Welsh Affairs Debate

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Department: Wales Office
Monday 19th March 2018

(6 years, 8 months ago)

Commons Chamber
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Alun Cairns Portrait Alun Cairns
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The right hon. Gentleman tempts me, but he knows that that is not the way it works. We assess and break down the merits of each individual part of it. We then break down which areas are devolved and which are reserved, and we come up with a package that is jointly supported by the Welsh Government, the UK Government and partners in the community, including those in the private sector and local authorities. I am as anxious as he is to see the deal progress as quickly as possible, on the basis of the success we are seeing elsewhere.

Nick Thomas-Symonds Portrait Nick Thomas-Symonds (Torfaen) (Lab)
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On St David’s day in Torfaen, we had a visit from the American ambassador. He visited Pontypool indoor market and Frog Bikes, a new business which, with support from the Welsh Government and Torfaen County Borough Council, is now partnered with USA Cycling. Will the Secretary of State join me in congratulating Frog Bikes on that achievement?

Alun Cairns Portrait Alun Cairns
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I will happily congratulate it. I met the US ambassador to the UK a few days before his visit to Wales. He shared his plans and hopes, and I said that the visits he hoped to make were thoroughly excellent. He is a true friend of Wales, and I am keen to develop a much stronger relationship with him as we attract investment and other opportunities and meet challenges such as the one between the UK and US steel industry, which we spoke about last week.

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Nick Thomas-Symonds Portrait Nick Thomas-Symonds (Torfaen) (Lab)
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It is a pleasure to follow the hon. Member for Ceredigion (Ben Lake). I entirely echo what he said about the importance of good broadband connections in a modern economy. I also join in the appropriate tributes that many right hon. and hon. Members have paid to Lord Crickhowell and Lord Richard. As this debate follows International Women’s Day, I pay tribute to the mayor of my home town of Blaenavon, Councillor Phyllis Roberts, who I understand is the oldest mayor in the United Kingdom at the age of 93 and who has given a lifetime to public service.

I will concentrate my remarks on universal credit. If there is one issue that has generated more casework than any other since I was first elected to this House in May 2015, it is dealings with the Department for Work and Pensions. I have spoken in the House on a number of occasions about personal independence payment and the problem of people being driven all the way to a tribunal in order to achieve the award that they should have been given in the first place. That remains a significant problem, but this evening I will specifically address the roll-out of universal credit. I am grateful to the Torfaen citizens advice bureau for providing me with a number of case studies that I can now put before the House. I really hope that they will have a sobering effect on the Government so that they do more than is being done at the moment.

First is the example of a couple suffering financial hardship and developing arrears, which led to problems paying rent to the extent that they were served a notice seeking possession of their property. That happened because there were unnecessary, mistaken deductions from their universal credit award, which is clearly not acceptable.

Let me give another example. The person’s initial payment was delayed by two weeks, causing rent arrears to increase and leaving no money for gas or electricity. By the time it arrived, most of it was owed to the landlord in arrears. What happened then? He discovered that his allowance for two children had been omitted from the claim. By the time that was rectified six weeks later, the family had been left, in the interim, living on food parcels. That is not, I am afraid, an uncommon experience, as I can see from my constituency surgeries.

I will give the example that perhaps shows most of all the real problems that people have been caused by social security policy over the past eight years. The person in question is a 27-year-old man who is in the process of moving into a property with his partner. They are currently in receipt of employment and support allowance. Their income from employment and support allowance works out at £986.70 per calendar month. Their total universal credit is £817.65, so they are going to be £169.05 per month worse off. That is not the end of it, though. They are going to be subject to an under- occupancy charge because they are living in a two-bedroom property, so they will be hit by the bedroom tax as well. They exemplify many people in my constituency who are being made significantly worse off because of the failure to pause and fix the universal credit roll-out.

Let me be clear: this is not the fault of staff, who work extremely hard. I visited Jobcentre Plus in Pontypool only recently and saw the excellent work that staff there were doing to try to make the roll-out of universal credit work. I have also visited Cwmbran pension centre in my constituency, where the staff are being severely let down by this Tory Government. Hanging over them is the threat of Cwmbran pension centre being closed and the staff moved to a hub north of Cardiff, taking away local people’s jobs and taking support away from the local economy.

There is incredible generosity among the people of Torfaen in the donations that I have seen them make to local food banks. Local food bank use is increasing as a consequence of the universal credit roll-out. I have stood and watched people making donations. I have also had requests from local food banks to give—believe it or not—toiletries because of the poverty that has been created by universal credit and the amount of time that people are having to wait for payments. Torfaen County Borough Council does its very best within the financial constraints it has, not least in its approach to discretionary housing payments, to try to make the situation better. I am also incredibly lucky to have a fantastic voluntary sector locally, with many organisations being there to help the people who are affected.

But while all that local work is excellent, and I am very proud of what people in my constituency do, the reality is that the blame for this situation lies squarely with the UK Government. They really do have to do more. We have had a vote in this House asking the Government to pause and fix the universal credit roll-out, but they are not doing enough. It is no longer enough to say, either, that under the Tories a job is a route out of poverty, because two thirds of children living in poverty in this country are actually in working households. The jobs that the Tories talk about, I am afraid, are insecure and are not paid as they should be. This is a Government who are driving up poverty. I say to Ministers, having highlighted the examples that I have, that now is the time to act: callous indifference simply cannot continue.