Potential changes to Employment and Support Allowance (ESA)

In the Summer Budget 2015, the Chancellor announced that, from April 2017, new ESA claimants who are placed in the work-related activity group (WRAG) will receive the same rate of benefit as those claiming Jobseeker’s Allowance (JSA). This change only affects new claims made after that date and there will be no cash losers among those who are already in receipt of ESA.

The record employment levels and strong jobs growth in recent years have benefited many, but these benefits have yet to reach those on ESA. While 1 in 5 JSA claimants move off benefit every month, this is true of just 1 in 100 of ESA WRAG claimants. Those with health conditions and disabilities deserve better than this.

It is important to tackle this as, in addition to providing financial security for individuals, there are economic, social and moral arguments that, for those who are able to, work is the most effective way to improve the well-being of individuals, their families and their communities.

Those in the WRAG currently receive additional cash payments but little employment support. As the Prime Minister has recently stated, this fixation on welfare treats the symptoms, not the causes of poverty; and, over time, it traps people in dependency as, in the current system, the additional cash payment acts as a disincentive to moving into employment. That is why the Government are proposing to recycle some of the money currently spent on cash payments, which are not actually achieving the desired effect of helping people move closer to the labour market, into practical support that will make a genuine difference to individual’s life chances.

This new funding will be worth £60 million in 2017/18 rising to £100 million in 2020/21. It will support those with limited capability for work to take steps to move closer to the labour market, and when they are able, back to work. This additional practical support is part of a real terms increase that was announced at the Autumn Statement. How the support will be spent is going to be influenced by a Taskforce of representatives from disability charities, disabled people’s user-led organisations, employers, think tanks, provider representatives and local authorities.

It is important to improve what is on offer for these individuals because we know that most people with disabilities and health conditions want to work, including 61 per cent of the WRAG, and there is a large body of evidence showing that work is generally good for physical and mental wellbeing.

In order to do more, the Chancellor announced in the Autumn Statement that the Government will publish a White Paper that will set out reforms to improve the system of support for people with health conditions and disabilities. In addition to these reforms there is an emerging package of support which will strengthen the offer to claimants with a health condition or disability:

·        Universal Credit (UC) is already beginning to transform people’s lives by introducing earlier support and putting claimants in the best possible position to move into and stay in work. Under UC, claimants with health conditions and disabilities will gain more support earlier in their claim to take steps towards work with their dedicated Work Coach working alongside health professionals to ensure they receive personalised integrated support;

·        The DWP and Department of Health have created the Work and Health Unit to help support people with health conditions and disabled people back into employment. This Joint Unit has at least £115 million of funding, including at least £40m for a work and health innovation fund, to pilot new ways to join up across the health and employment systems;

In the Autumn Statement the DWP announced that they will introduce a new Work and Health Programme to focus on providing the best possible support for claimants with health conditions or disabilities, as well as those who are long-term unemployed;

·    We know that returning to suitable work can improve mental health, and that is why the Government is committed to ensuring that people with mental health conditions receive effective support to return to, and remain in, work. £43 million is being invested over the next three years in trialling ways to provide specialist support for people with mental health conditions;

   The Government also recognises the importance of promoting positive attitudes towards employing disabled people, and seeks to do this by challenging the attitudes of employers towards recruiting and retaining disabled people through the Disability Confident campaign.

These reforms are aimed at improving the quality of life of those in greatest need. It is worth noting that we spend around £50 billion every year on benefits to support people with disabilities or health conditions, this is over 6 per cent of all government spending. The Government can be proud of that and is determined to ensure that those in need get the support they require.

Newspaper column 3 February 2016 - Google's taxes

Last week saw the announcement that HMRC has come to an agreement with Google on the issue of back taxes.  In the UK, Google will be paying £130 million of taxes on profits relating back to 2005.  While the Labour Party has criticised this as a “sweetheart deal”, it is worth reflecting on the circumstances surrounding this announcement. 

I share the anger many people feel that Google, and others, have got away with paying little or no tax in the UK for so many years. It is incredibly frustrating that no action at all was taken to address this issue until recently. However as unsatisfactorily as this deal feels we have to recognise that it is a big step in the right direction.  

Over the past few decades, multinational companies have grown, both in size and geographic reach.  Revenues generated in the UK by global companies such as Google, Apple, Facebook, Starbucks and many others, run into billions of pounds, yet these organisations seemingly pay little or no tax in this country.  On the face of it this appears unfair and much has been made of this so-called “tax evasion”.

The root cause of the issue is the existing international tax system.  Each country has its own rules for taxing individuals and companies.  The rules and rates of tax can vary greatly between countries.  In France, for example the rate of tax applied to companies is 33.33%, while in Ireland it is 12.5% and in Bermuda no tax is levied on companies at all. 

Multinational companies work to ensure that as much of their profits as possible are reported in the countries with the lowest rates of tax.  It is this practice that is seen as unethical and even immoral, but is actually currently a perfectly legal way to maximise returns to shareholders.  In the case of Google, much of the business it undertakes in the UK is reported via Ireland, where tax rates are lower.  The international tax system has failed to adapt to these issues, and a tax system that will address the problem is likely to be some way away.

It is currently the job of individual Governments to get the best deal for their countries.  In Italy, for example the tax authorities are taking an aggressive approach, with raids on corporate offices and other similar tactics.  The Conservative Government in the UK has taken a more constructive approach.  We see the need to continue to build relationships with the global multinational companies; they bring jobs and economic prosperity and we should do all that we can to encourage their ingoing investment in our country. 

At the same time this strengthening relationship leads to the deal that HMRC brokered with Google.  While Labour criticise from the side-lines that this is a sweet deal for Google, it is worth noting that the last Labour Government was unable to reach any such deal and collected no tax revenue at all from Google.

I concede that the outcome is not ideal, but in the light of the circumstances outlined above, I believe that the agreement reached with Google is a good step forward.

My team and I are here to serve the whole constituency and seek to make a real difference to the lives of everyone who needs help and support in any way.

If there is any issue that we can help you with then please contact us on either 01726 829379 or on office@stevedouble.org.uk.  

Newspaper column 27th January 2016 - The Psychoactive Substances Bill

Last week in Parliament saw the Psychoactive Substances Bill successfully negotiate its third reading.  The Bill is likely to come into force as early as April this year and will effectively ban the so-called “legal highs” as it seeks to ban all substances that have a “psychoactive effect”.

During the course of last year I was made aware that substances that provide legal highs are readily available on our high streets.  A few minutes of investigative work proved this to be true, and I was shocked to see how easy it was to buy these substances on the high street in St Austell and Newquay.

While legal highs come with many health warnings and cannot be marketed for human consumption, they were readily available for sale. I was pleased at the time to raise awareness of the dangers of legal highs, which resulted in the withdrawal of their sale in St Austell town centre.

Britain uses more psychoactive substances than any other country in Europe and is at risk of being overwhelmed by the sheer scale of this problem. A countrywide ban as contemplated in the Psychoactive Substances Bill, is the right and sensible next step. 

The Bill will introduce a blanket ban on the production, supply, and possession with the intent to supply, and import and export, of psychoactive substances.   These measures mean that the availability of legal highs will be severely restricted; effectively the supply will be cut.

The Bill is not intended to criminalise those who use legal highs for recreation and therefore simple possession is not an offence under the Bill.  While civil and criminal sanctions are included in the Bill, they are aimed at the larger suppliers of legal highs.

The Bill seeks to shift the boundary between legal and illegal substances, and includes a list of a number of substances that will be explicitly exempted from the controls in the Bill.  These include alcohol, caffeine and nicotine.   The Bill also provides order-making powers for the Secretary of State to add substances to this list.  It is likely that the scope of this legislation will continue to evolve. 

The passage of the Bill has been accompanied by controversy, with the main counter argument being that use of legal highs will continue, but will be forced underground.  While I recognize that this is possible, I believe that the benefits of this Bill outweigh the costs. 

It cannot be right that chemical substances that mimic illegal drugs are readily available on our high streets, and I was therefore happy to support this Bill. 

My team and I are here to serve the whole constituency and seek to make a real difference to the lives of everyone who needs help and support in any way.

If there is any issue that we can help you with then please contact us on either 01726 829379 or on office@stevedouble.org.uk.  

Newspaper column 20 January 2016 - The Life Chances Strategy

Last week the Prime Minister gave a speech on the Government’s Life Chances Strategy.  He outlined the principles that will be used to drive more detailed policies that will be announced later this year.   I have heard him speak on this topic in the past and his words strike a chord with me every time I listen to them.

He began the speech by laying out what he called the two forms of 20^th century thinking;  “This fixation on welfare – the state writing a cheque to push people’s incomes just above the poverty line – this treated the symptoms, not the causes of poverty; and, over time, it trapped some people in dependency. 

“The second approach is the more free market one – the idea that a rising tide will lift all boats.  Both approaches had one thing in common. They focused on the economics, and ignored the social.  They missed that human dimension to poverty: the social causes, the reasons people can get stuck, and become isolated.”

I agree with this analysis and wholeheartedly support the One Nation thinking that means that the Conservative Government will tackle the causes of poverty, both economic and social. 

The Prime Minister continued; “Work is – and always will be – the best route out of poverty and with welfare reform, Universal Credit, tax cuts and the introduction of the National Living Wage, we are making sure that it always pays to work.  And we’ll continue to tackle the scourge of worklessness in Britain including by reforming the way we support people who fall ill, so that they can stay in work and aren’t just consigned to a life stuck on benefits.”

The strengthening economy is important, but will only go so far, it is the social issues that need to be addressed and social issues are harder to tackle than economic ones.   

The Prime Minister identified the four strands of social reform that the Government will be focusing on; “First, we must think much more radically about improving family life and the early years. Second, when we know the importance not just acquiring knowledge, but also developing character and resilience there can be no let-up in our mission to create an education system that is genuinely fit for the 21st century.

“Third, it’s now so clear that social connections and experiences are vitally important in helping people get on. And fourth, when we know that so many of those in poverty have specific, treatable problems such as alcoholism, drug addiction, poor mental health we’ve got to offer the right support, including to those in crisis.” 

I agree with all of the sentiments, indeed I campaigned on them myself.  I remain convinced that support for parents and children in their early years helps pave the way for a life out of poverty; that education supports this aim and that improving social connections will help our young people to realize their dreams.  And when people need help, they should get it, we should fight to ensure that issues like mental health and addiction no longer carry a stigma, but are treated in the same way as other health issues. 

I am delighted that the Prime Minister has clearly set out his determination to address these causes of poverty and I look forward to working with him to bringing about the changes we need.

Labour's amendment on the Housing Bill

I have been contacted by a number of people in relation to my decision to vote against a Labour amendment regarding rented accommodation.

Firstly, it goes without saying that everyone should be able to expect to live in a home that is safe and fit for purpose. But I strongly believe that the only thing the proposed amendment would have achieved is to hinder further investment in such properties and push up rents for tenants, which would have proved totally counter-productive.

It is also worth noting that local authorities, such as Cornwall Council, already have strong and effective powers to deal with poor quality accommodation and the Government have made it clear they expect them to use them.

Additionally, it has already been confirmed that the Government will carry out research to see what, if any, legislative changes and amendments for such requirements in the private rented sector should be introduced.

I think it is important to tackle an issue like this at its roots, which is why the recently announced package of measures to either radically transform or knock down some 100 housing estates across the country, replacing them with high-quality homes, is so important. On top of this, the Government have already pledged to build 1 million homes by 2020 and made funds available to take action against rogue landlords.

Far from wanting to keep people in homes that are not fit for purpose, I genuinely believe by taking this action, we can tackle the country’s housing problems, something I am very keen to see happen.  

Newspaper column 13 January 2016 - My position on the EU

Last week the Prime Minister updated Parliament on his latest discussions in the renegotiation of our relationship with the European Union.  He also announced that Cabinet Members and Government Ministers are free to campaign on either side of the debate in the EU In/Out Referendum.

It is now likely that this Referendum will be held during 2016, possibly in June or July.  This was one of the key commitments in the Conservative election manifesto and I am pleased that we are delivering on it so quickly.

A number of people have asked what my position is on the EU Referendum, and how I will be voting.  My position has remained unchanged since I embarked on the journey to become your MP in January 2013.  I believe our relationship with the EU is currently no longer working in Britain's best interests. The EU has become increasingly bureaucratic, undemocratic and institutionalised. So much is now driven by ideology that is inconsistent with UK values. If the choice were carry on as we currently are or leave, I would certainly vote to leave.

The Prime Minister is seeking to renegotiate a number of aspects of our relationship. These include; an opt-out from the “every closer union” objective, protection for the UK and other countries who remain outside of the Eurozone, and limits on the benefits paid to EU migrant workers who come to work in this country. 

Whilst I welcome these elements of the negotiations, I am disappointed that we are not asking for more. I would like to see a much more fundamental reform that re-establishes the sovereignty of our parliament over the EU Commission.

Clearly there are some benefits to belonging to the EU such as the Free Trade arrangements and access to European markets. Cornwall has also benefited from millions of pounds of EU support. However I believe we have now reached a point where the cost and negative impact of being in the EU outweigh the benefits. 

There will be risks in leaving but there are also risks in staying.  The future is uncertain and no one can predict what the EU will look like in 5 or 10 years time. The migrant crisis, slow growth and economic instability in the Eurozone, and ‎political changes in individual countries, together create a very real risk that remaining in could drag our country down.

The UK economy is stronger and growing faster than any other EU country; we are in a good position to continue to thrive outside of the EU.

I will wait until the Prime Minister's renegotiations are compete before coming to a decision on how I will vote, but I will need to see more fundamental reform than is currently under discussion before changing my position. Therefore it is likely that I will be voting to leave the EU in the Referendum.

It is important to remember that it is not what the politicians think that matters. This will be an opportunity for the people of this country to have their say on our future relationship with the EU for the first time in 40 years.  Your view and your vote will count.  

This is your chance to have your say - use it wisely.

Newspaper column 6 January 2016 - Looking forward into 2016

In my first column of 2016 I would like to take this opportunity to wish you all a healthy, prosperous and peaceful New Year.

We live in interesting times and as I look forward to the year ahead I thought it worth sharing my priorities and ambitions for the coming year as your MP.

Across Cornwall we will all watch with interest as the Devolution Deal for Cornwall moves into implementation.  With more powers devolved from Westminster, Cornwall Council faces a challenge to ensure that the right skills are in pace to deliver on these new powers.  As other powers are devolved to local councils it is important that the necessary structures are put in place to ensure that these councils have the capacity to deal with their new responsibilities and I will take an active role in ensuring this happens.

While Cornwall Airport Newquay had a fantastic 2015, the coming year is shaping up to be even more exciting.  At a recent Prime Minister’s Question Time I was able to ask the Prime Minister on the timing of the decision on the location of the UK Spaceport.  This process is likely to happen during 2016 and I am working hard at Westminster to lobby for Newquay to be granted this status.  I believe that Newquay remains the most obvious choice for the UK Spaceport. 

The decision over the third runway at Heathrow has again been delayed.  I will continue to press for this to go ahead so that Cornwall can once again have the vital air link to Heathrow. 

I will also be watching with interest as the Bloodhound Supersonic Car prepares to come to Newquay.  The Bloodhound team is very enthusiastic about the time they will be spending at Newquay testing the car in preparation for the world land speed record attempt in South Africa.  They are likely to be at Newquay Airport for at least a month and I encouraged them to make the car available to as many local people as possible during that time.  We do not yet know exactly when they will be coming but I know that the Airport team is already planning for their arrival.

I will also be continuing to press the Government to relax the restrictions of families being able to take their children on holiday during term times.

The coming year is likely to be an exciting year for the St Austell Bay Area; the Clay villages, Par and St Blazey, and St Austell Town.  Over 76 projects have been identified to move the area forward and these include the scheme at Higher Trewhiddle and the Carlyon Beach development. Work on the A30 link will continue and I will work push forward on each of these projects.

Once again I would like to wish you all a happy new year, let us make it a good one for St Austell and Newquay. My team and I are here to serve and support you in any way we can, so if you think we can help please get in touch: Tel. 01726 829379; email – office@stevedouble.org.uk