Universal Credit Roll-out

Kelly Tolhurst Excerpts

Thursday 16th November 2017 Commons Chamber

[Kelly Tolhurst (Rochester and Strood) (Con)]

Thank you, Mr Deputy Speaker, for calling me to speak. It was a privilege to hear my hon. Friend the Member for Banff and Buchan (David Duguid) deliver his maiden speech. I congratulate the right hon. Member for Birkenhead (Frank Field) on securing this debate. It was very interesting to hear what he said about his constituents.

The House has debated universal credit extensively in recent weeks, and I am pleased to take part in such a debate again today. The principle of universal credit is a very good one, and the Opposition have said on many occasions that they support it, but I am concerned about the dialogue on the roll-out of universal credit in recent weeks. I believe it has caused much distress among potential claimants and people who are waiting to switch to universal credit.

For as long as I can remember, the benefit system in this country has been burdensome and complex. I have lost count of the number of people who have had issues with working and claiming benefits such as jobseeker’s allowance, working tax credit and child tax credit. I have also lost count of the number of people who have said that there must be a better way of doing things. We do indeed want a welfare system that supports the most vulnerable and is there for people when they fall on hard times and need help, including by claiming benefits that may need to be paid back.

There is an assumption that it is wrong for individuals to have to pay back advance payments—they are loans, without interest—although they are very gratefully received by claimants when they are in great need of money because of the situation in which they find themselves. I am sure that other Members have, like me, been confronted by constituents who have received large bills from the DWP following mistakes in the information given, and when overpayments have been made to people claiming working tax credit. Do Members believe that those payments should not be paid back, and would such a situation be better than this new system of universal credit?

There is also an assumption that, because of the advance payments, people will automatically get into arrears with their rent, which will result in their getting evicted. I can only speak from experience of my constituency, but I have not had any examples of people who have been evicted from their homes within six weeks. In actual fact, I have seen quite the opposite.

As we have heard, approximately 40% of the universal credit claimants are currently in work, and the number of people moving into work once on universal credit is increasing. Universal credit is part of the welfare reform that is needed, and it has been designed to help people and move more people into work. For so long, many people have been trapped in the benefit system. Such people want to work or to work for longer hours, but there is all the stress and complexity of doing so given the risk of losing all their benefits in one go or of having to pay back large sums when mistakes have been made because of the complexities in the current system. I want, and I know my constituents want, a system that helps people, but does not put them off taking opportunities when they are there. I want a system that aids people, as I believe this system will do.

With any new system there are always things that need improving once implementation begins, and I am therefore pleased that the Government have taken care to implement a gradual roll-out over nine years, moving to 10% of the current claimant count. In my opinion, the roll-out is being done in a measured and steady way that enables the Government to address the issues.

Over recent weeks I have heard a number of Members claim that universal credit is getting people into debt and causing them to be evicted, and that concerns me greatly. The rationale is that universal credit is paid in arrears to mirror the world of work, and in principle that is a good idea and forms part of how we need to reform welfare. I have been concerned by accusations that that is being done deliberately to disadvantage people who are in need of help, and perhaps at difficult times in their lives. In all debates, Ministers have been clear: people who need advance payments will get them within five days. In conclusion, I hope that after today’s debate, the Opposition will work constructively with the Government to try to increase and help the roll-out of universal credit.