Universal Credit (Wales)

Kevin Brennan Excerpts

Tuesday 5th February 2013 Westminster Hall

[Stephen Doughty]

I absolutely agree with my hon. Friend. I have seen an explosion in legal loan-shark activity on our streets, whether that be people knocking on doors or opening up offices on the high street. I commend the work of organisations such as the Cardiff and Vale credit union that are trying to provide alternative options.

Cardiff council was also concerned about the following:

“Budgeting issues are also a concern as Universal Credit will be paid monthly in arrears. This is one of the major concerns expressed by customers visiting our roadshows.”

It has been taking proactive steps. It was also concerned that:

“Low income families who depend on this money will have no resource at all if there are any problems with receipt of the payment.”

I do not want to guess the future, but a serious concern is that the record of all Governments in implementing large-scale IT projects leaves much to be desired.

Lynda Thorne, the cabinet member for housing at Cardiff council, wrote to me just yesterday and said:

“I am concerned that the end result of many of these changes will be an increase in homelessness and the transfer of extra financial burdens falling on local council tax payers in terms of picking up the cost of a reduction in the collection rate of council tax, the extra cost of providing help and support to those who need support completing claims and a rise in homelessness created from direct payments.”

She makes the point that Cardiff has

“more private Landlords providing accommodation to those on benefits than all the RSLs, housing Associations, put together. Private Landlords have indicated that they are likely to revert back to only letting to those in work resulting in even more families and individuals becoming homeless thus costing council tax payers more. We currently have more than 500 families and individuals in temporary accommodation at any one time.”

What are the Minister’s reflections on those legitimate concerns raised by a major housing association in my constituency and the largest local authority in Wales?

[Kevin Brennan (Cardiff West) (Lab)]

My hon. Friend is being generous. Would it not be ironic were the Government to bring about a situation in which, as he describes, private landlords cannot rent out their accommodation to those most in need, because it cannot be guaranteed that they will receive their rent? Is that not the sign of a policy that is ideological and not based on evidence and common sense?

[Stephen Doughty]

rose—