Universal Credit

Eddie Hughes Excerpts

Wednesday 17th October 2018 Commons Chamber

[Alex Burghart (Brentwood and Ongar) (Con)]

I am grateful to have the opportunity to speak in the debate.

The real reason we are talking about universal credit and welfare reform is a desire to get more people into work. This is not because of some accountancy-driven exercise. It is because work is a fundamental social good that helps people to provide for themselves. [Interruption.] The hon. Member for Wirral South (Alison McGovern) says that that is wrong. It is remarkable to take issue with the idea that work is a social good, and I assume she does not actually believe that.

Universal credit was designed to help people to move into and progress in work, and studies of it have repeatedly shown that it is capable of doing just that. That does not mean that it is without need of improvement. Indeed, I have been honoured to be part of the process of improving it. The work that I did with my colleagues on the Work and Pensions Committee in advance of the Budget in November last year led to a series of improvements that have greatly enhanced the way that universal credit serves the people on it. We have seen advance payments increased from a maximum of 50% to 100%, and the repayment period has been extended from six months to 12 months. The seven-day waiting period has been removed, and claimants already on housing benefit have continued to receive their award for the first two weeks of their universal credit claim.

[Eddie Hughes (Walsall North) (Con)]

Universal credit is actually coming to Willenhall in my constituency today. What advice would my hon. Friend give to my constituents? Should they be scared by the scaremongering that they have heard from Opposition Members, or encouraged that they will be helped back into work?

[Alex Burghart]

My hon. Friend raises a very important point. I can say that universal credit was rolled out in my constituency a number of months ago, and it is working extremely well. We have had nothing but praise for it from the work coaches who administer it, and we have had very high satisfaction rates from people using it in Brentwood and Ongar.

As I say, there is always something to do to improve any system. That is why the test-and-learn approach adopted by this Government is absolutely right, and why the pace of the roll-out has been absolutely right. A very small number of people in my constituency felt they were not given enough information about the application process, so they did not fill in the forms in the right way. They fell foul of the system, and they found themselves not receiving benefits when they expected to and falling into debt. That is exactly the sort of support that I hope Citizens Advice, under its new contract with the DWP, will be able to provide. It is another example of how the Government have responded to the system as it has rolled out and improved on it.

We have to remember that the benefit system being introduced now is a dynamic system, so comparing like with like is extremely difficult. If we have an old, legacy system that actively discourages people from taking on more work and we compare it with a system that helps people move into work and take on more work, a direct comparison, which is what a lot of studies have done, is absolutely inadequate.

In their negotiations with the Chancellor in advance of the Budget, Ministers should discuss with the Treasury the possibilities of reviewing the carry-over of debt from HMRC, restoring work allowances and extending further the advance repayment schedule. My hon. Friend the Member for South Cambridgeshire (Heidi Allen) made a very good point about how we might be able to front-load those payments officially, because we do not want people falling into trouble as they enter the system.

Lastly, I make a plea again for the importance of universal support. This part of the system has the potential to help people overcome very complex problems and move into work, so benefiting themselves and their families.