Universal Credit and Working Tax Credit

Saqib Bhatti Excerpts

Monday 18th January 2021 Commons Chamber

[Saqib Bhatti (Meriden) (Con) [V]]

The last 12 months have been hugely difficult for many of our constituents as covid-19 has ravaged our communities. For those who have struggled to make ends meet, the £20 uplift has relieved pressures on household expenditure. Certainly on the Government Benches, there is not a single Member who does not want to support their constituents throughout this difficult period. That is why I consider this motion by the Labour party nothing more than a cynical attempt to score political points. Frankly, we should be above that; this issue is too important. Our constituents deserve better.

Throughout the course of the pandemic, we have seen the Government proactively provide support to those who have needed it, when they have needed it most—support measures worth £280 billion, including the coronavirus job retention scheme, £170 million to support food poverty over the winter period, a £500 million hardship fund, £6 billion in increases to welfare and £670 million to help people pay their council tax bills; along with an increase of almost £1 billion last year to increase the local housing allowance programme. This has all helped to ensure that there has been a degree of security for my constituents in their most anxious moments.

The Chancellor’s packages have been recognised across the world—including by organisations such as the IMF, the Bank of England and the OBR—as world-leading and crucial to shoring up the economy and the livelihoods of those who have been worst hit by this pandemic. It is incumbent on all of us to consider the best path to economic recovery out of the pandemic for those who need it most. There is no doubt in the mind of a Conservative that a healthy economy will lessen the need for universal credit in our society. A strong economy will deliver the jobs required to give people the stability and security that they need to thrive and succeed. Nobody should consider the impact of good employment on welfare to be insignificant.

The introduction of the uplift to universal credit was the right thing to do at the time. Given the economic and social situation, I absolutely supported it. I commend the Chancellor and my right hon. Friend the Secretary of State for Work and Pensions for ensuring that universal credit has worked smoothly and for supporting those who have needed it most.

Let me tell those watching who are not familiar with parliamentary procedure that today’s motions are not binding. They do not change anything; they do not protect lives and they do not protect the poorest in our society. If the last Opposition day debate is anything to go by, this debate will be used by many as an excuse to abuse some of my colleagues and friends, including with physical threats—as happened last time—to themselves and their families. Such threats should be condemned across the House. I therefore believe that it is not right to engage in the Opposition’s political games, not least because they want to abolish universal credit, which would leave the future for so many uncertain and reduce their support. “Gotcha” politics will not solve the scourge of poverty in our society, and the Chancellor should be given space to make the decisions that he needs to when he presents the Budget.