(8 years, 11 months ago)
Commons ChamberThe hon. Gentleman’s party, which opposed universal credit from the outset, can hardly say that it is the slightest bit interested in how it works. The reality is that all those calculations for lone parents do not take into consideration—[Interruption.] No, they don’t. The childcare package that comes with universal credit is dramatic. Unlike tax credit—[Interruption.] Perhaps he would like to just keep quiet and listen for once to somebody who knows what they are talking about. I say to him very simply that the childcare package for universal credit gives parents with children childcare support every single hour while they are in work. Under tax credit, they got next to nothing.
8. What progress he has made in rolling out universal credit; and if he will make a statement.
Universal credit is rolling out as planned: on track and on time. I can announce today that it will be in every jobcentre by April next year. Estimates of the total cost of implementation have fallen from £2.4 billion to £1.7 billion, with £0.6 billion having been spent to date. Over a quarter of a million people have now made claims to universal credit.
I recently visited my local jobcentre in Sittingbourne. Job coaches told me how well universal credit is working, giving claimants more flexibility to work and coaches more time to support them. Does the Secretary of State agree that universal credit is helping people into work and making work pay? Will he press on with the roll-out so more people can benefit?
Even on the figures we have published in the past 24 hours, it is a reality that people on universal credit are much more likely to get into work, work longer and earn more money—that is the key bit. Rolling out universal credit has a massive effect on the likelihood of people entering into decent work. I also remind my hon. Friend—the hon. Member for Pontypridd (Owen Smith) obviously did not want to listen to this fact—that under universal credit the childcare package is for every hour they work all the way up until the moment they leave the benefits system.
(9 years, 2 months ago)
Public Bill CommitteesMy question has, in fact, just been answered.
Q 32 On the 30 hours a week that we know the Government are going to be offering, is there a guarantee that they will pay for the 30 hours a week that people may want? In some areas, the cost of childcare is much higher—in my borough, for example, it is 30% higher than the London average. Will there be a shortfall between the amount the Government are prepared to pay for the childcare and the amount it will actually cost?
Neera Sharma: That is very likely. The Pre-school Learning Alliance has said that, on average, the cost of childcare is £4.53 an hour; the Government contributes, on average, £3.88. When the childcare offer is doubled, nurseries could operate at a loss of £661 per child per year, so there are going to be quite significant issues for providers.
(9 years, 2 months ago)
Commons ChamberI am on the verge of giving up speaking to the right hon. Gentleman, because he misuses all the facts. As I have told him again and again and again, he is more than welcome to visit the sites where it has been rolled out. He has had an open invitation to come to see the digital site and I recommend that he does so. Universal credit is already working; no one has lost any money; it will be online; and it will go out fully and start next year. This is a successful programme and if the right hon. Gentleman wants to compare notes about tax credit roll-outs, I would be more than happy to do that.
I recently visited my local jobcentre in Maidstone. I found that the job coaches there were pretty much unanimous in their support of universal credit—
Will my right hon. Friend advise on what formal assessment there has been of the success and impact of universal credit so far?
As I have already said, universal credit is now available in more than half the jobcentres. The full development starts rolling out next year. People will benefit enormously not just from the technicalities but from the fact that an adviser will now stay with a claimant all the way through the claim. I know that my hon. Friend was not looking for a job, but perhaps the hon. Member for Bermondsey and Old Southwark (Neil Coyle) will need to be looking for one in a few years’ time.
(9 years, 4 months ago)
Commons ChamberThis Bill, in combination with the summer Budget, asks us to make three choices. It asks us to think about what sort of society we want to live in, the place of welfare in that society and whether welfare should be a way of life. It asks us to think about the relationship between the state, employers and labour. It also asks us about our tolerance for people being better off on welfare than in work. I know where I stand on those three issues, but I have heard that some on the Opposition Benches are wavering.
On the first of those questions—what sort of society we want to live in and the place of welfare in that society —I am pretty sure we have a consensus that welfare should be a safety net and should be a hand up rather than just a handout, but that means that a benefit such as child tax credits, which nine out of 10 families are receiving, simply cannot be right. Either a benefit should be universal, as with the NHS, or it should help those in trouble, but this one is at present stuck somewhere in between. It is absolutely right that we should move towards tax credits being for far fewer families—five out of 10 families in due course—but arguably we should go further, because in future people’s incomes should cover their cost of living. That is the direction we are going in with the living wage going up towards £9 an hour in 2020.
On the second question—the relationship between the state, business and labour—right now we have a high employment society, but we have a problem of low pay topped up by the state combined with low productivity. We need to move to a situation in which people have a decent wage and businesses keep more of their earnings through there being lower tax, with those earnings being reinvested in the workforce. We will then have a workforce that receive higher pay and that are worth more to their employers, who invest more in their workforce. That is a much better economy to have, with people being better paid and more productive.
The third question—our tolerance of people being better off on welfare than in work—was, I am sure, a real sticking point for all of us on the doorsteps. We got a very clear message from the voters at the election that it is not right for people to be better off on welfare than in work. It is a huge source of resentment when people see they are paying taxes that support somebody in a lifestyle they cannot afford. A couple might stop at having one or two children when they would like to have more but they realise they cannot afford it.
I am sorry but we are short of time, so I will keep going.
It is right that those out of work or receiving benefits should face the same tough choices as those in work and living off their income. Three wards in my constituency are among the most deprived 20% in the country, and since becoming an MP I have prioritised spending time with my citizens advice bureau and local food bank. In the past I have worked as an outreach worker for the homeless, so I do really care about this subject—it is not just something I feel I should say.
It is critical to recognise the three principles of the Bill: that the best way out of poverty is work; that we have a better economy when we have people on higher pay with lower taxes and there is higher productivity as well as high employment; and people should be better off in work than on welfare. That is not just to do with incentives; it is about being one nation, with everyone having a shared stake in the nation’s prosperity.
(9 years, 5 months ago)
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May I just correct the right hon. Gentleman on one small fact? I have not spent my time winding up the media. With respect, I think he needs to look at those on his Front Bench, and some of their friends, who have spent the whole time winding up the media.
I welcome the right hon. Gentleman to his new post. He knows very well that the door is open, and I am happy to sit down and discuss that proposition, and, more importantly, what I believe should be in the measures.
Making sure that work pays is vital to lifting families out of poverty. Does my right hon. Friend agree that the effective roll-out of universal credit is critical to achieving the goal of reducing poverty?
I welcome my hon. Friend to her place. Yes, universal credit will reduce poverty, because it makes every hour of work pay. That means that going into work is no longer a tough decision: it becomes an easier decision and progressing into full-time work becomes much easier.
(9 years, 5 months ago)
Commons ChamberI absolutely agree, and am glad that the hon. Gentleman has raised the issue of apprenticeships. Under the previous Government there were 2 million more apprenticeships, and this Government have made a commitment to 3 million. As the Minister for Employment, my right hon. Friend the Member for Witham (Priti Patel), said earlier, we have also introduced a degree-level apprenticeship. The hon. Gentleman is absolutely on the money: we want to do more about apprenticeships, and if he spots something that will be helpful to us I am happy to see him about that.
People with mental health problems can find it incredibly difficult to get a job and stay in employment. What are the Government doing to help?
That issue is being picked up through the Access to Work scheme. The changes we have made recognise the challenges for people with mental health conditions both while they are in work and with maintaining work. I formerly employed someone with a mental health condition, so I know what a valuable contribution such people can make, often needing only small changes and bits of support.