Universal Credit Sanctions

Neil Gray Excerpts

Monday 4th December 2017 Commons Chamber

[Jim McMahon]

That is an important intervention. The Department for Work and Pensions’ own error statistics show that the error lies within the DWP. In 2016-17, claimant error was 1.8% and official error was 4.9%. When claimants are doing what is asked, the margin of error is marginal, so it is the official errors that are sending people into severe debt and often poverty, and, all too often, to the food bank.

[Neil Gray (Airdrie and Shotts) (SNP)]

I congratulate the hon. Gentleman on securing this debate. It is about a different aspect of UC from what we have discussed before, which is refreshing. Does he agree that reports produced by the likes of Oxford and Liverpool Universities on the links between benefit sanctions and the use of food banks prove that there is a major issue regarding the DWP’s sanction regime forcing people into food poverty?

[Jim McMahon]

That is what is cruel about this. The working classes are taught that if they are willing to roll their sleeves up, work hard and put the hours in, they can get by, and that if they work really hard, their son or daughter will have a better life than they had, and that legacy can be passed on to their children. I see a lot of people in Oldham who are doing what is asked of them and working long hours, but the idea that they will do better than their parents, and that their children will do better than them, is a distant prospect. That is cruel. We are still one of the richest countries in the world, but we are a country that is built on very weak foundations. I fear what Brexit means for our country because of how fragile our economy is and how little investment has been made in the foundation of rebuilding our economy, whether in skills, the types of industry that will get us beyond Brexit, housing or public services. All those things matter, and I do not see investment being made in places where it ought to be. This is a very sad situation.

Reflecting on my own situation, when my son was born, we relied on working families tax credits. That helped us, because it meant we were not just eating cheap microwave meals or skipping meals entirely to pay the rent, but it also meant that for the first time we were part of the welfare state. We were always taught that we claim benefits only when in absolutely dire need of them, not because there is a shame necessarily attached to claiming them, but because they are to be treasured. We were taught that we must not abuse them, but that they are a safety net to catch us when we need it. That is why we pay our national insurance and that is why we value benefits.

I worked for 40 hours a week, but it still was not enough, especially when large or unexpected bills arrived. It was a tough lesson to me that sometimes it does not matter how hard people work, because if they get caught in a cycle of debt, it can be difficult to break out of that trap. It only takes one or two minor things going wrong, such as a household bill coming in unexpectedly, for things to become very difficult.

The situation also showed me that sometimes the machinery of government is not on our side. We were in debt not because of unexpected bills, but because an error in the calculation of our family tax credits sent us into an overpayment situation.