Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Alex Davies-Jones Excerpts
Tuesday 7th September 2021

(2 years, 7 months ago)

Commons Chamber
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Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
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18. What discussions he plans to have with the Secretary of State for Work and Pensions on the impact on the Exchequer of ending the £20 uplift to universal credit.

Alex Davies-Jones Portrait Alex Davies-Jones (Pontypridd) (Lab)
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21. What recent discussions he has had with the Secretary of State for Work and Pensions on the impact on the Exchequer of ending the £20 uplift to universal credit.

Rishi Sunak Portrait The Chancellor of the Exchequer (Rishi Sunak)
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The Government have always been clear that the £20 increase to universal credit was a temporary measure, much like furlough and our other interventions to support this country through the acute phases of this crisis, but we are not done supporting those who need our help. This Government will always be on their side, and that is why we have created our plan for jobs. On the Government side of the House, we know that the best way to help people is to give them the skills and the opportunities they need to find high-quality work, and that is what the plan for jobs is delivering.

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Rishi Sunak Portrait Rishi Sunak
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Of course there are people already in work who are on universal credit, but our plan for jobs helps them too. We increased the national living wage this year by an inflation-busting amount—£350 a year to help those families. We talked earlier about the lifetime skills guarantee, about apprenticeships, about skills boot camps. Those are all ways the Government are supporting people; each one of those initiatives, by the way, is worth thousands of pounds of support. Those people will benefit from those increased skills and benefit from guaranteed new job interviews or higher wages at the end of it. That is the right strategy to help those people in work.

Alex Davies-Jones Portrait Alex Davies-Jones
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This week, the charity Action for Children highlighted that a street cleaner with two children in private rented accommodation is already on average £729 worse off as a result of Conservative cuts since 2010, but that will soar to over £1,700 as a result of the Chancellor’s planned cut to universal credit. So I ask the Chancellor: how exactly are families meant to manage?

Rishi Sunak Portrait Rishi Sunak
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Again, what we know is that children growing up in workless households are five times more likely to be in poverty than those whose parents work. That is why we are supporting their parents to get into work and why almost 800,000 fewer children are living in workless households than when this Government first came into office. That is the right way to support those families. Of course, there are other bits of our welfare system that we have maintained the generosity of, but when it comes to universal credit or employment, we on this side of the House we will support their parents into work and, crucially, with their childcare costs. Mr Speaker, we forget that 85% of childcare costs for people on universal credit are covered to support parents into work, which we know will make a difference to those children.

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Steve Barclay Portrait Steve Barclay
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My hon. Friend is absolutely right to highlight not only the importance of restart to the long-term unemployed, but how it sits alongside the kickstart scheme, the tripling of traineeships and the boot camps for skills. That is part of a plan for jobs that is working.

Alex Davies-Jones Portrait Alex Davies-Jones (Pontypridd) (Lab)
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T9. Will the Chancellor clarify which Department is paying the £200 million for the Prime Minister’s vanity yacht? What does it say about this Conservative Government’s warped priorities when the Chancellor approves that while planning to cut universal credit for those who need it the most?

Rishi Sunak Portrait Rishi Sunak
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This Government are proud of the record investment that we have made in our armed forces—a record settlement for the next few years to support our forces and the work that they do around the world to ensure that we can play our responsible role.

We will end on this note, I think. We have had a good debate today, but one thing is clear: the difference between us and the Labour party. We believe in supporting people into work, we believe in supporting their skills, and, crucially, we believe in our plan for jobs, because it is working.