Universal Credit

Debate between Margaret Greenwood and Huw Merriman

Wednesday 17th October 2018 Commons Chamber

[Margaret Greenwood]

My hon. Friend makes the point so clearly: what a shambles and what a hardship for that family.

[Huw Merriman (Bexhill and Battle) (Con)]

rose—

[Margaret Greenwood]

Let me make some progress.

Overall, 3.2 million families with children could lose around £50 a week. People are worried, but there is no clarity from the Government. The Prime Minister told this House that no one would be worse off, yet The Times reported that the Secretary of State told Cabinet colleagues that households could lose up to £200 a month. Being forced to manage on a low income that is then cut still further means tough choices for the families affected. The DWP’s own survey of claimants published in June showed that nearly half of new universal credit claimants are falling behind with bills. Even six months later, four in 10 are still struggling to cope financially.

--- Later in debate ---

[Margaret Greenwood]

My hon. Friend makes a number of pertinent points. He is absolutely right to call on the Government to halt the roll-out of universal credit.

Other flaws include: the online journal in which people have to record the jobs that they have spent 35 hours a week applying for, but which work coaches often struggle to find the time to monitor; and the five-week wait for a payment at the start of a claim. According to the latest Government figures, 17% of claims were not paid in full and on time, and one person in 10 did not receive any payment at all. Groups such as carers or parents who need help with childcare are more likely than others to have to wait for their first payment. The latest figures show that only a third of people who are ill or disabled were paid on time.

[Huw Merriman]

Will the hon. Lady also spare some time to talk about the 700,000 people who will be better off by an average of £285 a month under universal credit, as well as those who find work through it?

[Margaret Greenwood]

The hon. Gentleman is getting ahead of himself, because there is no evidence that the Government can demonstrate whether universal credit gets people into work.

The Government’s answer to the delays was to provide advances, but they have to be paid back, as do debts for utility bills, council tax or rent arrears that people will probably have built up while waiting. The maximum percentage that can be taken out of universal credit for repayments is 40%. How is someone already trying to manage on such low income supposed to cope when such a large slice of their support is taken away at the source? And yet—in the face of all of the evidence—the Government have insisted on pressing ahead and accelerating the roll-out of universal credit since May this year, at the same time as carrying out a rapid programme of closing one in 10 jobcentres. The Government plan to increase the workload of work coaches fourfold and that of case managers sixfold as the roll-out continues. Staff are under constant pressure and are switched back and forth between processing claims and answering phone calls about problems with them.

From next year things are set to get a whole lot worse, as the Government prepare to embark on the next phase of universal credit—so-called managed migration—which will require almost 3 million people claiming the benefits that universal credit is replacing, such as tax credits and employment and support allowance, to make a new claim for universal credit instead. As hon. Members are aware, there is nothing managed about it.