Supporting Disadvantaged Families

Debate between Yvonne Fovargue and Thérèse Coffey

Monday 9th November 2020 Commons Chamber

[Dr Coffey]

My hon. Friend is right to point out that, while we continue to support people through the welfare system, we know that the best way ultimately for people to get out of poverty is to work. That is why, through our plan for jobs, we have been extending the number of training courses that people can do. In particular, a new scheme called JETS—job entry targeted support—tries to get people ready to go back into work. The jobs finding support scheme is particularly tailored to help people who had been in work for a long time; to try to find work is a new experience for them. There are also swaps: in some sectors, the future does not look quite so bright for the next few years, and we want to encourage people to consider swapping careers, even if it is just in the short term, to ensure they can try to get back into work. That is a successful programme for which there is huge demand. We are seeing huge delivery of these programmes.

[Yvonne Fovargue (Makerfield) (Lab) [V]]

I welcome the expansion of grants, but can I urge the Secretary of State to scrap the five-week delay in claiming universal credit? An advance that has to be repaid over whatever period is a loan. There is increasing evidence from debt charities that that is pushing vulnerable families further into debt.

[Dr Coffey]

If somebody comes to make a universal credit claim, they can get money pretty quickly—within about three or four days. Yes, that is an advance but there is an earlier payment of the sum that would generally be available over the year. Instead of getting 12 payments, a recipient will get 13. It is important that if people need help, they get it, but then the payment will be spread over the rest of the year.

Oral Answers to Questions

Debate between Yvonne Fovargue and Thérèse Coffey

Monday 27th January 2020 Commons Chamber

[Yvonne Fovargue (Makerfield) (Lab)]

14. What recent assessment her Department has made of the effect of the roll-out of universal credit on the personal finances of claimants.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

In total, universal credit is £2 billion a year more generous than the legacy system it replaces. For those who can work, universal credit ensures people take home more of their earned income and are supported to work more hours, whereas for those who cannot work, the higher disability element is more generous, meaning that 1 million disabled claimants will gain, on average, £100 a month.

[Yvonne Fovargue]

Last week, a report from the debt charity StepChange found that 65% of clients said that universal credit had made it harder for them to budget and manage their finances. Given the DWP’s oversight of the UK financial wellbeing strategy, what will the Department do to ensure that universal credit helps people to recover from debt and does not make the problem worse?

[Dr Coffey]

I know that the hon. Lady has focused on this issue for a lot of her professional career, as well as for a lot of her parliamentary career. We do important work through the Money and Pensions Service to make debt advice available, and that is an important avenue to which people can be referred. We also work closely with Citizens Advice on the Help to Claim service, to help to provide that alternative holistic approach for which we fund the CAB.