Universal Credit: Delayed Roll-Out

Margaret Greenwood Excerpts

Tuesday 4th February 2020 Commons Chamber

[Will Quince]

I thank my right hon. Friend for his question, and for all the work that he did in our Department. He is absolutely right: universal credit is a modern, flexible, personalised benefit that reflects the rapidly changing world of work. Conservative Members believe that work should always pay, and that we need a welfare system that helps people into work, supports those who need help, and is fair to everyone who pays for it.

[Margaret Greenwood (Wirral West) (Lab)]

Yesterday the BBC reported that the Government had decided to delay the roll-out of universal credit until September 2024, adding £500 million to its overall cost. That is hugely embarrassing for the Government: yet again, they have had to delay what is meant to be their flagship social security policy. Last week the Minister told the House that they had managed to process fewer than 80 households since July, as part of what was meant to be a pilot of up to 10,000 households in Harrogate, and that only about 13 of those households had transferred to universal credit. At that rate, it would take the Government more than 380 years to complete their managed migration pilot.

Universal credit was supposed to make work pay, but instead it has caused misery for thousands across the country. It seems from yesterday’s report that senior civil servants think people are too scared to transfer to it. Can the Minister tell us why so many people are scared? Is it because of the five-week wait that is pushing so many families into debt and rent arrears, and making them turn to food banks to survive? Is it because of the two-child limit, which the Child Poverty Action Group has described as

“a policy designed to increase child poverty”?

Is it because of the sanctions regime that has made some of the most vulnerable people in our society destitute? Or is it down to the fact that, according to the Government’s own research, nearly 50% of claimants were not able to make a claim online unassisted?

It is clear that the Government have been forced to delay universal credit yet again because people do not have confidence in the system. Can the Minister tell us what they intend to do with the extra time? Will they get rid of the five-week wait? Will they scrap the two-child limit? Will they call a halt to the sanctions regime that is pushing people into destitution? And will they now apologise to all the people whom they have pushed into hardship through universal credit, and create a social security system that protects people from poverty and treats them with respect?

[Will Quince]

The hon. Lady says that I should be embarrassed. I will never be embarrassed about putting the most vulnerable and disadvantaged people in our society first, and neither will the Government. She talked about cost. As I have said, this is up to £500 million of additional money that will go into the pockets of our claimants. When she referred to the pilot, she was conflating two very separate issues. She also said that people were scared. Perhaps if members of the Labour party desisted from their scaremongering and spent more time in our jobcentres speaking to work coaches, they would have a better understanding of universal credit and how well it is working.