Universal Credit

Marcus Jones Excerpts

Tuesday 13th March 2018 Commons Chamber

[Ms McVey]

I thank the hon. Gentleman for that intervention, because it allows me to explain that universal credit works on a tailor-made basis, so that the claimant will always be in contact with their work coaches to work out what is better, how progression would be better and why they would be taking reasonable work because it makes them better off. I am not saying this unilaterally. I ask all Opposition Members please to go to their local jobcentre and meet the work coaches, who can then explain how the system works.

In 2013, the Government announced the introduction of tax-free childcare as the successor to childcare vouchers. The passing of the Children and Families Act 2014, which legislated for tax-free childcare, had cross-party support. Tax-free childcare is now fully rolled out, and the date for the closure of the voucher scheme to new entrants is April this year. This was set out in the 2016 Budget, giving two years’ notice. Parents receiving childcare vouchers can continue to use them while their current employer continues to offer the scheme.

[Mr Marcus Jones (Nuneaton) (Con)]

Is not the bottom line that under the previous tax credits system people got 75% of their childcare costs but under universal credit they get 85% of their childcare costs, and they can work all the hours that they want to?

[Ms McVey]

Universal credit is far more generous, as my hon. Friend points out. Up to 85% of childcare costs will be given to people who need it.

Under the childcare voucher scheme, the estimated cost to the Exchequer of forgone employers’ national insurance contributions is £220 million per year. This is paid to employers and voucher providers to administer the schemes, so it is not surprising that voucher providers are lobbying hard to keep the scheme open. However, we are focused on delivering a better childcare offer for working families. Tax-free childcare is simpler to administer for childcare providers, who will not have to deal with multiple voucher providers. These regulations will bring the national insurance contributions relief in line with the income tax treatment. They are an essential step in reforming Government childcare support to provide a fair and well-targeted system. Closing the childcare voucher scheme to new entrants will ensure that more Government support goes directly to parents and helps working families to reduce their childcare costs.

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[Mr Marcus Jones (Nuneaton) (Con)]

I welcome the universal credit regulations that the House is considering. We should not forget that universal credit is an important reform that is getting more people back into work and helping them to stay in work. People are getting help and support from DWP staff that they did not get in the past.

I think that a mark of the policy is the enthusiasm shown by jobcentre staff. I had the privilege of visiting my local jobcentre in 2014—I have visited it since, of course—alongside my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith). That day they were holding a regional training conference for up-and-coming leaders, and when we walked into their training room, which was full of civil servants, they all immediately started applauding my right hon. Friend. That showed me that they do not owe any Government anything, in terms of support or loyalty. It showed me that they think the reforms that he was introducing, and that the Government are now rolling out, are worth doing. Having visited the people who work in jobcentres, and having spoken to them since, it is clear to me that they think that the reforms are now making a real and positive difference.

I will not say that the roll-out of universal credit has been without challenges. We all know it has, which is why the Government are putting forward this package today worth £1.5 billion. We should also acknowledge that if the package is voted down, people who need help might not be able to receive their advance within five weeks or get the extra six months to repay any advance, and they might have to go back to seven weeks of waiting time while their claim is processed. My right hon. Friend the Secretary of State also raised the possibility of people being in a worse position with regard to housing benefit. The House therefore needs to think very carefully before voting down these regulations, which are positive and are what Opposition Members wanted just a few months ago.

On free school meals, it is important to point out that the regulations we are debating today do not change the entitlement for year 1 and 2 children, all of whom receive free school meals. We also need to be careful with the figure of 1 million children losing out. As soon as I heard that figure—on that same afternoon—I accosted the Education Minister during a vote to ask him whether it was true. He said clearly that it was not true, so we need to look at the facts.

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

My hon. Friend will recognise that the Opposition’s proposal on free school meals in their manifesto was to pay for them by charging VAT on private schools, which is illegal under EU law. Does my hon. Friend find it confusing that they would prefer to stay in the single market and the customs union, when that would be at odds with that policy?

[Mr Jones]

My hon. Friend demonstrates the complete confusion and disarray of the Opposition, not just on this policy but on our future outside the European Union. That goes to the heart of the situation: this is all about political dogma, rather than practical ideas and practical help for people.

[Mike Amesbury (Weaver Vale) (Lab)]

Does the hon. Gentleman think that the Children’s Society’s figure of 16,500 children being denied free school meals in the county of Cheshire, which the Secretary of State and I represent, is political dogma?

[Mr Jones]

The new system is more generous than the old system. I will come on to the external evidence that explains that in a moment.

Returning to what I was saying about free school meals, under the old system of jobseeker’s allowance as soon as a parent worked 16 hours, or two parents worked 24 hours, they lost their children’s entitlement to free school meals. The crux of this debate is comparing and contrasting that with what we are moving to. All those currently in the system have been eligible, because of transitional arrangements. Conservative Members have made it clear why the transitional arrangements were put in place. Under the new system, when everybody is on universal credit and these regulations are in place, by 2022 an additional 50,000 children will be eligible for free school meals. I hear all the noise from Opposition Members, but they should not just take my word for it or that of other Conservative Members. They should go on to the “Channel 4 News” FactCheck website, which says:

“This is not a case of the government taking free school meals from a million children who are currently receiving them. It’s about comparing two future, hypothetical scenarios.”

Both of them are more generous than the old benefits system.

The Labour party frequently looks for us to improve the situation and the lives of the most vulnerable. That is what this policy and these regulations are doing today, but unfortunately, Labour seems not to let the truth and the facts get in the way of a good story. There is too much political dogma and it is putting that before people. The Government are putting people first. This system will be better than the system was hitherto and that is why I will support the Government tonight.