Universal Credit Roll-out

Rishi Sunak Excerpts

Wednesday 18th October 2017 Commons Chamber

[Rishi Sunak (Richmond (Yorks)) (Con)]

I believe our welfare system should do three simple things. It must be compassionate to those who need our help, it must be effective in getting them the help they need, and it needs to be fair to those who pay for it. Simply put, universal credit is a rare example of a policy that delivers on all three counts.

To start with compassion, rather than recipients having to make calls to up to three different agencies when something in their life changes, universal credit simplifies the system and ensures that nobody misses out on a benefit that they are entitled to because of a bureaucracy that is simply too complicated to navigate.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

Is the hon. Gentleman aware that people trying to claim universal credit have reported being on the phone for an hour trying to get their case dealt with? At 55p a minute, that cost is astronomical.

[Rishi Sunak]

I am sure that the hon. Lady was here and heard the Secretary of State make the point that the calls that have been made were all to local rate numbers. It is not right to say that they were premium rate numbers. As of today, those calls have been made free for all claimants, although they were offered the opportunity to be called back for free if the call charge was difficult. I am aware that the average wait time is two minutes, and of course a wait time of an hour is unacceptable. I am sure Ministers have heard that and will be doing everything they can to ensure that everyone across the country benefits from a prompt and cheap response.

At the same time as simplifying the system, universal credit humanises our bureaucracy by recognising that those who need our help do not have exactly the same needs. Instead of a faceless homogeneity, for the first time personalised work coaches can compassionately take into account the specific needs of each individual and their specific circumstances, tailoring the approach to them and ensuring that they get the specific help that they need.

[Neil Coyle]

How simplified, fair and supportive does the hon. Gentleman think it is for the 116,000 working disabled parents who are set to lose £40 a week from the disability income guarantee?

[Rishi Sunak]

I cannot say that I recognise that figure, because £700 million more was made available in the last set of universal credit reforms, all of which was directed at the most vulnerable in our society.

[Neil Coyle]

Will the hon. Gentleman give way again?

[Rishi Sunak]

No, I will carry on, given the number of people who want to speak.

Compassion alone is not enough. The effectiveness of our welfare system should be properly judged by the number of lives that it transforms, and that transformation comes from well-paid work. Universal credit ends the well-documented problem of single parents effectively working for free if they want to work for more than 16 hours. Universal credit ensures that all work truly pays, and it is working. Compared with the system that it replaces, claimants spend twice as much time actively looking for work and, for every 100 claimants who found employment under the old system, 113 will find employment under universal credit. In reality, the lives of more than 250,000 people will be transformed over the course of the roll-out through having a decent job and the opportunity to build a stake in our society.

Finally, universal credit is fair to the people who pay for it. In Britain today, we spend around twice as much on working-age welfare as we do on education. To put it another way, for every £1 that the taxpayer sends to the NHS, they also send £1 to the working-age welfare bill. Given the sums involved, I make no apology for speaking up for those who ask me, “Is this money well spent?”

[Sarah Jones (Croydon Central) (Lab)]

The hon. Gentleman talks of the transformational impact of universal credit, so will he please comment on the transformation for my constituents? In Croydon, two thirds of families in local authority housing are now in rent arrears and face eviction, compared with less than a third before universal credit was introduced.

[Rishi Sunak]

I obviously cannot comment specifically on what is going on in Croydon, but the reasons for rent arrears are complicated. The evidence shows that the level of rent arrears after three months of universal credit is exactly the same, if not lower, than under the old system.

Returning to the sums involved, universal credit ensures a responsible and sustainable system by putting in place a sensible regime of conditionality. That gives hard-working taxpayers the confidence that when they contribute to the system, not only will that help somebody to get back on their feet, but that the person will also have a responsibility to do their bit. That is fair.

Universal credit is not perfect—no system so large and complex can be—and we should make improvements where we can, but it is significantly better than what it replaces, and the fundamentals of what it is trying to achieve are sound. It has been implemented slowly and methodically. It is insane to argue that it has been rushed when the full roll-out will have taken almost a decade from start to finish. This is welfare reform in action: making things simpler, ensuring work pays, and transforming lives. I urge the Government to carry on with their plan.

Personal Independence Payments

Rishi Sunak Excerpts

Tuesday 28th February 2017 Commons Chamber

[Damian Green]

I am happy to assure them and the hon. Gentleman that what I am talking about today is not a cut. We are not going to have any new welfare cuts in this Parliament, apart from those that have already been legislated for. The decision we have taken is not—not—a cut.

[Rishi Sunak (Richmond (Yorks)) (Con)]

It is clear that different medical conditions will have different impacts on people’s living and mobility. Does my right hon. Friend agree that we must recognise this simple fact if we are to continue to target resources on those who are most vulnerable and most in need?

[Damian Green]

I do. Indeed, that was the purpose of the original design of PIP. It is better than disability living allowance, which it replaced, precisely because it reflects the reality in individuals’ lives that some will have more difficulty in going about their daily business because of a disability. The PIP benefit is specifically designed in a very careful, and therefore complex, way to achieve that and it does. Ministers have to ensure that the rules are completely clear and that is what we are doing today.

Budget Resolutions and Economic Situation

Rishi Sunak Excerpts

Thursday 9th July 2015 Commons Chamber

[Chris Leslie]

Is the hon. Gentleman talking about the imminent leadership elections in the Conservative party or the Labour party? I do not know what is going to happen in the Conservative party leadership contest. There were of course a few little jokes about the hon. Member for Uxbridge and South Ruislip (Boris Johnson), and we will see how that pans out. I know that other Cabinet Ministers are a little concerned about the way that the Budget panned out for them; it is going to be difficult for them over the next few years.

This was the Chancellor’s second Budget in four months. He said in March that that was his Budget for the longer term, yet four months on he has delivered a different plan to a different agenda. He has been chopping and changing, with three different sets of figures in the past nine months alone—so much for his consistency. We learned more about the Chancellor and the nature of this Government in one hour of his Budget speech than we learned in the months of the election campaign. In March, when the Work and Pensions Secretary was pressed about where their £12 billion of welfare cuts would fall, he said:

“As and when the time is right, we will make it very clear what our position is.”

Is it any coincidence that the time is right for these Conservatives two months after an election rather than two months before it?

Before the election, the Conservative manifesto assured us that there would be only a two-year freeze in working benefits, but yesterday the Chancellor doubled that to a four-year freeze in most working-age benefits which will take £4 billion from households by 2020-21. That is one of the fastest-broken promises in political history. [Interruption.] There is an awful lot of noise from Conservative Members. I shall give way to the hon. Member for Richmond (Yorks) (Rishi Sunak) because he has been trying to intervene.

[Rishi Sunak (Richmond (Yorks)) (Con)]

The shadow Chancellor mentioned the election campaign. In that campaign, the Opposition suggested that they would raise the rate of corporation tax—a move that would damage jobs and growth. Will he confirm that that is still Labour’s policy, or will he start backing British businesses?

[Chris Leslie]

I think the hon. Gentleman will find that we said in the election that we wanted to focus in particular on business rates. He will know from talking to small firms in his constituency that companies are concerned about the pressures on business rates, but where did the Chancellor mention business rates in yesterday’s Budget? We felt—[Interruption.]

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[Mr Duncan Smith]

We have presented today a package for working people that will incentivise those who can work to go back to work and work the hours they need to improve themselves and their families. My hon. Friend is absolutely correct. This is exactly the drive the Government are making.

[Rishi Sunak]

Will the Secretary of State confirm that when he first entered office, we were spending more on working-age welfare than on education? If so, is that not evidence that our welfare system is unsustainable and needs sensible and fair reform?