Oral Answers to Questions

Debate between Paul Blomfield and David Gauke

Monday 13th November 2017 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

2. Whether he has made an assessment of the potential merits of reducing the repayment rate on advance payments of universal credit.

[The Secretary of State for Work and Pensions (Mr David Gauke)]

Advances are interest free and repayable over six months for those making a new claim, or 12 months for those who were on benefits before claiming universal credit. Our objective is to strike the right balance between supporting claimants with their living expenses and ensuring they have the ability to repay the advance.

[Paul Blomfield]

The Secretary of State knows that the guidance states that 40% of the standard allowance can be used to repay an advanced payment, and that 40% can be deducted to pay back creditors. It is not clear from the guidance whether a claimant might end up paying both, meaning that they will have more than 40% deducted from their award. Will the Secretary of State clarify the maximum amount repayable? Does he recognise that, as it stands, this is a charter for loan sharks?

[Mr Gauke]

The deduction from subsequent payments that take into account an advance does not apply to the 40%. We have to remember that it is an advance. An advance gives people greater flexibility to access universal credit early, so they are able to cope during the initial assessment period.

Jobcentre Plus: Closures

Debate between Paul Blomfield and David Gauke

Thursday 6th July 2017 Commons Chamber

[Mr Gauke]

I agree with my hon. Friend. That is the right point, and the support that people need can often be better provided in well-equipped, modern—sometimes larger—jobcentres than by using the estate that may have served us well 10 or 15 years ago but is now out of date.

[Paul Blomfield (Sheffield Central) (Lab)]

Sheffield’s Eastern Avenue jobcentre is rooted in the community that it serves. Its staff therefore understand local people and can do the job, better supporting them because of that. The Secretary of State talks about a much improved service, but does he not recognise that centralising the service, breaking that link with the local community, will damage the work that the jobcentre can do? Will he think again?

[Mr Gauke]

On the hon. Gentleman’s point about Sheffield Eastern Avenue centre closing, let me reassure him that outreach will be put in place in the local community, so there will continue to be a service in his area. The number of jobcentres in Sheffield is being reduced from seven to six, but in the context of that city that is the right move so that we have got six properly functioning, fully utilised centres rather than more.