Universal Credit

Caroline Johnson Excerpts

Wednesday 17th October 2018 Commons Chamber

[Margaret Greenwood]

My hon. Friend hits the nail on the head; he is absolutely right to raise that issue.

The Government plan to place the entire burden on the claimants themselves to successfully make a claim, rather than the DWP automatically transferring them across. Under the Government’s regulations—as currently drafted—a letter will drop through the letterbox on to the mat, telling people that their existing claim will end and that they will have a month to make a new claim for universal credit. Labour believes that it is without precedent for a UK Government to place all the responsibility of making a claim on the millions of individuals who the Government know to be in need, putting people at risk of falling out of the system altogether. The Government are doing this despite all the evidence of the serious difficulties that people are facing when making a claim.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

Does the hon. Lady agree that one of the strengths of the system is that people apply for only one benefit under universal credit, so it is much less complex? Indeed, many people will get a benefit to which they did not previously know they were entitled.

[Margaret Greenwood]

When the hon. Lady looks at the drop-out rate and the number of people who actually fail to complete a claim, I think that she will probably revise the comment that she just made.

Over half the households that will be required to move across will be working families—people in work whose income is too low support them—while over a third will have been claiming ESA, which means they have been assessed by the Government as too ill or disabled to work. Just receiving the letter will be very unsettling for someone with a mental health condition or a learning difficulty.

--- Later in debate ---

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

Since time is short, I will stick to discussing one of the important principles of universal credit, which is that hard work should always be rewarded. Anyone who has the drive and the motivation to improve their lot for themselves and their family should always have the opportunity to do so. No matter where someone grew up, where they come from or what their parents do, they should always be able to aspire to a better future.

Opposition Members have levelled much criticism at the reforms, but the Government are right to roll the system out carefully and to make improvements as necessary. To keep the status quo would be far more harmful than the Opposition would care to admit, because the legacy system was bad for taxpayers and harmful for those on benefits. For that reason, I welcome universal credit, which will ensure that work always pays. No more will someone need to question whether increasing their hours will make them worse or better off. No longer will someone striving to put more money in their pocket face an effective tax rate of 90% on earnings. No more will generations of people face becoming stuck in a benefits trap, wanting to do more work but facing a financial hit if they do so. Although there may be some issues to iron out, I welcome the fact that the Secretary of State is working closely on them. I also welcome the fact that 1,000 more people are getting into work every single day under this Government.