Universal Credit

Baroness Eaton Excerpts

Thursday 9th September 2021 Lords Chamber

[Baroness Eaton (Con)]

My Lords, today’s debate is a very important one. The subject matter is understandably highly emotive and families, especially those with children, who are suffering poverty need our concern and our practical help. Unfortunately, universal credit has had naysayers from its inception. I feel it has been the unsung hero of the pandemic, with 3 million extra claimants rapidly joining the system. The old tax credit system would have let people down badly, and errors and delays would have led to massive hardship in the depths of lockdown. The book by the noble Lord, Lord Freud, said that paperwork got lost in 40% of tax credit claims.

It is clear to all of us that the days of the pandemic have been difficult for people, but they have also been difficult for government. Difficult decisions have had to be made. When the pandemic hit, the Government created a range of measures and it was always made clear that the uplift to universal credit was temporary. Can the Minister say whether the £6 billion cost of universal credit was modelled on a zero improvement in the labour market? Obviously, the economy is now revving up, so there are so many more job vacancies. Now the labour market circumstances have dramatically changed, there are more work opportunities.

The aim of and philosophy behind universal credit is to help people to escape the negativity of a life spent permanently on welfare. Attempts by previous Governments, such as tax credits, have trapped people in welfare. While the uplift is being removed, the Government are increasing the number of jobcentres and work coaches—factors to help people to find more, and better, jobs. The problem of in-work poverty is concerning. Can my noble friend the Minister inform the House about the in-work progression scheme, which, I understand, is aimed at helping with this situation?

The uplift is costing £6 billion. I believe that there can be, and must be, more and better ways for the Government to help people.