Universal Credit Work Allowance

Maggie Throup Excerpts

Wednesday 6th January 2016 Commons Chamber

[Maggie Throup (Erewash) (Con)]

I am delighted that we are debating universal credit, because Conservative speakers have already eloquently quashed the myths and rumours that have been put about by Opposition Members.

My constituents probably come to my advice surgeries most frequently when their tax credit payments are in a mess and they owe, in many cases, thousands of pounds. The system that we inherited in 2010 is broken and not fit for purpose. Yet again, the Government are sorting out a mess left behind by the Labour party: a mess created by a tax credit system that did not encourage, financially, people who wanted to work to actually go to work. Universal credit is at the heart of the Government’s welfare reforms, ensuring that everyone who can work is encouraged to do so. By combining six benefits in one, it ensures that work always pays. That is definitely the right approach.

Universal credit is being rolled out in my constituency, and on Friday I plan to attend a meeting at Ilkeston jobcentre to be given an update on the progress of the roll-out. Earlier this year, at a business meeting, I met a member of staff from the jobcentre, who delighted in telling me just how good universal credit was. Indeed, he wanted it to be rolled out even more quickly, although I am sure that the measured roll-out will be of long-term benefit.

According to the latest data available to me, in November 2015 the total number of unemployed claimants in Erewash was 1,058. That figure represents just 2.2% of the economically active population aged 16 to 24. It includes 943 people claiming jobseeker’s allowance, and 115 claiming universal credit. The good news is that that represents a reduction of 245 since November 2014, and a fall of 59% since November 2010.

I am sure that the 115 people who are already receiving universal credit are appreciating its benefits, and that many are now in work. People claiming universal credit are 13% more likely to be in work than those claiming jobseeker’s allowance. They are earning more money, and they are more willing to take jobs. No one wants to be dependent on benefits, and I believe that universal credit goes a long way towards helping people to be independent from them. Let’s face it, self-esteem and dignity are so much higher when income comes from earnings rather than from the taxpayer.

So far the debate has revolved around benefits. I want to expand that into the question of job opportunities, and how we can help people return to work and help those who are in work to aspire to different jobs. It was my right hon. Friend the Prime Minister who, before the 2010 election, encouraged both Members of Parliament and candidates to set up voluntary job clubs. Since 2010, many MPs have organised successful job fairs. I am extending the tradition that was established in Erewash by my predecessor by organising a job and communities fair, which will be held in March. It will promote not just job vacancies but the power of volunteering, because it has been proved that people who volunteer are more likely to obtain jobs and to stay in them long term.

Like tax credits, which we have debated recently, universal credit cannot be seen in isolation and should not be debated in this way. The Government are committed to welfare reform as a whole. As the Minister said earlier, welfare changes must be seen as part of an overall package of measures. The introduction of a national living wage will mean a pay rise of more than £4,700 by 2020 for people over 25 who are working full time. Changes in the income tax personal allowance will also make a difference. In the coming year, people will have £80 more in their pockets. Increasing childcare support will help people move from part-time to full-time employment. There are various other measures that should be looked at in total.

I am disappointed that the Labour party does not back the Government’s measures, which will enable us to become a nation with low welfare, low tax and high wages, and will create a secure economy and a secure future for my constituents and for our country.