Universal Credit and Working Tax Credits

Wendy Chamberlain Excerpts

Wednesday 15th September 2021 Commons Chamber

[Wendy Chamberlain (North East Fife) (LD)]

The Government give the impression that they do not think £20 is a lot of money. Although having and spending income is important, it is vital that those who do not have to count the pennies do not forget about everyone else. For many people, £20 is not a box of biscuits from an organic store in west London but what is spent on an entire week’s food shop. The Facebook group “Feed your family on a budget” was set up last year by one woman who managed to do just that on a £20 budget, and that group alone—it is not a unique initiative—has more than 340,000 members. The real impact of taking £20 away from 5.5 million households across the UK is people skipping meals, unable to feed their children, and even more reliance on food banks, which are being used more than ever before—more even than before the pandemic.

On Monday, the Secretary of State suggested that people could make up £20 by working two extra hours. The Government consistently demonstrate that they do not understand that, for many, universal credit is an in-work benefit and that work has other expenses, such as transport and childcare, which mean that claimants will need to work at least another six hours a week to make up for the cut, not two.

Some of my constituents will face a £30 a week loss or even more, because, as we have seen so many times before, the Government have failed to understand the impact of their policies on the devolved nations. Parents who receive any amount of universal credit in Scotland—even as little as £20—are entitled to Scottish child payments, best start grants and best start food payments. Altogether, the cut could mean a loss of more than £1,700 a year. The Scottish Affairs Committee report on welfare published earlier this year noted that there appears to be “a good working relationship” between the Governments, but this cut suggests otherwise.

Of course, “just work more” is never as easy as this Government seem to think it is. There are 1.1 million single parents eligible for universal credit, many of whom need to work part time. I have raised this issue before by asking the Secretary of State to explain the disparity between universal credit and legacy benefits for young parents, where the former benefit acknowledged the additional burden of parenthood and provided the higher rate of payment usually given to those 25 and over. She has failed to provide an adequate explanation to me or 100 charities from around the UK, and indeed other hon. Members, who signed the letter I wrote about this.

The bottom line is that reducing an already inadequate safety net is not going to get more people into work. Research by the Trussell Trust shows that 900,000 people say they will not have enough money to travel to work or essential appointments, and this is a particular concern in rural constituencies such as North East Fife. If people cannot afford to get to work, how are they supposed to get those extra hours? It is a vicious cycle, only worse. Indeed, figures from Fife Council today suggest that crisis applications to the Scottish welfare fund have rocketed since the start of this financial year. This cut is taking place while the effects of the pandemic are still being felt, and we need to make sure that those people and families are supported.