Universal Credit

Debate between Stephen Lloyd and Angela Rayner

Tuesday 13th March 2018 Commons Chamber

[Angela Rayner]

You have had your chance, thank you. As I said—[Interruption.] Hon. Members have been told that more than 40 people want to speak in this debate, and I am trying to give way as best I can. The hon. Gentleman has already intervened once; I think that was more than enough.

Those who are just above the threshold would be better off earning less under these proposals. The Government are pulling the rug from under their feet, because once they earn above £7,400, they will be about £400 a year worse off for each child they have in school. So just when did the Government abandon the principle that work should pay? Perhaps the Secretary of State can tell us why she will be voting for a policy that, as my hon. Friend the Member for Bradford East (Imran Hussain) said, is twice as generous in Northern Ireland as it will be for her own constituents?

[Stephen Lloyd (Eastbourne) (LD)]

Does the hon. Lady agree that although the Conservative party talks about making work pay, it completely demolished that with universal credit through George Osborne’s removal of work allowances, meaning that now work does not pay?

[Angela Rayner]

The hon. Gentleman makes an important point. Universal credit has had add-ons and add-ons ever since the Government proposed it. That has made it very complex and, as I have outlined, work will not pay for some in receipt of it if these proposals go forward.

I would like to make a little more progress and address the issue of free childcare. Once again, the Government have a policy in transition—one that they are seeking to restrict. About 200,000 two-year-olds are currently eligible for 15 hours of free childcare, but there will be more than 400,000 two-year-olds in families receiving universal credit. Ministers have refused to say how many children will be eligible under their policy, so will they finally do so now? I ask that because hundreds of thousands of children may lose out under their plans. Once again, some of the most vulnerable children are first in line for Government cuts.