Universal Credit

Baroness Winterton of Doncaster Excerpts

Wednesday 17th October 2018 Commons Chamber

[Neil Gray]

My hon. Friend is absolutely right. That is why we need to call for the changes to follow as quickly as possible.

At my surgeries, I have met constituents desperate for help with universal credit. I will give just two examples. The first is Shelby Bowrman from Airdrie, who has become a casualty of the disgraceful two-child cap. Shelby gave birth to her daughter, her third child, after the roll-out of universal credit locally—she was due to give birth before the roll-out but was late. Shelby has now been migrated on to universal credit, and it has cost her thousands of pounds. She has been told that the two-child limit, which did not apply to the childcare element of tax credits, now kicks in for universal credit. She returned to work just two weeks after giving birth, to provide for her three children, who are aged two and under. She worked as a dental assistant during the day and for Domino’s at night. The two-child cap in universal credit has made it impossible for her to work. After I raised the case with the Secretary of State on Monday, Shelby has been told that she can get support with childcare costs but has to pay up front and then be reimbursed. She therefore has to find £2,000. That is just ludicrous and highlights why the two-child cap is discriminatory, unfair, a barrier to work and needs to go.

Another constituent at one of my Friday surgeries highlighted how universal credit completely fails to support people with mental health conditions. Her son Jordon, from Airdrie, is currently receiving acute mental health treatment but needs his universal credit application to progress, for obvious reasons. Jordon’s mental health condition is such that he is in crisis and in hospital.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order.

[Neil Gray]

With respect, Madam Deputy Speaker, I have protected time and there is a great deal that needs to be said in this debate. I will do my best to get through it as quickly as possible.

[Madam Deputy Speaker]

Order. I am simply pointing out that a lot of Members wish to speak, and that the hon. Gentleman has now been speaking for longer than the official Opposition Front Bencher.

[Neil Gray]

The Opposition Front Bencher obviously made a decision about the length of their speech, and I am doing my best to get through what I have to say.

Yet jobcentre staff told Jordon’s mum that his claim could not continue until he signed his claimant commitment—[Interruption.] I think it is important that Members listen to this, because I am talking about someone with an acute mental health condition. If he did not sign, he would have to apply for jobs from his hospital bed if he was to avoid a sanction. At what level is that not an abuse? I am not criticising jobcentre staff; they do the very best they can while implementing a disastrous policy from this UK Government. I suggest that the experience of frontline jobcentre staff rather differs from what Ministers would have us believe.

Universal credit, in its current form, is doing real damage to individuals and families. It is not just me saying that; experts are calling for change. The Joseph Rowntree Foundation says that cuts announced in 2015 will mean that 3.2 million households will typically be around £50 a week worse off on universal credit compared with tax credits.

Policy in Practice said this month that almost two in five households on universal credit will lose an average of £52 a week and that some 2.8 million households will see their income cut. Gingerbread says that the cuts to work allowances mean that the average single parent will lose £800 a year, and some will lose £2,000. Figures from the Office for National Statistics suggest that 91% of single parents are women, so they are being disproportionately affected once again. Trussell Trust data from March shows that in areas of full universal credit roll-out foodbank use was up by 52%, whereas analysis of food banks in places yet to receive the roll-out showed the rise to be 13%.

Shelter Scotland submitted evidence to the Scottish Parliament’s Local Government and Communities Committee last year, stating that the UK Government’s

“ongoing roll out of Universal Credit, the benefit cap reduction and the capping of housing benefits...directly threaten tenancies and risk pushing more people into homelessness.”

Other expert groups are demanding change, included the Resolution Foundation, Macmillan Cancer Support, Together for Short Lives—I could go on and on. The Scottish Government are using what limited powers they have to influence change, but as I have already said, we cannot continue to mitigate the mess forever.

So what needs to change? At the Budget, the Chancellor should start by investing to lift the benefit freeze, restore work allowances, scrap the two-child limit, lift the application waiting time, reduce the clawback from advances, sort the self-employed income floor, cut sanctions and restore the ESA work-related activity group and the disability components of UC. There should then be a halt to the roll-out until a fundamental review of universal credit is carried out, which should look at areas such as the digital-only approach, implicit consent, introducing split payments, rethinking the way people with mental health problems interact with the system and fixing the problems with the assessment period.

The problems with universal credit are fundamental and are causing misery, but they are problems that can be fixed with political will. This afternoon is the first test of that political will. We need to see the Government’s analysis and the papers should be released. When that confirms what we all know, this House should unite and force the desperately needed change.

--- Later in debate ---

[Johnny Mercer]

No, I will not give way to the hon. Gentleman. The other thing I will not accept in this House is the illusion that Conservative Members come to work to keep the poor poor and to feather their own nests. You gave the impression that nobody on the Conservative Benches cares about getting people out of poverty, but that is simply wrong. Individuals like me would not speak up against universal credit—and so become the lightning rod for abuse whipped up by some of the creatures on social media—and do something about it simply for our own ends. We would not be able to change this policy if we listened to you—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Obviously this debate is heated, but it is important that the hon. Gentleman not refer to other hon. Members using the word “you”. If you use the word “you”, it is to me.

[Neil Gray]

rose—

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. There have been so many interventions that speeches have lasted much longer than five minutes. After the next speech, I shall have to reduce the speaking time limit to four minutes.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I am sorry, but there continue to be interventions and if we are to have any chance of getting everybody in, I am going to have to cut the time limit to three minutes, as of now.