Universal Credit Roll-out

Heidi Allen Excerpts

Wednesday 18th October 2017 Commons Chamber

[Dr Sarah Wollaston (Totnes) (Con)]

I support the principles behind universal credit. My question is this: why are we undermining a policy with the potential to change lives for the better by not addressing a fundamental flaw at its heart?

We have heard many compelling cases today, and we cannot ignore them. The hon. Member for Mitcham and Morden (Siobhain McDonagh) set out one of the flaws, but we have seen that a policy of test, learn and rectify can work. Today there have been universal congratulations for the Government on the introduction of a free helpline, and the bringing forward of access to advances has also improved the policy, but that does not get us away from the fundamental problem of a minimum six-week wait. That means that our constituents who are living on the edge—we are talking about real people’s lives here—are going to start this process in debt and in arrears, as we have heard.

It is possible to apply test, learn and rectify to this process. I want to hear from the Minister in the winding-up speech that Front Benchers recognise that and that they are going to address the six-week wait. The advance does not solve the issue; it does not cover the entire amount. Those of us who represent our constituents have a cushion and we would probably manage, but many of the people I used to look after when I was in clinical practice and the people I represent now who come to my constituency surgeries have no cushion whatever. This is devastating for them, and we cannot ignore the very real, compelling case histories that we have heard. We cannot allow those to continue.

There are things that we can do. Bringing forward the initial payment would mean that fewer people needed advances in the first place. That would save us a complicated bureaucracy, allowing people to say for themselves when they start universal credit, “Please would you pay my landlord direct, because I know I am going to find that complicated? Please would you give me payments every fortnight, because I don’t currently receive monthly payments?” Once they are established on the system, give them, with their advisers, the option to transfer to taking over their own monthly payments for their rent.

[Heidi Allen (South Cambridgeshire) (Con)]

Does my hon. Friend agree that that would be sensible not only from an administrative point of view, but because work coaches could be helping people get into work, rather than helping them to deal with debt, stress and mental health issues?

[Dr Wollaston]

I absolutely agree. I say to the Minister, please, can we hear an assurance at least that there is a recognition of this fundamental flaw and that it will be addressed?

I know that Members on this side of the House will be abstaining tonight. Personally, I do not agree with that. The House should have an opportunity to express its view, and there have been occasions on which these debates, even though they are advisory, have led to changes in policy. If there is no way for me to express my view, on behalf of my constituents, that I think this fundamental flaw must be addressed before the policy is rolled out to the Totnes constituency next year, I am afraid that I will have to vote against the Government. I do not wish to do that because I support the underlying policy of universal credit—we have heard about many of its benefits—but, I say again, we are undermining it by not addressing the fundamental flaw at its heart. I hope the Minister will give an assurance from the Dispatch Box so that I do not have to vote against the Government.

--- Later in debate ---

[Heidi Allen (South Cambridgeshire) (Con)]

I am fortunate to have served on the Work and Pensions Committee since my election in 2015, and that has given me a really detailed understanding of universal credit. To reiterate my question to the Prime Minister last week, I believe that universal credit will be the most significant positive transformation of the benefit system in decades. The principles of universal credit are different and the support provided by work coaches is different, but that must not detract from the concerns that I and many Members from across the House have with the design of universal credit. I am disappointed that the Government did not pause the roll-out of this service while some of the system build flaws are resolved, but the Secretary of State has already given the commencement order, and that moment has passed. There is, however, another one-month roll-out delay in January, so all eyes will be on that.

I want to focus my efforts now on convincing Ministers that there are easy and relatively inexpensive ways of improving the design. I wish to put on record my thanks to the Prime Minister for meeting me and colleagues yesterday afternoon to hear our proposals. We were joined by the Secretary of State, and I am positive that we were genuinely listened to and that there was a shared determination to make improvements.

The biggest single criticism of universal credit is the time it takes for people to receive their first payment. Although I appreciate the announcement that advance payments will be made available to all, it is clear to me that, as the number of people requesting these is already rising, it must mean that the inbuilt six-week wait does not work. If we want universal credit really to replicate the world of work, payments must be built around a four-week cycle. Removing the initial seven-day wait must be the very least we can do. At a minimal sum of £150 million to £200 million a year, this would be an inexpensive fix that would benefit all claimants.

Rather than developing another system to prop up a flawed system, let us stop convincing ourselves that advance payments are the answer. Of course there will always be vulnerable claimants who will need financial support today, and, for them, advance payments have an important role, but if, today, more than 50% of claimants have taken up an advance payment—that is before the Secretary of State has said he will advertise them more widely—we must accept that there is a reason that that percentage is so high. Let us stop administering and paying out advance payments hand over fist and reduce the default waiting time for all awards to fortnightly payments at two and four weeks from the moment of a claim. Let us keep paying fortnightly until the work coach and claimant together decide that being paid monthly is okay, and let housing payments go direct to landlords. That would dramatically reduce the number of families going into rent arrears, turning to food banks and spiralling further into debt.

Having discussed this personally with the Prime Minister—I would appreciate another 20 seconds if somebody could give me some time, please. Will anybody intervene? No.

[Stephen Lloyd]

rose—

[Heidi Allen]

I give way to the hon. Gentleman.

[Stephen Lloyd]

I thank the hon. Lady for giving way. I concur with a lot of what she is saying. Like many Members on both sides of the House, does she agree that the principle of universal credit can work if those two or three key changes are made? Without those changes, it will collapse.

[Heidi Allen]

I appreciate the hon. Gentleman’s intervention. I agree that we risk undermining the success of the system if we do not get these basic things right.

Having discussed this matter personally with the Prime Minister yesterday, it is probably too ambitious to expect a response just yet, but I am confident that she will consider our proposals. Why? Because as well as being the smart thing to do, it is the compassionate thing to do.

Two years ago, almost to the day, I made my maiden speech:

“a country and its economy does not function…if the people who run the engine cannot afford to operate it. We need every teaching assistant, care worker, cleaner and shop worker”—[Official Report, 20 October 2015; Vol. 600, c. 874.]

to secure our economic future. With Brexit looming, the call could not be more clarion than it was when I said it two years ago. To pull ourselves out of debt, we should not be forcing working families into it.