Universal Credit
Michael Tomlinson Excerpts(8 years, 3 months ago)
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Mr Gauke
I saw that report on “Money Box”. It was confused and misleading in its alarmist tone. It was inaccurate in the numbers it was using. The principle of UC is that if someone earns more, they get less UC, whereas if they earn less, they get more UC. That is the principle that applies and it should not be shocking to anybody.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
I warmly welcome the Secretary of State’s statement, and I thank him and the Minister for Employment for their hard work and for this additional support to the most vulnerable in society. Can the Secretary of State confirm that the housing benefit payments will not be repayable and that that again will help the most vulnerable as they make the transition on to UC?
Universal Credit Roll-out
Michael Tomlinson Excerpts(8 years, 3 months ago)
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Michael Tomlinson (Mid Dorset and North Poole) (Con)
I am grateful to be called so early in this debate. It is a pleasure to speak on this important matter. I pay tribute to my hon. Friend the Member for Banff and Buchan (David Duguid) for his maiden speech. I agree with what the hon. Member for Croydon North (Mr Reed) said about the speech, save in one respect: my hon. Friend gave the confident speech of a young professional. He paid generous tribute to his predecessor. I particularly appreciated his comments on broadband, and I look forward to campaigning alongside him to ensure that all of our rural areas have adequate access to broadband. I look forward to his further contributions in this place.
I am pleased that this is the third or fourth such debate that we have had in the past month, because it gives me the opportunity to reiterate my strong support for universal credit. Like most people on both sides of the House, I am firmly of the view that work should always pay. That is the principle that underlines universal credit. Government Members are passionate about ensuring that more people get into work, that they are supported into work and that, once they are there, they get on and get ever more work both in terms of hours and quality.
Peter Kyle
Does the hon. Gentleman remember the early days of when universal credit was first mooted? At that time, the Labour party was supportive of the concept, but said that universal credit needed to be rolled out over a period longer than one Parliament, and that much more detailed piloting would be needed to get the system right. Those are the things that have gone wrong, and they are inflicting misery on our constituents.
Michael Tomlinson
I will come back to the Labour party’s record on rolling out benefits in due course, but the hon. Gentleman makes an important point. I wish that Labour Members would speak up more loudly with their support for the principle behind universal credit, because at the moment it sounds like they are calling for not a delay or a pause, but a scrap. The Labour party has opposed every single benefit change that this Government have brought into effect, and the cost of its position would have been tens of billions of pounds. However, this is not about the money. More importantly, it is about the people, and universal credit is about encouraging people into work.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
I am really pleased to hear that the hon. Gentleman is supporting universal credit, although he failed to vote in favour of it the other week. Would he also support a renewed project to study how universal credit supports people to get into work? The Department for Work and Pensions has delayed and denied an opportunity to review the original study to prove whether universal credit is still working, because lots of people expect that it is not.
Michael Tomlinson
Perhaps the Minister will respond to the hon. Gentleman’s point in due course.
I chair the all-party group on youth employment, so I want to use any mechanism available to encourage young people—everyone, in fact—to get into work. [Interruption.] Perhaps the hon. Member for Bermondsey and Old Southwark (Neil Coyle) could listen to my response, rather than just shaking his head and taking part in exchanges across the Chamber.
Neil Coyle
The Minister is chuntering, so I cannot hear the hon. Gentleman.
Michael Tomlinson
Forgive me; I will speak up. If the hon. Gentleman stops talking, however, he might be able to hear a little more easily. He is more than welcome to come along to the meetings of the all-party group. We met yesterday, which was the date on which the latest Office for National Statistics employment figures came out. We track those figures each month. It was pleasing to see that there are still record numbers for youth employment and record lows of young people who are out of work. The youth unemployment rate of 11.9% is in touching distance of the lowest ever figure on comparable records, and it is almost half the youth unemployment rate of over 22% in 2011, which followed the disastrous Labour Government.
Rachel Maclean (Redditch) (Con)
Recent forecasts show that universal credit will create 400 jobs in every constituency across the country. Does my hon. Friend welcome that, as I do, given the great work that he is doing?
Michael Tomlinson
I warmly welcome it. I look forward to the time when we look back and say that universal credit has been a success. Now, do not get me wrong. We are not trying to pretend that all is rosy and that there are no errors—quite the opposite. Government Members, as much as Opposition Members—well, certainly Government Members—want to ensure that universal credit works. I encourage the Minister, who will listen as I am sure he always does, to ensure that he is testing and learning, and that we are constantly improving the system.
I support any principle that encourages more people into work. In response to the intervention made by the hon. Member for Hove (Peter Kyle), I threatened to speak about the Labour party’s record. The hon. Gentleman is just about to leave the Chamber, but it does not matter, as he can read this in Hansard tomorrow—[Interruption.] Ah, he has sat down. When the Labour party was in power, a member of my community told me that he had chosen not to take a job because it would not have been worth his while, due to the risk to his benefits and, therefore, to him. I do not blame him. He made a perfectly calculated, sensible and rational decision, but he chose not to take a job because of the Labour Government’s policy.
Kate Green (Stretford and Urmston) (Lab)
If work incentives were so poor under Labour, perhaps the hon. Gentleman will explain why lone parent employment increased from 44% in 1994 to 57% when we left office.
Michael Tomlinson
The hon. Lady intervened on me during our last debate on this subject. It is always a pleasure to lock horns with her in a constructive fashion. The last time she challenged me, she said, “How about those young people in poverty?” I did not have the figures on poverty to hand at the time but, if the hon. Lady looks at them, she will see that there are 600,000 fewer people—I will check that figure—in absolute poverty this year. Under the old system, for the constituent I mentioned, it did not pay for him to go to work. Under universal credit, the principle should be that work always pays.
Michael Tomlinson
In one moment.
We remember the fiasco of tax credits, with £7.3 billion of overpayments, and we remember the misery that was caused. The hon. Member for Hove referred to the speed with which universal credit has been rolled out. Actually, the lesson to be learned is not to roll out a scheme in a big-bang fashion, as happened with tax credits, when £2.7 billion then had to be clawed back from the poorest and most vulnerable in society. I was a new Member of Parliament in 2015, when people were still feeling the repercussions of that old system.
Michael Tomlinson
I will not. I only have a minute and a half left, and I do not get any more time.
The right hon. Member for Birkenhead (Frank Field) referred to two-weekly payments. Will the Minister tell us the number of people in employment who actually receive such payments? My suspicion is that it is a very low proportion, but I want the Minister to tackle that point directly, as he was asked the question by the right hon. Gentleman. In particular, I want the Minister to continue to listen and learn, and to ensure that it always pays to be in work rather than on benefits.
Several hon. Members rose—
Rachel Maclean (Redditch) (Con)
It is a pleasure to follow many colleagues, including my hon. Friend the Member for Banff and Buchan (David Duguid).
Michael Tomlinson
My hon. Friend has said that it is a pleasure to follow so many speeches, but does she agree that the speech she is following got it completely wrong, in tone and manner? There are hon. Members on both sides who want to make this work.
Rachel Maclean
I thank my hon. Friend for his intervention. I know the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), and I can assure him that nobody on the Government Benches was laughing at his comment yesterday. Unfortunately, I could not take up his kind offer to go to Inverness—I am sure it is a wonderful place—because I was busy in Redditch doing exactly what he said: meeting the housing providers and agencies there to make sure that the roll-out was going well.
Universal credit is designed to be an agile system. I used to work in software development, so I understand what that means in terms of designing a very complicated system that deals with individuals and their unique and different circumstances. Opposition Members have called on the Government to pause the roll-out, but that would not fix the problems they have rightly identified. The Minister has recognised the problems in the system, and we all want to work together to fix them, but the nature of an agile system is that it changes all the time in response to people using it. That is how we learn and improve the system.
We have already seen evidence of that. The Prime Minister highlighted an example yesterday when she said that the number of people in arrears on universal credit had gone down significantly—by a third, I think—in the past four months. That is evidence that the system is improving as it is being rolled out. It is a very slow-roll-out—it is taking nine years altogether—but I think that, just as we recognise the seriousness of issues that have been rightly highlighted in the Chamber in, I hope, a serious fashion, we should also recognise the real work that the Government have already done and the real progress that they have already made in addressing some of those serious issues. I hope that that work and progress will continue.
Some Members have used an extremely critical tone, and I think that that is wrong. This is a serious debate, and we are here because we care about our constituents. I am a very privileged person, and I am the first to say so. I have never had to rely on benefits, and I am sure that some Opposition Members have not had to do so either. That, however, does not preclude any us from feeling compassion for and empathising with people who are in that position. That is why I have visited my local jobcentre and spent a long time discussing the issue with social landlords, people who work in debt counselling, and the jobcentre staff themselves.
I do not recognise the stories that I have heard about jobcentres. I heard at first hand from the jobcentre staff about how hard they were working to support the most vulnerable customers through their journeys, and they are proud to do that. Their policy is to make advance payments by default, rather than forcing people to ask for them. They are working hard on an individual basis, providing a tailored package of support for every single claimant in the constituency.
Universal Credit Roll-out
Michael Tomlinson Excerpts(8 years, 4 months ago)
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Michael Tomlinson (Mid Dorset and North Poole) (Con)
It is a pleasure to have the opportunity to set out my clear support for universal credit and its principal aim of ensuring that work always pays.
Several hon. Members rose—
Michael Tomlinson
I will give way in a few moments.
I support universal credit, which simplifies what was an over-complex and bureaucratic system. Like my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie), I am disappointed by some of the tone of the debate both today and last week. Today, we have heard accusations of knowingly pushing people into poverty; last week, we heard the comment that the Conservative party is undertaking “calculated cruelty.” When I raised that point, there were cries of “Oh, yes it is!” from the Opposition. What a ridiculous assertion. What utter nonsense.
A person does not have to be best friends with Opposition Members to know that, as my hon. Friend the Member for Eastleigh (Mims Davies) said, no party has a monopoly on compassion. No party has a monopoly on care or concern for the most vulnerable. I know many Conservative Members, just as there are in each and every political party, who were driven into politics by their concern for the most vulnerable in our society. Let us not have any more nonsense about calculated cruelty.
Where there is a difference is on policy. This debate is on the Government’s response to last week’s debate. What is their response, and what should it be? Mr Speaker, you rightly said in response to a point of order that
“this motion does matter; it is important; it was passed. As a matter of fact, however, it is not binding. That is the situation.”—[Official Report, 18 October 2017; Vol. 629, c. 959.]
So what should be the Government’s response? Let us consider the substance. Conservative Members want universal credit to succeed, but heaving heard the debate both today and last week, I fear there are Opposition Members who do not want it to succeed.
Kate Green
The hon. Gentleman and I have previously been Committee colleagues, and I have a lot of respect for the way he approaches such matters. When the Government first proposed universal credit in 2011, they said it would lift 900,000 people out of poverty, including 350,000 children. That laudable aim should be welcomed on both sides of the House. What is the Government’s ambition today for the number of people they expect to lift out of poverty?
Michael Tomlinson
I, too, enjoyed working with the hon. Lady in a cross-party spirit on the European Scrutiny Committee in the last Parliament, and I look forward to doing so again. I have been told—I hope the Minister is able to confirm this—that 250,000 additional people will be helped into work as a result of this policy.
Michael Tomlinson
No, I will not.
The Government’s response should be to ensure that universal credit succeeds and has the transformative potential to get people into work and to ensure that they stay in work. The Government should continue to test, to learn and to rectify during the gradual roll-out.
Richard Graham (Gloucester) (Con)
Does my hon. Friend agree there are three things that the Government could recommend? First, Jobcentre Plus offices should brief all local councils on what universal credit is about and how it is being rolled out. Secondly, jobcentres should be encouraged to have credit union literature to help people avoid getting into loan sharks and debt problems. Thirdly, the Government should work closely with the largest housing associations, such as Bromford, to establish best practice between housing associations and jobcentres.
Michael Tomlinson
I would encompass those questions in one by saying that better communication is needed. Each of us, as a Member of Parliament, bears a responsibility for that communication, too. Having heard the responses, we should pass them on to our constituents in good faith and in good time.
Michael Tomlinson
No, I will not.
The Government should be listening, and they have listened on telephone numbers. It was implied last week that it was a premium-rate number and that all telephone calls cost 55p a minute, which is absolute rubbish, but I am pleased that the Government have listened and, in fact, have gone further by indicating that all telephone calls to the Department for Work and Pensions will now be free. I welcome that development.
The Government should not listen to those who want this policy to fail. The system is not perfect, and the Government are right to listen and to learn from their mistakes, but it is not cruel to encourage people into work. It is not cruel to support people while they are in work, to remove barriers to people increasing their hours or to remove disincentives for people getting into work. Arguably, the cruelty was in the old system. People were penalised if they wanted to take on more hours, which left them trapped on benefits, rather than enabled to reach their full potential.
Universal Credit Roll-out
Michael Tomlinson Excerpts(8 years, 4 months ago)
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Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)
I rise to support my right hon. Friend the Secretary of State, who I thought made an excellent speech. I congratulate him on the courage and the spirit in which he produced his commentary against quite a lot of what is really scaremongering about the way in which the system has been designed.
First and foremost, the point I would make about universal credit is that it was designed to simplify the system, as well as to get more people into work. The second but very important element is that universal credit is about dealing with the very great difficulties of identifying those people—the minority, admittedly—who need universal support and then, with councils, providing them with help on debt counselling and getting them into the banking system in order, basically, to get them ready for work. Until now, those people have by and large been written off and forgotten about in a complex system—disjointed between councils and jobcentres—that did them no favours and provided them with no support. That is what we were trying to get rid of and believed we were actually getting rid of.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
Will my right hon. Friend give way?
Mr Duncan Smith
I recognise that time is limited, so I will limit the number of times I give way.
Universal credit is not just about getting people into work; it is actually about changing lives so that those people are ready and better able to enter work. Why are there monthly payments? The very simple answer is that over 80% and rising of all work is paid monthly, and the figure will soon be close to 90%. That means that if people are not ready, able and prepared to pay bills and deal with their money in monthly periods, they will never survive in the world of work, as has happened to many people crashing out of work.
Mr Duncan Smith
I will give way in a minute.
That is why universal support—now bringing in councils—will identify such people and help them. That is the purpose of universal credit.
Michael Tomlinson
Was my right hon. Friend as surprised and disappointed as I was, during Prime Minister’s questions, to hear this policy described and characterised as “calculated cruelty”? There is nothing cruel about getting more people into work. There is nothing cruel about encouraging more people to work more than a mere 16 hours. There is nothing cruel about simplifying an overly complex system. The cruelty is trapping people in a lifetime of benefits.
Oral Answers to Questions
Michael Tomlinson Excerpts(8 years, 4 months ago)
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Penny Mordaunt
When Labour was in office, it did very well in closing the disability employment gap—by raising the unemployment level among the general population. We will take a different approach. As I have said in this place before, we will look in great detail at the local numbers—for example, the numbers of people with a learning disability coming out of education; that is what we need to get people focused on.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
I warmly welcome the latest employment figures, particularly the youth employment figures. We are within touching distance of record youth unemployment. On young disabled people, will the Minister comment on Leonard Cheshire Disability and the great work it does, particularly its Can Do scheme? I think she recently met ambassadors of that scheme.
Penny Mordaunt
I thank my hon. Friend for allowing me to pay tribute to Leonard Cheshire. It has launched a number of interesting and effective initiatives, which are very much part of our Work and Health programme.