PARLIAMENTARY DEBATE
Universal Credit - 16 October 2018 (Commons/Commons Chamber)
Debate Detail
The urgent question is: To ask the Secretary of State for Work and Pensions if she will make a statement on her Department’s proposed changes to the roll-out of universal credit.
I do not wish to be unhelpful. However, some of the matters to which the right hon. Gentleman may allude are the subject of speculation in the media. There has been a great deal of speculation about universal credit over the past few days, and I cannot and will not comment on speculation.
When it comes to the roll-out, we have long said that we will take a slow and measured approach to managing migration, which is why we will continue to take a test-and-learn approach, acting on feedback and improving the system as it rolls out.
Universal credit will be in every jobcentre in the country by December 2018. People making new claims to our benefits system now apply for universal credit, rather than being put on the old system. Next year, we will start the wider process of moving people from the old benefits system on to universal credit. The process will begin later next year in a measured way, with no more than 10,000 people moved over, to ensure that the system is working well for claimants and to make any necessary adaptations as we go.
We have said for a long time that the managed migration process will take place from 2019 to 2023.
Will the Government commit themselves to ensuring that everybody who is transferred from the existing benefits on to universal credit is not made worse off, does not lack income and does not face hunger or destitution? First, to that end, will the Minister guarantee that existing benefit payments will continue to claimants until they pick up universal credit?
Secondly, on debt recovery, a welcome rumour has been given to the papers of a reduction in clawback from 40% to 30%, but that is only on the advance people might receive to prevent hunger and destitution; it does not cover all other debts. People can still be left with no money. Will the Minister guarantee to the House that nobody will face a situation where their debt repayments cancel out their benefit payments?
Thirdly, will the Minister implement the Select Committee’s recommendations to ensure that those brave people who have chosen self-employment to try to free themselves from poverty are encouraged, not discouraged?
Fourthly, for mothers already on universal credit who find work, will he guarantee that their childcare payments will be made up front, and not a month in arrears?
Fifthly, given that this benefit is designed for people on monthly payments and not for poorer working people who get their income on a daily or weekly basis, will the Minister wish me luck when I meet the Secretary of State this afternoon to discuss our need for a citizens bank, which will help people manage their money, once all those reforms are in place, and ensure that none of them faces hunger, destitution or losing their home?
Yesterday, the Secretary of State met criticism of UC with accusations of scaremongering. So can the Minister tell us: are Citizens Advice, the Child Poverty Action Group, the National Association of Welfare Rights Advisers, the Residential Landlords Association, the National Housing Federation, the Resolution Foundation, the National Audit Office, two former Prime Ministers and more than 80 organisations representing disabled people scaremongering? From these Benches, we again call on the Government to stop the roll-out of UC now.
When it comes to hardship, as I just said we introduced an extra £1.5 billion, but the hon. Lady did not vote for or support that. When it comes to protecting people, I have already made it clear that we will have transitional protection and that there will be protection for the half a million people on severe disability premium. I do not know what the hon. Lady wants, but if she wants to go back to the legacy benefit system, she should know that 700,000 people in this country are not getting the benefits that they require. That is £2.4 billion of underpayment and that will change under universal credit. Finally, the hon. Lady talks about Citizens Advice; I hope that she will welcome the partnership we recently announced with Citizens Advice to help the very vulnerable.
In spite of what the Minister has just said, which I think was a return to the flat-earth rhetoric referred to by the BBC’s Michael Buchanan, it appears that the Secretary of State is finally starting to recognise what her predecessors failed to recognise: the fundamental problems with universal credit. Of course, just delaying the process, or reducing the clawback rate, as has been rumoured, will not fix the misery that is being faced in areas where universal credit has already been rolled out, such as Airdrie and Shotts, or in those areas progressing to roll out, such as Glasgow, Edinburgh and Aberdeen.
Yesterday, the Secretary of State hinted to me that she has made requests of the Chancellor for additional funding in the upcoming Budget. In that regard, the Chancellor should really be sitting with the Minister, listening to proceedings on how to make universal credit work. It appears that moves are afoot to change universal credit. If the Minister will not comment on rumours, why will he not be straight with the House now and tell us what the plans are? Does he not agree with the many concerned expert groups listed by the shadow Secretary of State that have called for a halt to the roll-out, dramatic and fundamental intervention in the Budget and a full review of universal credit thereafter?
“The five-week wait has no savings implications for the Exchequer.”—[Official Report, 15 October 2018; Vol. 647, c. 395.]
Will he therefore now scrap it?
The Minister’s tone this afternoon is very abrasive, and he does not seem to be listening to genuine concerns from Members on both sides of the House. We understand that the Government may want to save some announcements for the upcoming Budget, but I would have thought that the extent of concern about universal credit from across the country would have led him to make some solid announcements before then so that we can reassure our constituents.
“will never be able to measure”
whether they have achieved that goal. What went wrong and who has taken responsibility for this failure?
“will make matters much worse, especially for those living with mental ill health.”
Given the stress, uncertainty and poverty caused by universal credit, is it not time to scrap the roll-out?
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