Universal Credit

Lord Shinkwin Excerpts

Monday 5th November 2018 Lords Chamber

[Baroness Buscombe]

My Lords, in all that we are doing with universal credit we constantly question and consider issues of substantive policy, because we want to make sure that the system works for the long term. The Government want to support people to be self-employed but it is right for them to be financially self-sufficient. Key to this is continuing to support people in, or considering, self-employment to progress to a level of sustained financial self-sufficiency. We recognise that it takes time for new businesses to grow and that even established businesses can experience difficulties. We will therefore provide all gainfully self-employed claimants with an equal chance and support from specially trained work coaches to grow their earnings, and to prepare and adjust for the application of the minimum income floor. We were going to move the minimum income floor to six months after migration, but have decided to introduce a grace period of 12 months.

[Lord Shinkwin (Con)]

My Lords, my noble friend mentioned the severe disability premium and the serious implications of not getting these regulations through. Will she confirm that these regulations support the most vulnerable claimants moving to universal credit and that, moreover, voting against them would deprive 500,000 claimants of that premium?

[Baroness Buscombe]

My noble friend is entirely right. I could not put it better myself. We have to make sure that we get these regulations through. If we do not, that support for half a million vulnerable people will be lost. The regulations provide transitional support for recipients of the severe disability premium while removing the complexity of dealing with different rules for seven different disability additions. We want to make sure that we take special care of those people when migrating them on to UC. As the CEO of Citizens Advice, Gillian Guy, said,

“improved protection for people who receive the Severe Disability Premium is a welcome move that will mean better financial security for many disabled people who move onto Universal Credit”.

We must have these regulations.