PARLIAMENTARY DEBATE
Universal Credit - 16 December 2024 (Commons/Commons Chamber)

We are committed to reviewing universal credit to ensure that it is doing the job that we need it to. We have started by announcing the fair repayment rate in the Budget, and we will keep Parliament updated.

Twenty-seven per cent of working-age people in Tipton, Wednesbury and Coseley rely on universal credit. I welcome the fair repayment rate announced in the Budget, but a major reason for benefit debt is the design flaw in universal credit, which means that claimants must wait five weeks for their first payment. Will the Minister confirm that the five-week wait will be considered in the review of universal credit?

I can assure my hon. Friend that advances of up to 100% of potential universal credit entitlements are available urgently during the first assessment period of a claim, but she is right to raise concerns about the five-week wait. I commend to her the excellent report on this subject published by the Work and Pensions Committee in the last Parliament. The point she has raised is definitely one that we need to consider.

Some of the farmers who work so hard to put food on our tables find it difficult to put food on the table themselves, and need additional Government support. That used to happen via tax credits, but the transition to universal credit has been hugely challenging for farmers, given the seasonal nature of their work. Will the Minister meet me to hear some of their concerns, so that we can incorporate those concerns into the Government’s review?

We are watching very carefully the progress of migration from tax credits to universal credit, which will be complete in the early part of next year, but I would be very happy to meet the hon. Lady and discuss some of the difficulties she is seeing.