Universal Credit Roll-out

Ged Killen Excerpts

Wednesday 18th October 2017 Commons Chamber

[Gerard Killen (Rutherglen and Hamilton West) (Lab/Co-op)]

This month, universal credit will be rolled out in full across South Lanarkshire, which includes my constituency. In October 2015, when I served as a South Lanarkshire councillor, universal credit was first introduced for newly unemployed single claimants. By the end of that year, 48% of council tenants in receipt of universal credit were in arrears, with a total of £65,000 outstanding. Not only did that put pressure on people’s lives; it also put pressure on a local authority already struggling under this Government’s austerity policy. I am dismayed that, two years later, the Government appear to have learned nothing from that experience. New claimants are still finding themselves in debt and arrears because, as we have heard many times, people are still waiting at least six weeks to receive payment.

Advance payments are repayable loans. For the six months that people will be paying them back, they will be expected to live on less than has been calculated for them to survive. That six-week delay assumes that everything goes smoothly with the application, which does not always happen. Some people are waiting far longer and find themselves significantly worse off after moving on to the full service.

What about those who do not have the IT skills or internet access to be able to apply online? They can go to a library or a jobcentre if they are still open, but that is not an option for many. Although I welcome the Secretary of State’s decision to scrap helpline call charges, there are significant issues with the quality of advice when people do get through, particularly because of the complex calculations involved. There is no point in the advice being free if it is incorrect. That is not a criticism of DWP staff, who are working very hard in difficult circumstances.

In many cases we are talking about whole families, often with complex needs, who are already in a difficult financial position and who are turning to the state for an extra bit of support, only to find themselves struggling to provide basic essentials. There are expected to be 1,150 new service claimants in my constituency between now and January. What advice should I give those constituents in the run-up to Christmas and beyond? Should I tell them that they might be forced into debt but that this is a learning process and the Government hope to use their experience to get it right eventually?

We already know what the issues are, and the Government already know what the issues are. We are talking about people’s lives, not a test and learn exercise. Credit unions, churches, housing associations, councils and food banks—how many more organisations will it take? How many more families do the Government need to hear from before they listen and pause this roll-out?