DWP Policies and Low-income Households

Justin Tomlinson Excerpts

Tuesday 17th January 2017 Commons Chamber

[Justin Tomlinson (North Swindon) (Con)]

It is a pleasure to follow the hon. Member for North Ayrshire and Arran (Patricia Gibson), with whom I had many dealings in my former role as a Minister, although I am somewhat surprised that she seems to advocate bringing back Margaret Thatcher for Scotland—we would probably cheer for that.

The Government are committed to making a difference to help people fulfil their potential. We have delivered record employment in all regions, with 2.7 million more people benefiting from work—8,100 in Swindon alone. There are 850,000 fewer households in which no one has worked and 500,000 fewer children in workless households.

We are seeing wages rise, on average, by 2.6%, which is well ahead of inflation, and by 6% for the lowest paid. That is in part thanks to the introduction—the right introduction—of the national living wage, which is helping 6 million people, and our lifting of the 4 million lowest earners out of paying any income tax through our personal tax allowance changes. That, in addition to the triple-lock pension and the extension of free childcare, is why income inequality has fallen, with 500,000 fewer people in absolute poverty, a record low.

It is crucial that we help people into work and, by backing business, we have delivered a growing economy that is creating opportunities. To fulfil those opportunities, we are investing in the future, with 1.4 million more children going to good or outstanding schools. And we are expanding the National Citizen Service so that those children can develop real life skills. There is a commitment to 3 million apprenticeships by the end of this Parliament. There is real, direct link with getting people into work.

For those seeking work today, the roll-out of universal credit is vital: it builds on the emphasis that work should always pay; it removes the 16-hour cliff edge, which is an absolute nightmare for people looking to move on from part-time work; and crucially, for the first time, claimants will have a named work coach who can help them to navigate childcare, training, support and the complicated benefits system that confuses so many. Having that person to help allows claimants 50% more time to find work. As we have seen, for every 100 people finding work through JSA 113 are finding work through the universal credit system. For the first time ever—this is the single most important reason why we need universal credit—those who go into work continue to get support. Often they are entering the lowest-paid jobs, but they will continue to be reviewed, supported and given that confidence to ask for additional hours and for promotion, to increase their wages and benefit from a growing economy.

This Government are on the side of hard-working people—on the side of the people trying to do the right thing. We believe in opportunity. Hard-working people want that opportunity to fulfil their potential and we are there for them.