Oral Answers to Questions

Mark Pawsey Excerpts

Monday 5th December 2022 Commons Chamber

[Mel Stride]

On deductions from universal credit, the hon. Lady will know that, during the pandemic, when things were extremely difficult, we paused that entire process. As a matter of principle, it is important that, when claimants are in debt, arrangements are made such that they can work their way through that and come out of debt. That often means deductions—I say “often” because it does not always mean that, and our debt management team are always very aware of the circumstances of those with whom they are dealing. We also reduced the maximum amount that can be deducted—first, from 40% to 30%, and now to 25%—so I am satisfied that the balance is broadly correct, but wherever there are individual instances where somebody feels that they are not being treated appropriately, they always have recourse to appeal.

[Mark Pawsey (Rugby) (Con)]

7. What assessment he has made of the potential merits of reducing the universal credit taper rate on the levels of people’s incomes.

[Greg Smith (Buckingham) (Con)]

11. What assessment he has made of the potential merits of reducing the universal credit taper rate on the levels of people’s incomes.

[The Minister for Employment (Guy Opperman)]

We reduced the earnings taper to 55% last December and we increased the work allowance by £500 a year. As a consequence, 1.7 million households will benefit from these measures, which mean that they keep, on average, around an extra £1,000 a year. That encourages in-work progression as claimants are clearly better off in work.

[Mark Pawsey]

The claimant rate in Rugby is just 2.8%, and I hear regularly from employers about the workforce challenges that they face. The low rate in Rugby has arisen in part because of the cut to the taper rate that the Minister referred to, which was extremely welcome to working people on universal credit. Will he set out what further steps his Department can take to encourage claimants—those who can—to increase their income by taking on more and better-paid work?

[Guy Opperman]

My hon. Friend will be aware that Rugby jobcentre is doing a fantastic job locally; I look forward to visiting in 2023. Since April 2022, we have been rolling out the new in-work progression offer, which will support approximately 2.1 million working universal credit claimants to progress into higher-paid work. They will also be supported by progression champions, of whom we have 37 across the country, including in Mercia.