The Secretary of State’s Handling of Universal Credit

Derek Thomas Excerpts

Wednesday 11th July 2018 Commons Chamber

[Derek Thomas (St Ives) (Con)]

The only things that actually matter today are the life chances of people who have been failed for decades by the benefit system. People who have been trapped out of the workplace do not care two hoots for the politics on display here today.

In a previous life, I worked to support working-age people who had little or no opportunity of getting anywhere near the workplace and satisfying employment. Even those who had abundant talent and wanted to work dared not do so. They were locked out of paid work by the complete disruption getting a job would cause to their benefits, with weeks of no payment whatever until they were reassessed.

[Chris Green (Bolton West) (Con)]

Will my hon. Friend reflect on the nature of his constituency? Some constituencies have a great many people earning a great deal of money, but that is not reflected in all constituencies.

[Derek Thomas]

My hon. Friend is right. I went into that work because in west Cornwall we have a significant number of people who could be described as vulnerable, some with severe learning disabilities, and who deserve the support and help that they are beginning to get today.

Under the benefit system that universal credit replaces, potential employers were encouraged to offer placements and pay people a pitiful £4 a day so as not to upset their benefit payments. For years, the welfare system demonstrated loud and clear that large numbers of people had nothing to offer. It was not thought worth the effort to help them into work and they were abandoned indefinitely.

I accept that the roll-out of universal credit has had some significant challenges, which is no surprise, given the complexity of the benefit system it replaces. It is clear that more must be done. I want to thank my right hon. Friend the Secretary of State and her Ministers for the way they have engaged with Members who have taken specific cases to them. Ministers have engaged with those cases and worked hard to deliver them.

I secured a debate in Westminster Hall some time ago in which I asked the Government to look at the role of voluntary groups on the ground—they are at the coalface helping people—and, as a result, the dynamic purchasing system was introduced. I ask the Secretary of State to look at how well that is helping the charities that are working with those vulnerable people.

[Alex Chalk (Cheltenham) (Con)]

When individual cases go wrong, of course they should be fixed. At a time of record low unemployment this country spends some £90 billion a year on working-age benefits—as it should—but to put that in context, that is more than double what we spend on schools. In those circumstances, does my hon. Friend agree that the suggestion that somehow resources are not being applied is wide of the mark?

[Derek Thomas]

I agree, and I know from my experience of working with some of those vulnerable people that they have untapped talents and skills. Employers want access to those skills, but all sorts of barriers have existed. They are beginning to be broken down now, enabling people to move away from the support my hon. Friend describes and giving them much more control over their lives.

More must be done to improve the roll-out and support families towards achieving greater independence, but the truth is that when the transition from the old system to universal credit is completed, many of the people I meet and have met much prefer the new system. I will continue to support my constituents to transfer to a benefit system that gives them greater control over their finances, and better and smoother opportunities in work and life chances.

My ask of the Government and my right hon. Friend the Secretary of State is that they ensure that local authorities and jobcentres use the resources they have, including the dynamic purchasing system, much more effectively to help all people who for so long have been locked out of the life chances that we want them to have.