Universal Credit and Working Tax Credits

Claire Hanna Excerpts

Wednesday 15th September 2021 Commons Chamber

[Claire Hanna (Belfast South) (SDLP)]

South Belfast is a relatively prosperous constituency. It is one of those that would be described as “leafy” in political commentary, along with the presumptions and generalisations that mask the economic diversity and substantial need that exist in the community I represent. It includes the highest levels of universal credit claimant rises in Northern Ireland throughout the pandemic, and those reduced earnings are in the context of higher utilities costs—gas prices have risen by a third in Northern Ireland, as was announced last week—and higher food costs, as well as an acute crisis in the availability of affordable rented accommodation.

Colleagues on this side of the House have rightly countered some of the myths that still persist about the reasons that people claim universal credit and, with a number of honourable exceptions, it has been helpful to hear some of the speeches from the Conservative Benches, as well as the interventions from former Ministers. However, some of the commentary that we have heard betrays a fundamental misunderstanding of the lives that the people in all our constituencies are living, of the work that they did during the pandemic and of the fact that it is not always as simple as just getting on your bike.

The SDLP has always been critical of the universal credit system. We refused to rubber-stamp it when others in the Assembly adopted it. We saw its inadequacies and the flaws, particularly in the context of insecure work and of Northern Ireland’s completely underfunded and inadequate childcare system. Yesterday, the Northern Irish Economy Minister came to my constituency and announced a high-street voucher spending scheme. Every adult in Northern Ireland will be given £100 in vouchers to prop up our beleaguered retail offerings. That is what one hand is giving while the other is removing £7 million in universal credit money from my constituency alone. We know that those funds are spent promptly and carefully on the local high street. This cut is not progressive, and this is not joined-up government. This is not doing the economy any favours, but it is not too late to change course.