Universal Credit

Drew Hendry Excerpts

Tuesday 13th March 2018 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I will limit my remarks to the universal credit portion of this debate. In accepting the failures so far, the Government have made some changes, but as my hon. Friend the Member for Airdrie and Shotts (Neil Gray) pointed out, the changes due to come into force in April do not go far enough. Ministers should pause the roll-out of universal credit and review all the processes.

I want to go through a couple of the issues, but I could speak for a lot longer on many of the issues affecting my constituents. My constituency was a pilot area from 2013, and went from live service to full service in June 2016. Local agencies, Highland Council and I have been voicing such concerns since the pilot, and the proposed measures do not scratch the surface of what is required. The Secretary of State said earlier that this benefit will be “at the cutting edge”. I say to those yet to experience full service that, yes, they will see more cutting, particularly when it comes to the housing arrears that are being built up.

Like other local authorities, Highland Council is paying the price, and this will have an impact on all our communities, not just on people who are on universal credit. The additional administration costs alone are running at hundreds of thousands of pounds, but rent arrears continue to soar and will have an impact on the delivery of much needed housing, for example.

[Luke Graham (Ochil and South Perthshire) (Con)]

The hon. Gentleman is making a very serious point about housing benefit. Does he welcome the change that allows the benefit to be paid directly to the landlord, as opposed to going to the claimant?

[Drew Hendry]

I welcome any change that allows such things to happen. I would point out that we made that request of the Government for many years, and the concession was finally made, as I have pointed out, but much more needs to be done.

Rent arrears continue to soar, as I have said. Rent arrears due to universal credit were already at £1.6 million in Highland in 2016, but they were at £2.2 million in March 2017, and just six months later they were at £2.7 million. The average rent arrears for someone not on universal credit is £250, but for those on universal credit it is £840. We know that 30% of private landlords have already evicted a tenant because of universal credit arrears. According to the DWP’s own figures, this means that over 70,000 tenants in private accommodation face the threat of eviction due to the shambles of universal credit.

The UK Government continue to ignore the plight of people with a terminal illness who are forced to meet work coaches. I give credit to my local jobcentre, which has tried to put in place local workarounds to overcome the faults in the process. The UK Government must listen to MND Scotland, MND UK and Macmillan CAB, and remove these conditions to allow the terminally ill and their families some dignity as they face the end of their life. I ask Ministers to meet me to discuss how that can be brought forward. MND UK has said it does not believe that people who have claimed using DS 1500 should have to meet and have a conversation with a work coach, as this is highly inappropriate. The Government have already been found to have acted unlawfully in relation to 1.6 million people, at an estimated cost to the taxpayer of £3.7 billion, and they should not risk the same kind of slap-down over their treatment of the terminally ill.

As the roll-out continues, many more right hon. and hon. Members will feel the sharp effects on people and their communities. Ministers should go further in acknowledging the systemic failures before it adds more costs to people’s lives and drains local government of vital resources.