Universal Credit

Julie Cooper Excerpts

Wednesday 17th October 2018 Commons Chamber

[Julie Cooper (Burnley) (Lab)]

Last Friday, I hosted a successful jobs fair in conjunction with my local jobcentre. The event was a huge success, with more than 50 employers attending, together with more than 500 jobseekers. I was really pleased to be doing my bit to help to get people into work. I mention that because I always seek to do everything possible to support people into work, because that is the right thing to do. If the Government were genuinely trying to simplify the benefit system and achieve a seamless transition from welfare to work, I would welcome that. However, that is not the situation with which we are faced.

To date, attempts to roll out universal credit have been absolutely shambolic and the sheer incompetence has had a devastating effect on families and individuals who need benefits to live. In the short time available to me, I wish to demonstrate that the problems are not the untypical problems of individuals, but in-built system failures that need to be tackled. I am really concerned about the five-week waiting time. How on earth are families expected to manage five weeks with no income whatsoever? Many of these families have no support mechanisms and I fail to see how making families choose between food and heating is in any way incentivising work.

I am concerned about managed migration, particularly in respect of vulnerable people. We ought to be supporting vulnerable people, not punishing them by making it difficult to transfer from one benefit to the other. I am also worried that the amount that those migrating from legacy benefits will receive under universal credit will be a reduced amount. I hear that an initial transitional top-up will be available for the first payment, but what of the subsequent payments? By definition, these are already some of the poorest people.

I also wish to raise the issue of student loans, which are being classed as income in assessments of entitlement to universal credit. Student loans are, by definition, a loan repayable with interest. Under the legacy system, they did not count as income because they were not income. Then there are the mistakes that are made in administration where overpayments are made and claimants are left with huge debts for which they must take responsibility.

In conclusion, I support a benefits system that helps people into work, but I cannot support a system that sends children to school cold and hungry, or that is doing more to punish the poorest and most vulnerable households than ever it did to help anyone into work.