Oral Answers to Questions

Stephen McPartland Excerpts

Monday 9th October 2017 Commons Chamber

[Penny Mordaunt]

May I start by welcoming the hon. Lady to her post?

Despite the weeks of the general election, we are still going to meet our original timetable to publish the health and work road map, which will set out in detail not just the Health and Work programme, which is only one small part of what we are planning, but a full comprehensive package to deliver personalised, tailored support for disabled people, support for employers, healthcare reforms and welfare reforms.

The Office for Disability Issues is looking at the UN report; we volunteered to put ourselves through this process, and there is more we can do to lever in some of the things in that report to help achieve some of our ambitions, particularly on accessibility.

[Stephen McPartland (Stevenage) (Con)]

13. Whether he has plans to reduce the taper rate for universal credit claimants.

[The Minister for Employment (Damian Hinds)]

We have already made the taper rate more generous by reducing it from 65% to 63% in April this year, which means that recipients can keep more of every pound they earn.

[Stephen McPartland]

A taper rate of 63p in the pound is, in effect, a tax rate of 63% on net income. Surely the Minister accepts that that is a punitive rate and a barrier to work.

[Damian Hinds]

This all has to be seen in the context of our reducing the benefit withdrawal rates and making it more attractive to go into work. Of course I understand the attraction of reducing the taper rate, which is why we have done it, but there is also always a trade-off with costs; reducing the rate from 65% to 63%, as we have done, carries a cost—an investment in the system of £1.8 billion.

--- Later in debate ---

[Mr Gauke]

Universal credit was rolled out in 29 job- centres in July. It is important that we continue to make progress in the roll-out. We are doing it gradually and sensibly, but we are moving towards a system that helps more people get into work. Of course we are constantly learning lessons and finding ways to improve things, but it is a system that is helping to deliver more people into work.

[Stephen McPartland (Stevenage) (Con)]

T6. The higher rate of tax is 45% on gross income and the effective rate of tax on universal credit claimants is 63%. How can the Minister justify that?

[Damian Hinds]

I return to what I said earlier: with universal credit, we are improving the incentives to work. This has to be seen in the context of the previous system, where far more people would face considerably higher marginal withdrawal rates. This important reform means that people can always see that they are better off going into work and, once there, they can see that they are better off always progressing in work.