Universal Credit and Working Tax Credits

Joanna Cherry Excerpts

Wednesday 15th September 2021 Commons Chamber

[David Linden]

My hon. Friend’s constituency was one of the earliest areas where universal credit was rolled out, so he is familiar with it, and as a highland MP he is acutely aware of the much higher energy bills. The universal credit cut will probably mean a choice between heating and eating this winter for people in his Inverness constituency. He is right to put that on the record, and I hope that Members who represent constituencies in other parts of rural Scotland will bear that in mind, particularly on the Conservative Benches. It is simply unthinkable that the UK Government are even considering this policy. All MPs must consider whether they want it on their conscience when the Division bell rings tonight.

Whether or not someone claiming universal credit is in employment, the £20 uplift is vital to their income. To quote Morgan again:

“We should not have had to have gone through a pandemic just to get that increase”.

Morgan is right. The most vulnerable people in our society had been suffering for decades, long before the pandemic hit these shores. Years of austerity have deepened the inequality and poverty in our society, and the pandemic has only magnified those pre-existing inequalities. Years of austerity have deepened the inequality and poverty in our society, and the pandemic has only magnified those pre-existing inequalities in our welfare system.

A decade of Tory rule has left workers, on average, £l,000 a year worse off. Analysis by the Office for National Statistics shows that, when inflation is taken into account, the average wage is worth less in 2021 than it was in 2010. Despite the continual Tory mantra that getting people into work is the best route out of poverty, wages continue to fall, and austerity continues to deepen inequalities. The pandemic has only served to bookend the decades of cruel welfare cuts and truly highlight how inadequate support has been.

[Joanna Cherry (Edinburgh South West) (SNP)]

Does my hon. Friend share my concern about the fact that, while much of the debate focuses on young people and people with children, older people, particularly older single people, will be affected by this cut as well? I have a 60-year-old female constituent with a mortgage whose hours of work have been cut from full-time to 26 hours a week. At her age, it will be hard for her to find more work, and she tells me that losing this uplift will mean the difference between keeping and having to give up the home that she has worked so hard to pay for.

[David Linden]

My hon. and learned Friend is right to place on record the impact of the pandemic on not just young people but women in particular, especially older women. On Monday we will have before us a Bill that suspends the triple lock; that is another betrayal of a manifesto commitment from the Conservatives—something that may not come as a surprise to those of us on these Benches.

I want to emphasise the sheer number of organisations that are campaigning for this uplift to be kept in place. One hundred organisations, including charities, children’s doctors, public health experts and research groups, have signed a letter calling on the Prime Minister to abandon the plans to cut universal credit. One such signatory was Bright Blue, a Conservative think-tank; some on the Government Benches are members of that very think-tank. We have also seen a letter signed by no fewer than six previous Conservative Secretaries of State for Work and Pensions who have condemned the proposed cuts. All the devolved Governments have also called for the £20 uplift to remain.

Analysis by the Joseph Rowntree Foundation shows that more than a third of working-age families in 413 parliamentary constituencies will be hit by the cut. Of those, 191 are represented by Tory MPs. The Scottish Conservative MPs on the Benches opposite me—if they have bothered to turn up for the debate—will know the consequences of the universal credit cut that they plan to reaffirm tonight. They know the statistics; they know the threat of poverty that hangs over their constituents; and yet they do not care.

In Moray, 6,110 households will be at risk of sliding into poverty. If he does not vote for the motion tonight, the hon. Member for Moray (Douglas Ross) clearly does not care. In West Aberdeenshire and Kincardine, 3,620 households will be going into winter facing harsh decisions between heating and eating. If he does not vote for the motion tonight, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) does not care. In Banff and Buchan, 6,280 households will have to face relying on foodbanks to feed themselves this winter. If he does not vote for the motion tonight, the hon. Member for Banff and Buchan (David Duguid), does not care. In Dumfries and Galloway, 8,190 households will experience huge anxiety and worry over their financial futures, which will take an immense toll on their mental health. If he does not vote for the motion tonight, the right hon. Member for Dumfries and Galloway (Mr Jack) , does not care.

In Berwickshire, Roxburgh and Selkirk, 7,150 households will have their incomes slashed by £1,040, a figure that has become increasingly necessary during the difficult months of the pandemic. If he does not vote for the motion tonight, the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) does not care. In Dumfriesshire, Clydesdale and Tweeddale, 6,050 households will be victims of this heartless Tory austerity policy, which will cement poverty and inequality in that community for years to come. If he does not vote for the motion tonight, the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell) does not care. It will be clear that the Scottish Conservatives do not care about some of the most vulnerable people in our constituencies.