Universal Credit

Debate between Baroness Donaghy and Baroness Buscombe

Monday 5th November 2018 Lords Chamber

[Baroness Buscombe]

My noble friend is absolutely right. The measures in relation to work allowance will make an enormous difference to families. The measure directs additional support in a package worth £1.7 billion across Britain, to some of the most vulnerable, low-paid working families. If a single claimant has responsibility for a child or qualifying young person, or has limited capability, they currently receive a work allowance of £198 per month and those with housing costs £409. With universal credit, raising the current work allowances will mean direct additional funding to working families with children, and working disabled people, by allowing them to keep more of their earnings before the taper rate is applied.

[Baroness Donaghy (Lab)]

My Lords, the Minister will not be surprised if I focus on the self-employed. The Social Security Advisory Committee has acknowledged that the main concern about the self-employed was not the grace period, though it acknowledged that a small extension is welcome, but the principle of the minimum income floor itself. Organisation after organisation submitted evidence to the committee to say that this would not work. The committee requested that,

“the Department should undertake a robust evaluation of the policy and its operation ... It is important to determine whether it operates equitably, what effect it has on the self-employed themselves, and what effect it is having on start-ups generally”,

and that,

“evaluation should extend to the related tests of ‘gainful self-employment’ which underpin the way in which the Minimum Income Floor operates”.

There is a fundamental flaw in the way that that has been structured. Can the Minister give some assurance that there will be such a robust evaluation of the policy?

[Baroness Buscombe]

My Lords, in all that we are doing with universal credit we constantly question and consider issues of substantive policy, because we want to make sure that the system works for the long term. The Government want to support people to be self-employed but it is right for them to be financially self-sufficient. Key to this is continuing to support people in, or considering, self-employment to progress to a level of sustained financial self-sufficiency. We recognise that it takes time for new businesses to grow and that even established businesses can experience difficulties. We will therefore provide all gainfully self-employed claimants with an equal chance and support from specially trained work coaches to grow their earnings, and to prepare and adjust for the application of the minimum income floor. We were going to move the minimum income floor to six months after migration, but have decided to introduce a grace period of 12 months.

Improving Lives: The Future of Work, Health and Disability

Debate between Baroness Donaghy and Baroness Buscombe

Thursday 30th November 2017 Lords Chamber

[Baroness Buscombe]

I thank my noble friend for her question. The reality is that is why we are very pleased with the recommendations of the Stevenson/Farmer review. My noble friend is absolutely right that we have to encourage employers, large and small, to understand that what might superficially appear to be a lesser disability—or a more severe disability—should not enter the decision in terms of taking somebody on board. The reality is that we need to do more to work with people in occupational health and to find different ways to encourage employers to support those with disabilities. Also, one of the things we are very keen on is working with the third sector and charities—for example, the Samaritans, which is particularly close to my heart—to act as a backstop and support to employers so that employers can feel more confident about taking people with disabilities on board.

[Baroness Donaghy (Lab)]

My Lords, I support everything that my noble friend Lady Sherlock said. She mentioned that the Government have not done a cumulative impact assessment on the social security cuts, but the Equality and Human Rights Commission has. It says that, since 2010, households with a disabled adult and disabled child have lost over £5,500 pounds per year on average. How does the Government’s new strategy address these losses?

[Baroness Buscombe]

My Lords, I have to say that we do not recognise the findings of the EHRC, because the analysis does not provide a full picture; it looks only at a particular subset of disabled people and does not include analysis on changes beyond tax and welfare. It will, therefore, present a skewed picture.