Universal Credit and Welfare Reform

Ian Lavery Excerpts

Tuesday 11th September 2012 Commons Chamber

[Ian Lavery (Wansbeck) (Lab)]

There have been some thoughtful contributions this afternoon, but I must wholeheartedly disagree with the comments about cross-party agreement and how this is not about cuts.

Hon. Members can call me a party pooper, if they wish, but I want to consider the reality facing many people in my constituency and constituencies up and down the country. Let us face it, we are in a double-dip recession made in Downing street. In order to recover our finances, we need a suitable plan for growth and jobs in the economy. Twenty one people in my constituency apply for each job vacancy, and the only way out is with a plan B. It is no good denying that. It will not do anybody any good to deny that we are in times of extreme austerity.

This is a timely debate, because although millions of people were in London yesterday celebrating the fantastic, first-class Olympics and Paralympics—the best ever seen—the picture out there for tens of thousands of disabled, vulnerable, sick and unemployed people is quite different. Many people fear for their future, and rightly so, particularly given how welfare reform has developed over the past two years and what will happen with the universal credit. Lots of people will lose out.

My hon. Friend the Member for Ogmore (Huw Irranca-Davies) mentioned disabled children. We have got disabled claimants. Carers are set to lose out, as, too, are joint claimants with limited capabilities, young lone parent and large families. We have not got any facts or figures on how much the universal credit will be per individual and how much the additional payments will be. The only figure we are sure of is the size of the benefit cuts—£20 billion. Some Members might say, as they regularly do in the Chamber, “This is not about impacting on the less well-off in society but about simplifying the benefit system and making it easier”, but I look at it differently: if we take £18 billion to £20 billion away from welfare in the name of welfare reform, somebody will lose out, and to stand up in the House and suggest otherwise is disingenuous. We must be careful not to start universal credit the same way we started welfare reform two years ago. We cannot have people worrying about losing their benefits—about appealing for benefits but being cast aside. If universal credit is introduced in the same way as Atos operates the work capability assessment, more people will become unemployed—booted on to the dole, some may say.

The universal credit will be introduced next year, and constituents of mine have received lots of letters and e-mails about its implementation and underlying principle. The Government hope for 80% take-up online, so people who prefer face-to-face interaction will have to use the internet, yet the 2009 digital report stated that 15 million still did not use the internet. I accept that it might be dated, being three years old, but I emphasise that many people still prefer not to use the internet.

Monthly payments, sanctions, the IT failure, joint payments and the transitional project have all been mentioned by hon. Members this afternoon, and I hope that the Secretary of State and his ministerial team will look at them all. We have to treat poor people with dignity. They are not asking for the earth and have never looked for luxury. They just want to live a life as near as possible to what we do. They do not want merely to exist.