Oral Answers to Questions

Antonia Bance Excerpts

Monday 16th December 2024 Commons Chamber

[Alison McGovern]

I am not entirely sure that the issues the hon. and learned Gentleman raises are completely within my responsibilities. However, DWP colleagues in Northern Ireland work closely with business, and I am sure that they will continue to do so, whatever the prevailing economic circumstances.

[Antonia Bance (Tipton and Wednesbury) (Lab)]

5. What plans she has to review universal credit.

[The Minister for Social Security and Disability (Sir Stephen Timms)]

We are committed to reviewing universal credit to ensure that it is doing the job that we need it to. We have started by announcing the fair repayment rate in the Budget, and we will keep Parliament updated.

[Antonia Bance]

Twenty-seven per cent of working-age people in Tipton, Wednesbury and Coseley rely on universal credit. I welcome the fair repayment rate announced in the Budget, but a major reason for benefit debt is the design flaw in universal credit, which means that claimants must wait five weeks for their first payment. Will the Minister confirm that the five-week wait will be considered in the review of universal credit?

[Sir Stephen Timms]

I can assure my hon. Friend that advances of up to 100% of potential universal credit entitlements are available urgently during the first assessment period of a claim, but she is right to raise concerns about the five-week wait. I commend to her the excellent report on this subject published by the Work and Pensions Committee in the last Parliament. The point she has raised is definitely one that we need to consider.

Food Banks

Antonia Bance Excerpts

Tuesday 19th November 2024 Westminster Hall

[Danny Kruger]

I do recognise the extent of the problem of in-work poverty and of people reliant on benefits to sustain their incomes and on additional support from the outside. I do not accept that that was a new phenomenon; in fact, I will come to the last Government’s record in a moment.

[Antonia Bance (Tipton and Wednesbury) (Lab)]

One of the last Government’s best policies was the introduction of a £20 additional uplift to universal credit during the pandemic. It stopped poverty growing in its tracks and showed the impact of increasing access to money—not to be facile—on poverty. Does the hon. Member share my hope that the Government will bring forward their review of universal credit, as promised in the Labour manifesto?

[Danny Kruger]

Yes, indeed; I very much look forward to that review coming along soon.

Many hon. Members have mentioned the record of the last Government. I recognise the extent of low wage growth and in-work poverty that we have seen. If we look at absolute poverty, however, which is the measure that we should ultimately be looking at if we are thinking about the extent of destitution and food poverty, 1 million fewer people are in absolute poverty after housing costs in 2024 than in 2010. That includes 100,000 fewer children, 200,000 fewer pensioners, and 700,000 fewer working-age people, so the last Government made a real impact on absolute poverty. Overall, there are 1 million fewer workless households than in 2010.

Much of that impact was driven by the introduction of universal credit. Those of us who worked in the social sector before 2010 might remember the labyrinthine complexity and the perverse incentives that were created by the mess of the benefit system that we inherited in 2010, which we rationalised and improved. It is also worth mentioning the enormous £100 billion cost of living package that the last Government put together in the light of the energy shock.

Let us turn to what this Government are doing. The most significant policy that they have announced so far on poverty is the withdrawal of the winter fuel payment. Some 10 million pensioners will be denied that essential benefit, including 70% of disabled pensioners. That is surely not a record that hon. Members are proud of.