Universal Credit and Working Tax Credits

Debate between Steve Baker and Ben Spencer

Wednesday 15th September 2021 Commons Chamber

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

It is a pleasure to be able to speak on this very important subject.

I wish to put on record my thanks to the people who work for the Department for Work and Pensions, particularly those in the Weybridge jobcentre whom I visited just a couple of months ago. The passion of the people who work there, supporting people and helping them back into work, is absolutely incredible. Before I got into politics, my view of jobcentres was as quite negative places, but that jobcentre in Weybridge is a place of real hope and opportunity, and its staff do incredible work.

The pandemic has thrown us incredible challenges. Sadly, many of my constituents lost their jobs, and people faced increased costs. They found it difficult to reduce their cost of living in response to changing circumstances because of the restrictions that were put in place, and the job market completely went under. On that basis, it was entirely right for us to impose a temporary uplift to universal credit to help people through that difficult time. Now we are in a different situation. The job market is opening up and the difficulties in reducing costs are fewer, but we do have ongoing increased costs of living, and I will come back to that later in my speech.



We are also in a very different fiscal situation. We have borrowed a lot to pay for the pandemic. That has damaged our economy and we still have an ongoing deficit. It is important to remember that most of the money that we are spending now is borrowed, and it will not be us or our constituents who pay it back; it will be their children and our children who are paying that back in years to come. That is a big problem, of which we need to be mindful.

We have limited resources, and it is right when we are using them that our first priority should be throwing everything we can into supporting people back into work. I support the Department in seeing that as its priority, with provisions such as the plan for jobs and the kickstart scheme. I support the work we are doing, as we throw everything into helping people back into work, helping people to progress in work and supporting people with disabilities into work to ensure that everyone has the opportunity of a job.

However, as many Members have mentioned, there are a lot of people in work who are still struggling. Of course, I have sympathy for the calls saying that one option is to continue the universal credit uplift, but before taking such a big decision, I think it is worth reflecting on the issue and ensuring that we get the most bang for our buck regarding the money that we spend on this precious resource. We should look a bit at what is going on for people in these difficult situations—those who are really struggling and who are currently in work.

As many Members have already mentioned, the Work and Pensions Committee, of which I am a member, last week took evidence from several people on the challenges that they are facing. It is important to ask people about these issues to find out what is going on. What was really striking to me was that every witness who spoke to us was a single parent. When we started to delve into the challenge they faced, the cost of living came up big time, of course, but they particularly mentioned the cost of childcare and difficulties getting childcare. One witness, who was very impressive, explained that she pays £300 for childcare every month, which really blows out of the water the extra £100 she gets in universal credit uplift. That is in addition to all the other costs of living, such as the largely unaffordable rented housing that we have in this country.

[Mr Steve Baker (Wycombe) (Con)]

I think that, like me, my hon. Friend would prefer to keep the £20 uplift, but we know that it is about £6 billion, which is 10% of the defence budget. Would he support the Minister pressing, in the spending review, for a sum of money—perhaps to improve the work allowance and taper rate—to help just the people he is talking about?

[Dr Spencer]

Of course, the taper rate—which essentially operates as a participation tax of 63%—is an issue that I hope the Minister and the Department look into as they put forward bids to the Treasury.

Let me return to the cost of living. The cost of childcare is really striking. Our childcare market really is broken. Despite multiple Government support and intervention schemes, people still see childcare and caring responsibilities as a barrier to getting into work and a cause of ongoing financial hardship, either because they cannot get it full stop as it is not available, or because of exorbitant costs.

I remember knocking on people’s doors many times while campaigning in different parts of the country, and people telling me that they would love to work but that caring responsibilities were a barrier to their getting into work. That is a fundamental wrong. We have to do everything we can to support people who want to work into work, and that has to be a part of our efforts on the cost of living.

As well as childcare costs, housing and rental costs in my constituency are huge issues that put people at risk of financial hardship. We really need to tackle the issue of affordable housing, and particularly affordable rents. I beseech the Minister when he winds up the debate to tell me whether he and his Department will look into affordable housing and childcare costs as part of the cost of living review, and push forward some radical reform to help all our constituents, as many Members have asked for in this important debate.