Universal Credit and Working Tax Credit

Baroness Winterton of Doncaster Excerpts

Monday 18th January 2021 Commons Chamber

[Sam Tarry (Ilford South) (Lab)]

I find it astonishing that the hon. Member for Heywood and Middleton (Chris Clarkson) and other Government Members do not understand the fury that has been unleashed across this country by the measures that the Government are failing to take and the callous way that they have treated so many millions of people. It is clear to me and the constituents of Ilford South that the Government should be hanging their heads in shame. They should not have even been forced to come to this Chamber or to have this debate.

This is a Government who have spent billions of pounds of taxpayers’ money on contracts with friends linked to donors, and hundreds of millions of pounds on a failed test and trace system and, in my constituency, unusable personal protective equipment. It is an absolute disgrace that the Government cannot stump up an extra 20 quid to put food on the table of some of the most vulnerable people in this country.

We are in the midst of the worst recession ever. Millions of families, many in work but reliant on Government support to supplement poverty wages, are on the brink. This is not a time to let them sink below the poverty line; it is time for the Government to stick their hand in their pocket and do what is right.

Instead, the Government’s cruel and callous decision will have an impact on more than 6 million families across the country, and risk plunging more than 300,000 children into poverty. In my constituency of Ilford South, more than 19,000 people rely on universal credit to make ends meet. That is more than double the national average.

Worse, that decision comes just days after we learn that the Government are only setting aside £5—five measly pounds—to feed our children. Let us be under no illusion: this is an attack on Britain’s workers by a Government who represent the 1% of this country, intent on cutting tax rates for their mates and handouts for the poorest.

We are struggling through a devastating pandemic and—I think that people on both sides of this House agree—perhaps the biggest challenge for our country since the second world war. Due to the unprecedented nature of this crisis, we have all had to adapt rapidly, so it is little surprise that living costs have risen in recent months. Indeed, research by Save the Children and the Joseph Rowntree Foundation found that 86% of families with children on universal credit and tax credits have been faced with additional costs since the crisis began.

The increase in Government support previously was rightly welcomed. It eased the burden on millions of families up and down the country. However, it will be many months, unfortunately, before we are out the other side of this awful pandemic, and millions more will lose their jobs and be at risk of unemployment when the furlough scheme comes to its end. It is completely the wrong time to end that vital piece of support.

The Government have tried to spin their one-off payment of £500 as a positive, something that so many people have seen through. As my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) pointed out, in real terms that means the lowest level of unemployment support for 30 years, at a time when redundancies are going through the roof.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I am afraid we now have the last speaker, who is Jacob Young.

[Jacob Young (Redcar) (Con)]

This is an unprecedented crisis that demands an unprecedented level of Government support. Our Conservative Government have been there for the most vulnerable at every turn. Never have any Government in our history done so much to support those in need, with more than £280 billion spent on measures prioritising the people on the lowest incomes. While the Labour party squabbles over whether that should be £281 billion or £282 billion, our determination to help the lowest paid and most vulnerable in our society continues.

The Chancellor, in his autumn statement, accepted all the recommendations of the Low Pay Commission and increased the national living wage, worth £345 to those who work a 40-hour week. In the public sector, we have had to take the difficult decision to freeze pay for many public sector workers, but we have again shielded the lowest paid: those in the public sector with below the median income will see their wages rise this year by at least £250. Since 2010, we have raised the personal tax threshold to £12,500—something that benefits the least well-off the most. We have paid 80% of people’s wages and provided the self-employed income support scheme designed for those earning less than £50,000. We have protected renters, helped with mortgages, and are delivering the targeted support needed to help families with their council tax, food and energy bills. We have continued to prioritise the least well-off.

Meanwhile, the leader of the Labour party characteristically offers only division and indecision. Last week, he said that he wanted more restrictions on our economy, but he will not tell us what they could be. He has told us that he wants to scrap our Brexit deal and to do his own, but he will not tell us what that will include. Now he says he wants to scrap universal credit, but he will not tell us what would replace it.

Sadly, since the first lockdown in March, the number of people claiming universal credit has doubled. Yet the system has not fallen over under the weight of all that additional pressure, and I pay tribute to those outstanding DWP staff, especially those at my local jobcentres in Redcar, Eston and Middlesbrough, who have worked so hard to ensure that.

The Labour party can criticise universal credit and the DWP all it likes, but it knows that the legacy system it left behind would not have been able to cope with this increase in demand, and while we have invested in universal credit by doubling the number of job coaches to provide the necessary one-to-one jobseeker support that we know works so much better, it would throw it all away rather than admit it is delivering exactly on the priorities of those who need it most. Work is the best route out of poverty, which is why we have taken such extraordinary measures to protect as many jobs as we can. This Government are rising to the immense challenge presented by a crisis like no other in our history. We are all in this together, and together is how we will beat this virus.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I am sorry we have not been able to fit everybody in to this debate. It was heavily over-subscribed, and we had a statement earlier and we do have another heavily subscribed debate, so I am now going to the shadow Chancellor, Anneliese Dodds.

--- Later in debate ---

[Mr William Wragg (Hazel Grove) (Con)]

On a point of order, Madam Deputy Speaker. My apologies to the right hon. Member for Warley (John Spellar) and the hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss) for not being able to give them prior notice of my point of order because they were on telling duty. I was concerned, at the calling of that Division, that the advent of face masks in the Chamber may have disguised a member or two of the Opposition Whips Office shouting opposition to their own motion, thus rendering redundant the idea that the vote should follow the voice. Could you advise me further on that, Madam Deputy Speaker?

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the hon. Gentleman for that point of order. Nothing disorderly has happened. There was a shout of “Aye” and a shout of “No”, and Tellers were put in when I put the question again. I am sure that he is not questioning my judgment. Nothing disorderly has happened, and the vote took place in the proper manner.

I will now suspend the House for three minutes in order to enable the arrangements necessary for the next business to be made.