Masood, who first brought this issue to my attention after his family’s own experience—a situation that, after so many years, is still ongoing. I am grateful for the opportunity to speak in support of Lords amendment 8, which would provide immediate relief to up to 250,000 mortgage prisoners—the FCA’s estimate—by capping standard variable rates and ensuring that they could access fixed-rate deals.”
“She is due to come back on Saturday. We had first a rejection and since then nothing but delays and a lack of compassion and support from the Department of Health. Could I therefore ask your advice, Madam Deputy Speaker, on what process the Government are following? How experienced are the staff making those decisions? I would be grateful to put this on record and seek advice so that we can scrutinise the Government on what is going on, including with those who are fasting due to Ramadan not getting food at the right times, so that there can be some accountability and support for our constituents.”
“Despite representations with medical evidence, one of my constituents with complex health conditions who was forced to quarantine alone ended up being rushed to hospital over Easter. Doctors there said that she should not have been in a hotel at all. I now have a 16-year-old constituent, Ms Malik, who went urgently to visit her ill father in Dubai while her mother was at home with her sisters. She has now been stuck in Dubai for weeks, terrified to return. She is a minor, and it is not safe for her to quarantine in a hotel on her own; nor would she be allowed to by law. Her father is in Dubai, and her mother has two other children to look after. She has no one who can quarantine with her. She has a history of self-harming and her GP has asked that she be allowed to self-isolate at home with protections.”
“On a point of order, Madam Deputy Speaker. I am grateful to be able to raise this point of order in relation to the operating of the quarantine exemptions process. An effective quarantine system is vital to protecting our borders, but there has to be some consideration and compassion for those who are vulnerable, who have disabilities or who have complex health conditions and have medical evidence to prove it. There has been little opportunity to debate these exemptions. This week, guidance appeared on the Department of Health website, but the Commons Library confirms that there has been no written or verbal statement regarding this guidance, which we need to support our constituents’ cases.”
“If the Chancellor wants to work for a fairer Britain and build a more inclusive and financially inclusive economy, he needs to know who his policies are helping and who they are not. That is why we need an impact assessment, as called for in new clause 23, and the Government should support it today.”
“Minority ethnic communities have been hardest hit by both the health and economic crisis. The Resolution Foundation found that, at the end of last year, unemployment among young black graduates had risen to 34%, up from 22% before the pandemic, and almost three times that of young white graduates during the same period. StepChange research also shows that those from an ethnic minority are twice as likely, compared with the GB average, to say that they have experienced hardship, borrowed to make ends meet or have run down savings. In conclusion, the Chancellor is hitting families up and down the country, with a quadruple hammer blow of council tax rises, cuts to universal credit, real pay cuts for key workers and the freeze to the personal allowance.”
“It is a cut that takes out-of-work support to its lowest levels since the 1990s. That is why Labour has also called for urgent social security measures, including converting universal credit advances to grants instead of loans, ending the five-week wait, suspending the benefits cap and uprating legacy benefits to match the increase in universal credit. About 2.2 million people on legacy benefits have been deprived of the uplift, and given that three quarters of those claimants are disabled and on employment and support allowance, this has created a two-tier social security system that has left many struggling to cope. Evidence from the Disability Benefits Consortium found that 67% of disabled claimants have had to go without some essential items at points during the pandemic.”
“Even when the Chancellor has done the right thing, such as extending furlough, as Labour called for, these moves need to be underpinned by a strong social security system that provides support when people need it. People need to be protected from financial exclusion and families need a clear route out of financial difficulty when they are struggling. The Chancellor could also look at how Sadiq Khan is working to promote financial inclusion through partnership with the financial sector, social enterprises and credit unions, and at his plans for a new team dedicated to economic fairness. But instead of economic fairness, what we know is coming is the £20-a-week cut to universal credit for millions of families within six months, just when the OBR predicts that unemployment will peak.”
“We know child poverty, already extremely high, is rising, so it is inexplicable, when the Government themselves have said in the Budget report that the “economic impact of restrictions has not been felt equally”, that they have not themselves published an impact assessment. It should not be for the Opposition to table this vital amendment. It seems that instead of taking action to boost our community recoveries, the Conservatives are choosing to reward families up and down the country for their sacrifices with council tax hikes, the freeze to the personal allowance from next April a whole year before corporation tax rises kick in, a real-terms pay cut for key workers and cuts to universal credit later this year, a move now even opposed 100 Tory MPs.”
“The Financial Inclusion Commission, on which I sit, has highlighted how there are now millions more people facing economic hardship as a result of the covid-19 pandemic. However, the UK entered the crisis with half its population financially vulnerable: 12 million categorised as financially struggling or generally on low incomes, and 13 million as financially squeezed. Covid has laid bare existing weaknesses, vulnerabilities and structural inequalities, and StepChange research shows that 10% of people say they will certainly or probably be unable to pay for essentials in the next 12 months.”
“In my limited remarks, I want to support the arguments made by my hon. Friend the Member for Ealing North (James Murray), and to speak in support of Labour’s new clause 23, to which I have added my name, seeking an equality impact assessment of the measures in the Bill that affect family incomes. This includes the impact of specified sections of the legislation on households at different levels of income, on people with protected characteristics, and across the regions and nations of the UK. About 700,000 people have lost their jobs since February last year, and many more families have seen a drop in their household income. Over 39,000 are now on universal credit in Hounslow alone, and we have seen a huge rise in the use of food banks. There is no doubt about the importance of financial inclusion at this time.”
“Last year, along with the Co-operative party, I called for a proper plan for bereavement to ensure that everyone who has experienced loss during this difficult period has the support that they need. Awareness of the services available is vital if people are to get this help. The Good Grief Trust, with which I have been in contact, has said that too many people simply do not know where to turn. What steps is the Minister taking to help signpost families to bereavement charities and support and to increase awareness of the support available to families in need, which also includes support that can be signposted from hospitals when loved ones die?”
“Friends the Members for Blaenau Gwent (Nick Smith), for Ilford North (Wes Streeting) and for Plymouth, Sutton and Devonport (Luke Pollard)—have been similarly rebuffed when asking about their own constituencies. MPs have also been told that the Department is unable to publish data below regional level. Madam Deputy Speaker, if the Minister told me figures for my constituency in this House, the data does exist and could be published. Given that young people’s jobs have been worst hit, transparency matters so that Parliament knows where opportunities are reaching and where they are not. Could you advise me on how Members can seek to get this important data published by the DWP?”
“On a point of order, Madam Deputy Speaker. I thank you and Mr Speaker for allowing me to make this point of order. On 8 March, in Work and Pensions questions, the Under-Secretary of State for Work and Pensions, the hon. Member for Mid Sussex (Mims Davies), told me that in Feltham and Heston there were 77 kickstart vacancies and 11 starts. She also shared kickstart data for Tower Hamlets with my hon. Friend the Member for Bethnal Green and Bow (Rushanara Ali). On 17 March, I tabled a written question asking for kickstart placements and vacancies by constituency; I was surprised to be told that that data is not currently available by constituency. Three other colleagues—my hon.”
“The TUC estimates that 3.6 million people—one worker in nine—were in insecure work ahead of the coronavirus outbreak, leaving them exposed to massive drops in income or unsafe working conditions. It was bad then, and it is worse now. The Government have driven the author of their own Taylor review to say in quite extraordinary terms that the Government have lost their “enthusiasm” for enforcing workers’ rights. With no employment Bill yet on the horizon, is that not the plain truth for all to see? Whose side are the Government on?”
“My hon. Friend is making a powerful point about the needs of leaseholders. Does she agree that, as well as dealing with the gaps in the support so far announced, it is vital that there is much more clarity on what leaseholders should be entitled to—particularly those in shared ownership arrangements, where the quality of work done and the relationship with the social landlord can vary? This is causing them great confusion and anxiety and, indeed, great difficulty in selling their properties.”
“The Sikh Human Rights Group, an NGO with special consultative status at the UN, has received highly credible evidence, in the form of 20-plus first instance reports from the senior advocate overseeing cases, about allegations of unsustainable charges being made by the police. Those who have made any comment against the abuses have been subject to a tirade of abuse from far-right forces. Indeed, also, an approach against gurdwaras in three cities a few weeks ago—”
“Those issues led to the Leader of the House saying: “As India is our friend, it is only right that we make representations when we think that things are happening that are not in the interests of…the country of which we are a friend.” —[ Official Report , 11 February 2021; Vol. 689, c. 495.] The world saw the arrest of 25-year-old Nodeep Kaur, and then of climate activist Disha Ravi. The sessions judge said, in granting bail, that “citizens are conscience keepers of government” and that they cannot be jailed “simply because they choose to disagree with the State policies”. Medical support staff have been beaten at rallies. Concerns have been raised about journalists.”
“While the largest protests have been in Punjab, Haryana and western Uttar Pradesh, there have been smaller ones across the country involving people of different faiths. It is not a religious dispute. The Indian Government have said that they will preserve the minimum support price, but there is not yet a legislative base for that. The laws have led to fear about income and livelihoods. Experience in other countries has suggested that, rather than improving farmers’ incomes, corporatisation has depressed them, and it needs to be debated. Whatever assessment is made of the laws, today we are discussing concerns about press freedom and the safety of protesters.”
“Men and women have been away from their families on a protest that has now gone on for more than 100 days, day after day, in incredibly tough conditions. Indeed, on the front of Time magazine this week, the week of International Women’s Day, are three generations of women, forming part of the protest. According to Oxfam India, 85% of rural women work in agriculture. We know that the issue must be resolved through discussion and democratic means, in India alone, but in doing that, along with democracy there is a right to press freedom and safety for protesters. No one supports violence, and that has rightly been condemned. The laws in question have been suspended for 18 months by the Supreme Court, and a solution must be found.”
“It is indeed a pleasure to serve under your chairship, Mr Stringer, and to speak in the debate. I thank the Petitions Committee and Gurcharn Singh, who organised the petition, which was signed by more than 3,400 people in Feltham and Heston. It is of great concern to many of my constituents and those of other Members, including my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury), who was unable to join the debate today. We have friends and family who are deeply affected by the situation, who understandably feel anxious that things could escalate further. Indeed, our local gurdwara in Hounslow has raised the issue with us. My family, two generations ago, worked in agriculture in Punjab. We are all friends of India, and that is another reason why the issue cuts very deep.”
“My hon. Friend will be aware of the car rallies that targeted Southall, Leicester and Birmingham two weeks ago. They caused great concern, and I pay tribute to the Home Office and the police. Does he agree that this is why it is so important that inter-faith communities such as Southall Faiths Forum and Hounslow Friends of Faith come together, as they did at that time, to say that they stand firm against right-wing groups that want to harm our community? It is vital that across the world we defend our democracies and freedoms and protect our communities from attempts at division.”
“In June, the Prime Minister promised an opportunity guarantee for every young person. With 800,000 young people now not in education, employment or training, and only 4,000 kickstart placements to date, the Minister recently told the Work and Pensions Committee, “Watch this space”, and said that details on the guarantee would land at the Budget. If the Prime Minister announced it and she supports it, did the Chancellor not get the memo or has the Treasury once again blocked support where it is needed? Can the Government not get their act together on a jobs promise such as the one Labour has proposed so that young people out of work or training at six months get the opportunities that they need?”
“Today’s Budget needed to put in place the strong foundations to support businesses and to give security to all our families, building a base for resilience, a competitive future and shared prosperity for all. Sadly, it fell far short.”
“On aviation, we urgently need a better sector-specific deal, to support jobs, to help airports, airlines and those in the wider supply chain—the ground handlers, caterers and other businesses —critical for aviation and for our economy and trade. Employment in aviation communities like Feltham and Heston has been hit very hard and needs much stronger leadership from the Government right now. We should lead the way in the world on zero-carbon aviation, but this means accelerating R&D investment to support innovation in the future of green transportation and logistics, and for new technologies to be contributing to greater productivity for businesses in our supply chains.”
““Labour’s Green Economic Recovery” report would have been a good read for the Chancellor, with plans to spread job creation across the country, including 400,000 green jobs, with many for young people. Just as Britain led the world in the first industrial revolution, swift and targeted Government investment and co-ordination with the private and voluntary sectors is needed to stimulate the economy and jobs now. On good jobs, the Mayor of London’s new good work standard represents the kind of thinking we need to tackle the scourge of low-paid, insecure work, along with flexible recruitment and workplace wellbeing plans. We should invest in community-led co-ops, and the employment Bill should come before Parliament.”
“It is therefore inexplicable that, at the height of the pandemic, work coach hiring almost stopped, with fewer than 15 work coaches hired from April to June, as case loads more than doubled to over 280 people per work coach last summer. The Chancellor’s kickstart scheme has been more of a false start, with only 2,000 placements to date, and Restart has not started at all. That is why we need Labour’s new jobs promise to guarantee young people aged 16 to 24 who have been unemployed for over six months a training or jobs placement, and to extend the same guarantee to those aged over 24 who have been unemployed for more than 12 months. We need investment and green growth across every region and nation of the UK. As we recover from the pandemic, we must invest at speed for growth. A jobs recovery needs a green recovery.”
“Half a million people are behind with their rent due to the pandemic. Mortgage prisoners—those trapped with their existing lender on high interest rates—are paying hundreds of thousands of pounds a year extra in mortgage payments to vulture funds and inactive lenders. Forbearance measures are still urgently needed, and a plan to tackle child poverty. The jobs crisis is hitting the youngest as well as the oldest hardest. Around 600,000 young people are without work, and we risk having a lost generation. Even before the pandemic, there were around 800,000 people aged 50 to 64 not in work who wanted to be. We need a plan for employment to match the scale of the crisis.”
“The increase in the national minimum wage seems to be a U-turn on the 49p an hour promised last March. The increase in apprenticeship incentives comes on the back of widespread criticism of the apprenticeship levy, with millions unspent. There is a gender impact, too. Before the coronavirus pandemic, women, especially low-paid, disabled and minority ethnic women, were more likely than men to be in debt. Sixty-one per cent. of those getting into debt to purchase everyday necessities are women. The Chancellor’s speech failed to mention children. Before the pandemic, 4.2 million children were living in poverty—nine in a classroom of 30. Removing the two- child limit and the benefit cap would lift hundreds of thousands of children out of poverty, but the Chancellor chose not to do so.”
“The pandemic has exposed a lack of resilience in our economy, in family finances and in our institutions. We have witnessed the struggle of a weakened and poorly equipped NHS and social care system after 10 years of the Conservatives. Even before the pandemic, a quarter of households had less than £100 in savings. StepChange has said that 1.2 million people now face severe problem debt. That figure has doubled since the beginning of the pandemic. My local food banks are struggling, with stories of children turning up without clean clothes to wear. We need to plan now so that we do not emerge less equal as a society. We saw nothing today that will help with that. There is no pay rise for social care workers; instead, there is a forced rise in council tax.”
“Thank you, Madam Deputy Speaker. The extension of furlough and the maintaining of the universal credit uplift are a relief. Cutting universal credit at this time would have been unthinkable and I thank everyone who joined Labour in making that point. The Chancellor should have announced that sooner. Last-minute changes and U-turns have become the hallmark of this Government, and we now face the worst economic crisis of any major economy. The Government U-turned last week on the £500 test and trace support payment so that parents who stay at home because their children have to self-isolate are not forced to go without pay or to take annual or unpaid leave. Today, without explanation, the Chancellor has failed to extend the uplift to those on legacy benefits, including many people with disabilities.”
“Labour is supporting today’s increase to working-age benefits, disability support and the state pension, but the Minister has heard our views today on the major omissions, and if he will not act today, he must act soon and heed the warnings from those on the frontline. They are working with families who are doing the right thing in very hard times and asking simply that their Government be on their side.”
“Similarly, the local housing allowance has been frozen in cash terms for 2021-22, and for which the intention is to carry the freeze forward into subsequent years, as hinted at by the Secretary of State in a written statement in December. It means that the Government are refusing to make even the bottom 30% of local rents affordable to private tenants. In a compassionate society, we need a fair and supportive social security system that helps build resilience, supports people seeking work and helps families through difficult times. A quarter of UK families had less than £100 in savings when the crisis began, and the pandemic has hit families’ incomes hard.”
“The Government claim that the legacy systems would take too long to update, but that is not a reason; it is an excuse. We are now nearly 11 months into the pandemic, so what excuse do the Government have now for that blatant unfairness? The order also fails to uprate the benefits cap, which remains at the same cash level since November 2016. That means that families will not see any inflation-linked increase to underlying benefits that they are entitled to. The Minister knows what that means. December’s figures show that 170,000 families are seeing their benefits reduced by £246 per month on average, and 85% of those families include children. Ending the cap would put much-needed cash in the pockets of Britain’s poorest families, helping them through the crisis without a devastating increase in household debt.”
“This injustice has been raised repeatedly by Labour and other parties, and action has been called for by the Chair of the cross-party Work and Pensions Committee, my right hon. Friend the Member for East Ham (Stephen Timms), who is in the Chamber today. Indeed, a Committee report today highlights a recent survey by the Disability Benefits Consortium of disabled people claiming legacy benefits. It found that two thirds of disabled claimants have had to go without essential items at some point during the pandemic, and almost half report being unable to pay rent and household bills. The Joseph Rowntree Foundation, along with 50 other organisations, has called on the Government to match the increase in legacy benefits, as part of their “Keep the lifeline” campaign.”
“She became his carer, but the couple, in their 50s, have run out of savings. She is having great difficulty finding work and has drawn on her private pension to cover bills. The cut to universal credit would push Angela and her husband into further financial difficulty, at the worst time. So the Minister and his Government should do the right thing and secure our economy by cancelling the cut to universal credit from April, not least because when Labour forced a vote on the issue he abstained; almost 11,000 people in his constituency as well are on universal credit. I also want to talk about legacy benefits, because it is discriminatory and unfair that the £20 a week uplift was never extended to those on legacy benefits, many of whom are carers or disabled. There is simply no excuse for it.”
“Citizens Advice has told us that three quarters of the people it is helping who are on uplifted benefits would have a negative budget if the £20 uplift was cut. Trussell Trust research shows that one in five UK claimants reported it very likely that they would be forced to turn to a food bank. The Child Poverty Action Group warned that this move could see another 200,000 children pushed into poverty. Older people are paying the price, too. The number of those aged 50 to 64 who are out of work has risen by more than 175,000 since the start of the pandemic. This age group is at particular risk of long-term unemployment, and many will be forced to take early retirement before they can afford to do so. Angela in Sunderland told me that she was made redundant four weeks before her partner suffered a life-threatening illness.”
“If the Government are seriously thinking about economic recovery, cutting universal credit is like pulling the rug from under the economy’s feet. This £20 a week is not saved by families; it is spent in shops and businesses across the country, stimulating the economy. And we all agree that this pandemic and the unemployment crisis will not be over by April this year. The reason people want to know about what is happening with the uplift is so that families can plan ahead for what is to come. The Resolution Foundation has also highlighted the income shock that comes with a move to universal credit, with a third of new claimants reporting a drop in their income of at least 40% compared with a year ago.”
“He and his Government have yet to say what is happening to this lifeline for families in need—a lifeline through lockdown and as lockdown starts to be lifted. Indeed, there are reports today of the Chancellor and the Prime Minister arguing about what should be happening to the uplift. The Minister will know of the extra costs that families are facing, including from increased food costs for children at home, the use of small local shops, the need for home schooling materials and increased utility bills. The 0.5% increase on last year’s universal credit level that he has proposed will be academic for those who are set to see a cut—and it is a cut—to their universal credit of £20 a week from April.”