Universal Credit and Working Tax Credits

Andrew Bowie Excerpts

Wednesday 15th September 2021 Commons Chamber

[Dr Coffey]

My right hon. Friend is right that it was quite a blunt way of quickly delivering instant support, particularly for those most financially impacted by covid, many of whom were made redundant for the first time in their lives. I am conscious that we have still more to do to try to make sure that people can keep more of what they earn. I also have strong views that we need to continue to try to make best use of the funding that goes into childcare. As my right hon. Friend will know, under universal credit 85% of childcare costs, worth up to £13,000 per family, can be reclaimed. That is higher than that possible under tax credits.

Coming back to universal credit, the point has been made by hon. Members across the House that it is a dynamic benefit. It supports people in work and out of work, which is exactly what it was designed to do. People are better off working than not working, unless they cannot work. That is why, automatically and instantaneously, when people started to see a change in their working patterns due to the covid pandemic, it responded to the needs of people already in the system. Those affected saw their universal credit payments rise straight away when they lost working hours or found themselves out of work completely. That is a key part of why the UC system is absolutely vital. I am pleased that the Opposition seem at least to have decided to drop their opposition to that, even if it is just to rebrand. Nevertheless, we decided to somewhat cushion the fall of people made redundant.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

Does my right hon. Friend not agree that it would be quite nice if the Opposition actually came here and apologised for year after year, in Opposition day debate after Opposition day debate, spreading scare stories and terrifying the poorest and the most vulnerable in the country by telling them that universal credit would not work? When we were under the biggest strain this country has ever faced, universal credit worked. That is a testament to my right hon. Friend, her great Ministers and the thousands of DWP staff up and down the length and breadth of this country.

[Dr Coffey]

My hon. Friend is absolutely right. There are still 3 million people on legacy benefits. We estimate that about half of those people would be better off on universal credit and that a significant number of people would see no change, yet the scare stories and the fear that the Opposition generated are why people are still not transitioning across the system. They will do just that now, because this Parliament voted to end legacy benefits; it voted to have universal credit, so we are still, through our action programme, going to move people across to universal credit. I am with my hon. Friend that many people would actually and substantially be almost certainly better off if they moved. For those people, we have to have a managed migration. We have, of course, already put in place a transitional payment.