(6 years ago)
Commons ChamberI thank my right hon. Friend. For a year from next July we will be having a trial period or test period, working with 10,000 claimants to see exactly the way in which it should be done—for example, should it be done for the most vulnerable groups or should it be done geographically?—and to make sure that we get it right. That is how we work: we make sure that it works; we do not just go forward with an idea—[Interruption.] There is chuntering from the Opposition Front Bench. We will work with claimants to make sure it works for them.
I thank the Secretary of State for advance sight of the statement. The work allowance boost that we are being told we should welcome only undoes or reverses half the cut that was made in 2015. It is like taking £100 away from somebody, giving them 50 quid back and saying, “You should be grateful that I’ve given you 50 quid back.” The reality is that people are still worse off. The benefit freeze is still in place.
The sanctions regime is also still in place. I am particularly concerned about the methods of communication for universal credit. I have seen a number of people who come to my surgeries with mental health problems particularly—they cannot open letters or deal with having to jump through the hoops that are put in their way—who are then sanctioned because they are literally unable to jump through those hoops. I hope that the Secretary of State will look at all these issues. She has mentioned communication methods, and I very much hope she will put that at the centre of the decision-making process for communication.
On the exact amount of money that has been allocated for universal credit, it seems to me that nothing has been done on the basis of how much people actually need to live on. If it had, there would not be a huge increase in the number of people going to food banks and there would not be the incredible number of sanctions that we see. Rather than the Treasury deciding how much money should go to universal credit and the Department for Work and Pensions then divvying it up, it would be better to make decisions on the basis of how much people need to live on and what amount of money would encourage people to get into work.
We need to ensure that people are not going to food banks, that families are not in poverty and that young people are not starving as a result of the Government’s policies.
As I said previously, when we came into office, we had to take an overview of Government spending, full stop. We were voted into office to get this country’s finances under control. One of the decisions that we had to make was on the size of the benefit bill because it had grown by 65% under the previous Labour Government. We took hold of that, and decisions were made across the board—I have never shied away from that. Again, in 2015, further decisions were made after a general election. The Opposition did not vote against the changes and cuts. Their Whips’ advice on that day was to abstain. Some broke ranks, but generally they did not.
Those changes are now coming through, but I said that I would go out, meet people, listen, learn and see what we could do and afford, and that is why an extra £4.5 billion has gone into universal credit. I look at what people are saying and why they have welcomed the increase. I reiterate that there are 3.4 million extra people in work and that we are targeting the money at the most vulnerable.
The hon. Lady is right about communication, which is key. That is why we will work with charities to get it right.
(6 years, 5 months ago)
Commons ChamberI thank the Secretary of State for advance sight of the statement. The NAO report was damning in its criticism of universal credit, and I am honestly surprised that anyone on the Government Benches could stand up and say they do not agree with it. This is what it does: it audits things. That is its role. I should not be surprised, though, because the Government have form. When the UN published its report on the rights of disabled people, a Minister stood up and said, “Problem? What problem? There’s no problem here”. They are trying to do exactly the same thing with this report.
The NAO in its report says it is not clear that universal credit will ever cost less to administer than the existing benefits system and that the Department will never be able to measure whether universal credit actually leads to 200,000 more people being in work.
Universal credit is pushing families into poverty and hardship. In addition to this report, the Joseph Rowntree Foundation report has damningly criticised the sanctions regime, setting out how dreadful it is for individuals. A Trussell Trust report refers to the number of people needing to visit food banks in the areas where universal credit has been rolled out. Universal credit will be rolled out in my constituency later this year, and I am worried for my constituents. I expect what many other Members have seen: a massive increase in the number of people who are facing financial hardship coming through my door. My office, in Scotland’s third city, already refers one person to a food bank every fortnight because of the actions of this Tory Government. The Government can no longer bury their head in the sand. They need to own up to these failings and make changes to improve the system.
We have said quite clearly that this report is out of date and does not take into account the significant changes that we have made. The changes in the Budget were worth about £1.5 billion and the ones that are coming in are worth several billion pounds, but the report does not take that into account. Genuine people who get support from work coaches are saying, “It has transformed our lives.” I invite the hon. Lady to visit a jobcentre and meet the coaches in her area to see how revolutionary this process is. If she does not agree, she knows as well as I do that her party has considerable powers in Scotland to change the welfare system. Should Scotland wish to do that it could, but it is not doing so.