Universal Credit

Debate between Neil O'Brien and Angela Rayner

Tuesday 13th March 2018 Commons Chamber

[Angela Rayner]

The hon. Gentleman makes an important point. Universal credit has had add-ons and add-ons ever since the Government proposed it. That has made it very complex and, as I have outlined, work will not pay for some in receipt of it if these proposals go forward.

I would like to make a little more progress and address the issue of free childcare. Once again, the Government have a policy in transition—one that they are seeking to restrict. About 200,000 two-year-olds are currently eligible for 15 hours of free childcare, but there will be more than 400,000 two-year-olds in families receiving universal credit. Ministers have refused to say how many children will be eligible under their policy, so will they finally do so now? I ask that because hundreds of thousands of children may lose out under their plans. Once again, some of the most vulnerable children are first in line for Government cuts.

[Neil O'Brien (Harborough) (Con)]

In this House, we all believe in an honest and balanced debate, so may we just hear from the hon. Lady that it is clear that 50,000 more children will be entitled to free school meals under universal credit than under the previous system, and that 7,000 more children will be entitled to the two-year-old free offer—it is more, not fewer?

[Angela Rayner]

The Government have plucked the 50,000 figure from their own consultation document, but it had no accompanying methodology, so I am not convinced. Indeed, that makes up less than 5% of those who are in poverty. The regulations would mean that those who would currently be eligible for support under the transitional protections this Government laid out for universal credit would have that rug pulled from under them—[Interruption.] Conservative Members can keep making faces, but those are the facts.

Once again, this creates a cliff edge for families in receipt of childcare, and the policy will squeeze the income of working families who are already struggling to get by. Under universal credit, they have to pay their childcare costs up front and then claim the money back. With childcare costs rising faster than wages, meeting these costs up front will make it impossible for many working families to make ends meet, so yet another barrier is put in their way. Only months ago, several Conservative Members asked the Chancellor to look again at the taper rate because it meant that work would not pay for low-income families. Today’s vote is on exactly this issue. When the Government have already made those families bear the brunt of their cuts, adding yet another burden is just wrong.