Supporting Disadvantaged Families

Lord Forsyth of Drumlean Excerpts

Thursday 12th November 2020 Lords Chamber

[Baroness Stedman-Scott (Con)]

I thank the noble Lord for that poignant comment. I understand his concern and distress about this situation. The issue of the support—or otherwise, as he would say—for freelancers rests with the Treasury, but I will go back to the Treasury and get answers to those questions, especially about the savings, where they put money aside to pay their bill. I will talk to those in the department to see if, in those circumstances, people can access universal credit and the help we are announcing today. I hope he will give me time to do that.

[Lord Forsyth of Drumlean (Con) [V]]

My Lords, at a time when it is claimed we have more food banks than McDonald’s restaurants in our country, and following the rather disappointing response to the Economic Affairs Committee’s report Universal Credit Isn’t Working, when will the Government end the anguish and uncertainty facing families who stand to lose £1,000 a year unless the standard allowance is made permanent after April? How can it be right to deduct up to a quarter of universal credit payments from families due to historic debt arising from faults in legacy systems, much of which they are completely unaware of? Finally, when will the department make a decision on the benefit cap, which affects 7% of families with children?

[Baroness Stedman-Scott (Con)]

I will answer again on the £20 uplift. We are in discussion with officials at the Treasury: when a decision has been made, Parliament will be advised. The issue of historic debt is well documented and well discussed. Nothing I can say now will make that situation any different. However, where people are struggling, even when the level has been reduced to the maximum of 25% being taken off, please will they talk to their work coaches, who will turn themselves inside out to help? That is probably not the answer the noble Lord wants—but that is what they are there to do. As things stand, there are no plans to change the benefit cap.