Universal Credit Roll-out

Debate between Jim Cunningham and Marie Rimmer

Wednesday 18th October 2017 Commons Chamber

[Ms Marie Rimmer (St Helens South and Whiston) (Lab)]

The Government’s aim was to simplify and streamline the benefits system, to improve work incentives, to tackle poverty among low-income families, and to reduce the scope for error. The Government were, however, warned by IT companies that it was not possible to build a universal credit system, bringing the six systems together, in time for implementation, but they ignored that and continued; they developed in haste. The Government also ignored the former Secretary of State, the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), when he called on the Prime Minister to reverse cuts in universal credit; it is still necessary to reverse all the cuts made to the initial system.

Former Prime Minister John Major described universal credit as “operationally messy, socially unfair” and socially unforgivable, but the Government did not listen to him. Experience tells us that the online system is far too complex, and was it ever really necessary for the helpline to cost 55p a minute? The announcement today is about appeasing Back Benchers; however, it will help new claimants.

The aim was to improve work incentives, and tackle poverty and low pay, yet the experience is of cuts to taper allowances, with 63% of every pound taken off people. Some families are £2,100 worse off than under the previous system.

[Mr Jim Cunningham (Coventry South) (Lab)]

I cannot see how this can be an incentive for people to go into work when most of the jobs they get are on zero-hours contracts. On the other hand, people are driven to food banks, which were brought in by the Churches to deal with the refugee problem, not to deal with the problems of this country.

[Ms Rimmer]

I agree entirely with my hon. Friend.

These people are stressed, suffering from the effects of poverty and the indignity of debt and borrowing from family and friends. Many are on medication for mental health issues, and much of this is debt related. My constituency of St Helens South and Whiston suffers from income poverty. Many of the jobs created in the last 10 years pay much lower wages. Some people are holding two or three jobs down and many are on zero-hours contracts. My constituency also has one of the highest prescription rates of antidepressants in the country, and many of those on that medication are young people and parents.

The assessment period for universal credit is based on four weeks working. My families do not have savings to live on for four weeks when they have been out of work, and their extended family does not, so they go into debt.

The Government have insisted on the poor paying the price of banker-induced debt, and they have used the global financial crisis to cut public services and stop the improvements that Labour introduced—policies that were responsible for lifting 1 million children out of poverty. Since 2010, the number of children in poverty has been rising. The Child Poverty Action Group has published figures showing that a further 1 million children may be driven into poverty, including 300,000 under the age of five—children hungry, children cold, children not able to go to school because they have not got a change of clothes. The Government are responsible for breaking up many families and children are suffering from stress. No wonder we have increasing numbers of children suffering from mental ill health.

The food bank in my full-service area has a 17% increase in usage—more than double the national average. More than half the users are people in work, and many of them are national health service workers.