Oral Answers to Questions

William Bain Excerpts

Monday 18th November 2013 Commons Chamber

[Steve Webb]

I make no apology for defending consumers against an abuse that has gone on for far too long, with people buying annuities where they will get their money back only if they live until they are 90 or beyond. The Financial Conduct Authority, which was created only about six months ago, has already reported on annuities and will bring forward further proposals. We are working with our colleagues at the Treasury who lead on these matters to make sure that this issue, which has gone long unaddressed by successive Governments, is finally tackled.

[Mr William Bain (Glasgow North East) (Lab)]

8. What assessment he has made of the effect of universal credit on work incentives for lone parents.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

Universal credit fundamentally simplifies support for working lone parents and our analysis shows that UC will create positive work incentives for lone parents.

[Mr Bain]

But does the Minister not accept that research for Gingerbread shows that two in every five lone parents will lose out in cash terms under universal credit, with lone parents in work fighting an uphill battle to make work pay beyond 20 hours a week? Are not this Government not only botching the introduction of universal credit but breaching the Secretary of State’s pledge that UC would make sure that work paid for each and every hour that people work?

[Steve Webb]

I am grateful to the hon. Gentleman for referring to the Gingerbread report, which I have here. It says:

“Universal credit increases the financial pay off from working of single parents”.