Universal Credit and Welfare Changes

Debate between Iain Duncan Smith and Esther McVey

Thursday 21st June 2018 Commons Chamber

[Ms McVey]

First off, this was the earliest time that I could come to the House to make an oral statement. I sought to make a statement as soon as possible, which is why I am here today. Obviously, everyone will know what has been happening this week in the House.

On the legal changes that I have made, let me say that I took them from day one. I took them immediately. No one was forced to do that; I actually took the changes on myself with the rest of my team and also with Conservative MPs who came and told me what they would like to do. I also went out to visit various groups up and down the country. I felt that that was the best thing that we could do.

When this system is fully rolled out, it will be £50 cheaper per claim. It is an automated system and it is a personal tailored system. For those who cannot get access, or who are not sure about the IT and how to support it, we have given an extra £200 million to local authorities to support people—to help them with IT and to help them with debt—not that we would ever recognise that from the scaremongering of the Opposition.

Labour talks about poverty figures, but, compared with 2010 when it was last in office, there are now 1 million fewer people in absolute poverty. Rates of material deprivation among children and pensioners have never been lower, inequality has fallen and remains lower than in 2010, and according to the latest figures, out this week, inequality, because of our benefit and tax changes, has fallen by two thirds in the last year. I wish the Opposition would keep up with the rapid changing of things.

We are helping more people into work. More than 3.2 million more people are in work—1,000 jobs every day since 2010. How much evidence do the Opposition need, for heaven’s sake? The support is there, and now the advances. It was key we made those changes in the last Budget. We knew if people were having difficulty with the benefit, which was there to support them, we had to make those changes—the advances, the two-week run-on for housing benefit, stopping the waiting days—and now we find out that 4% of people are moving into work in fewer than six months and that 50% spend more time looking for work. That is the reality.

Please allow me, Mr Deputy Speaker, to mention some of the real people I have met and spoken to and what they are saying about universal credit. Shafeeq, who was homeless, got an advance that got him temporary accommodation and put him in a better place to look for work. He said it

“helped me out a great deal and I’d have been lost without it”.

He is now in a job. Lisa said an advance payment helped her to secure a place with a childcare provider. She is paying it back over 12 months, which she says means a great deal to her. Gemma, a lone parent, said,

“it’s amazing being able to claim nearly all my childcare costs back, it’s a real incentive to go out to work – I’m going to be better off each week”.

Ben in Devon had a work coach, who helped him to progress in work from day one. Ryan from Essex had a lack of work experience and confidence, and his work coach helped him through universal credit. I will end it there—with the people receiving the benefit.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I thank my right hon. Friend for her statement. The NAO report is, to be frank, a shoddy piece of work. It has simply failed—[Interruption.] Genuinely; anyone who reads it—I do not know if anyone on the Opposition Benches has bothered—will realise that it fails to take account of a series of issues, not the least of which are that the Treasury signed off annual recurring savings of £8 billion and, more importantly, that the changes last November and December have made a huge difference to people’s lives. I urge her to carry on and to tell the Public Accounts Committee to ask the question: who polices this policeman? This piece of work does it no credit at all. Will she now apply her efforts to universal support to make sure that every council area delivers the extra bit that is supposed to go alongside universal credit?

[Ms McVey]

My right hon. Friend has done more than most people in the House to support people into work, and I thank him for his question. He emphasises the point about universal support—the £200 million for local councils—to help people with debt management and IT. That is one thing we are definitely doing. Equally, he raises an important point about the NAO report. I am sure that Opposition Members have not read it. It does not say stop the roll-out; it says continue with the roll-out and do it faster. Please read about stuff before talking about it!

Universal Credit

Debate between Iain Duncan Smith and Esther McVey

Tuesday 13th March 2018 Commons Chamber

[Ms McVey]

My hon. Friend is quite correct. Further studies show that people on universal credit are much more likely to look for work than people on jobseeker’s allowance—86% of those on universal credit, compared to 34% of those on jobseeker’s allowance. Under the legacy benefits came things that I am sure we all remember, such as the 16-hour rule, which trapped people on benefits. That will not happen under universal credit because it pays people to work, every hour that they work.

[Mr Duncan Smith]

My right hon. Friend is doing a fantastic job. She has pointed out the absurdity of the Opposition’s position, whereby they will now vote against the changes that will benefit those who most need them. Alongside that, they are now voting for a policy that would deliver free schools meals to families earning £40,000 a year. Does not she think that the Opposition are for the few, not for the many?

[Ms McVey]

My right hon. Friend makes a very good point. Perhaps these are honest mistakes by the Opposition; I am not sure. Under universal credit, people can be in work and not in work. Perhaps the Opposition do not understand the complexities of this system, which is helping people into work and then to progress at work. As my right hon. Friend said, if we allowed free school meals in every family on universal credit, those families could include parents earning £40,000 a year. As has always been the case, we support people on free school meals from families who are either not in work or in low amounts of work.

Personal Independence Payment

Debate between Iain Duncan Smith and Esther McVey

Tuesday 23rd January 2018 Commons Chamber

[Ms McVey]

There have been changes in the DWP. Some people have come back, having previously worked here and seen what the changes were, and I am back here, several years later, and hence was probably a good person to say that we would not be appealing the court case.

On the timetable, I made the judgment just a week and a half after being made Secretary of State. It took up most of my time. It was a Friday—and could not have been any other time—because that was the deadline I had to meet for the legal judgment. At the same time, I made sure, following all protocol, that there was a written statement on exactly what had been done.

The benefit was always intended to be a dynamic benefit. Hon. Members on both sides of the House understood that DLA was focused on physical disabilities, and all parties decided there needed to be a more dynamic benefit that reflected invisible disabilities, which we all know are very difficult to assess. The extra money and support went into acknowledging that.

There has been massive change, and also massive understanding, in terms of what is going on. When I stood here all those years ago in 2013 talking about what the budget would be, people said we were cutting it. I explained the matter very clearly, though it fell on deaf ears, and I was often vilified. People still said it was being cut, but it was not. When I arrived, the budget was just over £13 billion, and it has gone up every year since, and will continue to go up. That is in real terms. Much of the vilification, therefore, was not only unnecessary but deeply untrue, and that again is why I welcome the opportunity to come to the Dispatch Box to explain what is going on.

Changing benefits is not always easy. Expanding support is not always easy. We knew at the time we were taking on a very difficult change and that there would no doubt be legal challenges. When there are legal challenges, however, we must look at them, make a true and fair judgment and carry on along that path, and I believe that in this instance I made a fair judgment. Today, the Glasgow Herald welcomed the decision—although I accept that the piece in question picked on various other issues—and it was also welcomed by Paul Farmer, the chief executive of Mind. My hon. Friend the Minister for Disabled People, Health and Work has met her Scottish counterpart; they, too, welcome the decision and look forward to establishing closer working relationships and making plans for its implementation.

I hope that what I have said explains what we have done, and I hope that what we have done is welcomed by Members on both sides of the House. If the hon. Member for Glenrothes (Peter Grant) would like to talk to me about a specific case or constituent, my door is open, and I will meet him.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I welcome my right hon. Friend to her post, and I welcome her knowledge in making this decision. In supporting her, I remind the House that it was our predecessor Labour Government who put off changes in disability living allowance deliberately before the election and that afterwards we were faced with the decision to make those necessary changes. More money is now spent on disability benefits year on year, and more people, including those with mental health conditions, will receive them. DLA never delivered that to those people before.

[Ms McVey]

I thank my right hon. Friend. He spent many years working on social issues and cases, and established the Centre for Social Justice. The change that he brought about was not just about changing the benefits, but about reaching out to people who are sometimes left alone. Some of those people did want to be helped to get back into work. They did want to talk about their hopes and aspirations. There are now over 600,000 more disabled people in work, because they chose that path towards self-determination and the fulfilment of their ambitions and hopes.