Universal Credit

Debate between Heidi Allen and Ben Bradley

Tuesday 13th March 2018 Commons Chamber

[Heidi Allen (South Cambridgeshire) (Con)]

Opposition Members know that I have been the first to stand up and challenge the Government on universal credit, and the Government have listened. First, at the 2016 autumn statement, we reduced the taper rate from 65% to 63%, which cost the country £700 million but put around £300 into families’ pockets. Secondly, I worked with the Government at the end of last year to secure £1.5 billion of comprehensive improvements: two weeks’ extra housing benefit for those transitioning on to universal credit with housing payments; double the advance payment and twice as long to pay it back; direct payments to landlords; and a slowed-down roll-out. Those were all things that the Opposition asked for, so I am staggered that they are asking us to vote against them today.

For the past two years, I have worked not only with my colleagues, but proudly on a cross-party basis to achieve those improvements. Today is a big wake-up call. These motions are not about improving universal credit, but simply about playing politics. I have seen that for the first time. The Government have taken the time to understand how best to transfer a lump-sum benefit such as free school meals into a tapered system such as universal credit. An earnings threshold is perfectly acceptable to all reasonable people—by the way, we are talking about taxpayers. The only possible improvement I could encourage Ministers to look at is automatic entitlement if there is a disability in the family.

Let us get the facts straight. All reception, year 1 and year 2 children will continue to receive free school meals—full stop. The measures apply only to year 3 and beyond. All those currently receiving free school meals will continue to receive them until the end of their phase of schooling or 2022, whichever is the further away. Labour is creating false headlines by saying that any child will lose. Under the proposals, the Government will focus better on children who are in, or at risk of, poverty. That is, as we have heard, around 50,000 children by 2022.

[Ben Bradley]

Conservative Members know that no children will lose their existing entitlement to free school meals or free childcare as a result of our policies. Meanwhile, my jobcentre says that fear of universal credit is the biggest challenge that it faces in the roll-out. Will my hon. Friend comment on where that fear might be coming from?

[Heidi Allen]

My hon. Friend makes a valuable point. That fear is particularly prevalent on social media. There is a saying that a mistruth can travel halfway around the world before the truth has even put its boots on. That is happening with universal credit, aided and abetted by social media. Universal credit is not even in my constituency yet, but I hear from constituents who are worried about it. Oddly enough, I can put their minds completely at rest when I explain it to them.

As I have mentioned, tax credits recipients automatically get free school meals at the moment, which could mean that a family on £50,000 a year receives them. That cannot be right—[Interruption.] People on legacy tax credits who do not have disabilities in their family—those on the old benefit system who are transferring over—can have regular incomes of up to that level. The new system expands the criteria so that we can get to more children who need our support, not fewer.

Although I understand that a key part of any charity’s role is lobbying, I am disappointed in the Children’s Society. Its suggestion that 1 million children will lose free school meals is simply not true. Labour has jumped on that bandwagon, and it has taught me a lesson. There are colleagues from all parts of this House—SNP Members included—whom I trust and respect, and with whom I will continue to work to improve the lives of the most vulnerable in society, but if people think that the Labour party is the answer to tackling poverty, they are being misled. Today—this is a big wake-up call to me—the Labour party has clearly shown that it is prioritising headlines over improving the lives of struggling families. If you want a headline spun, Mr Deputy Speaker, ask the Labour party; if you want a competent job done, ask the Tory party.