Oral Answers to Questions

Debate between Iain Duncan Smith and Nia Griffith

Monday 8th December 2014 Commons Chamber

[Mr Duncan Smith]

I take all these reports seriously, and this one particularly. It is of huge interest. We want to do everything we can to make sure that people do not stumble into a process of sanctions. I am certainly willing to consider what the hon. Lady says, but the big thing that the Oakley review told us is that communications were critical, so advising claimants all the way along that they are about to be caught in this trap is vital to making sure that they do not get caught.

[Nia Griffith (Llanelli) (Lab)]

Absolutely. The Secretary of State has at last begun to recognise the problem, but I would like him to go a lot further on the issue of food banks and the fact that it is benefit sanctions, changes and delays that cause the majority of food bank users to have to go there. Will he do more and have a thorough review of all his Department’s responsibilities to make sure that nobody has to go to a food bank for those reasons?

[Mr Duncan Smith]

Of course I take the matter seriously, but it is rather ridiculous to assume that every single person who goes to a food bank does so because of what the Department for Work and Pensions does. The report today and other reports are clear. They show that these are often people with dysfunctional lives—people who have been caught in drug addiction and family breakdown, people who have a serious illness and are not claiming benefits and get into difficulty. All these ultimately have to be dealt with by the Department, but we have had a number of reviews, which have told us that there are some things we need to improve and we are working on that. The one thing that we have improved dramatically is late payments. There are fewer late payments than there were under the previous Government.

Universal Credit

Debate between Iain Duncan Smith and Nia Griffith

Tuesday 25th November 2014 Commons Chamber

[Mr Duncan Smith]

I accept those blandishments from my hon. Friend. There are two very important issues to remember. Universal credit is not just about the IT system; more importantly, it is about the relationship between the claimant and the adviser. When someone claims a benefit under jobseeker’s allowance, after they take a job—a part-time job or whatever—they have to sign off, which means that they do not have any contact with the jobcentre until they fall out of that job and go back again. Under universal credit, they will not sign off. They will be able to afford to take a job with fewer hours, build up their hours, go back to see their adviser and take another job. In other words, the adviser will stay with them until they come off the benefits system. It is that dynamic that is changing the lives of so many claimants and I intend to extend that to all of them,

[Nia Griffith (Llanelli) (Lab)]

We all want to see work paying properly. The Secretary of State will be aware that the Joseph Rowntree Foundation has said that the taper is far too steep and that some families will lose significantly by going into work. In other words, they will get only a couple of pounds more working a full week than they would get if they were entirely on benefits. What is the Secretary of State doing to address that problem with universal credit so that that does not happen and that work will always pay?

[Mr Duncan Smith]

That is a really important question and I thank the hon. Lady for being positive. Two things should be understood about universal credit. First, in-work allowances, which are rather like tax allowances, allow different groups of people—such as those with disabilities and single parents—to earn a certain amount of money before the taper comes in. That gives them a real step up, which is why the bottom 40% with regard to income will benefit to a greater degree than anybody else.

Secondly, I am fully prepared to accept that there is a debate about the taper, but when any future Government budgets they will be able to say, “We want to lower the taper because we want people to be able to up their hours quicker.” Alternatively, if there is full employment, they may say that the taper is not so relevant. That is a debate for Governments. We have instituted a very simple process whereby Back Benchers and others can say whether they want a higher or a lower taper. We have set it at what we think we can afford, and that still makes it better for those claimants going into work. There will always be a debate, so the hon. Lady will be able to argue whether the taper should be raised or lowered.