Universal Credit Roll-out

Helen Whately Excerpts

Wednesday 18th October 2017 Commons Chamber

[Debbie Abrahams]

I wonder how that intervention will be seen by those people affected by these issues. Some 900,000 working-age adults will be pushed into poverty, while 900,000 children and 800,000 adults will be living in severe poverty.

Earlier, I mentioned the design issues that are affecting disabled people. This week, I heard from someone who has lost nearly £80 a week—a week—because of their transfer to universal credit after they moved house, ending their ESA claim. When UC was first launched, the Government said they wanted to

“simplify the current complex rules which have been prone to error and complex and confusing for disabled people”

and to replace

“seven different premiums with a simpler, two-tier system that focuses support on the most severely disabled people who are least able to work”.

However, subsequent social security changes, particularly the abolition of the UC limited-capability-for-work element from April 2017, have meant that, instead of a net gain, it is likely that there will be a net reduction of support for people with health conditions and disabilities.

Under this Government, we are seeing unprecedented cuts in support to disabled people, with the consequence that more and more disabled people are living in poverty. The number currently stands at more than 4.2 million; this cannot go on. This is exactly what the UN Committee on the Rights of Persons with Disabilities said is causing a “human catastrophe”.

[Helen Whately (Faversham and Mid Kent) (Con)]

Will the hon. Lady give way?

[Debbie Abrahams]

I am sorry, but I will not. As I have said, I am conscious that 90 people wish to speak.

The self-employed are another group who are adversely affected by the Government’s changes to universal credit. We have seen a dramatic increase in self-employed people in recent years: they now make up 15% of the workforce—5 million in total—and account for 80% of the increase in employment since 2008. But 45% of them pay themselves less than the living wage.

As I have said many times, it is absolutely right that we try to design a social security system that can properly support self-employed people and that recognises the fluctuating nature of the labour market for those workers. Sadly, universal credit no longer does so, after the introduction of the minimum income floor, which is an assumed income for self-employed people, found by multiplying the minimum wage on the assumption that self-employed people are working 35 hours a week. One self-employed recipient who contacted me said:

“This system does not allow for the fluctuations in income that are experienced by the self-employed. Surely an assessment made on a year’s profits would be much fairer.”

They went on to say that universal credit will close down enterprise as a route to employment.

Importantly, the Department for Work and Pensions does not average incomes over a year, which leads to issues around holidays, such as Christmas, when the self-employed may take time off. They will be punished for doing so under the Government’s universal credit system. The Federation of Small Businesses has also expressed concerns, saying that it expects major problems for low-income self-employed people to set in at Christmas.

We need to build a social security system fit for the 21st century and to make sure that all workers, employed or self-employed, are afforded dignity and security as work demands fluctuate. We cannot allow the devastating impacts of universal credit roll-out to happen. I reiterate my genuine offer to work with the Government to address the very real concerns about universal credit, particularly its design flaws, the administrative issues and the cuts.

I welcome the Government’s announcement this morning that the so-called helpline will now be a Freephone line. Given Serco’s appalling performance over the past few years and the profit that it has made from the Government contract, it should be paying for the Freephone lines. It is unacceptable that people on the lowest incomes have been paying money that they do not have on phone calls to find out about their claims.

Action must be taken to improve call handler capacity and competence, so that people making inquiries on their claim are not kept on hold or passed from pillar to post. Another key ask is for alternative payment arrangements to be offered to all claimants at the time of their claims. That includes ending the one-week wait and enabling people to have fortnightly, instead of monthly, payments where appropriate with the option of the housing element to go directly to the landlord. Alternative arrangements have already been made available in Northern Ireland and will be introduced in Scotland, so there is no reason why they also should not be available to people in England and Wales.

We need to look at the advanced payments and make them more manageable. A repayment over six months is still creating huge issues for people on the lowest income.

--- Later in debate ---

[Helen Whately]

May I back up my right hon. Friend, drawing on work I have done in my area and on discussions with citizens advice bureaux? When people have needed advance payments, they have received them incredibly quickly, within two or three days, and the jobcentre staff tell me that universal credit is helping them to help people to get into work. Does he share my frustration at hearing so much negativity from Labour Members and never any positives?

[Mr Gauke]

I certainly do. This is an important matter and strong views are held in all parts of the House, but I urge right hon. and hon. Members to engage with their local jobcentres. When they talk to jobcentre staff, many Members hear what my hon. Friend just described—that the universal credit system is delivering for people, giving them the opportunity to get jobs. That is exactly what we are determined to do.

Universal credit is working and the roll-out will continue—to the planned timetable. We are not going to rush things. It is more important to get this right than to do it quickly. At the moment, of the total number of households that will move on to universal credit, we are currently 8% of the way there. By January, it will be 10%. Across the country, we will continue to improve our welfare system to support further those who aspire to work.

--- Later in debate ---

[Helen Whately (Faversham and Mid Kent) (Con)]

Listening to this afternoon’s debate, I have been disappointed by the relentless negativity from Opposition Members. I am sure that all of us, on both sides of the House, spend the majority of our constituency time supporting the most vulnerable people in our communities. We all care—I certainly care—about getting the best possible opportunities and support for our most vulnerable constituents who are having the greatest struggles in their lives. That is why I speak regularly to the citizens advice bureau in my constituency, the food bank, the jobcentres and local councils about many issues, including universal credit. They have reported back to me that universal credit is working well in my area and across Kent—[Interruption.] Kent includes some seriously deprived areas and should not be mocked.

I am told that universal credit is helping people to work more hours when they want to, empowering work coaches to help people, and helping claimants to gain independence. I will not pretend that it is perfect. I welcome the Government’s raising awareness of the advance payment and I am glad that there is flexibility for the housing component to go directly to the landlord where that is the right thing to do. That needs always to be possible when it is the right thing to do, but I am told that it is sometimes difficult to trigger. It is wrong when landlords discriminate against people on benefits; that should be tackled. All in all, however, universal credit is a better system, and I will be watching carefully to ensure it continues to help my constituents as it is rolled out fully in my area.