(7 years, 1 month ago)
Commons ChamberI will not give way.
Labour supported universal credit and has no plans to drop it. As my right hon. Friend the Member for Forest of Dean (Mr Harper) highlighted, the initial debate was supposed to be about a pause and fix of the universal credit roll-out, but it has now changed to just a pause. A pause to do what—amend it or drop it? There are currently no proposals from the Opposition to roll out a new system. We must have the opportunity to fix through the test, learn and rectify approach. Only 8% of universal credit has been rolled out so far and there are proposals to take that figure to 10%, but this is a slow and cautious procedure.
Will the hon. Gentleman give way?
I want to get to the number of issues that do need to be fixed.
The policy would be better if it were closer to its values. For example, the taper should be set so that it rewards people better than it does now. The seven-day waiting period ought to be reduced—not receiving money for one week involves a substantial sum for people who are often on the lowest wages. The test, learn and rectify approach gives an opportunity to improve the system of direct payments to landlords. That ought to go forward rapidly, but we also need to reflect on individuals being in charge of their own finances. The responsibility actually helps the individual because it is a responsibility they will have when they go into full-time work. It is a terrible situation when someone who has been so supported by the state and is, in a sense, dependent on it moves into work and has to realise the loss of that welfare support in addition to all the challenges of a new job. We also need to change the substantial six-week waiting period, which is not in the spirit and values of universal credit. The period ought to be four weeks, right from the off.
The Government are demonstrating that they are listening. A key part of that has been the introduction of the free telephone service. I do not want the roll-out to be stopped, but there needs to be reform for it to go on.