Universal Credit Project Assessment Reviews
Lord Field of Birkenhead Excerpts(7 years ago)
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Mr Gauke
I very much agree about the importance of a culture in which problems can be identified and passed up the command chain, with that system understood across the board. Clearly, when that does not happen, something needs to be addressed. When I entered this House in 2005—the right hon. Gentleman was a Minister at the time—we were wrestling with the problems of the tax credit fiasco, which was causing misery for vast numbers of people. If Members want an example of a project that failed because there was not a willingness to identify problems early, that is it.
The Infrastructure and Projects Authority’s policy that review reports remain confidential is founded on the position that an effective and trusted system of assurance in government is in the public interest, and that the premature disclosure of review reports undermines that public interest. Those considerations must be balanced with the desire for transparency and parliamentary scrutiny. In exceptional cases, sharing information with a Select Committee, in confidence, can be appropriate.
The motion refers to a number of reports, many of which date back some years, as my hon. Friend the Member for South Cambridgeshire (Heidi Allen) pointed out. To disclose those papers without subsequent reports showing how well universal credit has progressed would give a partial picture. In line with the motion, I will provide, by the time the House rises for the Christmas recess, the reports directly to the Work and Pensions Committee. Let me point out to the shadow Secretary of State that her motion does not require us to publish these reports or to lay them before the House. Specifically, it says that those reports should be provided to the Committee. In those circumstances, it is acceptable for us to do so. As is customary, I will need to consider redacting any appropriate material, such as the names of junior officials and information that is commercially sensitive. I wish to emphasise that it is the Government’s view that this is an exceptional request that will be agreed to on an exceptional basis, and does not set any precedent for future action. Against that background, I shall provide the reports to the Select Committee on a confidential basis. In those circumstances, I hope and expect that the documents will not be disclosed further.
Frank Field (Birkenhead) (Lab)
The Secretary of State has hit on a very important distinction between the motion that we are debating today and the one about Brexit documents. That motion said that the documents should be made available to the Brexit Committee and then laid before the House. Today’s motion does not say that; it says that the reports should be given to the Work and Pension Committee. We are not a Committee of Privy Counsellors. We have never been in a position like this before so, if I catch your eye, Madam Deputy Speaker, I would like to develop this theme, because we are in totally new constitutional waters. The motion, which has now been accepted—we can all go home in a minute, or bring on the next business—is different, and puts us in a different constitutional position than the one that was outlined for the Brexit Committee.
Mr Gauke
The right hon. Gentleman is absolutely right. I can only assume that those who tabled the motion worded it carefully. They chose its wording on the basis that it was about providing information to the Work and Pensions Committee. As I have said, I do believe that, in these circumstances and for the reasons that I have set out, the Select Committee will treat this matter confidentially, but he is absolutely right to draw attention to that distinction.
Frank Field (Birkenhead) (Lab)
I want to make three points. First, universal credit is not being introduced in isolation; it follows so-called welfare reforms that were made under the Labour Government, the coalition Government and this Government. The cumulative impact for many of my constituents has been destitution. We have made decisions in this House to pay for pensioner households rather than ordinary families.
I have being running constituency surgeries for 38 years. At the most recent surgery, just last Friday, for the first time ever a gentleman rose after we had spoken and I had to try to persuade him not to commit suicide. Such was his desperation at the future he saw for himself. I realised that the hand that shook my hand was wet, because he had been crying. The hand that shook my hand was the hand that had wiped away those tears.
On Friday, Feeding Birkenhead—a brilliant organisation, but one that ought to be unnecessary—reported a family coming in, a husband and wife and their young child. The child was crying with hunger. The family was fed. The father said that it had been a lucky week for him, because neighbours had taken pity and invited them to a funeral, so that they could finish off the food after the other guests had been fed. When their little boy was shown the shelf where the toys and lunch packs were kept, he chose the lunch pack. That is the background of growing destitution that I see in my constituency, and against which we have to judge universal credit and the debate we are having today.
Many DWP staff do not share the Secretary of State’s confidence in this benefit. Feeding Birkenhead is putting considerable food through schools, which get it home where it is needed. On Saturday we will be filling thousands upon thousands of Christmas hampers, and among the volunteers will be 146 DWP staff. They know where this benefit is going and they are unhappy. [Interruption.] The Secretary of State is mumbling. Their inability to show their normal compassion by having discretion is an issue of such importance that we will return to it soon.
Against that background, we come to the request for papers. The Secretary of State and I have noticed that this motion is different from the motion on the Committee on Exiting the European Union. That Committee was to receive the papers and lay them before the House. This motion does not ask for that. I love being a member of the Work and Pensions Committee, but I can assure the House that we are not a group of Trappist monks and monkesses; people will naturally want to talk. Therefore, before any documents come to us, I will be asking for the Speaker’s interpretation of this motion, and what sense of secrecy or honour will bind the Committee when we receive the documents. Even if we only read them, that will surely affect how we pose questions. If they are all so good, surely we would have received them long ago.
Neil Gray
The right hon. Gentleman is making an incredibly powerful and emotive speech, and I commend him for it. Does he agree that the partial publication, and giving the redacted copies to the Select Committee, leaves its members in an invidious position? As the Committee Chair, does he think that it would be far better for the Government to publish the reports in full and publicly, as the Information Commissioner recommended?
Frank Field
That is why I will seek the Speaker’s advice. It may partly be why Members on the Treasury Bench have accepted the motion: because it now shifts all the pressure from them to the Select Committee. As I said, we are thankfully not made up of Trappist monks and monkesses. We are all very active members of the Committee.
I will make my last and perhaps most important point. The Government and Government Back Benchers —a rather rude one to my hon. Friend the Member for Great Grimsby (Melanie Onn) earlier—keep making assertions about the wonder of the benefit, for which there are no figures in the public domain. We do not know how the benefit affects work records, apart from those of the simplest claimants. We do not know from the Government the effect on rent arrears or on the use of food banks. We do not fully know the numbers of people who are waiting in our constituencies for more than six weeks—soon, thank God, five weeks, on which I congratulate the Secretary of State.
In the great spirit of openness, with which the Secretary of State has landed the Select Committee, I hope that we will shortly put before Parliament the data on the working of the new benefit, which will tell us whether the grand assertions that the Secretary of State and Ministers continue to make are true. I hope that they are true, but none of us has the data to back them up.
Before we do not vote on the motion tonight, I want to recall that the benefit is being rolled out for families of working age who have suffered multiple and cumulative benefit cuts. I described some of the effects. How does an MP give someone hope, when I do not have hope for them, that things will radically improve, and persuade them not to top themselves? What do we do to a family, who last year gave toys for our Christmas hampers, but have been so reduced in circumstances that this year, their little boy cries with hunger? That is the message that I want to go out from the debate.
We will receive the documents and advice on what we are to do with them, but I hope that the Secretary of State does not believe that releasing them—some of historical value—will prevent the Committee’s insistence on a proper publication of data, which allows us to hold the Government to account for the hunger in our constituencies.
Heidi Allen (South Cambridgeshire) (Con)
I do not know where to start after that. I am humbled by the words of my good friend the right hon. Member for Birkenhead (Frank Field). No Governments are perfect, no benefit system is perfect and no debate or motion is perfect, but by God we will work together and make this better.
Select Committees are cross-party and they play an important role in scrutiny. Our Work and Pensions Committee is no different. I am sure that our focus on universal credit—I am sorry; I am not very good at this job, am I Mr Deputy Speaker?
Frank Field
I am amazed because, for the first time, I have been able to report publicly the events I described without weeping. I am so affected by them—I am as affected as my hon. Friend. That is the debate that we are really having: how do we represent here the desperation of many of our constituents when many of us feel that we cannot offer them hope? I fear that that may not have helped my hon. Friend, but it was meant to.
Heidi Allen
We have a job to do. I am sure the Select Committee’s evidence-gathering helped the Government to identify improvements and make universal credit better. We will continue that work.
No one should underestimate the poverty-fighting potential of universal credit. I believe that and mean that most sincerely. There is a reason why work coaches are so motivated by it. There is a reason why, when claimants are fully up and running on it, they move into work faster and stay in work for longer. That does happen. The old system of multiple individual benefits was no better than a game of roulette. What kind of reward was it when a determined claimant successfully gained more hours of work only to lose their benefits? On their way up, they were stopped in their tracks by a benefit trap set at an arbitrary and life-limiting 16 hours. No one should be proud of that and no one should want to sustain that.
Universal credit is totally different. It offers a wraparound support service to claimants. I am the first to admit that the roll-out has had more issues than it should have had. There are aspects of the system I wish had been fixed before we pushed the button to roll it out further. I understand, however, why the Government were reluctant to pause it. They were eager to offer that transformative support and its potential for a better future to more claimants. That is what the Government wish to do. I was pleased, therefore, when the Chancellor announced in the Budget a package of reforms worth £1.5 billion. Reducing the six-week wait, specifically asked for by the Work and Pensions Committee, was critical. I understand that banking system limitations meant that reducing the wait even further beyond five weeks was technically impossible, but the Prime Minister, the Secretary of State and the Minister for Employment listened to our concerns regarding the risk of rent arrears and debt, which were real, and then made further—I believe arguably greater—concessions than taking an additional one-week delay away. They increased availability and doubled to 100% the size of advance payments, so that emergency funds would be available to claimants on day one. The payback period was also doubled to 12 months. This means that no claimant will be without money if they need it. No ifs, no buts—fact. If someone needs an advance today, they get it.
The most welcome addition, for me at least, was the automatic additional payment of two more weeks of housing benefit for all claimants currently in receipt. That is huge! That is an additional two weeks of housing money on top of universal credit monthly payment. This is the good that the Government can do. These are the actions of the Government I envisaged when I first heard Theresa May on the steps of No. 10.
Douglas Ross
I am grateful to the hon. Gentleman for bringing me on to what is going to be published. The Government have agreed to exactly what is requested in this Opposition day motion, and I was pleased to hear the Secretary of State confirm at the Dispatch Box that he will ensure that everything that has been asked for will be delivered.
I listened most intently to the emotive speech of the right hon. Member for Birkenhead (Frank Field), but he went on to say that he was not particularly happy with the Government agreeing to everything in the motion and, indeed, that he will be raising the contents of the motion with Mr Speaker. I politely suggest that it may have been more useful for him to raise that concern with the Opposition Front-Bench team, because this is a Labour motion that the Government have accepted. The papers will be published, and any differences of opinion that the right hon. Gentleman now wants to raise with Mr Speaker should have been raised more promptly with his own Front-Bench team, because what they have asked for will be delivered.
Frank Field
Whatever has happened has happened. I welcome this motion, and I will seek Mr Speaker’s advice, because I shall keep the story going in doing so.
Douglas Ross
But stories start somewhere, and the right hon. Gentleman could have started his story with the Opposition Front-Bench team, because he seems to be most critical of them for not asking more of the Government.
I accept the useful point made by my hon. Friend the Member for North East Derbyshire (Lee Rowley), who suggested that Labour now wants more given that the Government have accepted what was requested in the motion. However, the information is extremely dated, so we have to question its merit and benefit given that the system has developed considerably. We have had four debates in the Chamber, and the policy has been developed since the Chancellor gave his Budget and will continue to be developed as we go forward.
Speaking of the Chancellor and his Budget, I welcome the £1.5 billion to address concerns around universal credit. [Interruption.] I hear the hon. Member for Airdrie and Shotts (Neil Gray) say, “That is not enough.” I listened carefully to his speech, in which he could not accept that the Government have done anything good, saying that this Government must be bad when they talk about universal credit and that he was not happy with the proposals in the Budget. I would therefore like to know what he thinks about Citizens Advice Scotland, which welcomed the changes to universal credit in the Budget, saying:
“Taken together, these measures will make a real difference to those claimants who are currently experiencing hardship.”
That is the sort of response that we should be getting from the Opposition parties.
Luke Graham (Ochil and South Perthshire) (Con)
Our welfare system has historically been the victim of criticism from both sides of the House. Colleagues, their views often stoked by the media, take opposing rhetorical positions that rarely lead to improvements in the system and certainly do not help individual constituents. I thank the Secretary of State for making exceptions and publishing the extra information for the Work and Pensions Committee. I hope that it will help with the Committee’s work. In the future, I hope that we will have more up-to-date analysis that will help to guide that work in a more meaningful way.
In previous debates on universal credit—we have had a few—Members of all political stripes in this House have accepted that universal credit is a positive and transformational reform, and that it is a real attempt to change the culture and improve results for those hoping to get into work. Everyone will recognise that the roll-out has encountered challenges, but I hope that most Members would accept that, with a nine-year roll-out, the Department for Work and Pensions has reacted to concerns raised. It should not be forgotten that most major Government welfare programmes encounter difficulties, as the last Labour Government did when they made £2 billion of erroneous payments of tax credits, forcing working families and single parents to pay back money that they had already spent. This is not party political; it is about the difficulties of being a responsible Government.
In my constituency, there is one jobcentre, which is in Alloa, where universal credit went live with full service in June 2017. The jobcentre in Perth, which is just outside my constituency but also serves my constituents, will have full service in 2018. I have been into those jobcentres. I have worked for a day in the Alloa jobcentre, sitting in with the new cohort who were transitioning on to universal credit, and even with individual claimants who were coming in for the first time to apply for universal credit. I saw how beneficial and transformational universal credit can be when properly applied.
I want to pick up on some of the comments made by the Opposition, particularly by Members on the Labour Benches, and to look at the reasons why people are having more difficulties and going to food banks. I asked my office to analyse all the people who have come to my office with universal credit concerns. Two of the key issues were waiting times and limited information such as not knowing how to access advances. I have fortunately been able—through this place, thanks to the Minister—to push for extra training in jobcentres in Scotland to ensure that advances are now proactively offered to claimants across Scotland. Thanks to the dedication of my constituency team, 80% of our universal credit cases have been satisfactorily resolved in a very short period of time. They were fixed because this is a new system, and I pay tribute to my team for all their work.
I must mention some of the rhetoric on the Opposition Benches, specifically from the hon. Member for Reading East (Matt Rodda), who referred to people having a Dickensian Christmas. With the greatest respect to the hon. Gentleman, I have lived in developing countries such as China and Thailand, where I really saw harrowing inequality. People with no limbs had to beg on the street because there was no welfare system and they had no protections whatever. It is completely unfair of him to cast the same aspersions on this Government and our country.
One of the reasons I gave for why my constituents are struggling to access universal credit was limited information. Many of them have come to me because they are nervous about what they see in the media, and they believe they cannot access universal credit and advances.
I welcome criticism. To be fair, SNP Members have criticised universal credit and, as I will explain in a moment, many points have been addressed as a result of that criticism from them and from the Conservative side too. However, we have to be careful about the rhetoric we use, because it has real implications for people in our constituencies.
Frank Field
I disagree with my hon. Friend the Member for Reading East (Matt Rodda) because the Christmas story written by Dickens had a happy ending.
The Minister for Employment (Damian Hinds)
Universal credit is being introduced at a time when record numbers of people are in work and unemployment is at its lowest for 40 years. It is a vital reform, replacing the outdated and complex benefits system of the past, which too often stifled people’s potential, as my hon. Friends the Members for Rochester and Strood (Kelly Tolhurst) and for Middlesbrough South and East Cleveland (Mr Clarke) outlined. Six benefits are replaced with one simple monthly universal credit payment, designed to support people whether they are in or out of work.
Under UC, claimants are better off when they move into work and they are better off when they progress in work. People’s UC is gradually reduced as earnings increase, so claimants will not lose all their benefits at once if they are on a low income. My hon. Friend the Member for Moray (Douglas Ross) reminded us of features of the previous system that called out for reform. With UC, there is no 16-hour ceiling, no 16-hour floor, no such thing as “permitted work”—or, rather, non-permitted work—and there is no upheaval and risk in terms of people’s benefit as they move into a job, as my hon. Friend the Member for Wealden (Ms Ghani) mentioned. This means that the more people work, the more money they get in their pocket. So UC supports those who can work and cares for those who cannot, while being fair to the taxpayer as the Government continue to spend around £90 billion a year supporting people of working age.
My hon. Friends the Members for Stirling (Stephen Kerr) and for Aldridge-Brownhills (Wendy Morton), the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone), who spoke about Wick, and others spoke of the dedication of Jobcentre Plus staff and of staff at housing associations and elsewhere, and the great deal of preparation going into readying for universal credit, and I echo those words of appreciation. I also say to any Members who have not recently visited their local jobcentre: please do so.
My hon. Friend the Member for North East Derbyshire (Lee Rowley) spoke of the phased roll-out approach and how that allows the Government to learn from frontline feedback and evolve the system, making the changes to improve as we go along, and making sure that people who need help can get it.
The Budget package that the Chancellor set out will put more money into claimants’ hands earlier, ensuring extra support for those who most need it. This is a £1.5 billion package and it addresses concerns that have been expressed about the delivery of the benefit, as my hon. Friend the Member for South Cambridgeshire (Heidi Allen) rightly said.
This month, new guidance will be issued to staff to ensure that claimants in the private rented sector who have their housing benefit paid directly to landlords are also offered that option when they join universal credit. From January, we will make two changes to advances, and my hon. Friend the Member for Ochil and South Perthshire (Luke Graham) reminded us of the new guidance given in jobcentres to make sure that advances are entirely known about. The changes are increasing the maximum recovery time from six months to a year and the maximum amount from 50% to 100%.
I should mention to the hon. Member for Reading East (Matt Rodda) that in practice this also means that new claimants in December can receive an advance of up to 50% of their overall entitlement, and may receive a second advance to take it up to 100% in the new year. So no one who needs immediate financial assistance will need to wait until the end of the first assessment period.
It has been said a few times that advances are a loan. An advance brings forward a payment, but it is not an advance like a normal loan, as there is no interest to be paid. It is also not like a normal wage advance in the sense that it does not just come out of people’s first payment. In addition, from February we will remove the seven-day waiting period, benefiting about 750,000 new universal credit claimants a year by an average of £160 per household. My hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson) asked me to confirm that that is a net improvement in the cash position. Waiting days were a long-standing feature of the benefits system, so he is exactly right.
From April, as claimants with housing support transfer to universal credit, an additional two weeks of housing benefit will continue to be paid. That change will provide an average of £233 pounds in additional financial support per household for 2.3 million claimants over the roll-out. From February, the initial wait for payment will comprise an assessment period of one calendar month, during which evidence of earnings and so on will be gathered, and up to a further week of payment generation and administration via Bacs. A claimant’s first UC pay date will be up to seven calendar days after the end of their initial assessment period, and subsequent pay due days will be on the same date each month. As my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) said, most people are paid monthly, and that is the case for universal credit, too.
I want to try to respond to as many of the points made in the debate as I can, but I fear I will not get to all of them. The hon. Members for Eastbourne (Stephen Lloyd) and for Central Ayrshire (Dr Whitford) talked about different payment patterns. It is a reality of devolution that they are possible under the devolved Administrations, and we will engage with them to make that work. However, we think that monthly is the better payment pattern. It is not that it is impossible to use other patterns, and an argument for why payment should be weekly could be constructed, but few things are paid fortnightly. Monthly is the more sensible pattern, and it is only way by which the assessment period can take account of all the different patterns of how people in work are paid.
My hon. and learned Friend the Member for South East Cambridgeshire (Lucy Frazer) noted the use of Opposition days in respect of matters relating to the release of documents and discussed other urgent matters that have not been covered in the meantime. My hon. Friend the Member for Brentwood and Ongar (Alex Burghart) talked about the positive role that the Work and Pensions Committee can play in the process. My hon. Friend the Member for Bolton West (Chris Green) reminded us of the need for care and responsibility in interpreting reports. The hon. Member for High Peak (Ruth George) asked about the post-implementation review, and that will come in 2022. My hon. Friend the Member for South Suffolk (James Cartlidge) mentioned the importance of fiscal responsibility, and universal credit will save substantially on fraud and error.
Damian Hinds
I cannot. My hon. Friend the Member for Stirling (Stephen Kerr) asked about home visits, and I can confirm that the DWP makes around 300,000 home visits a year, most of which are completed within 10 days.
I want to turn specifically to the comments of the right hon. Member for Birkenhead (Frank Field), who made a passionate, powerful, emotive speech. Nobody here could fail to have been affected by the moving stories that he related. I know that that is what brought him into politics, and I would never question his motivation, sincerity or determination. However, on the behalf of everybody on this side of the House—I can say this with no fear of contradiction—that is what brought us into politics, too. When we talk about extending free childcare, school results, the national living wage, the creation of 3 million jobs, the reduction in income inequality and record-high household incomes, they are not just statistics; they are steps towards tackling injustice and spreading opportunity, and universal credit is at the heart of that list.
Universal credit helps to prepare people for work through personalised support and help with IT skills and budgeting, by paying people monthly like most jobs and by paying money to people, not landlords. It helps people into work by removing the risk to their benefit claim by making it visibly clear that work will pay and by covering childcare costs in the run-up to work, so that children can settle and people can get set and ready for the first day at work. Once people are there, it helps them to get on in work, because it pays out based on earnings, not hours, because it covers more of their childcare costs, and because there are no hours rules and no restrictions on progression. We are in the middle of a fundamental structural reform that is already improving lives. We will continue to work with claimants, partners and right hon. and hon. Members from across the house to resolve issues and improve universal credit as it rolls out across the country.
Question put and agreed to.
Resolved,
That an humble Address be presented to Her Majesty, That she will be graciously pleased to give directions that the five project assessment reviews, carried out into universal credit between 2012 and 2015 by the Government’s Major Projects Authority now known as the Infrastructure and Projects Authority, and any subsequent project assessment reviews carried out into universal credit by the Infrastructure and Projects Authority between 1 January 2016 and 30 November 2017 that have been provided to Her Majesty’s Ministers at the Department for Work and Pensions, be provided by the Secretary of State for Work and Pensions to the Work and Pensions Committee.
Frank Field
On a point of order, Mr Speaker. I have never doubted the motives of people on the other side of the House. As the Government have accepted the motion, will the Select Committee have the papers tomorrow?
Mr Speaker
My understanding is that the Minister indicated the papers would be delivered before Christmas.
Mr Speaker
Well, certainly this Christmas. I certainly was not thinking of 2018. There is probably a default presumption that it means this Christmas—[Interruption] —but it is always better to be explicit. I grant that to the right hon. Member for Birkenhead (Frank Field), who is chuntering from a sedentary position in evident dissatisfaction at the inadequate clarification thus far provided, but help may be at hand, because the Secretary of State is perched like a panther—[Laughter]—if you can perch like a panther. He is poised like a panther, ready to pounce.
Mr Speaker
I am inclined to leave it there for now. If the right hon. Member for Birkenhead has further points that he wishes to raise, he can, but I am not sure it will greatly profit him to do so now.
Frank Field
Mr Speaker, I will, if I may, come to talk to you about how soon we can get the documents. We have been promised the papers, not redacted papers.
Universal Credit
Lord Field of Birkenhead Excerpts(7 years, 1 month ago)
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Mr Gauke
I am sure that there will be an ongoing debate about the taper, which, as we made clear yesterday, we will continue to keep under review, but we acknowledge that there is a particular issue with the first assessment period and helping people over that period, which is why we made changes to the advances system back in October. I said at the time that we would continue to look at this, and that is why we have announced the package we have.
Frank Field (Birkenhead) (Lab)
Will the Secretary of State please commit now to bringing forward the loans scheme and keeping open the jobcentres and helplines due to be closed for eight out of 10 days over Christmas, to prevent any of my constituents from going hungry? May I also congratulate him on applying the financial armlock he learned in the Treasury to his then boss to such good effect?
Universal Credit Roll-out
Lord Field of Birkenhead Excerpts(7 years, 1 month ago)
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Frank Field (Birkenhead) (Lab)
I beg to move,
That this House notes the First Report of the Work and Pensions Committee, Session 2017-19, Universal Credit: the six week wait, HC 336; and calls on the Government to reduce the standard initial wait for a first Universal Credit payment to one month.
Some of us would not wish to use “roll-out” as an appropriate name for what is happening to universal credit in our constituencies. I thank the Backbench Business Committee for giving us the opportunity to debate this important topic, which affects a growing number of constituents. For my constituents, the horror of the full roll-out of universal credit happened yesterday.
I begin by confessing my inadequacies. When we debate in this great place I am sure most, if not all, of us reflect on how we simply do not have the language to match the task of presenting to the nation, through this Chamber, what is happening. This is the most important debate I have participated in during my nearly 40 years as the Member of Parliament for Birkenhead. I have never felt more acutely the inadequacy of the language I have to try to tell the House of the horror that is now happening to a growing number of my constituents under this so-called welfare reform programme.
So long as I do not get lots of interventions, as I did last Tuesday, I promise to speak briefly on five brief themes: first, the horrors under the existing roll-out of universal credit, before the full roll-out; secondly, the organised chaos that now presents itself in my constituency; thirdly, the national impact of what will be a growing crash and smash in many decent, honourable people’s lives; fourthly, the one reform on which all members of the Select Committee on Work and Pensions agree—this will not be our only report, but given the evidence, and we want to report to the House on the evidence, not on what we think or feel, the biggest change the Government could make is to reduce the initial wait from six weeks to four weeks—and finally, the long-term reforms.
When I saw the Minister at the coffee machine yesterday and he kindly told me that he would reply to the debate, I said that I had already asked the question four times. I am sorry that the Secretary of State for Work and Pensions is not here today, because he has no more important task. However much affection we have for the Minister of State for the seriousness with which he has gone about his career in this House, this issue is of such national importance that for the Secretary of State not to be here says something pretty big.
I have now asked the question five times. The Secretary of State tells me, “Go back home and say it’s all hunky-dory. You don’t have to worry. It’s all going to be rolled out fine.” And I say, “The food bank says we need 15 tonnes more food.” Who are we to believe?
This case began some time ago, but a person who is involved turned to their MP for help yesterday, the day of the full roll-out. It is an historical case of a gentleman who had waited and waited for an operation at our local hospital. That operation took place at the same time as he was told to turn up for an interview at our Jobcentre Plus. He was sanctioned. A friend reported yesterday that this constituent of mine is now homeless and, while homeless, struggling to recover from the surgery.
I will now give five examples of the horrors that are happening in Birkenhead under the existing system. We were told the system would be simplified and manageable. These five cases have come into one MP’s surgery. I do not want to speak for terribly long, but I could raise yards of cases—we could all raise yards of cases—of what is actually happening to our constituents.
Constituent No. 1 made three applications online. When they finally got through, they were told that no application had been received. They were paid six weeks after the third application. The constituent has three children to feed, and they were hungry.
Constituent No. 2 had twice attempted to apply online, and twice the application had been lost. They waited a further eight weeks before receiving money. They were hungry.
Constituent No. 3, who has a four-year-old daughter, waited two months for universal credit to be processed and tried the hotline six times, but was told that a new system was in place—it took several days before they phoned her back. She was then told, “No claim could be found.” Wow! Her payment date was pushed back by a further 11 days. My constituent and her daughter went hungry.
Anna Soubry (Broxtowe) (Con)
These are heartbreaking and unacceptable accounts, but I wonder whether the right hon. Gentleman can help me. When I met the citizens advice bureau in Broxtowe, where we had UC being rolled out in July, I was told that it is now making the arrangements with all relevant authorities so that these very examples do not exist. My question to the right hon. Gentleman is: did these constituents come to him at the end of this ghastly process or earlier? If they had come earlier, they would find that we as MPs all have exactly the access to speed it up. Does he agree that we should be doing this now before it comes out in our areas?
Frank Field
I could not agree more, although I have been here a little longer than the right hon. Lady and I never thought that as an MP I would be speaking like this, about this, with my job being adapted in this way. Of course we have had summits, and we are continuing to have them, bringing all the people together, including Jobcentre Plus, to try to prevent these things from happening. Despite those efforts, these are the cases of horror that are resulting and that I am presenting to the House.
Constituent No. 4 waited 12 months for universal credit. The Secretary of State, bless him, not here today, admitted that some error had occurred. My constituent is sinking in debt, despite the role of citizens advice bureaux, MPs, food banks, and getting welfare rights advisers in—despite all that. Constituent No. 5 was migrated from housing benefit to UC, with their housing benefit stopped immediately. They then waited seven weeks for UC, but when it came there was no housing component. Again, this constituent risks being evicted.
Stella Creasy (Walthamstow) (Lab/Co-op)
My right hon. Friend is making a powerful case. I have already been contacted by constituents terrified about what they are going to do because they have rent arrears, and they know that if those hit £1,000 they will face eviction procedures and that any delay in getting their payments means they will hit that £1,000 mark. So even when the system works perfectly, the inherent delays push these people into debt and eviction, which will cost us all more.
Frank Field
I could not agree more. We will come on to discuss, briefly, I hope, the reforms we want and will push for. I will certainly do that, as perhaps others will. We will review these things in our Select Committee. We must base this on evidence, but the evidence is mounting up.
Peter Kyle (Hove) (Lab)
I do not know whether my right hon. Friend has noticed that The Times reports today that property companies are now doing pre-emptive evictions of tenants who are being moved to UC. [Interruption.] The Times is reporting this today; it is actually happening on the frontline. Will he say a few words about the impact this will have on already vulnerable claimants of UC?
Frank Field
Both those statements made by my hon. Friends from east London and Hove, on the coast, are true, and I am sure they will try to catch your eye, Madam Deputy Speaker.
I move on to the theme of organised chaos. Even if we are working with CABs, every Tom, Dick and Harry organisation seems now to be embedded in the system. Jobcentre officials say that even when the system is up and running, as it is in Birkenhead, claims are closed down in error and it takes several months to rebuild them. There is no money during the rebuilding—
Frank Field
I am anxious that everybody gets in, so may I move on? I have real affection for people who have fought the battle hard on this, but I wish to pursue the matter. Four constituents of mine have had their claims closed down, with the only too imaginable consequences of what it has meant for their lives. The landlord of one of them has said, “I do not want to evict the tenant, however I might be left with no choice.” That tenant has said, “I am behind with not only my rent, but my council tax. All I’ve got to live off is child benefit. The school has been so worried about the welfare of my son that my sister offered to take him in to her household so that he was not taken into care.”
Frank Field
I might give way a little later, but I want everybody to have a chance to speak.
Let us examine how sanctions apply in this system. I wish to give one example of a lad who, after huge difficulty, got a part-time job. We must consider the pride that came with that job; he was walking out in the morning knowing that at end of the week he was going to bring a wage packet back. I point out that this is at the end of the week, Minister, not the end of four weeks or six. There was a transformation in him, but the jobcentre decided that he was not trying hard enough to get a better job, so they sanctioned him and took his money away. He then could not exist on the money from his job. He now has no money and is well on his way to destitution.
So my third theme is: what is the national impact of this slow motion crash for us, but high-speed crash for our constituents? What has the Trussell Trust told us about the impact around the country of this roll-out of universal credit? We must remember that the Trussell Trust is the “trade union”, so to speak, of only half our food banks. It reports that it needs 1,500 additional tonnes of food for the coming year in any case, but that it will need an additional 2,000 tonnes to take on the consequences now of UC. As I have said, in Birkenhead we will need 15 tonnes of food in the coming year. We knew that this, for us, evolving slow crash, coming up over weeks, was going to happen, but in Birkenhead it actually began yesterday.
That is why the Select Committee, of one mind, on the evidence that it received, said that the most important thing the Government could do, of the many things it could do—this was the one thing that stood out from our evidence and we wanted them to do it as quickly as possible—was to reduce the wait from a maximum of six weeks to a maximum of four weeks. The first 133 submissions to the Select Committee told us that the six-week wait is the main force pushing people to having no food, risking everything and the brink of destitution. It is not a surprise, is it, Minister, given that the data from your old Department, the Treasury, tell us that more than half of low-income and middle-income families have no savings at all to fall back on? Two thirds of us have less than a month’s savings to tide us over a crisis.
Let us consider the very idea that these families—the most vulnerable people that we have the honour to represent in this House—can wait for six weeks. In the cold light of day, one wonders how any decent set of people—[Interruption.] The great architect of this reform is not in this place, although he was here earlier—I refer to the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith). Could he ever have really wanted this result for this reform? I hope he is going to come back and tell us that when he failed to fend off cuts from the previous Chancellor of the Exchequer he could never have envisaged that this reform of noble intent should end in these personal nightmares for our constituents.
The Select Committee does not yet have evidence on this—we may get the evidence to persuade us to publish a united report—but for me there seem to be five obvious reforms that we need to build into universal credit, in addition to that four-week wait. First, if Scotland can have two-weekly payments, why cannot England? Northern Ireland is going to get payments every two weeks; why cannot Wales? I thank Scotland for negotiating a subcontracted agreement to show that what was thought to be impossible is indeed possible, once due pressure is applied. I offer huge thanks for that.
Secondly, we want rents to be paid directly to landlords, if people wish.
Thirdly, we want the DWP automatically to tell local authorities and housing associations that their tenants will be pushed into debt. I do not think that is our or the citizens advice bureaux’ job; it is the Department’s job.
Fourthly, under the current system babies and toddlers are going without Healthy Start vouchers and children are going without free school meals because the data that was previously held separately and could be given to local authorities is now held in the universal credit system and not given to local authorities. Can that terrible nonsense please come to an end?
Lastly, my colleagues and I had a fight when the Government removed from the statute book the duty of the Secretary of State for Work and Pensions to promote claimants’ welfare. The Government said that it was not necessary and that they were tidying up the statute book—“We’re all in favour. Who could possibly be against promoting the welfare of claimants?” My argument was that if it is so unnecessary, let us just leave it on the statute book, in case. The current sanctions policy could never, ever have worked if that duty on the Secretary of State had existed, because the Secretary of State delegates to every person who works in DWP offices, and they would have to carry out that discretion on the Secretary of State’s behalf.
The House knows that I was as tough as old boots on the need for sanctions—people should have to abide by the rules—but the idea that we have sanctions without anybody in the office being able to exercise discretion is appalling. Imagine being an officer to whom somebody says, “You can ring the hospital and find I was actually on the operating table when you wanted me here for an interview. Please don’t sanction me!”, but the sanction is applied automatically because there is no discretion. That should end.
I plead with the unbelievably decent Minister for Employment: I want those mutterings of his—when he says that he is appalled, that this does not need to happen and that he can explain why it is not going to happen—to be on the record when he replies. I also ask this of Ministers on the Treasury Bench for the fifth time: the Government tell me that the roll-out of universal credit in Birkenhead is going hunky-dory—that all the things I have tried to represent and all the pleas from the food bank to raise 15 tonnes more food is scaremongering—so will the Minister say whether the Government are still as confident as they were when I first asked the question many months ahead of the roll-out? Or should I go home and roll up my sleeves with those at the food bank who are trying to collect 15 tonnes more food to prevent families from being engulfed, this Christmas and beyond, by hunger of undue proportions? This is a national scandal that the Government could stop. Will they stop it, please?
Several hon. Members rose—
Melanie Onn
Thank you, Mr Deputy Speaker.
I need to make it absolutely clear that this is about the private rental sector; it is not about a housing association. Conservative Members may well feel that this is illegal and I know that one of them condemned the intervention that was made earlier about the fact that they believed this to be illegal. I received some completely unsolicited legal advice—lawyers in housing contacted me—to the effect that this is not illegal. It is completely legitimate; nothing prohibits it. One of the big issues would be that even if it were illegal, many of these people would not have the capabilities to seek legal redress. That is a real issue.
Melanie Onn
Despite the very clear moral questions around this action, I am advised that it remains a lawful way of operating. I have even had some indication that some landlords are issuing these notices at the outset of tenancies, which is really quite frightening—a much bigger issue than that which we are discussing here today. I really hope that the Government will look at closing this loophole in future. I am happy to share the information. It is online; it is on my Facebook page. People are very welcome to look at that.
The Government said that my Opposition colleagues and I were guilty of scaremongering when we warned that rolling out universal credit would lead to people going into debt or being evicted from their properties. Well, it is not just us who are making that claim; it is charities, councils and housing associations. It is the statistical evidence from the areas where universal credit has been piloted, and now it is the letting agencies, too. My local housing association, Shoreline Housing Partnership, has 182 tenants who have already gone on to universal credit. Of those, 145 are in rent arrears of an average of £400. That is 80% of them. When universal credit is fully rolled out, the housing association expects the total debt from tenants to increase to £2.2 million.
Frank Field
Everybody who has spoken on both sides of the House has called on the Government to move and to change their approach. Instead of inviting us to attend to our jobcentres, I will be writing to the Secretary of State and the Minister of State to invite them to come with me and my colleagues to the six worst blackspots in terms of how universal credit is affecting people’s lives, and to do so before the Budget.
Question put and agreed to.
Resolved,
That this House notes the First Report of the Work and Pensions Committee, Session 2017-19, Universal Credit: the six week wait, HC 336; and calls on the Government to reduce the standard initial wait for a first Universal Credit payment to one month.
Frank Field
On a point of order, Madam Deputy Speaker. I wish to seek your advice. How might I ask the Secretary of State to come before the House on Monday to respond to the unanimous recommendation we have made to the Government to begin the reform of universal credit, so that some of our constituents might have slightly better Christmases than they would otherwise?
Madam Deputy Speaker (Mrs Eleanor Laing)
I thank the right hon. Gentleman for his point. I understand why he wishes the Secretary of State to come to the House, but the Minister has just been before the House, addressing those very points. I am quite sure that the Secretary of State will note what has been said in the House this afternoon and that he will note the request from the right hon. Gentleman.
Frank Field
Further to that point of order, Madam Deputy Speaker. The Minister of State, bless him—[Laughter.] No, seriously, because he is an incredibly good guy. He made his speech before we had made a collective decision. We are in a new position now. The whole House has unanimously asked the Government to move, and that is what I want the Secretary of State to address on Monday.
Madam Deputy Speaker
I thank the right hon. Gentleman for making his point. He knows, of course, that it is not a matter for me, but the Minister is, as the right hon. Gentleman pointed out, sitting at the Dispatch Box and I am quite sure that he and the Secretary of State will pay attention to the points that the right hon Gentleman and all hon. Members have made this afternoon.
We now come to the Back-Bench debate on defence aerospace industrial strategy. Come on: everybody leaving, leave quickly. It is not fair. There is little time left.
Oral Answers to Questions
Lord Field of Birkenhead Excerpts(7 years, 1 month ago)
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Mr Gauke
My hon. Friend is absolutely right. Part of the purpose of universal credit is to close the gap between being out of work and being in work. Most jobs are paid monthly, and getting people used to that monthly system is a sensible approach. I also very much welcome the fact that my hon. Friend has visited a jobcentre, and I recommend that other hon. Members do so, to hear how universal credit is operating on the ground. I know that many hon. Members have found the experience to be extremely positive.
Frank Field (Birkenhead) (Lab)
I will not ask Government Front Benchers for a fifth time whether I should believe the Secretary of State’s statement that the roll-out of universal credit in Birkenhead will be hunky-dory, or the opinion of the food bank, which says that it will need an extra 10 tonnes of food to prevent people from going hungry—if he cannot abide the word “starving”. We will have a debate on this on Thursday, which Members across the House have signed up to. This will be the first time that Conservative Members will have an opportunity to vote on whether they want to reform universal credit. Will the Secretary of State open that debate, hear it and take the message directly back to Cabinet, please?
Mr Gauke
The position that we have made clear for a long time is that we want to ensure that universal credit works. This is a test-and-learn system, and we are always looking at ways in which we can improve it, particularly for that first period. I would say to the right hon. Gentleman and to the House as a whole that universal credit is helping us to address the best way to deal with poverty, which is to ensure that people can get into work. That is the argument that I and my right hon. and hon. Friends will continue to make.
Supported Housing
Lord Field of Birkenhead Excerpts(7 years, 1 month ago)
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John Healey (Wentworth and Dearne) (Lab)
I beg to move,
That this House calls on the Government to halt its current plans to cap, at the local housing allowance rate, help with housing costs for tenants of supported housing and to adopt instead a system which safeguards the long-term future and funding of supported housing, building on the recommendations of the First Joint Report of the Communities and Local Government and Work and Pensions Committees of Session 2016-17, Future of supported housing, HC 867.
This is the third Labour-led debate to confront the Government about their plans for supported housing. Perhaps it is a case of third time lucky, after the Prime Minister announced at Prime Minister’s questions this morning that the Government had backed away from capping help with supported housing costs at the local housing allowance rate. I am really glad, as I was in previous debates, to see so many Members from all parts of the House in the Chamber. The Prime Minister’s announcement was certainly welcome, and it was good to see Labour yet again winning the argument and making the running on Government policy.
Frank Field (Birkenhead) (Lab)
I am sure my hon. Friend the Member for Sheffield South East (Mr Betts) will also try to catch my right hon. Friend’s eye, but may I say that this was a unanimous proposal from two Select Committees—the Work and Pensions Committee and the Communities and Local Government Committee —and that we are immensely pleased by the Government response? May I also take this opportunity to thank the hon. Member for Gloucester (Richard Graham), who was the lead member of the Work and Pensions Committee on the report and steered it to success?
John Healey
My right hon. Friend is absolutely right. He pre-empts some of the tributes I am going to pay to members of his Committee and the Communities and Local Government Committee for the role they have played. In particular, I want to pay tribute to the hon. Member for Gloucester (Richard Graham) and my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes), who chaired the sittings on the very important joint report, which was published back in May.
After what the Prime Minister said at Prime Minister’s questions earlier, we now know what the Government will not do, but we do not know what they will do. She said that the full announcement on future plans will be made on Tuesday, which is Hallowe’en, so the real question is: will this be trick or treat? Let us hope that this is third time lucky, and that the Government get the policy right this time. Ensuring that they did was the purpose of this debate, and even after the Prime Minister’s partial statement about the Government’s future plans, it remains the purpose of this debate.
Since November 2015, these plans have been like the sword of Damocles hanging over the homes of more than 700,000 frail and elderly people, young people leaving care, homeless people and those with dementia, mental illness and learning disabilities, as well as ex-service veterans and women fleeing domestic violence. We called this debate to give a voice to the continued urgent warnings of organisations such as Mencap, Age Concern, Centrepoint, the Salvation Army and Women’s Aid, and their concerns are still important as the Government finalise their plans. We called this debate to give Parliament a further opportunity to play its proper role in challenging and contributing to Government policy decisions, and our concerns are still important today. I trust that Ministers realise that Parliament, the housing sector and the Government must all play an essential part in sorting out a good, long-term system for supported housing for the future.
It is now nearly two years since the Chancellor revealed the plan for crude cuts to supported housing via the local housing allowance, it is over a year since the second version of the same plan was announced and there is now less than 18 months until any changes are set to start. The fears of many of the most vulnerable people in our society are very real, and the damage is already being done to vital specialist housing at a time when we already need at least 17,000 more such homes. The National Housing Federation reports that 85% of all building plans for new supported, sheltered or extra care housing have been halted over the past two years by the Government’s plans, and the Salvation Army says that the future of nine in 10 of its lifehouses for homeless people
“could be placed at risk.”
Our motion is designed to map a way forward. It calls on the Government, first, to halt its current plans—tick. That is what the Prime Minister announced today, and that is what the Government say they will do. It also calls on the Government to adopt instead a system that safeguards the long-term future and funding of supported housing, building on the recommendations of the joint report. I hope that Members on both sides of the House will signal their support for this approach during the debate, and then back the motion so that the will of Parliament is clear to the Government.
Together, the Communities and Local Government Committee and the Work and Pensions Committee have done a really important service to the House and to the Government with their recent report. As I did earlier, I pay tribute to the hon. Member for Gloucester and my hon. Friend the Member for Dulwich and West Norwood. I look forward to their speeches and to the contributions of many hon. Members on both sides of the House who I have previously heard make a very persuasive case in calling on the Government to change their plans.
Let me turn instead to the heart of what is at stake and what still remains to be settled. The decision to drop the local housing allowance part of the plans is welcome, as we and the Select Committee have been clear about the Government’s error in this regard: it is too low and too variable to be the basis for supported housing. Will the Minister confirm today that any system for setting the level of support for those in supported housing will take full account of the costs? Will he confirm that the long-term funding levels will reflect the need for supported housing now and in the future? Will he guarantee that this policy will not be subject to the same ill-conceived, ill-judged decisions that we have seen over the past two years?
Universal Credit Roll-out
Lord Field of Birkenhead Excerpts(7 years, 2 months ago)
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Damian Hinds
Well, I will come to many of the things that came out of the debate, and as I just said, it is a legitimate decision to vote or otherwise in such a debate, but there is much that one takes from a debate like that, and I thought, as I said, it was a very high-quality session of this House.
Frank Field (Birkenhead) (Lab)
I have asked the Secretary of State twice, and now the Minister twice, for advice for me to take home to Birkenhead. On the Secretary of State’s advice, he says that the roll-out of universal credit in Birkenhead in November will all go hunky-dory—no need to worry: people will not actually be reduced to hunger and perhaps destitution. However, the staff of our food bank in Birkenhead are saying that, on the experience of other areas where the benefit has been rolled out, they will need to raise another 15 tonnes of food in the coming year. Should I go home and tell people not to pay any attention to the food bank staff and say that they are scaremongering? Should we put all our trust in the Minister that this will work?
Damian Hinds
The right hon. Gentleman is of course right that he has raised that point a number of times. I think last time he raised it, he put it in the context specifically of Christmas. I am aware that organisations like food banks do have an increase in their activity at Christmas-time. I think we have to be careful in ascribing the reasons for the usage of food banks to individual or simple causes, and as I said to him—
Damian Hinds
And, Mr Speaker, my response to the right hon. Member for Birkenhead (Frank Field) today is to say no, of course we do not expect that to happen. We want this system to work absolutely as well as it can. We have improved the process, for example, on advances, to make sure that people get the assistance that they need in a timely way.
Damian Hinds
If the right hon. Gentleman will forgive me, I am very conscious of time. I am conscious of the large number of people who wish to take part.
Frank Field
This is not the food bank staff thinking up ideas or targets. This is our food bank talking to other food banks in other areas that have already had the roll-out. On that basis, they suggest that in the coming year—not just Christmas—they need to raise an additional 15 tonnes of food. Are they scaremongering, so we should put what they say to one side, or should we believe them that the Government will not be able to deliver universal credit without reducing people to hunger?
Damian Hinds
Of course I am not going to say a word against the right hon. Gentleman’s food bank staff and suggest that they are scaremongering or doing anything else negative like that, but my response to his substantive question is, no, we do not expect these things to happen because we want this system to work as well as it possibly can. Its performance continues to improve and we continue to evolve and improve the system.
Universal Credit Roll-out
Lord Field of Birkenhead Excerpts(7 years, 2 months ago)
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Frank Field (Birkenhead) (Lab)
I simply want to ask the Secretary of State a question. He said in his contribution that the scheme was working well—indeed, working so well that he was accelerating the pace of the roll-out. I reported to him in the Select Committee meeting this morning that Birkenhead food bank, after talking to other food banks in areas that have experienced the roll-out, believes that it will need 15 more tonnes of food this Christmas. What message should I take home, please? Should I tell the good citizens of Birkenhead that the food bank is scaremongering, that we should pay it no attention, and that we should take the Secretary of State’s word that the system is rolling out well, or that they should contribute the extra 15 tonnes to the food bank to prevent people in Birkenhead from being hungry over Christmas as a result of the roll-out and the right hon. Gentleman’s inability to deliver a scheme that works?
The Minister for Employment (Damian Hinds)
We have had a very good debate this afternoon, with fully 75 speeches—passionate, thoughtful and insightful—from Members on both sides of the House. I regret that in the time available I simply cannot respond to all the points made. I will cover as much of the material as possible, but I ask for colleagues’ forbearance in terms of interventions.
The debate may end at 7 pm today, but the discussions will go on. We recognise that some colleagues may have concerns outstanding, especially about vulnerable constituents when they first apply to universal credit. My right hon. Friend the Secretary of State and I will continue to work actively with colleagues to address those concerns and to ensure that, if changes need to be made, they are delivered.
Damian Hinds
I am terribly sorry, particularly to the right hon. Gentleman of all people, but I have less than nine minutes—
Frank Field
I posed the question twice to the Secretary of State. Our local food bank in Birkenhead says that from Christmas onward, it will need 15 tonnes more food because of the roll-out of universal credit. Should local people believe the food bank or the undertaking the Secretary of State gave that it will all be hunky-dory and those are scare tactics?
Damian Hinds
Of course I gave way to the right hon. Gentleman, who is the Chair of the Work and Pensions Committee. To respond to his question, of course we do not expect that to happen. What universal credit does is make it more straightforward for people to go into work at all times of the year. Fundamentally, we are not looking at a great acceleration in the roll-out. I will be happy to follow up with him after the debate. We will provide further progress updates in the weeks ahead and I look forward to active dialogue with colleagues.
Our current system is at once too complex and too uniform. It holds people back because of the perceived risk of ending a benefit claim to go into work, and it is not always obvious how much better off they will be. All too often, once they are in work people are caught by the hours rules in tax credits. I think we have all met people in our surgeries who are stuck on 16 hours a week when they want to be able to get on, progress in their career and provide more for their family. That was illustrated well by my right hon. Friend the Member for Forest of Dean (Mr Harper) and my hon. Friend the Member for Thornbury and Yate (Luke Hall).
Those and similar features have been endemic in our system for decades, and I pay tribute to my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith) and Lord Freud for their insight and determination not merely to regret those things but to reform them; not just to critique the system but to change it. My hon. Friend the Member for Charnwood (Edward Argar) put it well when he said that it was not so much that the old system was designed badly, but that as a whole the old system was not designed at all.
The new system, universal credit, simplifies by merging six benefits into one and asking people to deal with only one part of Government, not three. The hon. Member for East Antrim (Sammy Wilson) reminded us of the value of simplicity, which is true both for the individual and for the taxpayer. The core design element is that the system looks back over what someone has earned over a month and automatically adjusts payments based on that. It erases the binary distinction between in work and out, and removes the need to flip from one benefit to another, then back again. The consistent taper rate means that people will always know that they will be better off in work and with every extra pound they earn. Universal credit prepares people for work, helps them into work and helps them to get on in work.
My hon. Friend the Member for Horsham (Jeremy Quin) reminded us what happens when implementation is rushed, as we saw with working tax credit in the early 2000s. By contrast, the implementation of universal credit is happening over nine years. It is now available in the live service version in every part of the country. In July, we introduced the full service to 29 jobcentres across the country; feedback was positive and system performance improved. There has been much talk about pauses. Well, in August and September, we had one of our pre-planned pauses in the roll-out.
These pauses ensure that we do have the opportunity to learn lessons, build improvements into the system, and address any issues. From this month, we will be scaling up roll-outs to about 50 jobcentres a month. After another substantial planned pause in the programme’s roll-out, managed migration begins in in June 2019. The whole roll-out will complete in 2022. It is all being done in a careful, co-ordinated way to ensure that improvements can always be made along the way.
Universal credit is designed to mirror the way that most people in work are paid, which is, these days, monthly. The first payment period is five or six weeks, depending on the individual’s circumstances.
Oral Answers to Questions
Lord Field of Birkenhead Excerpts(7 years, 2 months ago)
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Frank Field (Birkenhead) (Lab)
Given the Secretary of State’s confidence in the roll-out of universal credit to another 150 Jobcentres Plus, can he give the House a guarantee that none of our constituents will face hunger or near destitution through lack of money over the Christmas period?
Mr Gauke
Universal credit is about ensuring that our constituents are in a stronger financial position. That is what we are trying to deliver by enabling them to work and providing the support they need. As I said earlier, if we look at where we want to get to by 2022, 8% of claimants are already on universal credit and by January it will be 10%. The process is gradual and measured, and that is enabling us to learn from the experience and make improvements, which we will continue to do all the time.