Universal Credit and Welfare Reform

Jonathan Reynolds Excerpts

Tuesday 11th September 2012 Commons Chamber

[Charlie Elphicke]

The right hon. Gentleman knows, as I do, that the fine tuning of council tax is still under discussion and still under way, and I hope that that will come out in the wash. I represent a coastal constituency, so I watch that situation carefully, as I know my coastal MP colleagues have been doing. They, too, want to ensure that the low paid in our constituencies are not adversely hit. That is an important point, but it is a fine part of the detailing of the implementation of the policy rather than the overall purpose of the policy, which is to encourage work and to give people more money if they work harder, do better, skill up and get a better job. That is a really important thing.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

The hon. Gentleman is talking a lot about how universal credit will make entering the workplace available to everybody. Is he concerned about the absence of the second earning disregard, which means that the second person in a relationship would not really have that work incentive? Is he concerned that perhaps behind some of this there is an assumption of a model where the man goes out to work and the woman stays behind at home?

[Charlie Elphicke]

The hon. Gentleman lives a bit more in the past than I do; I am the second earner in my household, as many men are in theirs. We Conservatives, as the more progressive party, understand that. He should know—[Interruption.] He has had his go. He should know that second earners in households will not lose out under the universal credit.

One thing that I particularly welcome is that universal credit is progressive; the poorest will gain most, according to the Institute for Fiscal Studies. It says that the bottom six tenths on income distribution will gain on average, while the richest four tenths will lose out slightly in the long run. This is therefore a progressive policy, benefiting the poorest most.