Universal Credit

Debate between Lord McFall of Alcluith and Lord Freud

Wednesday 10th December 2014 Lords Chamber

[Lord Freud]

My Lords, I have developed an extraordinarily keen appreciation of why politicians do not like to do fundamental reform, but this reform is absolutely essential because the present system is a shambles. It does not encourage people into work or reward them systematically for doing that. The whole point of universal credit is that you join up the out-of-work and the in-work systems so that there is a smooth progression that everyone can understand.

[Lord McFall of Alcluith (Lab)]

My Lords, £40 million has been written off with IT in this system with a further £40 million being used on the old IT system. The useful IT life has now been downgraded from 15 years to five years. Given that this information was extracted painfully from the department by the NAO, is it not the case that warning lights have been flashing for two years and that only an objective assessment of the scheme will do in order to determine whether this architecture is fit for purpose?

[Lord Freud]

My Lords, the NAO has recognised the savings to government of going the way that we are going, with a live service showing us how it works and a properly designed digital service coming out behind. The NAO has recognised that the savings to government of that approach are £2 billion.

Employment

Debate between Lord McFall of Alcluith and Lord Freud

Thursday 23rd October 2014 Lords Chamber

[Lord Freud]

We are most concerned that people should be able to work as much as they want to. We are creating a new system to allow that, supporting people as they progress, in universal credit, into full-time work. We have extensive in-work progression trials right round the country, to find ways in which we can most effectively support people to work the amount that they want to and get the earnings that they need.

[Lord McFall of Alcluith (Lab)]

My Lords, in a speech in April this year the Chancellor was explicit in committing the Conservatives to the concept of full employment, and in a contradictory echo of a previous Conservative Chancellor said that unemployment was a price not worth paying. Can the Minister inform me what the Chancellor meant by “full employment”? Did he have a particular equilibrium unemployment target in mind, or was it just an empty rhetorical gesture to fit the occasion?

[Lord Freud]

As the noble Lord knows, that is an extraordinarily complicated economic question. The Chancellor has clarified that the target around full employment is a better employment rate than other countries are seeing. We are currently not far off the full employment rate, at 73%, that we have seen in the past.

Scotland: Underoccupancy Charge

Debate between Lord McFall of Alcluith and Lord Freud

Thursday 24th October 2013 Lords Chamber

[Lord Freud]

My Lords, a good idea has many fathers. Clearly, everyone in this Government is responsible for the bedroom tax and I am one of them.

[Lord McFall of Alcluith (Lab)]

My Lords—

--- Later in debate ---

[Lord Freud]

My Lords, we are currently looking very hard at what the support should be in the next year and possibly beyond so that we will have a smooth transition for this policy. One interesting thing is that there is a real economic mismatch, which I have talked about, in what we are building for people: we have 60% of people requiring single bedrooms and we are building only 13% in any one year. There is an economic mismatch so the signals must be corrected and that is one thing that this policy does.

[Lord McFall of Alcluith]

My Lords—

Youth Unemployment

Debate between Lord McFall of Alcluith and Lord Freud

Tuesday 14th February 2012 Lords Chamber

[Lord Freud]

My Lords, we are making it a statutory duty to ensure that schools take up their responsibility to provide careers advice, so that it is supplied at the point it should be, right where it is best received. Existing provision has been much too patchy.

[Lord McFall of Alcluith]

My Lords, the International Labour Organisation has said that youth unemployment is facing the greatest crisis in a generation. The global crisis has added to youth unemployment here. As someone who taught in the Glasgow area in the 1980s, I saw young people leave school and met them 10 years later when they had partners and children, but they did not have a job. Is it not a crying social and economic shame that we do not do more for young people at this stage to ensure that they adapt to the workplace and play a full role in society?

[Lord Freud]

My Lords, a point that I have made here in the past is that we have had a structural issue with youth unemployment for more than a decade, The number of youngsters inactive or unemployed has been growing steadily, right through to the end of the longest boom that we have ever had. My view—and the Government’s view—is that the best way to tackle that is to make sure that youngsters have education that gets them fit for the workplace. That is why this Government have taken on in toto all of Professor Wolf’s recommendations, because they deal with these core issues.

Universal Credit

Debate between Lord McFall of Alcluith and Lord Freud

Wednesday 21st December 2011 Lords Chamber

[Lord Freud]

Yes, my Lords, simplifying the process, the RTI pilots will start in April next year with a group of 300 volunteer software developers, employers and pension providers. In the autumn of next year, we will have integration testing, with a view to having the full migration of everyone from April 2013 to October 2013.

[Lord McFall of Alcluith]

My Lords, can I bring to the Minister’s attention the Cabinet Office document, Major Project Approval and Assurance Guidance? Paragraph C.15 says that the assessors designate projects as either “noteworthy and positive” or “noteworthy and cause for concern”. Under which category does universal credit come? Can the Minister place copies of these designations in the House of Lords Library so that we can trace these issues and save the taxpayer many billions of pounds, as we could have done in the case of HMRC over the past few days?

[Lord Freud]

My Lords, basically our categorisation in the latest plan is that urgent actions are still required. We are tending towards the problems appearing to be manageable with the actions in hand. That is the position that we are in, which will probably be no surprise at this stage in the project.