Universal Credit Deductions

Gregory Campbell Excerpts

Wednesday 19th July 2023 Westminster Hall

[Jim Shannon]

I think they do; he does not know them as well as I do. The letter states:

“As a food bank operating in Newtownards, we are writing to you to raise our concerns about rising numbers of people in our community who are needing to turn to food banks, like ours, because they cannot afford the essentials we all need to survive.”

These are his words: “This is not right”. I say amen to that.

“In the last financial year we saw a 30% increase in clients coming to the Newtownards Foodbank compared to the previous year. We are aware that our summer has started really busily with an average of 24 different families attending each week since June in what is normally our quieter spell.

Many attendees are struggling with the inability to feed there families and provide fuel for their house needs. A significant proportion are actually working but their outgoings outstrip their income. Those on benefits clearly don’t get enough to match their basic needs.

While the cost of living crisis and the pandemic have placed additional pressures on incomes, this year’s rise is part of a longer-term trend in levels of need. Support has eroded over decades and the basic rate (‘standard allowance’) of universal credit is now at its lowest ever level as a proportion of average earnings. Alarmingly, the number of parcels provided this year is more than double the amount distributed five years ago.”

I will say that again, because that is an important line:

“Alarmingly, the number of parcels provided this year is more than double the amount distributed five years ago.

No one should be forced to turn to a food bank because they cannot afford essentials, including food. We provide immediate support to people in our community when they are struggling the most, but our vision is for a world where food banks, like ours, don’t need to exist.”

I said that in an intervention on the hon. Member for Glasgow South West. That is his vision, mine, the vision of every Opposition Member and, I hope, of the Minister. The letter also says:

“Research by the Trussell Trust shows that inadequate social security is the main driver of food bank need and there is a known link between issues with the benefits system and food bank use. This can and must change.

Alongside the Trussell Trust, we are calling for our social security system to Guarantee Our Essentials by making sure that the basic rate of Universal Credit is at least enough to afford the essentials we all need, such as food, energy and basic household goods – and that deductions can never pull people below this level.”

He asks me:

“Will you support the principle that, at a minimum, Universal Credit should always protect people from going without the essentials?”

That is Richard’s letter to me this week. I will say on the record that I fully support what he said.

[Mr Gregory Campbell (East Londonderry) (DUP)]

My hon. Friend has succinctly summed up the issues in the letter from his constituent. Does he agree that faith-based food bank providers in my constituency, his and others are doing excellent work, and that most people in society, including universal credit recipients, support the principle of the universal credit system, which is to encourage people back into work? The problem is that when there are deductions, and almost a penalistic regime, people suffer. That problem must be solved in our society, because people are being driven further into poverty, rather than lifted out of it.

[Jim Shannon]

My hon. Friend has succinctly made his case in his intervention. The key issue for the Minister—this is from me, the hon. Member for Glasgow South West, who set the scene very well, and, I suspect, everybody on the Opposition Benches—is that there is a delay in the system, and difficulty understanding the system. Whenever we go to the local office, the office manager and staff can respond, but there are many people other than those who come to us—and there are many who come to us, by the way; many come to the office with this issue, because they still cannot understand it. We are asking the Minister for the extra help that is quite clearly needed. There is also the five to six weeks’ delay that many people seem to have. Whenever they earn more money, they fall back down again. They are often sick, and their housing benefit is so complicated; it is almost hard to try to comprehend it.