Social Security

Debate between Seema Malhotra and Will Quince

Tuesday 9th February 2021 Commons Chamber

[Will Quince]

I understand the point that the right hon. Gentleman has made. I know that his report goes into some detail on this issue. I gently remind the Chair of the Select Committee that universal credit is about £2 billion more generous than the legacy benefits system it replaced and is part of a broad package of support. Over and above the £20 uplift available for those on universal credit, those in receipt of legacy benefits may be entitled to other measures. It is important that they go on to the gov.uk benefit eligibility checker to check their eligibility before applying, because as the right hon. Gentleman knows, there is no path back to legacy benefits once someone has made a universal credit application. It is important to stress that universal credit is part of that broader package of measures worth more than £280 billion throughout the course of this pandemic. Yes, of course we recognise that people across the country have faced additional costs throughout this pandemic. That is exactly why the Chancellor stepped up with that £280 billion package, including an extra £7 billion in welfare support.

The Opposition spokesman, the hon. Member for Feltham and Heston (Seema Malhotra), said that we should heed the words of those on the frontline. I totally agree and encourage her to visit her local jobcentre at the earliest available opportunity to speak to work coaches, because then she will hear what they think about universal credit and how they believe it has been the tool that not only has enabled us to support an extra 3 million people throughout this pandemic but has allowed them to incentivise, support and empower people into work.

[Seema Malhotra]

I have visited my local jobcentre and keep in close touch with it. I hope that the Minister also listens to what I said about what the Trussell Trust, Citizens Advice and the Child Poverty Action Group have been saying, because that is important, and they will probably want a response from the Minister on those points.

[Will Quince]

I work very closely and meet with all the organisations that the hon. Lady references, but work coaches are an important reference point. They all say without hesitation, when I visit jobcentres across the country, that universal credit is an incredible tool—a powerful tool—to help support and empower people back into work. That is why it is so absurd that the Labour party wants to scrap it.

Several Members raised pension credit and its uptake. I have no doubt that the Pensions Minister will be willing to meet hon. Members to discuss that further, because I know that he has done a considerable amount of work in that area.

The uprating order will ensure that working-age benefits increase in line with inflation, which represents a cash increase of £500 million for working-age benefits. That includes those benefits that contribute towards extra costs arising as a result of disability or a health condition, and pensioner premiums in income-related benefits.

To conclude, I will summarise the benefit increases that the Government are implementing to support those most in need. We are increasing the basic state pension and the new state pension by 2.5%. That will deliver on our manifesto commitment for the state pension triple lock. We are increasing the pension credit standard minimum guarantee in line with the cash increase in the basic state pension to support the poorest pensioners. We are increasing working-age benefits in line with prices; we are increasing the universal credit work allowances so that claimants can earn more before their payments are reduced; and we are increasing benefits to meet additional disability needs and carer benefits in line with prices. I commend the order to the House.

Question put and agreed to.

Resolved,

That the draft Social Security Benefits Up-rating Order 2021, which was laid before this House on 18 January, be approved.