Universal Credit

Baroness Donaghy Excerpts

Thursday 9th September 2021 Lords Chamber

[Baroness Donaghy (Lab)]

My Lords, I thank the noble Baroness, Lady Tyler of Enfield, for initiating this debate. She was so comprehensive that I do not think I will use all my time, so as not to repeat her.

I want to make a couple of points, if I may, in reply to the noble Baroness, Lady Eaton. Somebody who was born on the day the old benefits disappeared and UC arrived has probably celebrated their 10th birthday by now, so I wonder how long that argument will be played out in this Chamber. I congratulate the noble Baroness on her stalwart defence but, really, it is getting a bit thin and memories of how bad the old system was are fading. I am the first to accept that it was a bad system; I just do not think that this is a particularly good one. I agree with the noble Baroness that it came into its own during the pandemic, however.

I slightly resent—this is not against the noble Baroness, Lady Eaton, or anybody individually—the fact that, if the benefits were adequate, we would not be having this discussion about a £20 uplift. If the benefits were decent, people would not be struggling. We are not talking about people falling into poverty here; we are talking about people falling deeper into poverty so that they cannot even afford the basics.

I want to say a little about the impact on actors, writers and other creative workers, who are often ignored in these debates. Some 65% of Equity members rely on universal credit and other welfare to stay in the industry. Removing the £20 uplift would mean 53% of them experiencing financial hardship, with 41% unable to meet housing and other essential costs. These figures were taken from a recent impact survey; I thank Equity for its excellent briefing. It joined 100 other organisations across the UK that wrote to urge the Government to abandon their plans. Only 9% of its actors and creative workers had received a grant or other funding from Arts Councils, and more than 40%

“have not received help from the Self Employed Income Support Scheme”.

Of equal concern is the reintroduction of the minimum income floor. These moves will risk an exodus of talent from our world-leading creative industry, already clobbered by the Brexit legacy. Obviously, there will be time in future to discuss the minimum income floor and Brexit, but families will receive significantly less help from the social security system now than they would have a decade ago. The loss of the £20 uplift will take the main rate of out-of-work support down to its lowest level in real terms since 1990.

I am aware that the chairs of the relevant House of Commons Select Committees have written to the Government to ask for the uplift to be made permanent. As the noble Baroness, Lady Tyler, has already said, six former Conservative Work and Pensions Secretaries have urged the Chancellor to make the uplift permanent. If they cannot change the Government’s mind, I begin to despair. Why will they not publish the impact assessment mentioned by the noble Baroness, Lady Tyler? If—

[Baroness Bloomfield of Hinton Waldrist (Con)]

I hate to interrupt a good speech but the noble Baroness is almost a minute over the suggested speaking time.