Universal Credit

Louise Ellman Excerpts

Wednesday 17th October 2018 Commons Chamber

[Dame Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

Many speakers have highlighted the problems that universal credit is causing people on the ground day after day, yet the Government fail to recognise the reality and admit that universal credit is in serious trouble. I am extremely concerned at the prospect of the full roll-out of universal credit in Liverpool, Riverside. According to the House of Commons Library, 2,000 people in my constituency are in receipt of universal credit now, with 13,300 to go. What can they expect? The evidence suggests that they can expect “managed migration”, which is a curious term in this context. It means that when universal credit is introduced, there is no automatic transfer for people who are receiving existing benefits. They must make new applications, and 30% of applications are not completed because people have problems applying online.

Landlords in Liverpool are already approaching me and telling me that they do not want to let their properties to people on universal credit because they are concerned about mounting arrears and failure to pay. People face the prospect of increasing debt, increasing use of food banks, and increasing stress. Stress has not been mentioned much this afternoon, but it is an extremely important issue, not just for people with existing mental health problems, but for people who are struggling to survive as more and more pressures are imposed on them. People will be worse off: according to the Resolution Foundation, 3.2 million working families will lose £48 a week on universal credit.

The Government must stop pretending that all is well. They must halt this roll-out. There must be full disclosure of what is really happening. The Government must act now.