Universal Credit and Working Tax Credit
Debate between Stephen Timms and Steve Barclay(3 years, 3 months ago)
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The Chief Secretary to the Treasury (Steve Barclay)
It is a privilege to close this debate on behalf of the Government. Let me begin by thanking right hon. and hon. Members across the House for their contributions. Many spoke with great passion. Having listened to the debate, it is clear to me that there is a heartfelt desire, shared on both sides of the House, to support those constituents impacted by the economic consequences of covid. That was reflected in the well measured opening remarks of the hon. Member for Stalybridge and Hyde (Jonathan Reynolds), speaking from the Opposition Front Bench, and in the comments from my hon. Friends the Members for Sevenoaks (Laura Trott), for Barrow and Furness (Simon Fell) and for Guildford (Angela Richardson), among many others.
The Government are acutely aware of the harm that the crisis has done to people’s finances, including the most vulnerable in our society. At every stage of the pandemic, we have striven to support those who have found themselves at the sharp end. As the Minister for welfare delivery, my hon. Friend the Member for Colchester (Will Quince), outlined earlier, that is why we introduced a wide-ranging package of welfare measures worth over £7 billion this year. That included temporarily increasing the universal credit standard allowance and the working tax credit basic element by £20 a week—an increase that has boosted welfare spending by £6.1 billion. As my hon. Friend also pointed out, given the evolving nature of the pandemic, it is right that we wait until the Budget before making future tax and welfare decisions.
Steve Barclay
I will of course give way to the Chair of the Work and Pensions Committee.
Stephen Timms
Is it not unreasonable to force families who claim universal credit to wait until March to find out whether the rate of benefit will be cut by nearly a quarter at the end of March? Surely the Government need to announce their decision sooner.
Steve Barclay
I think what that ignores is that a quarter of the scheme is still to run, because there is still almost three months until the end of the financial year.
One should look at the package of measures as a whole. As a number of right hon. and hon. colleagues have pointed out, my right hon. Friend the Chancellor has allocated £280 billion in fiscal stimulus to help weather this crisis—I think the Chair of the Work and Pensions Committee has welcomed a number of these measures. As was further pointed out during the debate, and as Treasury analysis supports, the measures have overwhelmingly supported the poorest families most and reduced losses for working households by up to two thirds. That point was elegantly expressed by my hon. Friends the Members for Bexhill and Battle (Huw Merriman), for Meriden (Saqib Bhatti) and for Redcar (Jacob Young)—he correctly identified that the scale of Government support has been praised by many international observers, including the IMF, which has singled out the UK’s performance.
Let me briefly remind the House of some of the key elements of that support that relate most closely to this debate. The furlough scheme has protected the jobs of almost 10 million people, many of whom are on low incomes. Over 3 million people have benefited from self-employment grants. In addition to the temporary uplift in welfare payments, we have also suspended the universal credit minimum income floor and increased the local housing allowance rates for housing benefit and universal credit.
We have also supported those on low incomes through other measures, including council tax relief through the £500 million hardship fund, and the £500 payments for people on low incomes who have to self-isolate. Our covid winter support package includes the £170 million covid winter grants scheme and a £220 million expansion of the holiday activity and food programme for disadvantaged children. Those points were made during the debate, including by my hon. Friend the Member for Rushcliffe (Ruth Edwards). These measures have provided financial support to millions of families and individuals.
Beyond the state help that those measures have enabled, there can be no doubt that the best way to raise living standards is to keep as many people in work as possible and to support their wages. That is why my right hon. Friend the Chancellor has focused on our pledge to end low pay by increasing the national living wage by 2.2% to £8.91 an hour. Indeed, he has gone further, protecting, creating and supporting employment through our £30 billion plan for jobs—a point that my hon. Friend the Member for Stourbridge (Suzanne Webb) brought to the House’s attention very effectively. Measures including the furlough scheme, along with a raft of other initiatives designed to get people into work, have boosted jobcentre capacity, doubling the number of work coaches, and sit alongside measures such as the new £2.9 billion restart programme to help over 1 million unemployed people back into work.
As well as helping people to find jobs, we are creating new ones through a range of policies. They include our £8.6 billion investment in infrastructure, decarbonisation and maintenance programmes, and our £2 billion kickstart scheme for young people. Over the long term, we plan to unlock 250,000 highly skilled sustainable jobs that will boost our recovery under the Prime Minister’s 10-point plan for a green industrial revolution.
I have set out to the House the scale of support we are providing to people in this crisis, as well as our commitment to helping the most vulnerable and those on low incomes. Let me add that it would not have been possible to provide that support without the dedication of thousands of workers in the Department for Work and Pensions and on the frontline in jobcentres around the country. Let me echo the remarks of the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Colchester, the Minister for welfare delivery, by pointing out how well the universal credit system has coped with the enormous increase in claimants over the past months, a point recognised quite rightly by my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb), my hon. Friend the Member for Brecon and Radnorshire (Fay Jones)—I am sure colleagues will join me in wishing her a happy birthday—and my hon. Friend the Member for Gedling (Tom Randall).
Despite immense pressures, payments have still been issued swiftly and efficiently to millions of people through the universal credit system. It is clear that every Member of this House is concerned for the financial wellbeing of families and individuals in their constituencies and across the country. That has been reflected in the remarks from all sides of the House during the course of the debate. The Government, too, are acutely aware of the challenges people face. That is why we have spent £280 billion in response to covid, reflecting the Government’s and the Chancellor’s commitment to support individuals, businesses and our public services. As such, we will not move an amendment to this debate.
Question put.
Oral Answers to Questions
Debate between Stephen Timms and Steve Barclay(3 years, 4 months ago)
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The Chief Secretary to the Treasury (Steve Barclay)
The £20 per week increase to universal credit and working tax credit is benefiting claimants by a total of £6.1 billion this year and is just one part of the wide-ranging package of Government support during this crisis.
Stephen Timms
The Joseph Rowntree Foundation points out that raising social security benefits not only helps hard-pressed families, but boosts the economy because the increase is likely to be spent. Does the Chief Secretary recognise that raising legacy benefits in line with the £20 a week increase he has referred to that has already been introduced in universal credit would boost the economy while also addressing the current unfair discrepancy between them?
Steve Barclay
I recognise that the right hon. Gentleman has, as Chair of the Work and Pensions Committee, raised this issue on a number of occasions, and he will know that the uplift continues until the end of March; the benefit to which he refers continues until then. The Government are not ruling anything out for the future, but it is right that we wait for more clarity on the national economic picture before making any further decisions.
Oral Answers to Questions
Debate between Stephen Timms and Steve Barclay(3 years, 6 months ago)
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Stephen Timms (East Ham) (Lab)
What assessment he has made of the effect on the economy of removing the temporary uplift in universal credit from April 2021 while the covid-19 outbreak continues. [907766]
The Chief Secretary to the Treasury (Steve Barclay)
The £20 per week increase in the universal credit standard allowance and working tax credit basic element forms just one part of the package of support the Government have provided to protect people’s jobs and incomes, including income support schemes.
Stephen Timms
The Government were right to increase universal credit and working tax credit by £20 a week. Surely, it would now be inconceivable to remove those increases in April as planned, before the pandemic is even over. Does the Minister accept that of the indirect levers available to the Government to stimulate what is, as we have heard already, going to be a weak economy for some time, measures that raise the incomes of low-income households are the most effective, and benefit increases are a good example?
Steve Barclay
I am grateful that the right hon. Gentleman recognises the additional £9 billion of support that my right hon. Friend the Chancellor has put into welfare. That is reflected, as the right hon. Gentleman will further recognise, in the distributional analysis showing that that has protected those on the lowest incomes. That support is temporary, but it does extend to the spring, and it helps those families facing covid with the challenges over the coming months.
European Union (Withdrawal Agreement) Bill
Debate between Stephen Timms and Steve BarclayWednesday 22nd January 2020
(4 years, 3 months ago)
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Steve Barclay
I shall make a little more progress before taking further interventions. I urge Members to reject both amendments.
I turn to Lords amendment 4, tabled by the noble Lord Dubs. Although the Government humbly disagree with the amendment, we recognise his sincerity about and dedication to this issue and the constructive scrutiny that he has provided on behalf of vulnerable children. The amendment would remove the provision that amends the European Union (Withdrawal) Act 2018 to require the Government to report on their policy on unaccompanied asylum-seeking children.
I can only say again, as I did in our previous debates, that the Government’s policy is unchanged. Delivering on it will not require legislation. The Government have a proud record on supporting the most vulnerable children. The UK has granted protection to more than 41,000 children since the start of 2010. In 2018, the UK received more than 3,000 asylum applications from unaccompanied children, and the UK deals with 15% of all claims in the EU, making us the country with the third highest intake in Europe. Indeed, in the year ending September 2019 the intake rose to more than 3,500.
Stephen Timms (East Ham) (Lab)
I am pleased that the policy has not changed, but why is the Secretary of State changing the legislation?
Steve Barclay
The right hon. Gentleman pre-empts the passage that I am just coming to.
As hon. Members will be aware, my right hon. Friend the Home Secretary wrote to the European Commission on 22 October on this very issue. The amendment in no way affects our commitment to seek an agreement with the EU. Primary legislation cannot deliver the best outcomes for these children, as it cannot guarantee that we will reach an agreement. That is why this is ultimately a matter that must be negotiated with the EU. The Government are committed to seeking the best possible outcome in those negotiations.