Universal Credit

Philip Hollobone Excerpts
Tuesday 10th December 2013

(11 years ago)

Commons Chamber
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Iain Duncan Smith Portrait Mr Duncan Smith
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We do not take any lessons from the Opposition about computer failure: the tax credit system crashed, the health system crashed and they lost billions and billions of pounds while the shadow Chancellor was at the right hand of the then Chancellor, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown).

I might also say that although the Opposition have asked an urgent question on universal credit today, the truth is that they are themselves in denial about the legacy of welfare failure they left us. Welfare spending increased by 60% in real terms under the previous Government—£3,000 a year for every household in Britain. More than £170 billion was spent on tax credits alone. There were 5 million on out-of-work benefits, and nearly a quarter of working-age people were economically inactive.

This Government have already saved £11 billion on the welfare bill, £48 billion over this Parliament. The Office for Budget Responsibility has confirmed that welfare bills will fall in real terms to below the level at which we received them. Employment is up by more than 1 million. More households are now in work than ever before, with the lowest proportion of children living in workless households since records began. Child poverty is at its lowest level since the 1990s, and pensioner poverty is at its lowest for almost 30 years.

Philip Hollobone Portrait Mr Philip Hollobone (Kettering) (Con)
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Is not a phased roll-out of the new universal credit system far better than incurring the £2.8 billion of waste through fraud, error and overpayment incurred by the previous Government in their tax credit system?

Iain Duncan Smith Portrait Mr Duncan Smith
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My hon. Friend is absolutely right. The Opposition want to talk about universal credit, but the reality is that, unlike tax credits, it will roll out without damaging a single person, and it will also deliver massive benefits, under control by our test, learn and implement approach. The waste that we inherited was the waste of people who did not listen, rushed programmes and implemented them badly.