Universal Credit Roll-out

Luke Hall Excerpts

Wednesday 18th October 2017 Commons Chamber

[Luke Hall (Thornbury and Yate) (Con)]

I am grateful to have a chance to speak in a debate that has had well-informed contributions from Members on both sides of the House. Rather than going over all the arguments we have heard so far, I want to talk about a couple of personal examples I encountered in my previous career in retail, which show why this reform is so important in creating a system where it does pay to work. Retail is an industry where there are inflexible working hours and unpredictable amounts of overtime are often available; it is often dependent on the demand for the products in the store and so on.

Let me give a couple of examples that I saw during my time as a store manager in Lidl in my constituency: almost 10 years. As happens in many discount retailers, we often worked with a skeleton crew in the store—often as few as 12 members of staff. In such a situation, if one or two staff are limited to working 16 hours, it has a big knock-on impact. It does not just affect the individual who struggles to work the overtime, even though they want to; it has knock-on impacts for the business and means salaried employees, who might not be paid any overtime, still have to work late into the night because of the reduced flexibility that the current system offers. That is clearly not what it was designed to do, but it is one unintended detrimental consequence for the business and other employees.

I wish to make one other point about the unintended consequence of the current system for people who want to work more than 16 hours but are prevented from doing so. What they often do in these situations is end up hiding the hours that they work, through moving around holiday pay in the payroll system and even, as happens much more regularly than we might think, through store managers agreeing to pay other employees in the store; the money is received into their bank account and they then pay their friend, who can actually work the overtime but refrains from doing so because of the 16-hour limit. Another point to make on that is that the people who end up willing to be part of those trades are younger and often get paid by the retail business at a lower wage because of that. They therefore end up passing across the lower wage to the person who would work or lose out on money themselves because they transfer across to somebody else from the post-tax income.

One other point about the UC system is that because it offers support to people through the work coach system, it helps a lot of people in industries such as retail who are under-confident about the progress they can make in that role. When I started as a shelf stacker in Lidl at 18, I was lucky enough to have parents who pushed me to keep progressing through the ranks. A lot of people who are under-confident and do not have that support do not get that sort of help and encouragement to step up through the business. Often we get people who are reliable employees—

[Neil Coyle]

I am struggling to follow the point, because one of the biggest challenges of UC is that those with fluctuating incomes struggle to get a consistent payment in order to pay their arrears. Although the hon. Gentleman may have been successful in retail, he is going to struggle to sell this particular turkey to employees in my constituency.

[Luke Hall]

As I say, my experience for many years has been of a hugely detrimental experience for people who try to work over the 16 hours if they are pushed to do so. So I do not accept the point, because I think the work coaches genuinely help people with their confidence in order to move forward. I have seen real-life experiences of that in Tesco and Aldi in my constituency, where I have spoken to employees who receive that sort of support.

In the short time I have left, I should say that I am encouraged by the Secretary of State’s announcement of the cancellation of the helpline fees. That is surely a simple and right change to make so that people on low incomes who are struggling to find work do not have to pay those charges. I am pleased by the Secretary of State’s assurance that we will not move faster than we should, in order to be sure that the system can take into account any difficulties in moving forward. I look forward to supporting a system that is helping people to move into work faster and to stay in work for longer. Universal credit is helping more people to move into work.