Oral Answers to Questions

Will Quince Excerpts

Monday 13th September 2021 Commons Chamber

[Chris Bryant (Rhondda) (Lab)]

7. How many people in Wales in receipt of universal credit are in work.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

In June 2021, there were 107,000 people on universal credit in employment in Wales.

[Chris Bryant]

I do worry about this cut to universal credit of £20 a week. In a constituency such as mine, that is taking £6.5 million out of the local economy. That is going to make it more difficult for local businesses to afford extra staff and more difficult for people to find jobs, so it is a completely counterproductive measure, leaving aside the cruelty of making families struggle on even less money. As I understand it, the Secretary of State said this morning to people who are going to lose the £20 a week, “Well, you just either need to get a better job or work more hours.” Can the Minister explain to us, and to the 2,543 people in the Rhondda who are in employment and on universal credit, how many extra hours at the national minimum living wage they would have to work to get that £20?

[Will Quince]

That of course would depend on their individual circumstances, but to answer the hon. Gentleman’s question, the Government have always been clear that the £20 increase was a temporary measure to support households affected by the economic shock of covid-19. There have been significant positive developments in the public health situation since the uplift was introduced, with the success of the vaccine roll-out, restrictions being lifted and our economy opening up, and now there are more than 1 million live vacancies in our jobs market. I will take one issue with what the hon. Gentleman said: he referred to a cut. A cut would represent savings. There are no savings. What he is proposing is an extra £6 billion to £9 billion, which would need to be raised by taxes.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

8. What steps her Department is taking to support pensioners living in poverty.

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[Mick Whitley (Birkenhead) (Lab)]

11. What assessment she has made of the impact on levels of poverty of ending the £20 uplift to the standard allowance of universal credit. [R]

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

It is not possible to produce a robust estimate of the impact of removing the £20 uplift on poverty. That is particularly the case at the moment, given the uncertainty around the speed of the economic recovery and how it will be distributed across the population.

[Mick Whitley]

Cutting universal credit will cause misery for millions of people, including my constituent in Birkenhead, Jess, who says that the extra £20 a week means she no longer has to choose between a hot meal and a hot shower. On Wednesday, Unite the Union and Community members who, like Jess, rely on the uplift to stay afloat will be visiting Parliament. Will the Secretary of State commit to meet them, so she can hear for herself why the Government must cancel the cut?

[Will Quince]

The hon. Gentleman references cancelling the cut. As I said before, there is no cut because there is no financial saving. If this measure were to continue, the Treasury would need to find an extra £6 billion to £9 billion to fund the temporary uplift. It was always a temporary uplift to universal credit. As a result, the temporary uplift will continue as planned.

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[Ruth Jones (Newport West) (Lab)]

13. What discussions she has had with the Welsh Government on the impact of ending the £20 uplift to the standard allowance of universal credit on people in Newport West constituency.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

There is a well-established working relationship between my Department and the Welsh Government, ensuring we work together on devolved and reserved areas effectively. However, universal credit is a policy reserved to the UK Government.

[Ruth Jones]

In Newport West, these cruel cuts to universal credit will hit about 9,000 families, including almost 6,000 children. That is unforgiveable and I will keep fighting these Tory cuts to universal credit. In a written parliamentary question to the Secretary of State, I asked whether she would meet me to address the impact of the cuts on the people of Newport West. The Minister replied to me but ignored my request to meet, so let us try again. Will the Minister please meet me to discuss the impact the cuts will have on the people of Newport West?

[Will Quince]

We have always been clear: the uplift for universal credit was a temporary measure responding to the extraordinary circumstances. Our focus now is rightly on our plan for jobs, with tailored programmes to build skills, move towards employment, increase hours, get back into work or climb the career ladder, because we know that work is the best route to a brighter future.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

16. What steps her Department plans to take to measure the potential effect of the removal of the £20 uplift to the standard allowance of universal credit from 6 October 2021 on levels of food bank usage.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

Food banks are independent charitable organisations and the Department for Work and Pensions does not have any role in their operation. There is no consistent and accurate measure of food bank usage at a constituency or, indeed, national level.

[Neil Coyle]

Since 2010, there has been an explosion in the number of people unable to put food on the table. Conservatives such as the hon. Member for Hertford and Stortford (Julie Marson) admit that taking £20 a week off universal credit current payments, to use the Minister’s vernacular, will result in another dramatic rise in food bank demand. The Trussell Trust predicts that 900,000 more people will need support. Will the Minister or the Secretary of State meet the all-party group on ending the need for food banks and organisations working on this issue to ensure that there is capacity to meet Government-driven demand?

[Will Quince]

Of course, I am always happy to meet the hon. Gentleman, as I have always sought to do. I remind the House that there have been significant improvements in the public health situation, the vaccine roll-out is a huge success, our economy is opening up, restrictions are lifted, and we have a record number of vacancies in our labour market. Universal credit provides a safety net but it is not designed to trap people on welfare. Work is the best route out of poverty and to prosperity, but I am very happy to meet him to discuss this further.

[Richard Thomson (Gordon) (SNP)]

17. What recent assessment she has made of the adequacy of the level of universal credit received by claimants.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

23. What recent assessment she has made of the adequacy of the level of universal credit received by claimants.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

The Secretary of State is legally required to conduct an annual review of benefits and pension rates to determine whether they have retained their value in relation to the general level of prices and earnings. The uprating process for working-age benefits has traditionally relied on the September consumer prices index figure and, in April 2021, universal credit was increased by CPI of 0.5%.

[Richard Thomson]

If the UK Government plough ahead with their planned cut to universal credit, it will result in one in three families with children in Scotland losing over £1,000 overnight and plunge 20,000 children into poverty. Does the Minister understand why so many people in Scotland think that it is the uplift that should stay and the Government snatching away that financial lifeline that should go instead?

[Will Quince]

There is no objective way of deciding what an adequate level of benefit should be, as everyone has different requirements. Income-related benefit rates are not made up of separate amounts of specific items of expenditure, such as food or fuel charges. The Government have always been clear that this uplift was a temporary measure, and I gently remind the hon. Gentleman that we spend over £110 billion on benefits for working-age people.

[Martyn Day]

I wonder whether the Ministers can tell us whether any of them actually listened to the evidence of the Work and Pensions Committee last week about hard-pressed families and the effect that universal credit was having on them. If they did, what would they say to their faces about taking £1,040 away from them?

[Will Quince]

What I would say is that I am proud that this Government stepped forward at the beginning of the pandemic to put in place the largest cash increase in our welfare safety net to support people through an unprecedented period of economic shock and financial disruption, but as our economy opens up, we have record numbers of vacancies in our labour market—we know that work is the best route out of poverty—and it is absolutely right that we tack our approach to support and empower people into work and to progress in work.

[Liz Twist (Blaydon) (Lab)]

18. What recent estimate she has made of the proportion of children in relative poverty where at least one adult in that household is in employment.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

National statistics on the number and percentage of children in low-income households are published annually in the “Households below average income” publication. In 2019-20, 19% of children living in households where at least one adult is in employment were in relative poverty before housing costs.

[Liz Twist]

The Government are very keen to say that work is the route to escape from poverty. However, over 27% of children in my Blaydon constituency live in poverty and many of those are in families where at least one parent or more is in work. The £20 universal credit uplift removal will push working families deeper into poverty, so what will the Government do to tackle the crisis of in-work poverty?

[Will Quince]

We know—all evidence suggests—that full work dramatically reduces the risk of poverty. As our economy improves, we will increasingly focus on progression to improve opportunities for those in low-paid work and support them towards financial independence. But the hon. Lady is right, and I recognise that moving into work is not always enough to lift people out of poverty; that is why we have the independent in-work progression commission, which published its report over the summer on the barriers to progression for those on persistent low pay. It makes a number of recommendations for the Government that we will consider very carefully and respond to later in the year.

[Chris Clarkson (Heywood and Middleton) (Con)]

19. What specialist support her Department is providing to young jobseekers at the start of their careers.

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[Rebecca Long Bailey (Salford and Eccles) (Lab)]

T3. More than 7,000 people in Salford are on the housing waiting list, which is forcing many to rent privately, but the under-35 rule means that younger vulnerable constituents claiming universal credit receive only enough to cover a single room in a shared house, with people they do not know. One of my constituents fled domestic abuse and they do not meet the narrow criteria for exemption until 2023. Will the Secretary of State commit today to urgently expand exemptions from the shared accommodation rate?

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

I thank the hon. Lady for that question. As she knows, we have brought forward two of the exemptions to the shared accommodation rate. We have committed to the third, and if I can accelerate it, of course I will do so.

[Jacob Young (Redcar) (Con)]

I commend my right hon. Friend the Secretary of State and her Department for their success in doubling the number of work coaches to 27,000 in just a few short months. Does she agree that thanks to that boost more jobseekers will get the personalised support they need?