Universal Credit
Debate between Lord Harper and Hannah Bardell(6 years, 6 months ago)
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Mr Harper
No, I have made that point and want now to move on to the design of the system.
For me, the biggest advantage of the universal credit system is that it gets rid of the hours caps on what people can earn and the reduction in the withdrawal of benefit. The hon. Member for Airdrie and Shotts (Neil Gray), who speaks for the Scottish National party, talked about taper rates and the reduction of benefit as people earn money. He is right about that, but what he forgets to say is that under the legacy benefit system that withdrawal of benefit could be up to 90%. It meant that it was not worth people—[Interruption.]
Mr Harper
We do not have very much time to speak. I am afraid the SNP Front Bencher took up a huge amount of time, so I am not going to take any more interventions from the SNP. He spoke for longer than the official Opposition.
We have reduced the effective tax rate for people on benefits from up to 90% to 63%. It was 65% to start off with and we were able to reduce that.
The second important point is that for many people on benefits who had hours caps, jobs had to be designed not around the needs of businesses or individuals, but around the needs of the benefit system. My experience when I was a Minister in the Department for Work and Pensions was of meeting businesses that designed jobs around the needs of their business. However, when they took on a fantastic employee who did a great job and then wanted to increase their hours and offer that person increased opportunities to earn a living, that person had to say, “I’m terribly sorry. I can’t take that promotion or those hours because it will put at risk my benefits and I will not be able to guarantee a roof over our head for my children.” That has changed and that is a radical improvement.
Universal Credit Roll-out
Debate between Lord Harper and Hannah Bardell(7 years, 6 months ago)
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Mr Harper
I am going to make some progress. I have only a couple of minutes left.
The Minister has been very clear today, and, like the Secretary of State last week, he has listened carefully to the issues that have been raised and, I think, has dealt with them. If we just paused, we would not have the opportunity to deal with any of those issues.
Mr Harper
I have only a couple of minutes left.
The shadow Secretary of State had a number of asks, although I noticed that between last week and this week the list had become considerably longer. That is what happens when the asks are not included in the motion. In her speech last week, the hon. Lady specifically asked for waiting days to be removed completely. Waiting days have always been a factor in the welfare system. [Interruption.] I read the hon. Lady’s speech very carefully, and she said at the beginning that she wanted to get rid of the waiting period.
The reason for the waiting period is very simple. If someone falls out of work for a few days, for example, we do not want that person to submit a universal credit claim. There has always been a waiting period in the benefits system, and I think that that is sensible. The Minister has already dealt with the cases in which people need to be paid more frequently, and has accepted, as the Secretary of State did last week—
Mr Harper
I am not going to give way. I have only a minute left.
The Minister has accepted, as the Secretary of State did last week, that the system was not paying people fast enough initially, but also pointed out that the more recent figures showed that the Department had speeded up the payments, and that it has refreshed the guidance to ensure that people can receive advance payments, which I think is very sensible. [Hon. Members: “Loans.”] They are not loans; they are advance payments. Anyone who earns a salary is familiar with the concept of an advance.
I have looked at all the issues that the hon. Member for Oldham East and Saddleworth raised last week. The Secretary of State dealt with each and every one of those issues thoroughly during the debate, but the motion, which called for a pause, did not give a single reason why the Government should pause roll-out. The Secretary of State, the Minister and the Leader of the House have made it clear that as we develop changes in the policy, they will be reported to the House. That is why I do not find it surprising that after only three sitting days—as was pointed out by my hon. Friend the Member for North Dorset (Simon Hoare)—Ministers had not come to the House.
I think that the Minister set out the position very clearly today and that the House has debated it very clearly, and I therefore think that people should have confidence in a policy that will get more people into work.