Oral Answers to Questions

Matthew Pennycook Excerpts

Monday 22nd June 2015 Commons Chamber

[Mr Duncan Smith]

Let me be absolutely clear about the importance of universal credit. In the past, housing providers would get the money paid directly to them while the individuals in difficulties sorted themselves out. Under universal credit, they can apply for an extra payment, and that will be done direct. The key point about this is that the housing provider works with the individual family to help them turn around their circumstances, rather than just leaving them as they are and not doing anything about them. All that is being tested under universal credit. People on universal credit will be better off directly as a result of the changes that we are making.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

Section 96 of the Welfare Reform Act 2012 stipulates that the level at which the total benefit cap is set will be determined by reference to estimated average earnings. How do the Government justify breaking the link between the cap and average earnings by reducing the rate to £23,000?

[Mr Duncan Smith]

The hon. Gentleman should address his question to his Front-Bench team, as they apparently support our move.