Universal Credit

Lord Cashman Excerpts

Thursday 16th November 2017 Lords Chamber

[Lord Cashman (Lab)]

My Lords, I congratulate my noble friend Lady Hollis on this debate and for opening it so eloquently but, I have to say, I take no pleasure in taking part in it. I wish it was a debate that we did not have to have. I wish that universal credit was working and that it was indeed fit for purpose.

It helps absolutely no one to say that universal credit is being politicised. This is not about party politics; it is about people who are suffering, who are in need and in debt and who need intervention. These people do not have a voice. I wish that I could agree with the right reverend Prelate that the Minister should listen to the claimants, but the claimants are not being heard. The Minister smiles, somewhat surprisingly, when I say that, but if they were being heard, we would not be having this debate now.

The problems are not imagined. It is almost like a parallel universe where the Government reside in one country and the rest of us reside in another. Is what we have heard today imagined? No, it is not, but do not take my word for it—let me use the words of others. I raised the negative consequences of universal credit in a debate in your Lordships’ House on housing and affordability. I was surprised by the range of concerns that I received from organisations prior to this debate: Crisis, the NUS, the LGA, Scope, disability groups and many others including, yesterday, the Residential Landlords Association, which says that it is,

“concerned about the impact that Universal Credit is having on private sector tenants …Such a situation is not sustainable for either tenants or landlords. Many landlords are becoming concerned about renting to tenants on Universal Credit as a result”.

It calls for the waiting times to apply for and receive universal credit to be addressed swiftly and asks that,

“claimants … be trusted to make the right decisions for themselves by giving them the ability to choose, where they want to, to have the housing element of UC paid directly to the landlord”.

Crisis is calling for the Government to provide £31 million for help-to-rent projects, which will help to improve the functionality of universal credit. The Joseph Rowntree Foundation says that:

“Universal Credit … has the potential to dramatically improve the welfare system”,


but then goes on to say that it is calling for three priority actions:

“Reduce the 6-week wait at the beginning of a Universal Credit claim by getting rid of 7 waiting days and giving claimants choice over payment frequency. Enable people to keep more of what they earn under Universal Credit by restoring … Work Allowances. Lift the freeze on working age benefits so incomes keep up with prices”.


Is that imagined? No, it is not. What about Centrepoint, Homeless Link, Shelter and St Mungo’s? They say:

“As four leading homelessness and housing charities, we support the principles behind Universal Credit. Yet we are concerned that Universal Credit in its current form is not working for people who have experienced, or are at risk of, homelessness”.


Yes, it is painful to listen to and perhaps in my delivery it is even more painful for the Minister to hear, but I make no excuses for describing the despair that people are facing day in, day out. It may come as a surprise to some Members that people who are deep in debt or homeless do not sit down and worry about what they read in Hansard. It is a million miles away from the lives they have to lead.

These homelessness charities recommend that:

“A money management package, including exemption from the seven day waiting period, should be developed for individuals identified as homeless or at risk of homelessness at the beginning of a Universal Credit claim”.


Their second recommendation is that:

“All individuals identified as homeless should be granted Alternative Payment Arrangements … as standard, from the beginning of their claim”.


I turn to the casework of my constituency MP, Jim Fitzpatrick—I do not receive such casework. A person was referred for help by the carers’ centre but no assistance was given. He returned to the carers’ centre, which claimed for him, but he will require long-term support to manage his claim. Another person, with poor literacy and no computer, had three separate visits but lacked support and help. For another working claimant, the payments were varied and wrong for three months before being corrected. One claimant had mental health problems that were not being taken into account by the work coach. And there are many others. These are the cases that we know of—what of the others who have slipped through the net, have faced eviction and are now homeless on the streets and dispossessed?

It takes courage and leadership to change one’s mind. I urge the Government to show such courage and leadership.