Universal Credit Roll-out

Heidi Allen Excerpts

Thursday 16th November 2017 Commons Chamber

[Heidi Allen (South Cambridgeshire) (Con)]

Thank you, Mr Deputy Speaker, for allowing me to speak in this important debate. My congratulations to the hon. Member for Banff and Buchan (David Duguid): may I have some dolphins for South Cambridgeshire, please? I am not sure where we would put them, but we would take great care of them. I also sincerely thank the right hon. Member for Birkenhead (Frank Field) for securing this debate via the Backbench Business Committee and for working so closely in cross-party partnership with me on an issue that is very important to us both.

Members, including Ministers, will know that I fully support universal credit and believe that, when it is fully implemented, it will be the most positive transformation of our benefit system in decades. As an employer, I remember only too well the weaknesses of the old system—the 16-hour cliff-edge that limited employees’ ability to take on more hours, knowing they would be worse off. I was reminded of that in a conversation last week with a constituent. The full service universal credit system has not yet come to my local jobcentre in Cambridge. She does not want to take any more hours now because of that. What kind of a benefit trap is that? Surely, no one in the House can support a benefit system that actively discourages progression in work.

Universal credit will be different, and where the live service—the basic system for single, uncomplicated jobseekers—has been rolled out, it is different. We see more people moving into and upwards in work. However, it is without doubt the full service—that is, the full universal credit system which will support families, parents and those with caring responsibilities, health conditions and disabilities—that causes many of us concern.

I appreciate that such a huge transformation in operation will come with challenges and that the “test and learn” approach is commonplace in IT projects; but the crucial difference is that the subject of this project is someone’s life. This is about people; it is about real lives. Get it right and the potential is huge, but get it wrong and the risks are simply too great. They may manifest themselves —I will say it—in debt and in hunger. So it is right that Ministers have opted to roll universal credit out slowly, steadily, carefully, because there have been unacceptable delays in claimants’ first payments. The long-awaited landlord portal should have come sooner. I wish that we had had a freephone number for everyone from the beginning. There remain parts of the system that are incomplete—the minimum income floor for the self-employed and the evidence-gathering process for childcare costs need further development.

If I am honest, I believe the system will never reach its truly intended potential as the ultimate poverty-fighting machine until either the taper rate is reduced or work allowances are restored to their original pre-2015 levels.

I thank the Chancellor for reducing the taper rate by 2% in the last Budget. It cost a lot of money—£1 billion—but every penny really does matter to those living on the lowest incomes. Single parents and second parents returning to work will be worse off now than they would have been under the old system. An in-work couple will lose about £1,370 a year due to the benefits freeze and work allowance cuts. Are they not the very people we should be encouraging to get into work?

Tight fiscal discipline, razor-sharp focusing of precious resources, precise and meaningful interventions, smart thinking—that is what this Government do well. We could find the money by reversing the decision to raise the basic income tax allowance from £11,000 to £12,500 for all; but would it not be better to focus that money on those who really need it? I do not need it. I suspect Opposition Members do not need it. Not everyone needs it.

If we want universal credit to be exactly like the world of work, it has to operate like the world of work. Can any Minister or civil servant honestly say that waiting six weeks for your first payment is normal? So, from my universal credit wish list, one ask stands head and shoulders above the rest: we must get the six-week wait down.

I remain grateful to the Prime Minister for agreeing to meet me so soon after my question in the Chamber, and I appreciate the diligence and receptiveness of the Secretary of State, the Chancellor and the Minister in hearing our concerns. Members on both sides of the House, our cross-party Work and Pensions Committee, peers, charities, the Children’s Commissioner and, most important of all, our constituents have raised concerns. We cannot all be wrong. The six-week wait must be reduced to a month. When we stopped the cuts to tax credits in 2015, halted further cuts to PIP in 2016 and put £1 billion back into the taper rate last year, they were the right things to do. They demonstrated the good that Government can do.

[Nigel Huddleston (Mid Worcestershire) (Con)]

As well as making recommendations about what the Government can do, recommendations that are, I think, sincerely meant and will, I am sure, be taken on board by the Minister, does my hon. Friend agree—this has been mentioned by others in the House today—that other parties, including immoral big letting agencies, also need to act in this sphere?

[Heidi Allen]

Absolutely. System changes of this magnitude require everybody to work properly, with integrity, and not exert any kind of influence on the most vulnerable people in the country, who perhaps cannot defend themselves and are not legally trained. The hon. Gentleman is absolutely right on that.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I praise the hon. Lady for the way that she has argued her point, which I entirely indorse, about the six weeks. Does she see my point that this situation is worsened when there are constituents in Caithness and Sutherland, in extremely remote parts of Scotland, who are very often out by themselves, not near a food bank, not near friends or relations who might be able to tide them over the gap? There is a rurality and sparsity issue to this, which worries me greatly.

[Heidi Allen]

Indeed, there are many elements that make it especially difficult for some people. We have to recognise that one system will not work for everybody, so we must work together to find the solutions.

The reputation of this place has hit rock-bottom again in recent weeks. Let us turn it around. I checked a couple of words in a thesaurus: “compassionate” means empathetic, thoughtful and showing concern for others, while “conservative” means favouring free enterprise and traditional values. A compassionate Conservative does both those things: progressive and free, but safeguarding of society and showing care for others. Let us show we are listening. Please, Minister, let us do this.

--- Later in debate ---

[Chris Green (Bolton West) (Con)]

I congratulate the right hon. Member for Birkenhead (Frank Field) on securing this important debate. It was a pleasure to listen to my hon. Friend the Member for Banff and Buchan (David Duguid), who made a superb maiden speech. The debate about which is the most beautiful Scottish constituency carries on to this very day.

Waiting seven weeks for a first payment, in any circumstance, is challenging. If someone, perhaps a middle-class person, got a new job and had to wait six weeks for their first pay, that would be challenging, but it is quite likely that such an individual would have savings to fall back on and there might be friends and family who could offer support. Also, that person would have a good salary to look forward to once they started the job. However, someone on universal credit or receiving benefits would be far less likely to have such savings, and friends and family might not be so able to offer that support. Such a person would be in a far trickier position if they were receiving benefits, or looking forward to receiving benefits, perhaps having lived on the minimum wage or the living wage.

We have to recognise that the six-week wait is enormously difficult for people in the most vulnerable position in society, and I believe that we ought to get closer to the vision set out when universal credit was initially rolled out—the ideas behind it such as the sense of its being compatible with work and that work should always pay. But that is not the only aspect on which universal credit needs to get closer to that initial vision.

We need to reduce those seven waiting days. I appreciate the point about advances, but someone previously on the minimum wage and with no savings at all who has to spend seven days without any income before receiving the first payment five weeks following that seven days will find that a very difficult position to sustain with little back-up. We also need to look at the taper. I appreciate what the Government have done in the recent past, but we need to go further in improving the taper to give further encouragement for people to get into work.

However, we do have a listening Government, and I want to highlight a note sent to me by Bolton Citizens Advice:

“We welcome the Government’s recent decision to make the Universal Credit helpline free and ensure all claimants are told they can get an advance payment. We called for these changes in July because they will make a real difference to the people we help.”

[Heidi Allen]

I thought I was the ultimate UC geek and that there was nothing I did not know about it, but recently I learned that people can have a three-month payment holiday before those advance payments are paid back. Does my hon. Friend think that the jobcentres should advertise that more?

[Chris Green]

My hon. Friend makes an important point. It is very important to increase communication, and that awareness is vital. Citizens Advice and other organisations play a vital part.

Many people are calling for the Government to pause or perhaps even stop the roll-out of universal credit. I do not agree with that. Recently, I visited a jobcentre that serves my constituents, and people there were absolutely clear: do not stop. My hon. Friend also highlighted a number of failings with the current system, which is failing far too many people. While we need to move on to universal credit, I am equally clear that the initial wait must come down from six weeks to one month.