Universal Credit (Children)

Mark Durkan Excerpts

Tuesday 10th May 2016 Commons Chamber

[Peter Heaton-Jones]

I absolutely agree with my hon. Friend. That is important, and the latest figures show that 86% of claimants on universal credit are actively looking to increase their hours, which compares to 38% under JSA, which is a significant difference. People are actively looking to increase their earnings as well, which goes to the heart of his point. Some 77% of those on universal credit are actively looking to increase their earnings, compared to 51% on JSA. That is a really important part of the universal credit package.

[Mark Durkan (Foyle) (SDLP)]

Is the hon. Gentleman really trying to tell us that the dynamic impact will compensate for the loss of income that families, particularly those with disabled children, will suffer under the universal credit changes?

[Peter Heaton-Jones]

The hon. Gentleman leads me on to talk about children in particular—the essence of the issue the motion seeks to address—so let us talk about what the Government are doing to reduce child poverty. The latest households below average income statistics show that child poverty in the UK remains at its lowest level since the mid-1980s—the lowest for 30 years. The number of workless households has fallen by about 750,000 since 2010 and—this is the crucial point that goes to the heart of it—there are nearly 500,000 fewer children living in workless households.

The Government, therefore, have a good and sound record on reducing child poverty and targeting the welfare system very carefully at those who need it the most. That is the key to what universal credit seeks to do. The hon. Member for Foyle (Mark Durkan) mentioned young children. The Government have invested £2.5 billion in the troubled families initiative and the same amount again in the pupil premium, which provides extra funding for the most disadvantaged children in school. And here is a measure we do not hear much about from the Labour party: income inequality is down under this Government.

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[Nick Thomas-Symonds]

My hon. Friend is absolutely right about that, and we all know that the brunt of the cuts has fallen on women. That is precisely what the Government should be taking into account and they should carry out such an analysis. It is not as though it would be that difficult for the Government to come up with these figures. My hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) chairs the all-party group on health in all policies, whose excellent report, produced in February, made it absolutely clear that there is a danger of the progress on tackling child poverty made by the last Labour Government going into reverse as a result of what this Government are doing.

This is not, however, just about the Government’s lack of compassion on these things; it is also about their complete lack of competence. We should not forget how universal credit has been implemented. On 1 November 2011, the former Secretary of State told us in a press release that there would be no fewer than 1 million people claiming universal credit “by April 2014”, but by November 2015 the actual figure was 155,568, which, by my reckoning, is less than a fifth of the target he had set himself in 2011. The day on which the roll-out is to be completed seems to be forever going back. When I was younger, my great aunt and uncle used to own a pub, in which there was a brass plaque just above the bar saying, “Free beer tomorrow”. The problem being that every time people went in it still said, “Free beer tomorrow”. I am afraid that that is where we are getting to with universal credit: six years later, we are still waiting for it to be implemented.

This is not just about the speed of the implementation; it is also about the risks that the Government have identified. Let us also not forget the universal credit risk register, whose disclosure the Government, again, fought tooth and nail against. They were forced to disclose it; they love spending legal fees on defending the indefensible. It identified 65 open risks to the programme, including that of skilled staff resources not being in the right place at the risk time. The list of incompetence does not end there. The former Secretary of State made clear—this was the point made by my right hon. Friend the Member for East Ham about people being broadly the same on universal credit as on tax credits—the following when answering departmental questions:

“Here is the key: I have already said that those who are on universal credit at the moment will be supported by their advisers through the flexible support fund, to ensure that their status does not change.” —[Official Report, 7 December 2015; Vol. 603, c. 707.]

The idea being of course that the discretionary flexible support fund can make up the difference. I have with me the letter that the Department is sending out on this issue. I do not know whether the Minister has seen this, as the rumours are that since she declared for British exit she does not get to see all the documents in her Department—I am happy to show it to her if she has not. It sets out what the new amount of money is, but there is not one mention of the flexible support fund.

When we are talking about incompetence, it is almost as though some Department for Work and Pensions Ministers have been in competition with each other. We will have to give the top award to the Under-Secretary of State for Work and Pensions, the hon. Member for North West Cambridgeshire (Mr Vara), although I feel bad in doing so because he is only a part-timer in the Department. However, his answer on mitigating the effect of cuts was as follows:

“let us not forget, the fact that every time we fill up our tank with petrol there is a saving…because of the freezing of the fuel duty.”—[Official Report, 6 January 2016; Vol. 604, c. 342.]

If the answer in 2016 from the Tories to those who lose out is, “Go and fill up your car”, it shows how out of touch they are. I picked him out for the top spot in the incompetence league, but in recent months the Minister for Employment has become used to missing out on the top spot. [Interruption.] I will certainly carry on.

The problem is that naked politics is interfering with universal credit. Do not take my word for it; take the word of the former Secretary of State who, when interviewed on the Andrew Marr show on 20 March, said that

“it looks like we see benefits as a pot of money to cut because they don’t vote for us”.

Let us never forget that, because what it says to children in poverty is that we are only interested in their parents if they voted for us or are likely to vote for us at the next election.

What else did the former Secretary of State say about what was happening to the Government’s social security changes? He said this:

“There has been too much emphasis on money saving exercises and not enough awareness from the Treasury, in particular, that the government’s vision of a new welfare-to-work system could not repeatedly be salami-sliced.”

We heard even worse from him, including his damning criticism of the Treasury:

“I am unable to watch passively while certain policies are enacted in order to meet the fiscal self-imposed restraints that I believe are more and more perceived as distinctly political rather than in the national economic interest.”

Any arguments made today by the hon. Member for Gloucester that these cuts are about a reduction in our deficit were blown apart by what was said by the former Secretary of State. What he was saying is that it is all about the politics and career of the Chancellor.

[Mark Durkan]

Does the hon. Gentleman also remember that the former Secretary of State made it very clear that the Treasury was imposing the cuts through the welfare cap, which, unfortunately, was supported by both sides of the House in the last Parliament? Now, however, that cap has become the search engine for cut after cut, and, given that even he was expressing criticism of it, it does need to be addressed.

[Nick Thomas-Symonds]

Yes, it does need to be addressed. As ever, the hon. Gentleman makes a distinctly useful contribution to these matters.

There is no greater moral and economic purpose that we could have in this place than eradicating child poverty. In 1999, the Labour Government promised to do that by 2020. To do it and to achieve it is to ensure that every single child has the ability to unlock their potential regardless of their background.

The European Union—dare I say it—has pledged to take at least 20 million out of poverty and social exclusion by 2020. I very much fear that the Minister for Employment wants not only to leave the European Union, but to pursue policies that will plunge more people into poverty by 2020 than would be the case if we were inside the European Union. The levels of child poverty today are a damning indictment of this Government. They bring shame on this country. The Government must act urgently, and I commend this motion to the House.

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[Priti Patel]

We have been very clear that universal credit is there to secure employment opportunities and in-work progression for everyone who is on it. I come back to the wider support universal credit provides for families, which has been touched on. Parents on universal credit can claim back 85% of their childcare costs when they move into work, compared with 70% under legacy benefits. This is a significant change and means that a working family with two children can now receive up to £13,000 a year in childcare support under universal credit.

Interestingly enough, prior to the recent elections in Scotland, I met the Scottish Minister responsible for childcare to consider the development and uptake of the childcare policy in Scotland, which mirrors many of the programmes that we have in England. Affordable childcare is crucial for working families and I look forward to working with the new Government in Scotland to ensure that we can provide all possible relevant support.

Support for disabled children was also mentioned. We should all be clear—I recall debating these points in the Welfare Reform and Work Bill Committee—that there is clear recognition of the extra costs associated with disabilities. Universal credit will provide support for families with disabled children. Of course, the point about the disabled child addition is that it provides extra support for low-income families with a disabled child. We know that caring responsibilities are enormous for parents with disabled children, and we also know that those parents are less able to take up work. They therefore need greater support, and that is obviously what we are focused on.

[Mark Durkan]

The Minister refers again to additions and to giving extra support to children with disabilities. Of course, it is not extra or additional to what they would receive now; it is actually a reduction. Will she properly address the terms of the motion and not the fantasy world that she is trying to serve up?