Universal Credit

Debate between Iain Duncan Smith and Charlie Elphicke

Wednesday 9th July 2014 Commons Chamber

[Mr Duncan Smith]

The plan does include that. As the hon. Gentleman may or may not know, we are working on that to make sure it is deliverable, but the key is that we absolutely plan to do that.

[Charlie Elphicke (Dover) (Con)]

May I urge the Secretary of State to reject the representations of Labour Members? When it comes to universal credit, all they have done throughout is seek to promote welfare over work at every turn. What will be the savings to the Exchequer and the benefits to the UK when it has been fully rolled out?

[Mr Duncan Smith]

The NAO has come out with the figure of £35 billion, which I cited earlier, but the point is that I believe that universal credit is worth more than that. As well as the planning and implementation process, the work we are currently doing will also evaluate the net benefit to the Exchequer and taxpayers, which I believe will be even higher.

Oral Answers to Questions

Debate between Iain Duncan Smith and Charlie Elphicke

Monday 23rd June 2014 Commons Chamber

[Mr Duncan Smith]

Inequality is at its lowest since 1986. There are 500,000 fewer people in relative poverty than at the election; 300,000 fewer children in relative poverty than at the election; 200,000 fewer pensioners in relative poverty than at the election; and 450,000 fewer workless households than at the end of 2010. We have done more to help people who are hard up than the hon. Lady’s Government ever did.

[Charlie Elphicke (Dover) (Con)]

What impact has the Government’s long-term plan had on long-term unemployment, and what representations have the Government received on long-term unemployment from the Opposition?

Oral Answers to Questions

Debate between Iain Duncan Smith and Charlie Elphicke

Monday 31st March 2014 Commons Chamber

[Charlie Elphicke (Dover) (Con)]

In developing universal credit and its IT system, what lessons have the Government drawn from IT projects conducted by the previous Government?

[Mr Duncan Smith]

The reason why we are doing this in a way that tests it at each stage, so we make sure we have got it right before rolling it out and taking more numbers on board, is because we want to make sure that taxpayers’ money is protected through this process and that the system works. I recall, as I am sure my hon. Friend does, that when the Labour Government launched tax credits it was a total disaster; we had loads of people in our surgeries with real problems relating to payments. This Government will never revisit that, which is why I will never accept any advice from the lot who wasted billions on failed IT programmes.

amendment of the law

Debate between Iain Duncan Smith and Charlie Elphicke

Tuesday 25th March 2014 Commons Chamber

[Mr Duncan Smith]

Of course I want to see more people back in work, particularly young people, but the hon. Lady must remember that we inherited from the previous Government an economy that had hit the buffers, with young people cascading out of work in the two years running up to the election. Youth unemployment rose over their whole period in office, which suggests to me that their policies were hurting young people long before the recession. What we are doing is aimed at getting more people back into work. We have been successful in improving the situation, as the figures now are better than those we inherited—more people are in work, including more young people—but of course there is more to do, and it is this coalition Government who are doing it.

We are also introducing our other programmes, including the Work programme and universal credit, with the pathfinders moving into the north-west and eventually rolling out by 2016. We know that 90% of claims for jobseeker’s allowance and other benefits are already being made online, which is a huge change—only about 10% or 12% were made online before—that is improving speed and accuracy. Some 78% of claimants are confident about their ability to budget with monthly payments, as a result of the programmes we have run. Two thirds think that the universal credit process offers a much better work incentive than jobseeker’s allowance. Even in its early stages, universal credit is having a significant impact on people’s work prospects: claimants are likely to spend twice as long looking for work; two thirds agree that it is easier to understand their obligations; and 86%—rising to 90%—are confident of gaining a job within three months, which is a much higher rate than for jobseeker’s allowance.

These are dynamic changes that we are making, improving the path back to work, the incentives and the choices that people make. We are improving their work prospects and helping them into meaningful, long-term jobs. However, I gather from the Chief Secretary that the Treasury received a submission from the Opposition in the run-up to the Budget for an alternative to our programmes, which they call a jobs guarantee. I thought that we should look at that, just to examine whether it was worth embracing. I think it only fair that we tell the House whether or not it would work. Having looked at the proposal in a completely ambivalent manner, I have to say that it is confusing. The first submission said that it was a six-month programme for young people. The second submission said that it was a year-long programme. The third submission said that it was a two-year programme for the long-term unemployed. I gather that there is now some suggestion that it might be a six-month programme for everybody.

Apparently the jobs guarantee is now a flagship policy for the Opposition, but I understood that it would be funded for only one year. Now we hear that the same funding they announced for one year is meant to last all the way through a full Parliament. We asked the Treasury to do some formal costings for that, which I hope have been made available to the Opposition. They said that their scheme would cost only £1.9 billion in its first year and £0.9 billion thereafter, but the Treasury’s formal costings—[Interruption.] I know that Opposition Members do not want to listen, because the last thing they want to hear is how they would pay for it The Treasury, which is full of decent people doing a hard day’s work, has shown that there is a massive gap of £2.6 billion per year between what the Opposition say their jobs guarantee will cost and what we calculate it will cost.

Not only have the Opposition underestimated the costs by £0.6 billion in the programme’s first year, and £1.7 billion in future years, but they have no robust means of funding it. They say that they will fund it with a bankers’ bonus tax that will raise £2.3 billion, which is questionable, but I understand that they have spent that 10 times over. Let me list a few of the things they have committed to spend it on: reversing the VAT increase, which would cost £13.5 billion; more capital spending, which would cost £5.8 billion; reversing child benefit savings, which would cost £3.1 billion; reversing tax credit savings, which would cost £5.8 billion; and more housing, which would cost £1.2 billion. They have made £30 billion of spending commitments, apparently to be paid for by a tax that would save them £2.3 billion.

[Charlie Elphicke (Dover) (Con)]

Does my right hon. Friend agree that the lesson of Labour’s crash is that more spending, more borrowing, more debt and more taxes do not work? Does this not show that the Opposition have not worked that out, because they have spent their bankers’ bonus tax more times than the number of sides on the new £1 coin?

Oral Answers to Questions

Debate between Iain Duncan Smith and Charlie Elphicke

Monday 13th January 2014 Commons Chamber

[Mr Duncan Smith]

I made it clear in my previous answer that I will be coming forward with full details about that, including the number of people affected.

[Charlie Elphicke (Dover) (Con)]

I urge the Secretary of State to promote fairness for people on housing waiting lists, fairness for people in overcrowded accommodation, where children have to do their homework in the hallways, and fairness for hard-working people and their families when it comes to welfare tourism.

[Mr Duncan Smith]

That is exactly right. The reality that my hon. Friend has spotted is that the Opposition have voted against every single one of our welfare reforms. Not only would the welfare bill have been £45 billion higher under them, but more people would be out of work and they would have failed the British people.

Universal Credit

Debate between Iain Duncan Smith and Charlie Elphicke

Tuesday 10th December 2013 Commons Chamber

[Mr Duncan Smith]

Because back in 2011-12, as a result of that work, I decided there were problems in the way the system was being developed, so I intervened and brought in a group of people from outside to look at it. They agreed with me and we have since reset the programme. The truth is that Labour never did any of that when in government, and the right hon. Lady needs to ask herself, why not?

[Charlie Elphicke (Dover) (Con)]

I urge my right hon. Friend to reject the representations of Labour Members, who the whole House can see do not really believe in making work pay, and who long for universal credit to fail. Has he noticed that the write-offs are about one tenth of a per cent. of the £26 billion of taxpayers’ money wasted by the Opposition?

[Mr Duncan Smith]

My hon. Friend is right. Again and again what is going on is a kind of hypocrisy, with Labour Members somehow claiming that they did things properly. They never did; they lost billions and billions on programmes, whether in the Ministry of Defence or in my Department. We have been picking up the pieces and putting it right.

Welfare Benefits Up-rating Bill

Debate between Iain Duncan Smith and Charlie Elphicke

Tuesday 8th January 2013 Commons Chamber

[Mr Duncan Smith]

No. I have dealt with the hon. Gentleman’s point. The truth is that the Labour party is not only against the Bill but against what the Labour Government introduced just before the last election and the work capability assessment. Labour Members have opposed £80 billion of changes and reductions in every single vote and every single motion. I have dealt with his point. They must decide what they are in favour of when it comes to reducing the deficit; otherwise, they will be a laughing stock.

[Charlie Elphicke (Dover) (Con)]

Is not the bottom line that it is very difficult to justify 20% increases in benefits when earnings for hard-pressed families have gone up by only about 10%?

[Mr Duncan Smith]

It is worth pointing out to my hon. Friend that, when the Opposition originally heard about the Bill, the shadow Chancellor and my opposite number—the shadow Secretary of State—entertained the idea that what was wrong with the Bill was that it affected too many people who were in some kind of work through working tax credit. The speculation was that, somehow, they would be prepared to support, or not oppose, measures on those not receiving working tax credit. I notice that there is no mention of that position in the amendment, because they have been clobbered by their left and by the trade unions, their paymasters. Instead, there is a rag-bag amendment expressing opposition to a variety of things, which bears no relation to their previous position. There they go again, denying where they are.

The real question for the shadow Secretary of State and the shadow Chancellor, before they intervene again, is this: having opposed every single reduction to the deficit, what exactly would they do to cut it? They have not a single answer.

Universal Credit and Welfare Reform

Debate between Iain Duncan Smith and Charlie Elphicke

Tuesday 11th September 2012 Commons Chamber

[Mr Duncan Smith]

I will give way once more, and then I am done.

[Charlie Elphicke]

Does my right hon. Friend share my concern that much of the Opposition case is based on the idea that people are basically thick—too thick to use the internet, too thick to budget monthly and too thick to pay the rent? A cornerstone of universal credit is that we trust people and believe in them. We want to encourage people to work and to manage their own affairs.

[Mr Duncan Smith]

I understand what my hon. Friend says. He refers to the fact that people need to be helped—that they are often more intelligent than we give them credit for, but that they lack local knowledge and instruction. A legitimate concern of Members on both sides of the House is to protect those who are the most vulnerable. I will always assume their best intents. It is our job to ensure that we meet those concerns—that is my purpose and I intend to meet it. He is right that we should assume that people are intelligent enough, but that we have to get them to the point at which they use the system.

Oral Answers to Questions

Debate between Iain Duncan Smith and Charlie Elphicke

Monday 10th September 2012 Commons Chamber

[Mr Duncan Smith]

I do, yes. We want to pay people directly, and we already pay local housing allowance to such tenants directly, which the hon. Gentleman and all hon. Members should remember. The vast majority cope with that payment—they are very similar. The point is this: we do not intend to cause problems, but the more we continue to treat people in receipt of benefits like children, the less likely they will be able to cope when they go to work. Those who can absolutely must get on to that payment schedule, but we will obviously talk to all the bodies to which he referred to ensure that we identify those who cannot. If people cannot get on to that schedule, we want to surround them with help and support to find out why they cannot manage their payments, and to rectify that rather than just throw money at them.

[Charlie Elphicke (Dover) (Con)]

I thank the Minister for his assurances that the implementation of universal credit is on time. Will he confirm that it is on track to reduce child poverty by 350,000? As hon. Members will recall, child poverty rose sharply in the previous Parliament.

Living Standards

Debate between Iain Duncan Smith and Charlie Elphicke

Wednesday 30th November 2011 Commons Chamber

[Mr Duncan Smith]

The reality, as the OBR and the Institute for Fiscal Studies make very clear, is that you cannot borrow your way out of a debt crisis. I know that Opposition Members are indulging in voodoo economics—a fake religion—but almost every economist abroad and at home says that you cannot borrow your way out of a debt crisis.

[Charlie Elphicke]

I was just looking at Labour’s five points for growth, which would cost a lot, would require us to borrow from the markets, and would drive up mortgage rates for hard-pressed home owners. Would that not be irresponsible and reckless?

[Mr Duncan Smith]

The answer, very simply, is that, yes, it would be.

Yesterday, there was much jeering about the issue of Europe. The Opposition say one thing one day, move on and then say another. I remind the shadow Chancellor, who is not here today, of something he said in July:

“We need to face up to today’s problems. When you see Italian and Spanish bond spreads you can see the situation is incredibly dangerous”—

and that came from a man who yesterday said that we cannot blame anything on the European crisis. That is absurd, and the Opposition must get their act together over the reasons we are where we are.

Oral Answers to Questions

Debate between Iain Duncan Smith and Charlie Elphicke

Monday 13th June 2011 Commons Chamber

[Mr Duncan Smith]

If the hon. Gentleman looks at our consultation, he will see that our plan is to spread the money to ensure that parents who choose to work for any number of hours—not just 16 hours, but across the board—can go into work and get the necessary support. I therefore think that the answer to the question is yes, and we are also keen to support parents who work fewer hours.

[Charlie Elphicke (Dover) (Con)]

Will the Secretary of State tell the House what effect universal credit will have on child poverty and wider forms of poverty?

[Mr Duncan Smith]

We estimate that universal credit as a static system, not even taking into account any dynamic effect, will lift 900,000 people out of poverty, about 350,000 of whom will be children. It is worth remembering that under the present child care systems that people have spoken about, at least 100,000 people do not get the child care for which they are eligible. Under universal credit, the take-up will be higher, so it will have a better effect.

Welfare Reform Bill

Debate between Iain Duncan Smith and Charlie Elphicke

Wednesday 9th March 2011 Commons Chamber

[Mr Duncan Smith]

I understand the hon. Gentleman’s point and can, I hope, assure him that as the Bill progresses, and as he will see as we reach Committee, our objective is to recognise that unemployment, for those who fall unemployed, is probably a temporary condition. He will understand that point more as we get into the detail, but trying to find some way of protecting such people through that process is critical to us, as the vast majority will be back in work within a set period: 90% of people will be back in work within a year. Most people will get through that process, and it is for us to ensure that the transition is met and dealt with, but I think that he will be very happy in due course to hear what we propose.

[Charlie Elphicke (Dover) (Con)]

Will my right hon. Friend give way?

[Mr Duncan Smith]

I am going to make a little progress, because I am conscious that we have a limit. Mr Speaker is looking at me benignly, but he might not look so benignly shortly.

It is time for fundamental reform of the social fund, which is poorly targeted and open to abuse. Some 17,000 people have received 10 or more crisis loans in the past 12 months, and we have already taken steps to limit the number of crisis loans for living expenses to three in a 12-month period. Those are important steps, because the fund has been somewhat out of control and is complex. The Bill will then pave the way for local authorities in England to deliver a system of assistance that should replace the community care grants and some crisis loan provision. This is a complex area, and many will know more about it than I do, but the key point is that we are trying—

Welfare Reform

Debate between Iain Duncan Smith and Charlie Elphicke

Thursday 11th November 2010 Commons Chamber

[Mr Duncan Smith]

I am grateful for that question because it allows me to get rid of a slight misunderstanding. HMRC’s programme is about upgrading the whole of the PAYE system. What we are dealing with comes before that and we do not need all that. We need two important things. As employers collect and collate the information about circumstances anyway, they will download it to the Department each month, instead of waiting until the end of the year. We need two data streams, one sending data through, the other sending data across. That needs a software programme, but it is well below what is being done to PAYE. We will be able to do that on a real-time basis and it will happen before the PAYE changes.

[Charlie Elphicke (Dover) (Con)]

Child poverty rose by 300,000 in the dying years of the previous Government. Can the Secretary of State tell the House more about how his radical reforms will undo that damage and lift more children out of poverty?

[Mr Duncan Smith]

The last Government spent more than £35 billion on child poverty, and they are to be applauded for making some changes and lifting 100,000 children out of poverty. We should be conscious of that and I will not say anything other than that that was the right direction of travel. However, that was a lot of money to spend to get what was quite a narrow effect, and child poverty rose relatively speaking after 2004. The best approach, we think, is the universal credit, because take-up rates will improve, allowing families who do not know what they are eligible for to take the money. That will automatically improve the quality of life for those families and have a huge effect on child poverty.