Universal Credit

Stephen Timms Excerpts

Wednesday 6th March 2013 Commons Chamber

[Ms Ritchie]

I thank the Minister for his intervention.

[Stephen Timms (East Ham) (Lab)]

The hon. Lady is absolutely right: the project has been delayed. Ministers told us for a long time after the announcement of universal credit that all new applications for out-of-work benefits would be treated as universal credit applications from October this year. It is now absolutely clear that that date will not be achieved. It might be a year later, or even some time after that, but the project has certainly been delayed.

[Ms Ritchie]

I thank the shadow Minister for his intervention; I absolutely agree with him. The Minister will not be surprised to hear that I disagreed with him, because experience has taught us these things.

I seek clarification and an update from the Minister on the implementation of a computer system for the social security system in Northern Ireland to administer universal credit in line with the flexibilities that will be implemented there, notwithstanding—because of our special circumstances—the other flexibilities that I hope will be introduced. I understand that these are currently subject to negotiation and discussion between the Minister for Social Development and the appropriate DWP Ministers. What feedback will there be and what facility will be employed to use the lessons from the initial pathfinder areas in England to inform subsequent roll-out in Northern Ireland?

Governments do not have a great track record on implementing new IT systems, as seen with the Child Support Agency, the e-Border programme and the health service. The new universal credit system will likely require an even more complex system, incorporating real-time processing from pay-as-you-earn records. The Committee’s report makes it clear that there are significant concerns about the system’s capacity to operate between local and central Government. I fear that this will be even more challenging in the devolved Administrations. How satisfied is the Minister that there will be no more significant delays or cost overruns for the new universal credit payment system? Can he say with certainty that he will not be back before the House a year from now, explaining away delays and expensive setbacks?

Added to that, universal credit is to use digital self-service by default. That might sound good, but I have had little reassurance about the fact that the most vulnerable in society—particularly the elderly—are less likely to have access to computers or to be as proficient with newer technology. Reference has already been made to that issue in this debate, as well as to access to the internet and broadband, so I will not dwell on it further. However, notwithstanding our position on welfare reform and universal credit, I say to the Minister that it is important that the delivery of this benefit does not impact further on the vulnerable and disadvantaged in our community. It is important that the right systems are in place to ensure delivery is enabled, so that the most vulnerable can live a good life with some degree of benefit.

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[Richard Drax (South Dorset) (Con)]

I am grateful to have an opportunity to speak in this debate. From what I have heard, there appears to be a general consensus, with which I agree, that there is room for the universal credit system. Its aims are laudable; our welfare bill is too big and we have to tackle this problem. I think all Members across the House will agree that this bill cannot continue to grow. It is simply unsustainable. My view, which I am sure many share, is that for too long the poor and vulnerable have been trapped in a welfare mire. How often have we heard our constituents say, “There is no point working a bit longer because if I do that I will lose my benefits”? So clearly we have to examine the system and make it fairer, encouraging those in this trap to put in the extra hours as that will be beneficial for them.

I support the universal credit in principle; it will reward effort and will be responsive to changes in circumstances—if it works. Many hon. Members from both sides of the House have highlighted the word “if”, and I hope that my adding to the ifs will not be to the Minister’s chagrin. I have listened at great length to Mr Kevin Hodder, the chief executive of the East Boro Housing Trust; we debated this for a couple of hours. He has been in this business for many years and has shared with me, for some time now, his extensive knowledge and understanding of the benefits system. He has done so for my benefit, so that I can understand my constituents’ concerns. One or two of them—I suspect there will be many more—have come to me with their worries about the introduction of this new system.

The first risk, which has already been highlighted, is the reliance on one computer system. There are 8 million or 8.5 million claimants—we have heard the latter figure cited—so if the system goes wrong, the risks are obvious. There is no room for error or delay because we are talking about the most vulnerable in our society, and if the money does not arrive on the day they expect it, they will face serious problems. As far as I know, no Government national computer system has worked; I remind Members of the armed forces payments system, the NHS single patient record system, the tax credit errors and the collapse of the Child Support Agency—all of us get many constituents complaining about that. The problems were, in the main, the result of computer glitches. The risk of relying on one gigantic system is that failure would be catastrophic. Mr Hodder’s wise suggestion is that universal credit software could be circulated to the local authority housing benefit departments so that consistent rules are applied.

[Stephen Timms]

I am listening with great interest to the important argument the hon. Gentleman is making. Does he agree that the situation is rather worse than he says, because this involves not one great big computer system but two? The parallel real-time information, pay-as-you-earn system in Her Majesty’s Revenue and Customs is also involved, and the two systems have to interlock perfectly for universal credit to work.

[Richard Drax]

I agree with the shadow Minister. When I was a soldier, the great cry was, “Hope for the best and prepare for the worst.” I am a little concerned that, on this policy, the worst has perhaps not been prepared for. Will the Minister, when he sums up, reassure us that there is a system in place that will cope?

In dealing with the inevitable snags, community care grants and crisis loans could be administered by the local departments if this computer system were rolled out to them. The local housing benefit departments in my constituency are already running down their offices, yet their local knowledge could be invaluable in administering universal credit. In the world of IT and computers, how often have our constituents rung a telephone number and got a disembodied voice saying, “If you want flowers, press 1. If you want somebody else, press 2. If you want to go to heaven, press 3. And if you don’t want to bother us at all, press 4.”? At that stage the person wishes they had slammed the phone down and they give up the will to live. Although I welcome IT—I am not a luddite in that sense—I am a great believer in the human touch. Nothing beats eye-to-eye contact with constituents, including, as in this case, the many who need help. If people lose that contact with human beings—leaving aside the distress that will be caused if the computer system goes down—there will be an awful lot of concern, particularly among the elderly, many of whom do not understand the system in any case.

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[Stephen Timms (East Ham) (Lab)]

We have had an interesting debate and I congratulate the Work and Pensions Committee, and its Chair, on the report. I share the Committee’s support in principle for universal credit, as well as its frustration that in responding to the report, Ministers gave so few answers to the telling questions that it raises.

The Committee raised the timetable for implementation, and as the hon. Members for South Dorset (Richard Drax) and for Enfield North (Nick de Bois) pointed out, it was always clear that there would be a problem with the IT. We warned the Secretary of State about that simply on the basis of how long it took the same officials to implement much more straightforward changes under the previous Government. The Secretary of State was good enough to meet me in November 2010, and I wrote to him on 16 November 2010—well over two years ago—and warned of

“a serious risk that it will not be ready for new applicants by 2013”.

He replied on 31 January 2011:

“I am confident that I can offer reassurance on each of the points that you raised.”

On 18 April I wrote back to the Secretary of State:

“I remain deeply sceptical of the feasibility of the current implementation timetable…the Department should recognise that the timescale will slip”,

and he replied on 11 May 2011:

“I recognise that we may not share the same overall assessment of the issues”,

which indeed we did not.

In the Welfare Reform Bill Committee, I said to the Minister’s predecessor that

“the system will not be ready by October 2013”––[Official Report, Welfare Reform Public Bill Committee, 28 April 2011; c. 596.]

but the Minister replied that I was “wrong to be pessimistic.” I warned about the problem again in another debate in Committee on 8 June 2011.

Today it is reported that contractors have been told to down tools. The Department has denied it, as has the Minister, but I have no doubt that the reports are accurate. They come from people who have received these instructions, and I have no doubt that before long the position will become clear. The Secretary of State claimed yesterday, and the Minister has repeated today, that

“the implementation of universal credit…is proceeding exactly in accordance with plans”.

The hon. Member for South Down (Ms Ritchie) was right to say that it is certainly not proceeding according to plans. It is genuinely a mystery to me why Ministers deny what is clearly the case.

The Government’s initial timetable for universal credit had all new applications for out-of-work benefits being treated as universal credit applications from October this year. We now know that hardly any new applications will be treated as universal credit applications in October this year and everybody else will be treated as applying for existing benefits. As I understand it—the Minister will correct me if I am wrong—only applications submitted in one jobcentre in each region will be deemed to be universal credit applications, so that is only nine jobcentres. Even then, it will only include people with the most straightforward applications, because the IT will not be ready to handle the rest.

I want to ask the Minister a specific question. For two years, Ministers said that all new out-of-work benefit applications would be handled as universal credit applications from October 2013, and all new in-work benefit applications from April 2014. What is his current estimate of those two crucial dates? Just how far have those milestones slipped? Does he have any dates now that he is confident enough to give the House for when those milestones will be reached?

It is not just I who am worried. The Minister has bigger problems than that. Four times at the regular press conference this morning the Prime Minister’s spokesman was asked to express confidence that universal credit would be delivered on time and on budget. Four times he refused to give that assurance.

It is not just the IT that is in trouble, but the policy too. Ministers have failed to make crucial decisions, as set out in the Committee’s report. The Secretary of State told the Welfare Reform Bill Committee in February 2011 that he would have proposals for entitlement to free school meals before the Bill left the Commons. He did not deliver, and two years later we are still waiting for those proposals. As the Select Committee politely pointed out, the Government

“now needs to make decisions”.

Actually, they should have made decisions a very long time ago, but we certainly need them now. As my hon. Friend the Chair of the Committee pointed out earlier, the pupil premium is also dependent on this, as well as whether universal credit will deliver. The Government’s response assures us that the Department

“has committed to working with other Government departments and Devolved Administrations to ensure that the issue of passported benefits both in the short and long term is approached from a wide perspective and any changes are simple, fair and easy to understand.”

It burbles on in that vein for a page or so, but the Minister must now decide. What is the policy? He cannot keep ducking the issue. It is all supposed to start in October. When will he tell us?

It is not a minor issue. The solution adopted on free school meals will have a fundamental impact on whether universal credit has the intended effect of making it worth people’s while to be in work. If—as is widely suggested—the Minister and his colleagues introduce a crude income threshold for eligibility for free school meals and other passported benefits, they will create the most enormous disincentive for people to get jobs and increase their income—far worse than any of the cliff edges in the current system of which they have been so critical. He really cannot delay these fundamental decisions any longer. He cannot keep putting them off.

The Committee also raises the crucial issue of supporting and funding exempt accommodation. It makes this point:

“DWP must urgently finalise and publish the details of the revised arrangements so that providers have the certainty they need to plan ahead and maintain their service provision.”

I raised this with the Minister in Committee when we debated the regulations on 11 February. I pointed out that Women’s Aid estimates that more than half the domestic violence refuges in the country are not covered by the exemptions in his regulations. The problem is that the regulations use an out-of-date definition. I am absolutely sure that the Minister does want such accommodation to be exempt, but it will not be achieved by his regulations. What is he going to do about that? His response to the Committee does not give an answer. The National Housing Federation makes this point:

“It is vital that the Government ensures the regulations exempt the full range of supported housing by using a definition of supported housing that reflects the set up of refuges, hostels and specialist schemes for disabled people.”

My hon. Friend the Member for Edinburgh East (Sheila Gilmore) was absolutely right to ask the question that was also raised by the Committee: what is going to happen to people who do not have a bank account? How are they going to be paid universal credit? We still do not know. In the pathfinders starting next month in four local authority areas in the north-west, people without a bank account will not be able to claim universal credit. How long will it be before the system is able to cope with people who do not have a bank account? The Committee’s report states:

“The DWP has been unable to present us with any clear plans for how the Universal Credit service will be delivered to those people who cannot make an online claim.”

The response from the Government does not give us that clear plan.

Unison is right to draw attention to a host of basic issues to which we still do not know the answer. The hon. Member for South Dorset (Richard Drax) raised some of those issues, too. How will somebody apply locally for universal credit? The response to the Committee reassures us that

“we will offer claimants the option to claim…in person”.

What does that mean? Where will they apply? Will they go to the town hall, or to the jobcentre? What documents will they need? How does somebody get face-to-face advice if they have a problem? This is all supposed to be up and running from October and we do not know who is going to do this. We do not even know what the online application process will look like in the pathfinders that are supposed to start next month.

One of the Government’s worst errors in the whole project—the Chair of the Select Committee has already drawn attention to it—was leaving council tax benefit out of universal credit and devolving it with a 10% cut. The Committee’s report was right to point out the problems that that will cause. It works against simplification, it undermines work incentives, and it makes it much harder for people to know whether they will be better off in work. It has, as the Committee stated,

“the potential seriously to undermine the objectives of Universal Credit.”

We have heard about a lot of other problems in the debate. Problems relating to digital access were highlighted by my hon. Friend the Member for Bishop Auckland (Helen Goodman). The hon. Member for Leeds North West (Greg Mulholland) was right to draw attention to the problems emerging in the direct payment demonstration projects: the National Housing Federation tells us that rent arrears in the demonstration project areas are up by 60%.

It is, I am afraid, universal chaos: fundamental policy decisions have not been made; obvious gaps have not been plugged; where precise answers are needed we just get vague flim-flam; key milestones have gone back by a year or more; IT contractors are reported to have been told to stop work; and the Minister blithely assures us that it is all proceeding exactly in accordance with plans. It is too late for flim-flam. These crucial decisions cannot be delayed any longer. It is time now for the Minister finally to give us some answers.

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

I commend the Chair of the Select Committee, the hon. Member for Aberdeen South (Dame Anne Begg), for the way in which she opened the debate, and for the balanced way she set out the issues in its report. I thank the Committee, too, for its work. Often, people outside the House underestimate the important role that Select Committees play in scrutinising policy development, but the report is a very good example of the excellent work they do to highlight the issues and to get the balance right.

Balance was what was missing from the speech by the right hon. Member for East Ham (Stephen Timms). I think there was a 10-second acceptance at the start that universal credit was a good idea. He then spent the rest of his speech trying to conjure up reasons why it was not a good idea. [Interruption.] No, that is absolutely true. I will give some examples. He and the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) have been touting for some months now the story that people have been walking off the project and that the project is in chaos. We saw it in today’s Guardian—an article that perhaps should be seen in the context of today’s debate—and the right hon. Member for East Ham said just now that he expected contractors to walk off site. What a load of rubbish we have heard! In a statement today, HP, one of the big contractors, said that it remained committed to supporting the DWP, to the universal credit pathfinders going live in April 2013 and to subsequent releases. It also said that it would continue to work with the DWP and our other suppliers on this major programme of welfare reform.

[Stephen Timms]

rose—

[Mr Hoban]

Perhaps the right hon. Gentleman wishes to apologise for scaremongering.

[Stephen Timms]

I can reassure the Minister that the source of the report came from the companies concerned. But let me ask him this: the initial plan was for all applications for out-of-work benefits to be handled as universal credit applications from October this year. Is there a new date for that milestone, and if so, what is it?

[Mr Hoban]

Yet again, the right hon. Gentleman needs to get some perspective. We have always made clear our plan for a progressive roll-out of universal credit, for exactly the reason that hon. Members have mentioned, which is that previous Governments have launched unsuccessful big-bang IT projects. We have been clear, therefore, that we need a progressive roll-out—pilots, lessons learned, consolidation and then next-stage roll-out.

That is the best way to ensure that universal credit is rolled out correctly and it is a significant change from how previous Governments have handled IT projects, including the disastrous tax credits system when, of course, the right hon. Gentleman was a Treasury Minister. We have made clear our plan for a gradual roll-out for new claimants from October 2013. We have always said that the progressive roll-out of new claims across the country would begin in October 2013. That is a simple restatement of what we have always intended to do. I respect the right hon. Gentleman, but I think he has overreached himself on this argument.

[Stephen Timms]

Will the Minister give way?

[Mr Hoban]

No, I only have a relatively short amount of time in which to respond to quite detailed questions from hon. Members. [Hon. Members: “Give way!”] No, I want to make some progress.

[Stephen Timms]

rose—

[Mr Hoban]

No, all the right hon. Gentleman is doing is scaremongering, which is not the right approach. Someone made the valid point that misinformation undermines claimant confidence in the system. I want to address some of the concerns that people have expressed in this debate and demonstrate how the Government are tackling the issues highlighted in the Select Committee’s report.

[Stephen Timms]

rose—

[Mr Hoban]

I am not going to give way. The more often the right hon. Gentleman seeks to intervene, the less time I have to engage with the substantive discussion.

I will remind the House of the aims of universal credit. It is designed to avoid universally recognised problems in the current flawed system, which traps people on benefits and makes them dependent on the welfare state. It will ensure that work remains the best route out of poverty and benefit dependence for those who can work, and is intended to be radically simpler than the complex web of tax credits and benefits it replaces. We made a deliberate choice here. My hon. Friend the Member for Leeds North West (Greg Mulholland) was right to highlight a previous Committee report on the complexity of the welfare system. Rather than replicating the current system, in all its complexity, we are seeking to design a system that is easier for claimants to understand and creates better incentives.

Crucially, universal credit brings together in-work and out-of-work support into a single monthly payment for those out of work or on low earnings. At present, there are separate systems for out-of-work and in-work benefits administered by different national and local agencies. A move into work therefore entails a recalculation of entitlement, multiple communications and possible delays and gaps in payments. As a result, many people are not prepared to take the risk of moving into work.

This is not just about those who are out of work, however; it is about those who are in work as well. One of the rigidities built into the tax credit system is the 16-hour-a-week rule, which means that people offered work have to ask themselves, “Is it worthwhile my taking on this additional work?” Many people have to go to the jobcentre to make a better-off-in-work calculation. We cannot have barriers in place preventing people from wanting to earn more, take on more hours and look after themselves and their families.

With universal credit, we are aiming above all to achieve a fundamental change in attitudes to work, helping people to see more clearly that they are better off in work and encouraging and supporting people to move into work or to increase their hours.

As I said earlier, too many people are trapped into working 16 hours a week by a system that means there is no point in extending their hours because they would be worse off. I have even heard of people turning down bonuses from their employers because they are concerned about the impact on their benefits. What a tragic situation we are in, when a system of benefits traps people in low incomes. What we need to do—I hope Opposition Members will reflect on this—is find a system that helps people to get back into work. That is one reason why it is important to have in-work conditionality, to help people move up the income scale and find ways to increase their earnings by getting new skills, getting promotions and increasing their hours. In focusing on how we resolve some of the exceptions in the system, Opposition Members are in danger of losing sight of the reason for doing this: to free people from a complex system of benefits that has trapped so many out of work.

[Stephen Timms]

I am most grateful to the Minister for giving way. He was not able to give a date for the earlier milestone; he is now setting out the advantages, as he sees them, of universal credit for people who are in work. To begin with, all new in-work benefit applications were going to be universal credit applications from April 2014. Can he tell us when that new milestone will be reached?

[Mr Hoban]

We have always said that there would be a progressive roll-out of the system. I am not going to give a running commentary on the timetable at this moment. We have been very clear—[Hon. Members: “Ah!”] No, we have been very clear that we would have early implementation in April 2013, and we are going to see that in the Greater Manchester and Cheshire area. That will enable us to test the end-to-end process in advance of the progressive national roll-out of universal credit from October. Once a pathfinder has happened, we will continue to adjust the exact timing and sequence of the migration process in the light of experience, including the operation of the pathfinder service in the Greater Manchester area. That will be done exactly to avoid the problems that previous Governments have faced with big-bang system changes falling over.

I would also point out to hon. Members who continue to question the Department’s ability to deliver significant system changes that we have launched the latest generation of the child maintenance system on time and on budget. We have also successfully launched the universal jobmatch service, which is helping more than 1 million jobseekers find work and get into employment more quickly. That we have been able to do those things demonstrates the Department’s capacity and capability to deliver programmes on time.

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[Mr Hoban]

I have about 15 minutes left and am keen to deal with some of the other points that have been raised.

On advice and support, the advice sector is key to ensuring that we deliver universal credit effectively. We work very closely with the stakeholder organisations to ensure that their expertise is utilised. This is a moving picture and several things have happened since the Government published their response to the Committee’s report. On 11 February, we published the local support services framework, which addresses what support UC claimants need, including those with complex needs, and how we will work with the third sector and local authorities to provide that support in the most effective way.

At the heart of the framework is a partnership approach, which emphasises the need for close working between DWP, local authority managers and service providers such as social landlords and charities to agree on the services that will be needed at a local level. By encouraging close partnership-working between agencies, we will provide a more joined-up, holistic service for claimants with complex needs and a single claimant journey towards greater independence and, wherever appropriate, work readiness for claimants.

The hon. Member for Stretford and Urmston (Kate Green) asked about access. We have not decided yet whether there should be specialist advice line for welfare rights advisers, but we will try to bring together all benefits guidance in one place—I think it is a legitimate criticism to say that it has been fragmented in the past—and provide a much more simplified resource for relevant information. I hope that will make life easier for advisers in the third sector. I take on board the hon. Lady’s helpful point.

A number of hon. Members raised the issue of monthly payments, including the Chair of the Committee and my hon. Friend the Member for Amber Valley (Nigel Mills). Universal credit is designed to reflect a world where 75% of employees are paid monthly. Paying universal credit monthly will not only reflect patterns that people who fall out of work are used to, but help smooth the transition into work and encourage claimants to take personal responsibility for their finances. For the first time, we will be able to identify those claimants who struggle to manage on a monthly salary, and will provide support to help them develop the necessary money management skills to remove barriers that prevent some of them from moving into work.

We recognise that a move to a single monthly household payment is a significant change to the way in which many benefits are currently paid and that some claimants will require support to help them manage that change. Money advice will be offered to all claimants when they make a claim, and given to those who have a clear need for it. There will be different levels and types of money advice, based on need. Some claimants will be signposted toward an online service, some might be offered a single session over the phone, and others might be offered an intensive face-to-face session with follow-up calls. We also recognise that some clients might need money advice for only a short period, while others will need it for longer. We are trying to create a service that can be tailored to the needs of individuals, rather than a one-size-fits-all service.

On 11 February, we published guidance giving details of the factors that advisers should consider when discussing alternative payments with claimants. Those factors include drug and alcohol dependency. For most claimants, alternative payment arrangements will be time limited, and offered alongside further budgeting support and help to move towards managing a standard monthly payment. I mentioned that drug and alcohol issues were one of the factors that should be borne in mind. Others include learning difficulties, mental health conditions, those in temporary or supported accommodation, perhaps including people who are homeless, those who have severe debt problems and those who are the victims of domestic violence. So a range of factors will be taken into account to determine whether a monthly payment should be made, or whether an alternative, more frequent payment would be in the claimant’s interest.

My hon. Friend the Member for Enfield North (Nick de Bois) made the point that this is all about boosting aspiration. It is about enabling people to manage their finances and to get into work, and we need to ensure that we have a system that meets mainstream needs but also supports the needs of more complex cases, rather than a scheme that is designed entirely around the needs of the exceptions. It is important to get the balance right.

[Stephen Timms]

Will the Minister give way?

[Mr Hoban]

I just want to say something about basic bank accounts. We have set aside £145 million to stimulate new financial products for universal credit claimants, and we are working closely with financial providers across the private, social and third sectors. We are continuing to consult those providers and other stakeholders about the arrangements for those products, and we will announce our detailed approach and requirements in due course.

The hon. Member for Edinburgh East (Sheila Gilmore) referred to the fact that we had discussed basic bank accounts when I was in my previous role. There is a real challenge involved. One of the final pieces of research produced by the financial inclusion taskforce identified that many of the people who did not have a bank account were those who claimed benefit, and that many people who had had bank accounts had ceased to use them. It is important to ensure that we put the right financial products in place, but we must also give people the support they need to manage their money so that they can remain banked, rather than dropping out and becoming unbanked.

[Stephen Timms]

The Minister mentioned people in supported accommodation. Does he have a response to the concern that I raised about women’s refuges and other supported accommodation, given that the definition in the regulations does not seem to be quite right? Can he give me any reassurance about continued support for people living in such accommodation?

[Mr Hoban]

The definition in the regulations will be the one that is in the existing regulations, and it has worked well so far. We are talking to women’s refuges and others to try to understand what has changed, and why the existing definition no longer gives the desired results. That is a matter that we want to continue to discuss.

We need to be careful when we talk about the direct payment of rent, because the vast majority of people have no problem paying their rent or their mortgage. My hon. Friend the Member for South Dorset (Richard Drax) has raised this matter. In one of the pilots, 92% of people paid their rent on time. Among the other 8%, some were underpayments and some were mis-payments, but not all were wilful non-payments. We have an obligation to try to move that 8% so that they can pay their rent on time and meet their obligations. Also, this change will encourage social landlords to think about the broader needs of their tenants—how they can find the necessary skills to get work, and get the necessary financial and budgeting support to manage their money more effectively—rather than just thinking about collecting the rent.

We need to ensure that the new system does not remove personal responsibility from everyone, while recognising that we will need to do something for those who are facing the greatest problems. We are working on that, and the pathfinders will help us to gain that knowledge. We want to make sure that the risks are managed and that landlords can request that the housing element is paid to them when the rent arrears trigger has been reached. These arrangements will be in place for some high-risk claimants from the outset until there is improved financial capability. In effect, we will start the shift to direct payments for claimants with the easier cases and then progress to the more difficult cases. The approach that runs through the roll-out of universal credit is to pilot things and understand the lessons to be learned to ensure we avoid mistakes in the future.

I am sure that I have already spoken for far longer than I should have done, but I think our debate has been important. I end by echoing the words of my hon. Friends who have contributed. We are talking about a change in culture. It is not just a benefit replacement exercise; it is about helping people back into work—making sure that they know that it is better to work than not to work, that it is better to work longer to earn more than to work fewer hours and earn less. We need to tackle some of the barriers to getting people into work, not just in respect of the complexities of the benefit system, but by enabling people to manage their money and to take responsibility for their finances and for their future.

Universal credit is a huge step forward in encouraging self-reliance, but we recognise that a number of people—not the vast majority of people—will need more support. The measures we have set out today and the way in which we have developed them, even from when we submitted our response to the Select Committee’s report, demonstrates this Government’s serious commitment to get universal credit right. It is by getting it right that we will have the best chance of getting people out of poverty.