Oral Answers to Questions

Karen Buck Excerpts

Monday 13th September 2021 Commons Chamber

[Dr Coffey]

My hon. Friend is absolutely right. Today, the Government have announced the infrastructure programme, with a mixture of public and private sector investment of £650 billion over the next 10 years. We believe that will generate 425,000 jobs in the next four years, and these will be well-paid jobs. Between my Department and the Department for Education, we will be trying to make sure that as many people are as upskilled as possible to take advantage of the higher wages of the jobs being created.

[Ms Karen Buck (Westminster North) (Lab)]

Research by the Joseph Rowntree Foundation indicates that nearly four out of every five families with children are receiving universal credit or working tax credit, rising to 45% or more of families with children in the north-east, Yorkshire and the Humber, and the west midlands. Can the Secretary of State share her Department’s assessment, which we heard about at the end of last week, of how these families are expected to manage the income shock of losing £1,000 a year due to the impending cut?

[Dr Coffey]

It may surprise the hon. Lady to know that more than half of recipients of universal credit are actually households without children. We are conscious that this support had a widespread impact when we had the impact of the pandemic. However, what the hon. Lady will know about is that in the last year, collectively across Government, we have injected several hundred million pounds specifically to help people with children with the difficulties of some of the financial challenges they have. However, now that the jobs market is well and truly open, we will be doing whatever we can to help people get into work, and get into better-paid work as well.

[Ms Buck]

It is not clear from that answer whether the Secretary of State has actually undertaken any form of assessment of the income shock. However, it is not only about the impact on individuals’ and families’ incomes; it is also about the wider economic consequences. According to the Resolution Foundation, a quarter of all households in the north-east will lose £1,000 a year from the cut, which will strip millions of pounds from the economies of some of the poorest communities in the country. Has her Department carried out an assessment of what the economic impact will be of the cut coming into effect in just a few weeks’ time?

[Dr Coffey]

My understanding is that, as we always knew the uplift was going to be temporary, an impact assessment was not undertaken because we knew it would be for a limited time.