Universal Credit and Working Tax Credits

Rebecca Long Bailey Excerpts

Wednesday 15th September 2021 Commons Chamber

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

The Secretary of State said that the best route out of poverty is to work. If only that were true. When I came into this place, I knew there would be Tory Members who believed that poverty was a self-infliction, or a “personality defect” in the words of Margaret Thatcher herself in 1978. But I also naively hoped that there might be one or two good people on the Tory Benches who understood that the struggles of many people’s lives were not self-inflicted, but imposed upon them by an economic system that was simply stacked against them and that possibly, just possibly, they might stand up when the time was right.

So I ask Tory Members today: what kind of Tory are they? Are they one who understands that 40% of the 15,000 universal credit claimants in Salford and Eccles are actually in work, work that pays so little they have to rely on Government support to top it up? Are they a Tory who would help my constituent who wants to work, when she says:

“With the amount I would get from Universal Credit coupled with the childcare costs and my potential wages, what I would have left at the end of the month will leave myself and my husband very tight on finances. The £20 uplift makes a huge difference in our finances and my ability to work”?

Or are they a Tory who simply dismisses her, and indeed analysis by the Joseph Rowntree Foundation that shows the majority of families that lose out will be working families who were already suffering before the pandemic hit?

For those unable to work, the situation is even bleaker. The reality is that the basic rate of universal credit is only a sixth of average weekly pay, and many on legacy benefits did not even get the uplift at all. Frankly, rather than being cut, universal credit should be increased to at least 80% of the level of the living wage and the temporary £20 top-up extended to those on legacy benefits.

If the Tories mean it when they say that the best route out of poverty is work, then I say to them: do something about it. Outline an ambitious agenda to tackle in-work poverty, including a higher minimum wage, collective bargaining, secure work, a ban on zero-hours contracts, progression opportunities, and affordable childcare and housing costs. Tory Members, prove to me today that my naive hope that there is some semblance of common decency on the Government Benches is true, and stop this cut.