Universal Credit: Managed Migration

Alan Brown Excerpts

Monday 22nd July 2019 Commons Chamber

[Amber Rudd]

I simply do not recognise the hon. Gentleman’s characterisation either of my ministerial colleagues or of the intention of universal credit. The hon. Gentleman describes his jobcentre in some detail, and I expect he knows some of the work coaches who do such a remarkably good job engaging with individuals and trying to help them into work. I ask him to remember that before he describes the system as not fit for purpose. The former system was not fit for purpose, with six different benefits from three different places and no personal interaction. Universal credit is much more positive for his constituents and for mine.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Will the Secretary of State look at the system that encourages claimants to take out a new enterprise allowance to go into business, but one year down the line, when they might still be building up that business, the system assumes that they are earning a minimum amount? A Kilmarnock couple came to my surgery on Friday to say that they have been left with absolutely no income because their UC assessment has assumed wages that they are not making. They are in hardship, and it is quite possible that businesses will fail as a consequence of this system. Does she agree that that is another example of why universal credit is not fit for purpose?

[Amber Rudd]

I want to take this opportunity to say that the new enterprise allowance has been a great success in supporting businesses, and I am pleased with how it has been picked up by MPs and constituents. As for the one-year policy that the hon. Gentleman referred to, we must ensure that we get the right balance between supporting enterprise and making sure that taxpayers are supporting businesses that have a strong future. If he feels so strongly about it, he will no doubt want to make a submission to the spending review at the end of the year, but I think that the balance is right at the moment. We have to think about whose money it is, how it is spent and where work will be available to people.