Universal Credit
Debate between Tim Farron and Esther McVey(6 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Ms McVey
My right hon. Friend is quite correct. As he will know—and everybody in the House should know—under the legacy benefits there were punitive tax rates of over 90%. We have now brought that down to 63%. As an advocate of people who want to get into work, he is right: we should aim to get that taper rate down even further.
We also took the unusual step, earlier this year, of publishing a summary of the universal credit business case, which explained the economic case for universal credit, showing that it will help 200,000 more people into work when fully rolled out, and empower people to work 113 million extra hours.
Mr Speaker
Order. Before the hon. Gentleman intervenes, can I just point out that there are approximately 65 hon. and right hon. Members who wish to speak in the debate, and considerably less than four hours in which people can be called, so the less noise, the greater the progress.
Tim Farron
One in four workers in my constituency is self-employed—obviously, they are working and contributing. Is the Secretary of State aware that the minimum income floor means that many of them will be ineligible for universal credit if they cannot pay themselves the living wage in any given month? Surely we should be encouraging self-employed people, not penalising them.
Ms McVey
Obviously the hon. Gentleman will understand a lot about the minimum income floor because he was in the coalition when we came forward with those policies. We decided at the time that if people were not earning enough—if their business was not earning them enough and they were not on a minimum wage—we would then help them to go into work, and therefore they could have a better wage if their business was not working in that regard.
We published the information I mentioned alongside hundreds of reports on universal credit each year by outside bodies—independent organisations like the Office for Budget Responsibility, the National Audit Office, the Institute for Fiscal Studies, the Resolution Foundation, the House of Commons Library, and numerous others. So we are open with our information.