Universal Credit Roll-out

Debate between Seema Malhotra and Neil Gray

Wednesday 18th October 2017 Commons Chamber

[Neil Gray]

I wholeheartedly agree with my hon. Friend, as do the expert charities and organisations involved in alleviating food poverty. The Secretary of State will, of course, claim to have listened to concerns and made a concession by apparently reducing the time taken to process advance payments and crisis loans. Leaving aside the point that I have already made that for many, myself included, the very fact that these advance payments exist highlights that universal credit is failing, I struggle to see what has changed since his announcement. I know from my written parliamentary question this week that there is no data available on how long the claims took to process previously, but my suspicion is that it will not be too dissimilar to before the supposedly big concession in the Secretary of State’s Tory conference speech. I do not think that anything has really changed.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

It is important to understand and address all the unintended consequences of universal credit. Does the hon. Gentleman agree that it is vital for the Government to talk more to local authorities, which are often on the receiving end of people in crisis—those who have been made homeless or who are struggling to pay for food for their families? As an illustration, universal credit claimants make up 15.4% of all local authority tenants in my borough, but they account for 49% of all tenant arrears. That is not unusual.

[Neil Gray]

I agree, and I think it is good for agencies to talk to each other to ensure that the system works as smoothly as possible.

In spite of the concessions and potential changes, and in the full knowledge of the evidence of the harm that universal credit is doing to our constituents, the Government are determined to press on. As the House of Commons Library briefing points out, the problems include

“financial hardship and distress caused by lengthy waits before the first payment of UC is received, compounded by the 7-day ‘waiting period’ for which no benefit is paid; some, particularly vulnerable claimants, struggling to adapt to single, monthly payments in arrears; inflexible rules governing Alternative Payment Arrangements such as direct payment of rent to landlords;”

and

“increases in rent arrears, with serious consequences not only for claimants but also for local authorities and housing providers, as a result of exposure to greater financial risk”.

That is why the Scottish Federation of Housing Associations has circulated a briefing ahead of this debate in support of a pause and fix of universal credit. In addition, homelessness claimants have been unable to get help with the full cost of emergency temporary accommodation.