Universal Credit Project Assessment Reviews

Debate between Alison Thewliss and Ruth George

Tuesday 5th December 2017 Commons Chamber

[Ruth George (High Peak) (Lab)]

As someone who has worked for the Union of Shop, Distributive and Allied Workers on behalf of low-paid shop workers for nearly 20 years, I have been banging on about universal credit for many a year. It is a pleasure to see so many Members across both sides of the House taking such an interest in the policy. We are not surprised by that, because the policy will affect not just the 7 million households who will become claimants—an average of 10,800 households in each constituency—but the 2.5 million households who are currently on legacy benefits and will cease to receive anything because of the cuts to universal credit.

I welcome the constructive comments made by Members on both sides of the House about universal credit, and I have always tried to be constructive when I address the policy. I have set up the all-party group on universal credit, and I am pleased to see contributions being made to that group by Members from all parts of the House. I sit on the Work and Pensions Committee, which will be pleased to receive the report.

If the Government are open about scrutiny and they really want to learn and fix universal credit, why are they not publishing an impact assessment on it? It is not just about the reports; we last had an impact assessment on universal credit five years ago, almost to the day. Since then, almost £5 billion a year has been cut from that policy. The last impact assessment for universal credit stated:

“A comprehensive evaluation programme is being developed…The evaluation will need to meet the immediate need for feedback and evidence on implementation issues”.

Apparently, the evaluation programme will include

“ongoing monitoring, evaluation and analysis; a ‘live running review’ of implementation and delivery; a fuller evaluation of implementation and delivery and ongoing analysis of outcomes and impacts.”

I want the Minister to answer this question when he replies to the debate: where are those assessments of universal credit that the impact assessment of December 2012 said would be put in place? Have they actually been produced? If not, why not? If they have been produced, following that commitment, why have they not been published? Why have we waited for five years and seen £5 billion of cuts but still not seen any evidence from the Conservative party on how universal credit is affecting the hundreds of thousands of people now receiving it, and on how it will affect millions in future?

At the very least there should have been an assessment of the impact of those cuts from the July 2015 Budget. That Budget cut £3.2 billion from work allowances and nearly £1.5 billion with the two-child policy, but it was left to the IFS to tell us that 3 million working households with children will be £2,500 a year worse off and that work incentives for single parents and couples who both work are actually weakened under universal credit now that the work allowances have been cut.

Unlike under tax credits, if universal credit claimants work overtime, their next month’s universal credit payment is docked by 63% of whatever they earn. Where is the work incentive in that? If a parent earns an extra £100 in the run-up to Christmas to try to pay for some presents and give their family a decent holiday, they will see their next universal credit payment cut by £63. That is not a work incentive.

[Alison Thewliss (Glasgow Central) (SNP)]

The hon. Lady is speaking very well, and I am glad that she is raising these issues. Is she aware that for some families who now fall victim to the family cap on universal credit it does not pay to go out to work, because work will pay them less than the nursery fees required if they have a third child?

[Ruth George]

Absolutely. Childcare is a key issue when families are trying to raise themselves out of poverty, as the hon. Lady rightly says. The Joseph Rowntree Foundation has found that 30% of children are now in poverty, and nearly two thirds of those are in working households. Some 8 million adults live in poverty in a household where someone is in work.

Universal credit was meant to address the problems of poverty and work incentives. It does not. The Government are refusing to publish the evidence needed to fix their own policy, which they claim is what they want to do. If they really want to fix universal credit before it is rolled out to another 6 million families, they need to publish not just these reports but a full impact assessment, laying their policy and themselves open to the scrutiny that this House and the public deserve.