DWP Policies and Low-income Households

Craig Williams Excerpts

Tuesday 17th January 2017 Commons Chamber

[Drew Hendry]

I absolutely agree, and there is more to come.

It is not just the homeless who are affected, but families in private rented accommodation who have been waiting for three months for universal credit claims. There is no fairness there. The only simplicity is that it is simply nuts. Highland Council is left carrying the debt of the money that Gavin and others simply do not have. It has already accrued an additional debt of more than £180,000 as a direct result of universal credit. According to a report by Glasgow Council, a total of 73 homeless people in Glasgow are now on the benefit, and have racked up £144,000 in arrears between them.

The National Federation of ALMOs—arm’s length management organisations—and the Association of Retained Council Housing, which together represent more than 1 million council homes in England, found that the percentage of council home tenants in receipt of universal credit who are in rent arrears has increased by seven percentage points—it was up to 86% in March last year. That compares with 39% of tenants in arrears who do not receive universal credit. The average arrears total has also increased, from £321 to £616.

The SNP Scottish Government have consistently done everything they can to mitigate the worst impacts of Tory welfare cuts, and new devolved powers over social security and employment support will include disability benefits, carer’s allowance and the winter fuel allowance. With these limited new powers, we will seek to build a Scottish social security system with dignity and respect at its heart—

[Craig Williams (Cardiff North) (Con)]

Will the hon. Gentleman give way?

[Drew Hendry]

I am going to finish up.

It is wrong that the Scottish Government and the council should foot the bill for UK Government cuts. It is also true that the proposal to cut 50% of jobcentres in Glasgow—a subject I know my colleagues will speak on shortly—is a bad idea. Let us not forget that these proposals come on the back of last year’s announcement of the closure of 137 HMRC offices across the UK, with potentially thousands of job losses in Scotland.

There is a damning litany of failure, confusion, heartache and indignity and a crushing drive towards increased poverty in the universal credit system. Long delays to payments, short payments, lost sick notes, misplaced documents, failure to respond, confusion between departments, crushed morale for the poor Jobcentre Plus staff and an inability to respond to common sense are rife in universal credit. It is time to halt this tragic experiment—the bad IDS idea—and think about how we provide for those who need our help, rather than those few who stand to profit from austerity.

--- Later in debate ---

[Craig Williams (Cardiff North) (Con)]

As I have only three minutes, I will not take any interventions. I stood on a platform of getting Britain working again and reforming a welfare system that was failing some of the most vulnerable people in my country and my constituency. For too long, people went on welfare and remained there. It is worth noting that long-term unemployment doubled between 2008 and 2010. Major changes that so directly affect people in their day-to-day lives are never easy and are not necessarily popular, but our welfare system needed changing, and I am delighted that our Government are taking that so seriously. We are determined to make sure that those who want work, and those who cannot work, are supported when they need it. That help is at hand from this Government.

So far, we have seen monumental change, and it is not easy. As a former member of the Work and Pensions Committee, I have always welcomed the Department’s attitude to universal credit—rolling it out; considering the changes and seeing the impact; and then changing and adapting, and rolling it out again. I welcome the pace of delivery of universal credit. We are listening, looking at the evidence, and reforming as we go. That is the correct way to do it.

The single best thing that any Government can do for low-income families is ensure that we have a strong economy. I am delighted that since the 2010 election this Government have put that at the heart of what we are doing. Unemployment is at its joint lowest rate—4.8%—for 10 years; there have been 2.7 million more people in work over the past six years; and there are more women, older workers and ethnic minorities in work than ever before. The annual average income of the poorest fifth of households has risen by £700 in real terms since 2007-08. This House has heard on many occasions about the benefits of work: an improved outlook and social networks, better connections with the community, increased happiness and better health.

I am proud of the Government’s achievement in getting more people into work. This stands in stark contrast with the rhetoric of the Opposition. Under universal credit, the biggest change in welfare in this country for a generation, claimants are much more likely to move into work than under jobseeker’s allowance. Analysis has shown that working-age adults in non-working families are almost four times more likely to be living on a low income. The 2015 report, “Child poverty transitions”, found that 74% of workless families who moved into full employment exited poverty, and that is terrific.

[Several hon. Members rose—]