Universal Credit

Baroness Eaton Excerpts

Wednesday 21st December 2016 Lords Chamber

[Baroness Eaton (Con)]

My Lords, I join other colleagues in thanking my noble friend Lord Farmer for providing the opportunity for this debate, and I congratulate the noble Lord, Lord Macpherson of Earl’s Court, on his excellent contribution to our debate this afternoon.

The fact that there are so many speakers for a debate which is last business before the Christmas Recess is a clear indication of the interest members have in UC and the very high regard they have for the Minister. When my noble friend Lord Freud began his work on universal credit, I am sure he had clear in his mind the end product. I am sure he did not envisage the very difficult, challenging and sometimes painful path he would need to take to achieve the positive position we are in today. I know all Members of the House hold him in high esteem, not only for his clear far-sightedness but also for the gracious and patient way he has dealt with the barrage of questions, and sometimes even open hostility, he has received from some quarters.

We have heard from some Members of the remaining challenges that we face with UC. As the 16th speaker in the debate, I know that much detail has already been given and comments made, so I will not hold the House up by adding and repeating things. However, I would like to say that I was brought up in a household that believed very strongly in a work ethic, equally strongly in supporting those who suffer disadvantage, for whatever reason, and in the value of the welfare state as a safety net. The previous welfare system did not encourage a work ethic and did not work efficiently or effectively as a safety net.

One of the many aspects of the old system that I thought was dreadful was the fact that savings had to be run down fast if benefit was to be paid in full, as the system assumed that a ludicrous rate of interest was being paid on them. The system encouraged fraud. On some calculations, 200,000 more people were claiming tax credits as lone parents than actually existed. One of the groups most hit was childless adults under the age of 25, who were not entitled to working tax credits. NEETs aged 16 to 25 were included in this group. In my previous roles in local government, I worked with others on the plight of NEETs. The welfare system did little to help this vulnerable group.

Universal credit is revolutionising the welfare system by making work pay. It is already transforming lives, with those on universal credit moving into work significantly faster and working longer than under the old system. For the first time we are not only helping people into work but helping people while at work with personalised support. My noble friend Lord Freud believes passionately in this reform, into which he has personally invested much time and effort. We all owe him a debt of gratitude and wish him a relaxing and very fulfilling future.