Universal Credit Roll-out

Debate between Jess Phillips and Neil Gray

Wednesday 18th October 2017 Commons Chamber

[Neil Gray (Airdrie and Shotts) (SNP)]

Back in 2010 when universal credit was first mooted by the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), the SNP gave it a cautious welcome. My predecessor as the SNP’s social justice spokesperson, Dr Eilidh Whiteford, said at the time that

“some of the measures set out today—particularly the universal credit—are very welcome”.

The initial premise of a simplified social security system streamlined with one payment was a good idea. The SNP still supports that idea.

However, successive Chancellors and Work and Pensions Secretaries have not just salami-sliced the idea; they have hacked it to bits as £12 billion of cuts need to be found from somewhere—anywhere—within the DWP. The fast-fading dream of a budget surplus meant arbitrary cuts to departments across Whitehall, but particularly the DWP, such that indiscriminate and unco-ordinated cuts were required. Cuts to tax credits, to the work allowances, to employment support allowance and to housing benefit—all component parts of universal credit—have undermined the new system. Indeed, having initially welcomed the premise behind universal credit, Eilidh Whiteford was one of the first to warn about the problems we see in its roll-out today. I wish she were standing here today for that reason.

Yesterday a group of very prominent Government Back Benchers met the Prime Minister and the Secretary of State and presented them with a set of areas which the Government could act on quickly as the roll-out was going on, and which would immediately help people and improve universal credit. Let me be clear: we do not want to see universal credit scrapped; we want it fixed and improved. The improvements suggested yesterday were cutting the automatic minimum wait from at least six weeks to a guaranteed four weeks, making payments on a fortnightly rather than a monthly basis, and doing more on advance payments to make them part of the award and therefore not recoupable as a loan. Those would be very welcome steps. None of those changes would break the bank. All of them would help. All of them would make a meaningful change to people’s lives. Those changes are the focus of what SNP Members and the Scottish Government have been calling for over the course of months and years, so of course we would have supported them.

[Jess Phillips (Birmingham, Yardley) (Lab)]

The suggestion that I would like to add to that list—I wonder if the hon. Gentleman agrees with me—is that the Department might start to monitor whether people have requested split payments, which were put in place by campaigners like me to ensure that victims of domestic violence can access any of their finances. At the moment, under the current system, they have to admit it in the jobcentre, often in front of their partner.

[Neil Gray]

I thank the hon. Lady for her intervention. That is one of the flexibilities that the Scottish Government are going to be using, so yes, we absolutely support it. Indeed, I was about to go on to some of the areas where we would want the Government to go further.

We want the Government to address single household payments; to reduce the 63% taper rate, which far exceeds the top rate of tax; to scrap the two-child tax credit limit and the rape clause; to look again at cuts to housing benefit; to look again at employment support; and to look again at the work allowances. I understand why the concerned Tories chose the issues they did—because they are easy and quick to do without costing much money—but it appears that their pleas have fallen on deaf ears, at least for now. I suspect that if the Government abstain this evening, again, it will be only a matter of time before changes have to be made—so why not do it now? If the Government are abstaining to play for time until the Budget, what happens with the areas about to experience roll-out over Christmas? The Government must commit to fix this now.