Universal Credit

Vicky Ford Excerpts

Wednesday 17th October 2018 Commons Chamber

[Ms McVey]

I thank the hon. Gentleman for his kindly words and advice but, when the Division comes, we will see what happens. I am convinced that Government Back Benchers know how many millions more people we have got into work. I am convinced that they know that 1 million more disabled people will end up with more money under universal credit. That is what this is about—supporting the most vulnerable claimants.

[Vicky Ford (Chelmsford) (Con)]

Will the Secretary of State give way?

[Ms McVey]

I will.

[Mr Speaker]

It is perfectly reasonable for somebody to ask, and the Secretary of State can answer if she wishes or not if she does not, but there is no breach of order in there not being a declaration of intent on that matter at this stage in the debate. At what point it becomes clear that there will or will not be a Division remains to be seen, but nothing disorderly has occurred. We were about to hear an intervention from Vicky Ford.

[Vicky Ford]

Does my right hon. Friend agree that protecting the most vulnerable is key? Can she reconfirm that over 1 million disabled households will be over £100 a month better off and that it is the Government’s policy to continue to work for improvements, to protect the vulnerable?

[Ms McVey]

I am glad that there was some calm and hush for that question, so that I could hear it and give the response that it deserves. My hon. Friend is right: around 1 million disabled households will receive on average around £110 more per month through universal credit. If we were to follow the advice of the Labour party, those 1 million disabled households would be £110 worse off per month. That is what the Opposition are asking for.

Universal credit pays for 85% of childcare costs, compared with 70% under the legacy benefits. Because it is a simpler benefit, as I hear from Government Back Benchers, 700,000 households will get entitlements that they were not claiming under legacy benefits, worth an average of £285 per month.

We have taken a mature approach to rolling out universal credit. We have said that we will test, learn, adapt and change as we go forward. That has resulted in a series of improvements, and I will read some of those out. We are providing extra universal support with Citizens Advice, an independent and trusted partner. We have brought in the landlord portal. We have brought in alternative payment arrangements, 100% advances and housing running costs. We have removed waiting days and are providing extra support for kinship carers and those receiving the severe disability premium.

--- Later in debate ---

[Vicky Ford (Chelmsford) (Con)]

As I have listened to the debate, it has struck me that it is important to remember that we are talking not just about a system, but about people.

I remember two people who strongly influenced my decision to go into politics. This was back in 2005, when the then Government had just introduced the working tax credit. I had taken some time off work, and was volunteering at the local pre-school. One of those two people worked there. She loved her job, and she was brilliant with the kids. Now she was in tears because her partner had left her, and she could not afford to work any more. She was better off on benefits.

The second person, like the first, was a mum with young kids. She was also in tears. Vast amounts had been overpaid to her under the tax credit system, and now the taxman was asking her to repay thousands of pounds. She was one of those individuals who were caught in that system under Labour, when literally billions of pounds were overpaid to vulnerable people who were then asked to give the money back.

It is right for us to look at the present system again, because it is too complicated. Currently, 700,000 people are not receiving the benefits to which they are entitled. We cannot have the chaos that was caused when Labour introduced its last changes. It is right for us to have a new system that does not trap people on welfare. It is right for us to have a simpler system that is easier to use, and it is right for it to be rolled out step by step to small groups of people at a time, so that there is no repeat of that chaos. It is also absolutely right for us to be honest with people. Benefits affect some of our most vulnerable, and we must not scare people who are about to see changes.

Some of the universal credit system has not been perfect, but changes have been made. The offer of advanced payouts and the scrapping of the seven-day waiting period mean that people can have cash in their pockets, and I am glad to learn that the two-week advance of housing benefit is also helping. Ministers have said repeatedly that they are open to suggestions as to how to make changes as we proceed, and they are about to introduce a swathe of improvements. Before we get to the mass migration, I want us to ensure that those with mental health conditions will be helped, and the Government said yesterday that that would happen.

Let us all stop playing political games. We need a safer system, and we need to make it work.