Universal Credit

Debate between Eddie Hughes and Alex Burghart

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.

Finance Bill

Debate between Eddie Hughes and Alex Burghart

Tuesday 31st October 2017 Commons Chamber

[Alex Burghart]

I am grateful to my hon. Friend for bringing those figures to the House. Our extraordinarily impressive figure illustrates the achievements of successive Conservative Chancellors in their work to improve the situation that they inherited in 2010.

My hon. Friend the Member for Chelmsford (Vicky Ford) raised an extremely important point about timing. Do we really want a review to kick in just as the Brexit process is reaching its climax? With all due respect to Opposition Members, I do not think that they have really thought about that.

This has been my first Finance Bill and I have enjoyed everything about it immensely. I have even enjoyed the speeches made by the shadow Minister, the hon. Member for Bootle (Peter Dowd). I have enjoyed his panache, his dapper dress sense and his ties, which make me feel slightly underdressed. In Committee, he enlightened us with his knowledge of Plutarch and made reference to the Beatles. I believe that he referred to Plutarch’s discussion of Pyrrhus’s victory over the Romans, which led to Pyrrhus saying, “One more such victory and we are lost.” Were new clause 1 to be agreed to, it would be a pyrrhic victory of great consequence. It would put billions of pounds of Treasury revenue at risk, which would in turn put our public services at risk. That would make my constituents very angry.

I know that the hon. Member for Bootle is fond of the Beatles, as am I. We have already had a comic turn from one Essex MP today. The House might recall that, once upon a time, John Lennon was asked why the Beatles were the greatest band in the world. He said it was because Paul McCartney was the greatest singer-songwriter in the world and because George Harrison was the greatest guitarist in the world. The interviewer said, “What about Ringo? Isn’t he the greatest drummer in the world?” Mr Lennon replied, “He’s not even the greatest drummer in the Beatles.”

[Eddie Hughes (Walsall North) (Con)]

I rise because it is dreadful to hear this wrong story being perpetuated in the House of Commons. It is a myth that that conversation ever took place, in my opinion—people can check it now on Google. We have in Birmingham a fine comedian called Jasper Carrott who once told that story as a joke. Such is the way that Google works these days that when someone tells a joke like that, it finds its way on to a website somewhere and a myth is perpetuated. We are hearing that story told again in the House of Commons today. I am concerned that it will be recorded inappropriately, so I hope that my hon. Friend will consider that.

[Alex Burghart]

rose—

[Alex Burghart]

You are quite right, Madam Deputy Speaker. I assure you that my comment was directly relevant to the Bill, but my peroration was cruelly interrupted by my hon. Friend the Member for Walsall North (Eddie Hughes). He has now set the record straight but, in the process, destroyed one of the great anecdotes about the Beatles. I was going on to say that new clause 1 is not even the best amendment that the Opposition have put up.

The Minister made it clear in Committee that with

“regard to a review of the legislation, as stated in the tax information and impact note published in December 2016, HMRC will monitor the effects of the provisions through information collected in tax returns. I therefore urge the Opposition not to press new clause 3.” ––[Official Report, Finance Public Bill Committee, 19 October 2017; c. 97.]

A form of review is therefore already under way. This Bill is fair and will get a good deal for all our constituents.

[Eddie Hughes]

My hon. Friend is making a great speech. Another vital factor that we must consider is the element of trust, which will come up repeatedly as we discuss further amendments. It is important that taxpayers can trust this Government to ensure that we collect the maximum amount of tax and then deploy that tax appropriately to provide excellent public services. My hon. Friend suggests that it is important that the Bill is fair, but it is also important that it is trustworthy and that the people watching this debate on telly at home—millions of them—have faith that the Government are firm, fair and trustworthy.

[Alex Burghart]

I thank my hon. Friend for that wonderful speech. He is of course entirely right that these measures are fair. They get a good deal for the British taxpayer and will help to underpin future investment in our fine public services.