Universal Credit (Wales)

Debate between Stephen Doughty and Hywel Williams

Tuesday 5th February 2013 Westminster Hall

[Stephen Doughty]

I agree with my hon. Friend the Member for Bridgend (Mrs Moon). I will come to the issue of uncertainty, but that point has certainly been reflected to me by many constituents and organisations that work with those affected by the changes. I have spent much time speaking to constituents. One of the benefits of standing in a by-election is spending an awful lot of time speaking to people, and the issue regularly came up on the doorstep. I have spoken to housing associations and other registered social landlords, to local authorities—specifically Cardiff council—and to other experts. Although there are a variety of views about whether the simplification of welfare payments is desirable, there are clearly consistent fears and forecasts of dire consequences that Ministers and the Department for Work and Pensions have not adequately answered or addressed. Perhaps the Minister will do so today.

[Hywel Williams (Arfon) (PC)]

To be brief, it seems to me that the Government have simply not considered the inflexibility in the housing market, or if they have considered that, they do not seem to care. Is that the hon. Gentleman’s view, too?

[Stephen Doughty]

Indeed. I agree with the hon. Gentleman’s comments.

Coming on top of two of what my right hon. Friend the Member for South Shields (David Miliband) has called “rancid” measures—the bedroom tax, and the tax on people in work in the Welfare Benefits Up-rating Bill that we saw a few weeks ago—I am deeply fearful about the impact of the changes on many of our most vulnerable constituents, not to mention the organisations that support them.

Let us look at some of the headline figures. On Monday 10 December 2012, the Government published their new impact assessment for universal credit, which showed several very worrying facts. First, 800,000 more people across the UK face lower entitlements. The original assessment, which was published in 2011, said that 2 million people would face lower entitlements under universal credit, but that number has now risen to 2.8 million, with an average loss of entitlement of £137 a month. I will come to the specific statistics for Wales in a moment. Of those losers, 400,000 will be concentrated in the two lowest income groups.

We expect 600,000 more parents to lose out under universal credit. Households will also lose more: the original impact assessment said that only 200,000 families would lose more than £75 a month, but the latest one states that 1.3 million households will lose more than £100 a month and that an incredible 300,000 families will lose more than £300 a month, which amounts to £3,600 a year. The impact assessment points out that higher administrative costs will result from the changes. The Department has also dropped its claim that universal credit will tackle poverty, which has been removed from the 2012 impact assessment.

There have been delays, and we might hear the reasons for some of them when the Minister speaks later. The roll-out of universal credit is already a significant number of months late, and the DWP has been unable to confirm the timetable. Indeed, there is a great lack of clarity on the part of my local authority and others about how universal credit will be rolled out and when.