Oral Answers to Questions

Debate between Iain Duncan Smith and Chi Onwurah

Monday 1st February 2016 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

9. What assessment he has made of the effect on the income of working households of changes to the universal credit work allowance.

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

The changes to universal credit work allowances form part of a broader package of measures, including the introduction of the new national living wage, the increase in the personal tax allowance and the enhanced package of childcare support. Importantly, the single taper rate of 65% ensures that the benefits of work are clear and that support is withdrawn at a predictable and consistent rate, unlike under the existing tax credits arrangement.

[Chi Onwurah]

The Government were forced into a climbdown over tax credit cuts, but it was only a temporary reprieve, because cuts to the working allowance mean that 2.5 million families will be £1,600 per year worse off by 2020. How can the Secretary of State say that he is making work pay, when low-paid working families are paying the price for his cuts?

[Mr Duncan Smith]

I disagree with the hon. Lady. An independent study has already shown that with universal credit people get into work faster, stay in work longer and progress faster in earnings. She cannot take this in isolation, however; it is worth remembering that the national minimum wage is rising to some £9, and that under universal credit women will get 85% of their childcare costs, instead of 70%. There will be free childcare for poorer people with two-year-olds, and childcare support for people with three and four-year-olds. The total package is hugely beneficial to people who want to work, which is why, as we get more people back to work, our record will only improve. That compares with the last Government’s shocking record: one in five households with nobody in work.

Oral Answers to Questions

Debate between Iain Duncan Smith and Chi Onwurah

Monday 7th September 2015 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

This Government oblige jobseekers to search online without giving them the skills or resources to do so. Despite my many questions, the Minister has refused to tell me how many claimants have been sanctioned because they cannot get online. Will the Minister tell me or promise to find out?

[Mr Duncan Smith]

Nobody should be sanctioned because they cannot get online. If the hon. Lady has any examples of that, we would be very happy to take them up. There are online opportunities in libraries and jobcentres, and everything else. If she wants to write to us about it, I would be very happy to deal with it.