Oral Answers to Questions

Eilidh Whiteford Excerpts

Monday 7th December 2015 Commons Chamber

[Mr Duncan Smith]

By the way, I welcome the hon. Gentleman back. It is good to see him back in his place; I understand he has had some difficulties with health treatments.

The hon. Gentleman would be right, if that were the trend and the direction in which we were going. It is interesting that there is a difference between us and the United States. The vast majority of the jobs that have been created here are white-collar and full-time. That is important. Although we think that people being self-employed is excellent for those who choose to do it, we are seeing a huge trend in supported jobs with full pay and full-time work.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

The selling point of the Government’s universal credit scheme was that it was supposed to increase work incentives. However, the reduction in work allowances in universal credit due to take effect in April next year will leave around 35,000 working households with no transitional protection and thousands of pounds worse off. Does the Secretary of State accept that these changes will actively disincentivise people to go into work, particularly lone parents?

[Mr Duncan Smith]

I do not. Universal credit is acting as a huge incentive to go back to work. Even the statistics published over the weekend show that universal credit means that people are 8% more likely to go into work than was the case with jobseeker’s allowance. I remind the hon. Lady that jobseeker’s allowance has been seen by many in the western world as one of the most successful back-to-work benefits. Universal credit performs even better than jobseeker’s allowance by some considerable degree.

[Dr Whiteford]

With respect, the Secretary of State did not answer the question about the 35,000 households and about transitional relief coming into effect for April 2016, so I ask him again: what about those people who stand to be thousands of pounds worse off in April?

[Mr Duncan Smith]

As I said before, first, people are getting back to work. Secondly, those who are on universal credit at present will be fully supported through the flexible support fund, which will provide all the resources necessary to ensure that their situation remains exactly the same as it is today.