Oral Answers to Questions

Richard Thomson Excerpts

Monday 29th June 2020 Commons Chamber

[Stephen Flynn (Aberdeen South) (SNP)]

What recent assessment she has made of the effectiveness of universal credit on reducing poverty.

[Richard Thomson (Gordon) (SNP)]

What recent assessment she has made of the effectiveness of universal credit on reducing poverty.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

There are now over 200,000 fewer people in absolute poverty compared with 2010, and universal credit is a fundamental part of this Government’s strategy to support people. As a result of the covid-19 pandemic, we have increased the UC standard allowance by around £1,000. An estimated 2.5 million households on UC will benefit from that straightaway, as well as new claimants who will become unemployed or those whose earnings or work hours decrease because of the outbreak.

--- Later in debate ---

[Will Quince]

The statistics show that full-time work substantially reduces the chances of poverty. The absolute rate of poverty for a child where both parents work full time is 4% compared with 44% where one or more parents are in part-time work. We are supporting people into full-time work wherever possible, for example, through our childcare offer, and universal credit, where work always pays, is a fundamental part of that offer.

[Richard Thomson]

Research by the Institute for Fiscal Studies has found that, despite the DWP’s temporary increase to universal credit, out-of-work households with children are, on average, £2,900 a year worse off than they would have been without cuts since 2011. Does the Minister understand that, far from doing a superb job, as he says, universal credit is leaving some families in serious difficulty and poverty, and will he commit to looking at the IFS findings?

[Will Quince]

Our focus today is rightly on what the Government can do to support people financially through these unprecedented times. However, our broader ambition remains to build an economy that ensures that everyone, no matter their background, has opportunities to enter and progress in work where possible, while being supported by the welfare system in their time of need. I just gently remind the hon. Gentleman that, in this financial year, we have spent more than £120 billion on benefits for working-age people.