Universal Credit

Lord Field of Birkenhead Excerpts

Tuesday 16th October 2018 Commons Chamber

[Frank Field (Birkenhead) (Ind)]

(Urgent Question): We hope the length of time it took the Minister to get to his place is reflected in the roll-out of universal credit.

[Mr Speaker]

I am extremely grateful to the right hon. Gentleman but, at this stage, all he needs to do is to ask that the Minister makes a statement. The right hon. Gentleman will get his full opportunity ere long.

[Frank Field]

I always make that mistake. I apologise, Mr Speaker.

[Mr Speaker]

A thought for these new young Members. It is very difficult for the right hon. Gentleman but, in due course, when he is a bit more experienced—

[Frank Field]

I am just starting my career as an independent, but you are right, Mr Speaker.

The urgent question is: To ask the Secretary of State for Work and Pensions if she will make a statement on her Department’s proposed changes to the roll-out of universal credit.

[The Minister for Employment (Alok Sharma)]

I note the precise wording of the urgent question. I have a great deal of respect for the right hon. Gentleman, who cares deeply about welfare matters and is an excellent Chair of the Select Committee on Work and Pensions. He, his Committee and the whole House have a right to hold the Government to account, and that includes the Department for Work and Pensions.

I do not wish to be unhelpful. However, some of the matters to which the right hon. Gentleman may allude are the subject of speculation in the media. There has been a great deal of speculation about universal credit over the past few days, and I cannot and will not comment on speculation.

When it comes to the roll-out, we have long said that we will take a slow and measured approach to managing migration, which is why we will continue to take a test-and-learn approach, acting on feedback and improving the system as it rolls out.

Universal credit will be in every jobcentre in the country by December 2018. People making new claims to our benefits system now apply for universal credit, rather than being put on the old system. Next year, we will start the wider process of moving people from the old benefits system on to universal credit. The process will begin later next year in a measured way, with no more than 10,000 people moved over, to ensure that the system is working well for claimants and to make any necessary adaptations as we go.

We have said for a long time that the managed migration process will take place from 2019 to 2023.

[Frank Field]

I think I am grateful for that answer. I will be more grateful if we get answers to my five questions, which I will put in the two minutes I am allowed.

Will the Government commit themselves to ensuring that everybody who is transferred from the existing benefits on to universal credit is not made worse off, does not lack income and does not face hunger or destitution? First, to that end, will the Minister guarantee that existing benefit payments will continue to claimants until they pick up universal credit?

Secondly, on debt recovery, a welcome rumour has been given to the papers of a reduction in clawback from 40% to 30%, but that is only on the advance people might receive to prevent hunger and destitution; it does not cover all other debts. People can still be left with no money. Will the Minister guarantee to the House that nobody will face a situation where their debt repayments cancel out their benefit payments?

Thirdly, will the Minister implement the Select Committee’s recommendations to ensure that those brave people who have chosen self-employment to try to free themselves from poverty are encouraged, not discouraged?

Fourthly, for mothers already on universal credit who find work, will he guarantee that their childcare payments will be made up front, and not a month in arrears?

Fifthly, given that this benefit is designed for people on monthly payments and not for poorer working people who get their income on a daily or weekly basis, will the Minister wish me luck when I meet the Secretary of State this afternoon to discuss our need for a citizens bank, which will help people manage their money, once all those reforms are in place, and ensure that none of them faces hunger, destitution or losing their home?

[Alok Sharma]

I thank the right hon. Gentleman for his comments, and perhaps I may go through them in turn. He raised the overall issue of managed migration. As he knows, we have made our draft proposals available to the Social Security Advisory Committee; they have been public and people can see them. We have received recommendations from the SSAC and in due course we will publish our feedback on those. As for ensuring the position of anyone currently on benefits when they are transferred across, we have made it very clear that transitional protection is in place for those individuals. We have also said that the 500,000 people on severe disability premium will be protected. As he knows, earlier this year we also implemented £1.5 billion of extra support. I say not in anger but in sorrow that Opposition Members did not support those proposals, and I hope that when it comes to managed migration, they will. On debt recovery, he talked about a “rumour” and I am not going to comment on rumours, but, as he knows, maximum deductions are currently 40% of the standard allowance. On self-employment, we are indeed helping people; as he knows, from 2017 we introduced a new enterprise allowance, and we are making sure that we are giving support to people to help them to develop their business plans and to grow their businesses—as a party that is the champion of entrepreneurs, that is absolutely the right thing for us to do. He will of course know that up to 85% of childcare costs are recoverable under universal credit, and that is an important improvement that has been made. I am sure that he will find his meeting with the Secretary of State extremely useful.

--- Later in debate ---

[Alok Sharma]

As the hon. Gentleman will know, it is possible to phone jobcentres, and in cases where people are vulnerable, it is also possible for home visits to be made.

[Frank Field]

May I thank you for granting this urgent question, Mr Speaker? Huge numbers of people will know after our proceedings that they have not been deserted by their MPs. Thank you very much.

[Mr Speaker]

Well, it is a pleasure. My job is simply to facilitate the House in discussing in this place what people are discussing in the Dog and Duck, around the dinner table and in the workplace.

[Frank Field]

And in the DWP.

[Mr Speaker]

And in the Department for Work and Pensions, as the right hon. Gentleman pertinently observes. I am very grateful to him for what he has just said.