Employment, Social Policy, Health and Consumer Affairs Council: 6 December 2018

Alok Sharma Excerpts

Tuesday 4th December 2018 Written Statements

[The Minister for Employment (Alok Sharma)]

The Employment, Social Policy, Health and Consumer Affairs Council will take place on 6 December 2018 in Brussels. I will represent the UK.

The Council will be invited to agree a general approach on a regulation establishing a European labour agency and on a third batch of amendments to the worker protection directive on carcinogens and mutagens (2004/37/EC).

The Council will receive reports on progress in negotiations regarding a regulation on the European Globalisation Adjustment Fund (EGF) and a proposal from 2008 for a directive on equal treatment.

The Council is also expected to reach political agreement on a recommendation on access to social protection for workers and self-employed, and to adopt a set of conclusions on gender equality, youth and digitalisation.

The Council will hold a policy debate on an issue related to the European semester. It will also receive a presentation from the Commission on its 2019 “Autumn Package” of annual growth survey, alert mechanism report, draft joint employment report, and draft recommendation on the economic policy of the euro area. The Council will also approve a contribution on that recommendation made jointly by the Employment Committee (EMCO) and the Social Protection Committee (SPC); endorse their joint messages on aspects of digitalisation and robotisation; and endorse EMCO’s key messages on the latest biennial assessment of member states’ progress tackling long-term unemployment.

Under any other business, the Commission will present information on its activities, as well as the Tripartite Social summit which took place on 16 October 2018. The presidency will provide information on current legislative proposals, the joint declaration on gender equality and presidency events on:

(i) Digitalisation of work;

(ii) Fight against occupational cancer; and

(iii) Gender equality.

The Maltese delegation will present a non-paper on future of the LGBTI list of actions and the Romanian delegation will provide information on their work programme for their upcoming presidency.

[HCWS1134]

Universal Support: East Suffolk

Alok Sharma Excerpts

Wednesday 28th November 2018 Westminster Hall

[The Minister for Employment (Alok Sharma)]

It is a pleasure, Mr Hosie, to serve under your chairmanship for, I think, the first time.

I thank my hon. Friend the Member for Waveney (Peter Aldous) for securing this important debate. He is a real champion of his local community, and he continues to raise issues in the House that are important not only to himself and his constituents but more widely. I completely understand that he wants to ensure that his constituents receive the support they need in the welfare system and, if required, further support to help them into work.

Yesterday, my hon. Friend and I had the pleasure of attending and speaking at the Give us a Chance annual reception in Parliament, where the organisation launched its Communities that Work campaign to help even more social housing tenants into work, and I was very pleased to attend that event with him. Of course, across the Department of Work and Pensions network we already have jobcentres working closely with housing associations to support people in gaining new skills and to help them into work.

Let me turn to universal credit more widely. As my hon. Friend noted, universal credit rolled out in his area in 2016. I was very pleased to visit his local jobcentre in Lowestoft with him in September, and like him I was impressed by the commitment of the staff. In fact, I pay tribute to him, and I thank him and his staff, for the very real and positive interaction he has had over a long period with his local jobcentre.

My hon. Friend talked about issues that arose regarding the delivery of universal credit in his constituency in 2016. However, I hope he will also acknowledge that, over the last couple of years, we have made changes—positive changes—in supporting people on universal credit. I will just outline a few of those changes before moving on to talk in more detail about universal support, which I know he is keen for me to discuss.

In the 2017 Budget, we announced a £1.5 billion injection for universal credit. That came in earlier this year and meant that the seven-day waiting period before the activation of a universal credit claim was abolished. Also, advances of up to 100% of the estimated payment at the end of the first period are now available, interest-free and repayable over 12 months—that will be extended to 16 months in the future. There is also a two-week run-on of housing benefit, which is money that does not have to be repaid and that helps people who are currently receiving housing benefit with their cash flow.

In the Budget a few weeks ago, another net £4.5 billion over the scorecard period was injected into universal credit. I will pick out just two items. The first is that work allowance is increasing by £1,000 from next April, which will assist 2.4 million families. Secondly, as part of the managed migration process that my hon. Friend mentioned, there will be the two-week run-on of out-of-work DWP legacy benefits, which will assist around 1.1 million people.

My hon. Friend talked about the direct payment of rents. I know that he will welcome the fact that we now have the landlord portal in place. It was co-designed with a number of housing associations and allows for direct payments to social housing providers. By the end of this year, around 90% of all social housing stock will be covered by the landlord portal. Of course, work has also gone on to ensure that those who are in the private rented sector are also able to have their rent paid directly to their landlord, if that is appropriate. In addition, up to 85% of childcare costs are covered under universal credit, and it has been possible since earlier this year for individuals to upload information about those costs, so the process is much more efficient.

I hope my hon. Friend will agree that we have listened and acted to improve the system. He wrote to me some weeks ago, and I owe him a response, but I wanted to attend this debate and hear any further comments that he quite rightly wanted to make before I responded. If I am not able to give him satisfaction with my answers today, I will make sure that I do so in writing to him in the next few days.

Let me turn to universal support. I agree with my hon. Friend that it is an incredibly valuable service, particularly when it is delivered in the right, targeted way. Since 2017, universal support has been delivered by individual local authorities. Some of them have chosen to deliver this service directly themselves; some—around a third of local authorities—have chosen to outsource the service to third parties, such as Citizens Advice. I believe that certain local councils have set up a model whereby Citizens Advice takes the lead in providing personal budgeting support.

Although I appreciate that some local councils are doing good work in the area of universal support, provision across the country is, if I may say so, mixed. My hon. Friend highlighted all the good work that has been going on in his local area, and of course I commend that work and all the key stakeholders who have been involved in it. I will come on to say how they can perhaps continue to work together.

However, based on the information we have received from local authorities across the country, take-up of universal support in 2017-18 was around 30% of what the DWP had forecast it would be. Clearly, what we needed to ensure, and what we want to ensure, is that we have a system in which more people receive this support and that we reach out and assist the people—particularly the vulnerable—who ultimately need it. My hon. Friend referred to the need for us to reach out to those who are particularly vulnerable.

I will just set out how the Department took this decision about the new partnership with Citizens Advice. As my hon. Friend and others will be aware, for some time now key stakeholders have been quite vocal that, in its current format, universal support was not delivering on its aims and that claimants were ultimately missing out on this key support. More recently, the Work and Pensions Committee opened an inquiry into universal support, and I provided it with oral evidence in July. The Committee has since published its report, and the Department will of course respond to all the points it raises.

In recent months, Citizens Advice and a number of other charities, think-tanks and MPs have shared evidence with the Government showing that the type of support available, and how people can access it, differs depending on where people live. As the Government have continued this “test and learn” approach to universal credit, the design of the support has needed to change.

As my hon. Friend pointed out, it was announced on 1 October that from April 2019 Citizens Advice will deliver a more comprehensive and consistent support service, independent of Government, to help ensure everyone can access the support they need to complete a universal credit claim, no matter where they live. Of course, the DWP maintains close partnerships with local authorities in many areas—for example, in identifying customers with safeguarding, housing and health needs, and in initiatives such as troubled families support.

Local authorities are funded for the current year to deliver universal support, and they will continue to do so until the end of March 2019. I raise this point because my hon. Friend asked what would happen in future years. The grant agreement for local authorities is only ever for one year, and there should not necessarily be an expectation that funding will continue beyond this year of allocation. Citizens Advice has been asked to run alongside the arrangement that local authorities currently have in place to get up to speed, so that it is ready to deliver from 1 April with no gap in service provision. My hon. Friend raised the issue of funding for next year. Some £39 million will be provided to Citizens Advice, and money is also going in this year to help it get up to speed.

Local Citizens Advice already has strong working relationships with key partners such as local authorities and housing providers, and will be working closely with them as the service is launched. Citizens Advice will build on where good practice exists, such as local good partnership working. From the perspective of Citizens Advice, it is of course independent of Government, but as my hon. Friend pointed out, the Citizens Advice in his area has strong working relationships with key partners. I certainly expect that it will work closely with those key partners as the service is launched, and build on where good practice exists, including local good practice.

The Work and Pensions Committee put out its report on universal support on 28 October this year, and I will read a short extract from it:

“The Department’s announcement that the contract for Universal Support will pass to Citizens Advice and Citizens Advice Scotland in 2018/19 and 2019/20 will help take pressure off already-stretched local authorities.”

My hon. Friend talked about what will happen beyond that period. Clearly, we will look to see how the partnership we have in place with Citizens Advice progresses. I completely appreciate that, as we move into managed migration, we need to make sure we have an offer that is robust and sufficient to assist people.

In conclusion, the Department for Work and Pensions wants the strong partnerships with local authorities to continue. We want universal support to be delivered well and consistently across the country, and I certainly expect there to be continued local working between Citizens Advice and other key stakeholders on the ground. For me, this is the start of a conversation with my hon. Friend, and as time progresses and Citizens Advice develops its partnerships nationally and locally, I will be happy to continue this dialogue. As I said, I will, of course, write to him in the coming days about any of the points that I have not been able to answer.

Question put and agreed to.

Universal Credit and Child Tax Credit: Two-child Limit

Alok Sharma Excerpts

Tuesday 27th November 2018 Westminster Hall

[The Minister for Employment (Alok Sharma)]

It is a pleasure to serve under your chairmanship, Mr Streeter. I thank the hon. Member for Glasgow Central (Alison Thewliss) for securing this debate. I know she has a long-standing interest in the subject, and earlier this year we met at the Department for Work and Pensions to discuss issues relating to this particular policy. Yesterday, as the shadow Minister just pointed out, there was a cross-party roundtable led by the Bishop of Durham to discuss these issues and I took part for some of the time, as did the hon. Lady. I thank all Members who have contributed to today’s debate.

My style is generally not to feed rancour in a debate, because I think it is important that we have a civilised discussion and colleagues have an opportunity to raise issues that are important to them, but the hon. Member for High Peak (Ruth George) talked about the fact that an economic mess has been created over the past eight years. I respectfully say to her that she was not in this House in 2010. A number of us were, and I would say that the economic mess we inherited was from the previous Labour Government. I must point out that 3.3 million jobs have been created since 2010—I see hon. Members shaking their heads in disbelief, but that is a fact—and wages are now outpacing inflation. The vast majority of those jobs are full-time and permanent, at a high level of education. That is not an economic mess.

[Rushanara Ali]

Will the Minister address the social mess that his Government have created? That includes not only this policy, but welfare and policing—the list goes on. Will he respond to the serious concerns that hon. Members have raised today? That is what we are after: not looking backwards, but addressing the problem at hand.

[Alok Sharma]

Of course I will address the issues, but it is important to look back and see where we have come from to reach the policies that we are now putting in place.

Several hon. Members mentioned universal credit. I know that this debate is not about universal credit, but I am afraid I must point out that the legacy benefits system is not really fit for purpose. It is incredibly complicated, and as a result 700,000 households are not claiming—or are not able to get hold of—the full amount owed to them. Under universal credit, those households will be £285 better off on average per month. Likewise, 1.4 million people spent the best part of a decade on unemployment benefits under the last Labour Government, but that is changing.

I accept there has been discussion about finances, but I must say to SNP colleagues that, as Labour Members have pointed out, the Scottish Government have the power to create new benefits in devolved areas. They are able to provide assistance to meet short-term risk and they have the ability to top up reserved benefits from their own resources.

[Neil Gray]

Will the Minister give way?

[Alok Sharma]

I will, but I point out for the record that the hon. Gentleman did not give way when Labour colleagues wished to raise that precise point with him.

[Neil Gray]

The Minister points out that I did not give way, but of course I was at the end of my speech; I was winding up to allow him enough time to contribute to the debate. He says that the Budget interventions will make people better off, but the former Secretary of State, the right hon. Member for Tatton (Ms McVey), suggested that people on universal credit were £2,400 worse off. If the Government are suggesting that their intervention will make people £600 better off, does that not mean that people will still be £1,700 worse off as a result of their actions on universal credit?

[Alok Sharma]

Again, I must respectfully say to the hon. Gentleman and to other Opposition colleagues that it is one thing to say that they want to support their constituents and that I should be prepared to look people in the eye—but they too should be prepared to look their constituents in the eye and explain why they would not vote either for the additional £1.5 billion that we brought in earlier this year to support people on universal credit or for the Budget measures, which I will talk about in more detail.

[Several hon. Members rose—]

[Alok Sharma]

If I may, I would like to make some progress.

The fundamental aim of our policy is to strike the appropriate balance between support for claimants with children and fairness to taxpayers and families with children who support themselves solely through work. Colleagues may disagree, but a benefits structure that adjusts automatically to family size is ultimately not sustainable. Our benefits system needs to be fair both to those who need the support and to taxpayers, but ultimately it needs to be sustainable. Parents who support themselves solely through work would not generally expect to see their wages increase simply because of the addition of a new child to their family. Of course we recognise that some claimants are not able to make the same choices about the number of children they have; that is why we have exceptions in place for additional children in multiple births and children likely to be born as a result of non-consensual conception.

[Ruth George]

The Minister makes his case about children who are due to be born. What arguments does he make to parents and families who already have three or more children, who are all going to be affected by this policy and who have absolutely no choice about it?

--- Later in debate ---

[Alok Sharma]

The hon. Lady raises a perfectly valid point, which I will get to if she gives me the opportunity.

From 28 November, exceptions will also apply to children in kinship care, regardless of the order in which they joined the household. The exception will also be extended to children who are adopted who would otherwise be in local authority care. It is also worth noting that as a result of natural or managed migration to universal credit, families’ existing entitlement will be protected as long as they remain responsible for the same children and remain entitled to benefits; that will apply regardless of the number of children in their household or their date of birth.

As hon. Members will know, a judicial review of the policy was heard in the High Court earlier this year. The Court found that it was lawful overall—a judgment that the Government welcomed. Several colleagues have spoken about the impact of the policy on particular groups, but I should point out that the High Court judgment on 20 April found that the policy did not breach the right to freedom of thought, conscience and religion.

The Government remain committed to providing support for families. Under universal credit, 85% of childcare costs are covered—up from 70% under the old system—and, for the first time, people in part-time work can get help. That comes on top of the Department for Education’s 30 hours of free childcare provision for three and four-year-olds in England.

[Mr Ivan Lewis]

Will the Minister give way?

[Alok Sharma]

No, I will not, if the hon. Gentleman does not mind.

The flexible support fund is available to help eligible parents who are moving into work to pay up-front childcare costs or deposits. Child benefit continues to be paid to parents regardless of the number of children within the household. There is also an additional amount in universal credit designed to support disabled children, again regardless of the total number of children in a household.

To return to the Budget, we have listened to feedback about the support available for families on universal credit and we have acted. In last month’s Budget, the Chancellor announced that an extra £1.7 billion a year will be put into increasing work allowances for families with children and disabled people, strengthening universal credit work incentives and providing a boost to the incomes of the lowest-paid. This will result in 2.4 million families keeping an extra £630 per year of what they earn.

[Alison McGovern]

Does the Minister concede that a reduced cut to someone’s income is still a cut?

[Alok Sharma]

I have just explained how, as a result of these work allowances, more money is going into the system. As I say, if the hon. Lady wants that to happen, she should help us and vote for these policies.

Given the points made about poverty, it is worth pointing out that 1 million fewer people are living in absolute poverty than in 2010, including 500,000 working adults and 300,000 children. That is a positive outcome. Children living in workless households are approximately five times more likely to be in poverty than those living in households in which all adults work. There are now 637,000 fewer children in workless households than in 2010—a 33% decrease. The number now stands at a record low.

The Government continue to take action to help families with the cost of living through the national living wage, through reducing the universal credit taper to 63%, through raising the income tax personal allowance, and through childcare support, which I have already spoken about.

Several colleagues raised the changes to be made in February. I will simply point out that the High Court has found the policy to be lawful. From the Government’s perspective, this is an issue of fairness, but I will reflect on all the discussions that we have had in this debate.

This has been a useful debate in which colleagues have had the chance to air their views. I hope that I have demonstrated that we are a Government who listen. We have introduced support for families in the system and, of course, we will continue to listen and reflect.

[Mr Gary Streeter (in the Chair)]

Alison Thewliss has the final word.

Oral Answers to Questions

Alok Sharma Excerpts

Monday 19th November 2018 Commons Chamber

[Layla Moran (Oxford West and Abingdon) (LD)]

5. What steps she is taking to measure progress on her Department’s objective of getting 200,000 more people into work through universal credit.

[The Minister for Employment (Alok Sharma)]

Under the universal credit business case, we expect universal credit to deliver an economic benefit of £8 billion a year in steady state, and result in 200,000 more people moving into work. We published a labour market evaluation strategy on 8 June, setting out how these impacts will be measured.

[Layla Moran]

I thank the Minister for his answer, but a recent Public Accounts Committee report on universal credit found that the Department, as it has in fact admitted, cannot empirically measure the number of people who are going back to work. I welcome the new Secretary of State to her place, but may I encourage her to read this report? How on earth, if the data are not reliable, can we meaningfully achieve any kind of target?

[Alok Sharma]

I encourage the hon. Lady to look at the document we have published about what we will be doing to measure this number. However, I also point her to the record levels of employment: the fact that there are more people in work in the economy right now than ever before, and that unemployment is at a 43-year record low. Jobs are being created and people are moving into work, and that is largely due to the welfare reforms that we have introduced.

[Rachel Maclean (Redditch) (Con)]

Will the Minister elaborate on how much better off families on universal credit are now as a result of measures introduced in the Budget?

[Alok Sharma]

My hon. Friend raises an important point. Earlier this year we introduced £1.5 billion of support, and in the Budget there was £4.5 billion of support. I say to Opposition Members that it is all very well calling for support, but they also have to vote for these measures, which they never actually do.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

The Minister knows that there are huge problems with the roll-out of universal credit in terms of debt, hardship and rent arrears. The new Secretary of State, whom I congratulate on her new post, needs to take time to look at those problems and address the severe poverty that is being caused, not to dismiss the UN report. I urge her and all the Work and Pensions Ministers to halt the roll-out. It will hit my constituency at the end of this month, and frankly, people are deeply worried that we are going to see delays, debt and hardship at Christmas. I urge Ministers: halt this roll-out now.

[Alok Sharma]

I hope that the right hon. Lady would also recognise that there are 1 million fewer people living in absolute poverty now than in 2010, when she was in government. If she is concerned about her constituents, I would be happy to talk to her and her local jobcentre to provide them with the assurances that they need.

[John Cryer (Leyton and Wanstead) (Lab)]

The target is getting 200,000 extra people into work through universal credit. How many have been delivered so far?

[Alok Sharma]

Since the hon. Gentleman is keen to talk about the number of people in work, I point him to the universal credit claimant survey, which we published in June. It showed that under universal credit, employment levels almost double between the point of the claim and nine months into it.

[Kevin Foster (Torbay) (Con)]

6. What steps the Government have taken to support industry to deliver the pensions dashboard.

--- Later in debate ---

[Victoria Prentis (Banbury) (Con)]

14. What steps the Government have taken in Budget 2018 to ensure that people in work keep more of what they earn when in receipt of universal credit.

[The Minister for Employment (Alok Sharma)]

In the Budget, the Chancellor announced a £1,000-a-year increase in work allowances from April next year. It will provide an annual boost of £630 for about 2.4 million working families across the country.

[Victoria Prentis]

Does my hon. Friend welcome those announcements in the Budget? Does he agree that not all Labour’s legacies were as effective as those mentioned in the previous question, and that a system which penalised hard-working people with marginal tax rates as high as 90% was not effective?

[Alok Sharma]

My hon. Friend is absolutely right. Under the legacy benefits system, some people faced punitive marginal tax rates. The fixed taper rate under universal credit ensures that work always pays, and that is why we are seeing more people getting into work.

[Grahame Morris (Easington) (Lab)]

Work does not always pay—that is the problem. A million more children whose parents are working are living in poverty, and a million and a half people are relying on food banks. Why do the Government not implement Labour’s plan for a £10 minimum wage and ensure that work truly does pay?

[Alok Sharma]

As I said, we introduced a £1,000 increase in work allowances in the Budget. The Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman), talked about the living wage, which was introduced by this Government and has risen by 4.4% this year. At the end of the day, however, we also want to ensure that people are getting into work. If the hon. Gentleman is particularly focusing on children, he will know that children living in workless households are five times more likely to be living in poverty than those in households in which the adults work.

[Sir Edward Leigh (Gainsborough) (Con)]

15. What estimate the Government have made of the number of jobs created since 2010.

--- Later in debate ---

[Theresa Villiers (Chipping Barnet) (Con)]

16. What steps she is taking to ensure that the welfare system rewards people (a) moving into work and (b) extending their working hours.

[The Minister for Employment (Alok Sharma)]

I want to start by thanking my right hon. Friend for the engagement and support that she gives to her local jobcentre. As I have noted, we recently announced in the Budget a £1,000 increase in work allowances. We also have the single taper to ensure that claimants are better off working, and working more. Evidence also shows an increase in earnings for those in work and on universal credit by an average of £600 a year.

[Theresa Villiers]

Can the Minister confirm that claimants on universal credit are more likely to move into work and more likely to make progress towards longer hours in work under this system, compared with the old system that we inherited from Labour?

[Alok Sharma]

My right hon. Friend makes an important point. Under the legacy benefits system, around 1.4 million people spent almost a decade trapped on benefits instead of being helped into work, and much of that time was under the last Labour Government. Under universal credit, people get into work faster, they stay in work longer and, very importantly, they earn more.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

18. May I say to Government Front Benchers that Christmas is coming and the goose is not going to get very fat for many of our constituents? The new Secretary of State lives in a more normal constituency than the Chancellor or the Prime Minister. Will she think about Christmas and what universal credit is doing to so many of her constituents and mine?

[Alok Sharma]

As we have pointed out, under universal credit people are able to get the one-to-one support with their work coach that was not possible under the legacy benefits system. Again, I reach out to the hon. Gentleman. If he has concerns in his own constituency, I am very happy to have a discussion with him and his local jobcentre, because we want to support absolutely every single person who is in the welfare system.

[Richard Graham (Gloucester) (Con)]

The welfare system undoubtedly encourages our constituents into work and rewards them in work, but the system does not always capture that because of the anomaly of the claimant count being used as a proxy for unemployment, whereas in fact many people who are on universal credit are working. What can the Minister do to try to improve the statistical way in which this is recorded?

[Alok Sharma]

My hon. Friend raises an important question. As he will know, we had a consultation on this particular point. We have published our findings, and I would be very happy to share those with him. Perhaps it would be appropriate for me to write to all colleagues setting out the changes that we are proposing.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

Is it not obvious how few questions we have had from Conservative Members today on some of the biggest changes to welfare reform in a generation? I have raised with Ministers many times now the fact that those who are getting a change of circumstance as they move on to universal credit do not have the transitional protections at the moment. Ministers keep telling me that they do, but they do not. I have had universal credit in my constituency for a long time, and I could give them a catalogue of cases where people are worse off on universal credit as a result of this. With the new leadership at the Department, can the tin ear now be opened a little?

[Alok Sharma]

If the hon. Lady is keen on protecting people who move from legacy benefits on to universal credit under the managed migration process, I would invite her to vote for the regulations, with me and my colleagues, when they come through Parliament later this year.

[Alison McGovern (Wirral South) (Lab)]

21. What assessment she has made of the effect of universal credit on lone parents.

--- Later in debate ---

[Alex Cunningham (Stockton North) (Lab)]

T5. My constituent Natalie Tingle works hard in her job and as a student, but is £400 a month worse off after switching to universal credit and losing child tax credit. She now gets just £12 a month, as her student loan is counted as income, and she is getting into debt. Will the Minister investigate her circumstances and find a way to help?

[The Minister for Employment (Alok Sharma)]

I am very happy to meet the hon. Gentleman and discuss that particular case.

[Henry Smith (Crawley) (Con)]

T9. I am very grateful to Crawley DWP staff, who successfully helped with the transition to universal credit in June. Will my right hon. Friend update the House on the support available to claimants who are transferring?

--- Later in debate ---

[Dr Paul Williams (Stockton South) (Lab)]

T10. I have received a letter from a constituent who is a universal credit caseworker. She describes overworked staff looking after so many cases that people receive payments only when they complain. Will the Minister respond to this whistleblower’s allegation of chaos?

[Alok Sharma]

If the hon. Gentleman has a particular case to raise, I am happy to discuss it, but I should say that I and my colleagues go up and down the country to jobcentres, and I am afraid that the characterisation that he described is not the one we find. We find work coaches who are really enthusiastic about delivering universal credit and supporting people on a one-to-one basis. When it comes to payments, 80% of people get their full payment on time for the first assessment period and 90% will be receiving at least part-payment, but of course we require information to be provided to us—for instance about childcare or other costs—before we can make those payments.

[Sir Mike Penning (Hemel Hempstead) (Con)]

I have sat here patiently through questions, and there have been lots of congratulations from across the House, particularly to the Secretary of State and the previous Secretary of State, quite rightly, but the people who should be congratulated are those in jobcentres and those who have got the jobs. In my constituency of Hemel Hempstead, which is a new town—it is 70 years old, but we are a new town—we have the lowest unemployment ever. In 2010 it was 2,460; it is now 820. Those people should be congratulated.

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[Stephanie Peacock (Barnsley East) (Lab)]

In March, I wrote to the DWP regarding a systematic error in the housing element of universal credit that was incorrectly deducting £70 from claims. I was assured that the fault was known and the fix was on its way, but eight months later my constituents are still having their money taken. When will the Government sort out this mess?

[Alok Sharma]

If the hon. Lady would like to have a discussion about this case, I will of course look into it. Quite a lot of the time, I find that when Opposition colleagues raise issues, they do not always follow up with the individual cases. I hope that on this occasion, she will do so.

[Several hon. Members rose—]

Universal Credit Roll-out: Nottingham

Alok Sharma Excerpts

Wednesday 14th November 2018 Westminster Hall

[The Minister for Employment (Alok Sharma)]

It is an absolute pleasure to serve under your chairmanship, Mrs Moon. The hon. Member for Nottingham North (Alex Norris) gave us an interesting contribution, and we heard interventions from a number of colleagues. I will respond to those, but I start by putting into context where we are in terms of job figures.

I suspect we all agree that ultimately we want a welfare system that supports individuals, is fair to taxpayers and helps people into work. Yesterday, the Office for National Statistics published employment statistics that showed more people in work now than at any time. The rate of women in work is at a near record high. The employment rate for people with ethnic minority backgrounds is at a record high. Youth unemployment has halved since 2010. Since 2013, almost an extra 1 million people with disabilities have come into the workforce.

Some 3.3 million jobs have been created since 2010. There is always a discussion about what kind of jobs those are. Some people suggest that they are low-paid jobs that are not permanent, but that is not the case: 75% of the jobs created since 2010 are full time, permanent and in higher-level occupations that attract higher salaries—not my statistics, but those of the Office for National Statistics.

[Mike Amesbury (Weaver Vale) (Lab)]

I thank the Minister for giving way—

[Lilian Greenwood]

I am sure we have all heard what the Minister has said. Of course we welcome the fact that more people are getting into work, but many of the cases that we deal with in our constituencies are of people who are on universal credit not because they are out of work, but because they are in work and simply not earning enough to support their families. Many of the ways in which universal credit works do not support people who are in work, so people who have a fixed pay date but get paid early one month because the date falls on a weekend or a bank holiday find that they get two pay sessions in their universal credit assessment period and lose their universal credit altogether. Why is the Minister not addressing those concerns for people who are in work but not earning enough to be out of poverty?

[Alok Sharma]

I had just started to set out the case. Opposition Members have made a case, and I am responding to it.

I return to the point about the jobs that are being created. There is always a lot of noise about zero-hours contracts, and I am pleased that we as a Government have banned exclusivity in them, but in the economy right now, fewer than 3% of jobs are classed as zero-hours contracts and those individuals are working an average of 25 hours a week. The number of zero-hours contracts has come down this year.

I hope we are all pleased that wages are growing at the fastest rate in almost a decade. That is an incredibly positive development and I hope it will continue. I do not want to be churlish, but several hon. Members who were here in 2010 will remember that we were told by Opposition Members that 1 million jobs would be lost as a result of the Government’s policies. That has not happened. We have a buoyant jobs market with more than 3 million jobs created since 2010. Our welfare reforms have played a big part in ensuring that we are helping people get into work.

When we talk about universal credit, we have to compare it with the legacy benefit system that it replaces. As constituency MPs, we know that the legacy benefit system is incredibly complicated, with six benefits delivered by three different Government agencies, effective tax rates of 90% for some people and cliff-edges that disincentivise people from taking on work beyond a certain number of hours. As a result, 1.4 million people were trapped in benefits for almost a decade. Hon. Members talk about the amount of money in the system, but under the legacy benefit system, £2.4 billion of benefits are not claimed. That will change under universal credit, which will benefit 700,000 households to the tune of an average of £285 a month.

When it comes to universal credit, we are providing that support. I know that the hon. Member for Nottingham North has visited his jobcentre and sat with jobcentre staff. I am pleased that he has praised their work. He will know, because he has sat in on those interviews—as I saw in his newsletter—and seen the interaction, that for the first time in the welfare system, we are ensuring that one-to-one support is provided to the individuals we are interacting with. As part of my role, I regularly go up and down the country visiting jobcentres. Invariably, I hear from jobcentre staff that they feel that this system allows them to do what they came into the system to do—provide that one-to-one support. I find that incredibly heartening.

As I said, the cliff-edges are gone and we have a smooth taper. Under universal credit, people are getting into work faster, staying in work longer and earning more. In terms of support in the system, we introduced an extra £1.5 billion of support earlier this year. I am disappointed that Opposition Members did not vote with us on that, because it meant that the seven-day waiting period was abolished; two weeks of run-on in housing benefit was made available, which does not have to be repaid; and people can now get 100% advances on day one, if that is what they need, to help with any cash-flow issues. We can see that that is working, because 60% of people who are now coming on to universal credit are taking up advances. That is a result of the support that their work coaches are providing.

In last month’s Budget, another £4.5 billion net was injected into universal credit. Work allowances are up by £1,000, which will benefit 2.4 million families up and down the country, particularly those on low incomes, to the tune of £630 a year. In terms of helping individuals, as we have ensured that there is a two-week run-on for those who are on housing benefit coming on to universal credit, we shall also ensure that there is a two-week run-on of out-of-work Department for Work and Pensions legacy benefits for those who come across to universal credit as part of the managed migration process. Again, that will help more than 1 million households throughout the country.

[Lilian Greenwood]

Many people will have welcomed the Chancellor’s announcement that the universal credit work allowance was to be raised by £1,000, but it was raised for only some universal credit recipients. Admittedly, it increased for people with disabilities and parents with current responsibilities for children, but low-paid working couples whose children have left home or who do not have children were excluded. Poverty is poverty. Why was support provided for some families and some individuals but not others? Why did those working families not benefit from the £1,000 increase?

[Alok Sharma]

I would have more sympathy for the hon. Lady’s argument if she had voted to support the Budget, which Opposition Members did not do. I feel strongly that although it is right that hon. Members on both sides of the House raise the issues they have with any system or policy of the Government, the point where money is being put into the system to support their constituents and mine is the point at which they have to follow through and support those policies.

The hon. Member for Nottingham North has engaged with his jobcentre by visiting and taking part in a Disability Confident event organised by it, but that is not the same for all hon. Members present. I would encourage every single hon. Member—[Interruption.] I did not allude to the hon. Member for Gedling (Vernon Coaker), but there are hon. Members who have raised issues in the debate who have not visited their jobcentres recently. I encourage all hon. Members to engage with their jobcentres.

Where hon. Members have individual issues, they should raise them directly with the jobcentre and they should feel free to write to me as the Minister responsible. Again, I do not wish to be churlish, but—if I may put it like this—there has not been a large amount of correspondence about universal credit from hon. Members representing Nottingham, but where there are issues, they should feel free to raise them.

In terms of preparation by the local jobcentre, I had an opportunity yesterday, ahead of the debate, to speak to the district lead for Nottingham who is responsible for the three jobcentres. There has been a huge amount of engagement: 350 stakeholders have been met and eight or nine stakeholder events have taken place, including meeting landlords. That is all part of ensuring that we deliver what we all want for our constituents—a system that works.

Whatever our political differences, one thing that we can unite on is that we want a system that delivers, particularly for the most vulnerable, which is precisely what universal credit is doing. We want a system that supports the most vulnerable, that is ultimately fair to taxpayers, and that helps people into work.

Question put and agreed to.

Universal Credit

Alok Sharma Excerpts

Wednesday 17th October 2018 Commons Chamber

[Shabana Mahmood]

I will not.

It is not unusual for Government programmes to run into trouble. I am a member of the Public Accounts Committee and it is our bread-and-butter work every week to look at Government programmes that run into difficulties. A Government who cared about a programme —one that is not a vehicle for cuts and is not designed to force people to have less money than the system it is replacing—would actually engage properly and genuinely to learn lessons and make the programme better. Instead, the Government said that talk of cuts was somehow fake news. The Secretary of State then had to admit that people are going to be worse off. We have heard the figures of £200 a month and £2,400 a year being mooted. That is a staggering sum of money to lose every year for the working poor and the vulnerable in our community. We know that the self-employed will potentially be up to £2,500 a year worse off compared with those who are not self-employed under the new system. These are the realities that the Government cannot deny. That is not fake news; that is just the truth.

The Government and the DWP said to the National Audit Office—this was recorded in its most recent report—that the organisations at the coalface of helping our constituents to deal with the troubles they face because of universal credit, whether the Trussell Trust, other people who run food banks or local government, which is now facing much higher levels of rent arrears than previously, are motivated by a desire to lobby for changes rather than accurately reflect what is happening on the ground. That is a disgraceful attitude for the Department to take towards organisations that, yes, may well have a different vision for how they think the social security system should work, but are absolutely telling the truth about the destitution and difficulties our constituents are facing.

I invite the Secretary of State and any of her Ministers to come and spend a day in my constituency office and to see the explosion in our case load that has been created by the roll-out of universal credit. My staff spend most of their time every single day on the phone trying to sort out difficulties arising from universal credit. I shall highlight just two cases we have had recently, the first regarding delayed payments. The Government say they are taking action on that, but I have a constituent who has not received any money since 12 July. He has no money for food, fuel or anything. I invite the Secretary of State to intervene and tell me what I should tell him about where he should get some money to try to survive while his universal credit is being sorted out.

[The Minister for Employment (Alok Sharma)]

I thank the hon. Lady for taking an intervention. What I say to her, and I have said this before in the House, is that if there are individual cases Members should bring them directly to Ministers. [Interruption.] I am sorry, but that is not what happens. What we hear are general comments. After this debate, if she is willing, I will talk to her directly about the cases that are affecting her constituents.

[Shabana Mahmood]

I wish it was just one case. I would happily bring them all to the Minister and he can tell me how I should respond to my constituents, but my experience of engaging with the Department on this matter is not a happy one. If he wants to become the constituency caseworker for the whole of the House for universal credit cases, he will be a very busy man. In fact, it would be easier for him to improve the system and fund it properly so that people are not forced into destitution in the first place.

There is a particular difficulty in my constituency relating to constituents with autism and other mental health conditions moving on to universal credit, often because they have failed the assessment—they had previously been in receipt of employment and support allowance—having not been supported as they tried to navigate a very complicated online system. The support that is available is simply not enough. I invite the Government and the Minister, in that spirit, to revisit some of those issues, because they are not ones that he will be hearing from me for the first time.

In this context, it beggars belief that the Government wish to continue with managed migration. There is only one fair, humane and compassionate thing that they could do for all the people facing difficulty under the system: stop the roll-out and try to genuinely engage and fix the problems of universal credit right now, before they move on. Most importantly, however, they need to fund it properly, because this is a vehicle for cuts—they know it, we all know it, and our constituents are paying the price for it.

--- Later in debate ---

[The Minister for Employment (Alok Sharma)]

No one can say that universal credit does not get a decent outing in the House: we debated it at departmental oral questions on Monday; I responded to an urgent question on it yesterday; here we are discussing it again today; and tomorrow I shall appear before the Work and Pensions Committee. It is of course right that we debate, that we as a Department are held to account and that we listen and improve the system—that is what we are doing with universal credit. In her speech, the Secretary of State outlined all the measures we have taken and all the changes we have made over the past months. It has been about benefiting all our constituents who need support.

In this debate, we, and the Opposition in particular, should never lose sight of what it is that we all came into politics to do, which is to improve the lives of our constituents. In the Department for Work and Pensions, it is about not only supporting those who need support but ultimately helping people into work. Of course, helping people into work is about helping people to earn a wage, but it is often also about much more than that. It is about restoring someone’s self-confidence, giving them their pride back and fuelling that sense of fulfilment that comes from their being able to support themselves and their family. That is precisely what universal credit does. It is a system that supports the vulnerable, that is fair to taxpayers, that is sustainable and, ultimately, that makes work pay.

As a number of my colleagues pointed out, under universal credit, people get into work faster, stay in work longer and earn more. As the latest jobs figures showed yesterday, our policies are working. They are helping people into jobs.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

Will the Minister give way?

[Alok Sharma]

I will not take interventions. I took around 50 interventions, in effect, from colleagues yesterday, so I hope the hon. Lady does not mind.

Unemployment is at a 43-year record low. Youth unemployment has more than halved since 2010. Wages are growing above inflation for the seventh month in a row. Britain is starting to get a well-deserved pay rise as we come out the other side of the terrible economic legacy that we inherited from the last Labour Government. This is a record that we on the Government Benches are proud of.

We heard some excellent speeches today; let me outline some of the comments that were made. We heard a really thoughtful speech from my right hon. Friend the Member for Forest of Dean (Mr Harper), who pointed out the disaster of the introduction of tax credits. My hon. Friend the Member for Sittingbourne and Sheppey (Gordon Henderson) talked about the enthusiasm and commitment of the staff in his local jobcentres. My hon. Friend the Member for Plymouth, Moor View (Johnny Mercer) made a really passionate speech. I recently visited his local jobcentre with him and he absolutely cares. When he said that the legacy benefits system sapped ambition, he was absolutely right. My hon. Friend the Member for Dartford (Gareth Johnson) pointed out the problems in the legacy benefits system. My right hon. Friend the Member for Witham (Priti Patel), a former Employment Minister, talked about Labour’s welfare trap.

My hon. Friend the Member for Amber Valley (Nigel Mills) made a thoughtful speech and pointed out that at the end of the day this is about making sure that work pays. My hon. Friend the Member for St Austell and Newquay (Steve Double) pointed out that he has constituents who have recommended universal credit to other constituents as something that absolutely works for them. My hon. Friend the Member for Croydon South (Chris Philp) talked about the legacy benefits system being broken.

My hon. Friend the Member for Harborough (Neil O'Brien) talked about the fact that under universal credit the incentives to work are absolutely strengthened. My hon. Friend the Member for South Cambridgeshire (Heidi Allen) pays a huge amount of attention to these issues and is incredibly engaged with them. She highlighted our excellent new partnership with Citizens Advice. My hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson) reminded us that people were trapped on the legacy benefits system. My hon. Friend the Member for Erewash (Maggie Throup) talked about tax credits.

I could go on. I am sorry that I have not been able to mention all the excellent speeches made by Conservative Members. When Opposition Members have individual issues, they should bring them to us. It is no good talking in generalities; bring forward those issues and we will address them.

The Secretary of State, in her opening remarks, outlined all the reports and the information that we as a Department have already published on universal credit. She made it clear that many independent organisations publish regular reports about universal credit, too. This is not a welfare reform lacking in scrutiny and transparency. However, this is not just about publishing information; it is also about interactive dialogue, which we are having.

We will continue to engage as we move forward for the next phase of universal credit, but playing politics with people’s lives helps no one. We should be working together to support the most vulnerable. I urge the House to reject the motion.

Question put.

Universal Credit

Alok Sharma Excerpts

Tuesday 16th October 2018 Commons Chamber

[Frank Field]

I am just starting my career as an independent, but you are right, Mr Speaker.

The urgent question is: To ask the Secretary of State for Work and Pensions if she will make a statement on her Department’s proposed changes to the roll-out of universal credit.

[The Minister for Employment (Alok Sharma)]

I note the precise wording of the urgent question. I have a great deal of respect for the right hon. Gentleman, who cares deeply about welfare matters and is an excellent Chair of the Select Committee on Work and Pensions. He, his Committee and the whole House have a right to hold the Government to account, and that includes the Department for Work and Pensions.

I do not wish to be unhelpful. However, some of the matters to which the right hon. Gentleman may allude are the subject of speculation in the media. There has been a great deal of speculation about universal credit over the past few days, and I cannot and will not comment on speculation.

When it comes to the roll-out, we have long said that we will take a slow and measured approach to managing migration, which is why we will continue to take a test-and-learn approach, acting on feedback and improving the system as it rolls out.

Universal credit will be in every jobcentre in the country by December 2018. People making new claims to our benefits system now apply for universal credit, rather than being put on the old system. Next year, we will start the wider process of moving people from the old benefits system on to universal credit. The process will begin later next year in a measured way, with no more than 10,000 people moved over, to ensure that the system is working well for claimants and to make any necessary adaptations as we go.

We have said for a long time that the managed migration process will take place from 2019 to 2023.

[Frank Field]

I think I am grateful for that answer. I will be more grateful if we get answers to my five questions, which I will put in the two minutes I am allowed.

Will the Government commit themselves to ensuring that everybody who is transferred from the existing benefits on to universal credit is not made worse off, does not lack income and does not face hunger or destitution? First, to that end, will the Minister guarantee that existing benefit payments will continue to claimants until they pick up universal credit?

Secondly, on debt recovery, a welcome rumour has been given to the papers of a reduction in clawback from 40% to 30%, but that is only on the advance people might receive to prevent hunger and destitution; it does not cover all other debts. People can still be left with no money. Will the Minister guarantee to the House that nobody will face a situation where their debt repayments cancel out their benefit payments?

Thirdly, will the Minister implement the Select Committee’s recommendations to ensure that those brave people who have chosen self-employment to try to free themselves from poverty are encouraged, not discouraged?

Fourthly, for mothers already on universal credit who find work, will he guarantee that their childcare payments will be made up front, and not a month in arrears?

Fifthly, given that this benefit is designed for people on monthly payments and not for poorer working people who get their income on a daily or weekly basis, will the Minister wish me luck when I meet the Secretary of State this afternoon to discuss our need for a citizens bank, which will help people manage their money, once all those reforms are in place, and ensure that none of them faces hunger, destitution or losing their home?

[Alok Sharma]

I thank the right hon. Gentleman for his comments, and perhaps I may go through them in turn. He raised the overall issue of managed migration. As he knows, we have made our draft proposals available to the Social Security Advisory Committee; they have been public and people can see them. We have received recommendations from the SSAC and in due course we will publish our feedback on those. As for ensuring the position of anyone currently on benefits when they are transferred across, we have made it very clear that transitional protection is in place for those individuals. We have also said that the 500,000 people on severe disability premium will be protected. As he knows, earlier this year we also implemented £1.5 billion of extra support. I say not in anger but in sorrow that Opposition Members did not support those proposals, and I hope that when it comes to managed migration, they will. On debt recovery, he talked about a “rumour” and I am not going to comment on rumours, but, as he knows, maximum deductions are currently 40% of the standard allowance. On self-employment, we are indeed helping people; as he knows, from 2017 we introduced a new enterprise allowance, and we are making sure that we are giving support to people to help them to develop their business plans and to grow their businesses—as a party that is the champion of entrepreneurs, that is absolutely the right thing for us to do. He will of course know that up to 85% of childcare costs are recoverable under universal credit, and that is an important improvement that has been made. I am sure that he will find his meeting with the Secretary of State extremely useful.

[Several hon. Members rose—]

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

The aim of getting the withdrawal rate of benefits down from more than 90% to 63% is enormously laudable, but can my hon. Friend ensure that people do not lose out in the transition?

[Alok Sharma]

My hon. Friend is absolutely right; under the legacy benefits system, some people did face effective tax rates of 90% and that system also disincentivised people from work. As I have said, those on legacy benefits that we manage migrate across will of course receive transitional protection.

[Margaret Greenwood (Wirral West) (Lab)]

Universal credit is causing severe hardship for many people claiming it, and over the past two weeks conflicting statements from the Government have caused real confusion over the impact it will have on people who are required to move across to claim it in the next phase. First, we were told that austerity is over and then that families on low income are in danger of losing up to £200 a month as a result of transferring to UC. Next, the Prime Minister said that nobody would be worse off, but the Secretary of State contradicted her the following day by confirming that in fact some families would be worse off. So will the Government now publish their impact assessments of that next phase? How many households currently claiming legacy benefits will be worse off between now and 2023 as a result of making a claim for UC?

Yesterday, the Secretary of State met criticism of UC with accusations of scaremongering. So can the Minister tell us: are Citizens Advice, the Child Poverty Action Group, the National Association of Welfare Rights Advisers, the Residential Landlords Association, the National Housing Federation, the Resolution Foundation, the National Audit Office, two former Prime Ministers and more than 80 organisations representing disabled people scaremongering? From these Benches, we again call on the Government to stop the roll-out of UC now.

[Alok Sharma]

It is interesting that the hon. Lady talks about confusion. Let me be absolutely clear: there is no confusion on the Government Benches; the confusion is on the Opposition Benches. The shadow Chancellor talks about abolishing universal credit and others talk about reforming it. There is no clarity at all from the Opposition. They oppose everything but they have the solution to nothing.

When it comes to hardship, as I just said we introduced an extra £1.5 billion, but the hon. Lady did not vote for or support that. When it comes to protecting people, I have already made it clear that we will have transitional protection and that there will be protection for the half a million people on severe disability premium. I do not know what the hon. Lady wants, but if she wants to go back to the legacy benefit system, she should know that 700,000 people in this country are not getting the benefits that they require. That is £2.4 billion of underpayment and that will change under universal credit. Finally, the hon. Lady talks about Citizens Advice; I hope that she will welcome the partnership we recently announced with Citizens Advice to help the very vulnerable.

[Tom Pursglove (Corby) (Con)]

More women in work, youth unemployment hugely down and record low unemployment not seen since the 1970s; what role has universal credit played in the delivery of that success?

[Alok Sharma]

I was in the House in 2010 when the Conservatives had to come in to sort out the mess left by the previous Government. Labour Members told us that as a result of our policies, there would be a million fewer jobs, but there are more than 3 million more jobs. They should welcome today’s jobs figures. My hon. Friend is absolutely right that unemployment is at its lowest level since 1975, youth unemployment is at a record low—it has more than halved since 2010—and wages are outpacing inflation for the seventh month in a row.

[Several hon. Members rose—]

--- Later in debate ---

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

Thank you for granting this urgent question, Mr Speaker.

In spite of what the Minister has just said, which I think was a return to the flat-earth rhetoric referred to by the BBC’s Michael Buchanan, it appears that the Secretary of State is finally starting to recognise what her predecessors failed to recognise: the fundamental problems with universal credit. Of course, just delaying the process, or reducing the clawback rate, as has been rumoured, will not fix the misery that is being faced in areas where universal credit has already been rolled out, such as Airdrie and Shotts, or in those areas progressing to roll out, such as Glasgow, Edinburgh and Aberdeen.

Yesterday, the Secretary of State hinted to me that she has made requests of the Chancellor for additional funding in the upcoming Budget. In that regard, the Chancellor should really be sitting with the Minister, listening to proceedings on how to make universal credit work. It appears that moves are afoot to change universal credit. If the Minister will not comment on rumours, why will he not be straight with the House now and tell us what the plans are? Does he not agree with the many concerned expert groups listed by the shadow Secretary of State that have called for a halt to the roll-out, dramatic and fundamental intervention in the Budget and a full review of universal credit thereafter?

[Alok Sharma]

As I have said and suspect I will have to keep saying, I am not going to comment on rumours. The Secretary of State was clear yesterday that matters relating to the Budget are for the Chancellor and the Prime Minister. Indeed, the Chancellor will be here in a couple of weeks and the hon. Gentleman can ask questions then. I have already set out our plans for managed migration. If the hon. Gentleman is keen for universal credit to work properly, he should support the measures that we have introduced and will be bringing in to support the most vulnerable. The shadow Secretary of State talked about the £1.5 billion; the debate was on 13 March this year and she did not support the £1.5 billion for the most vulnerable.

[Mr Hollobone]

The roll-out of universal credit reaches Kettering tomorrow. Some 530 local households currently receive universal credit, but 7,700 households on legacy benefits will qualify. Will the Minister assure my constituents that all the staff training and systems are in place at Kettering jobcentre to ensure a smooth migration?

[Alok Sharma]

When we actually do roll out universal credit—as I have said, it will be completed across all jobcentres by the end of the year—we absolutely ensure that full training is given to our work coaches. Of course, local Members of Parliament are invited in to have discussions with jobcentres. I have been with colleagues to several jobcentres where universal credit is about to be rolled out and they have been satisfied with the roll-out process. On managed migration, that will take place from 2019 to 2023 and we will make sure that we get our processes absolutely right.

[Ms Angela Eagle (Wallasey) (Lab)]

Universal credit rolled out in Wirral at the beginning of the year, and in the first six months of this year there was a 34% increase in food bank use in the Wirral area. That is more than 30 tonnes of extra food needed, and the people who work in the food bank tell me that that is a direct result of the universal credit roll-out. If everything is so wonderful, why is this happening and why are a Conservative ex-Prime Minister and a Labour ex-Prime Minister warning the Government that they have to change this system?

[Alok Sharma]

If the hon. Lady was so keen to help her constituents, she would have voted for the extra £1.5 billion of support, but she did not. Labour Members cannot get away from that. Members cannot call for help for their constituents—for all our constituents—and then not deliver when it comes to the votes. As the hon. Lady knows, the all-party group on hunger published a detailed report on this issue and concluded that there are myriad complex reasons for the use of food banks. It cannot be attributed to a single reason.

[Nigel Mills (Amber Valley) (Con)]

The Minister referred to moving people from legacy benefits on to universal credit; will he look into doing that for vulnerable people, rather than relying on them to make a new claim and risking there being a gap in their benefit receipts if they do not understand the process?

[Alok Sharma]

My hon. Friend raises an important point. I am having a series of discussions with key stakeholders, as are the Secretary of State and others in the Department. We will make sure that we get the process absolutely right so that the vulnerable are helped.

[Jess Phillips (Birmingham, Yardley) (Lab)]

Please excuse my voice, Mr Speaker; I am not very well today. But I am not nearly as badly off as my constituent, a women who was sexually assaulted, as were her children, and had to be moved to my constituency for her safety. I think that we can all agree that she would be considered vulnerable. Because of the change to her circumstance, this single, working mother is now £300 worse off. We are hearing today about what the Minister will do for people on managed migration, but what will he do for people who are forced on to universal credit through changes of circumstance that are not their fault?

[Alok Sharma]

As the hon. Lady knows, support is available in the system. I am sorry to hear about her constituent’s predicament. Of course, the whole point of universal credit is that it is a welfare system that also assists people into work. We have analysis that has been published that makes it very clear that under universal credit people get into work faster, stay in work longer and earn more.

[Ben Bradley (Mansfield) (Con)]

I welcome the move to a system of benefits that no longer traps people out of work. A month into universal credit’s roll-out in Mansfield, staff at my local jobcentre are happy with the way things have progressed. Will the Minister confirm that under universal credit a million people who are disabled will see their regular income increase because of the new system?

[Alok Sharma]

I am pleased to hear that universal credit is rolling out in Mansfield and working well. I get a similar message when I go up and down the country. My hon. Friend is absolutely right: 1 million disabled households will on average receive an extra £110 per month as a result of universal credit.

[Ruth George (High Peak) (Lab)]

Why does the House have to rely on rumour and leaks to find out what is going on with universal credit? When will the Department for Work and Pensions release an impact assessment and an equality impact assessment, so that we can all see for ourselves what is happening with universal credit and what the Government will do to put it right?

[Alok Sharma]

As I said, we are reflecting on the Social Security Advisory Committee’s recommendations and will respond in due course. Of course, as we lay the regulations before Parliament, there will be opportunities for debate. The hon. Lady should be patient. We will publish the full plans for the next stage of the roll-out of universal credit, including managed migration, in due course.

[Alex Burghart (Brentwood and Ongar) (Con)]

I strongly welcome the Minister’s commitment to continuing “test and learn” as part of the roll-out of universal credit, as it has delivered several substantial improvements to UC over the past year and a half. As part of that process, will he consider extending the repayment time for advances?

[Alok Sharma]

As my hon. Friend knows, it is now possible for someone to get a 100% advance of their estimated first payment up front on the first day. Advances are interest-free and repayable over 12 months. As I said, I am not going to create policy at the Dispatch Box. Policy decisions will be put out in the appropriate manner as they are made.

[Chris Stephens (Glasgow South West) (SNP)]

What message does the Minister have for beleaguered DWP staff? A trade union briefing sent to MPs yesterday tells a sorry tale of staff having to deal with so many telephone calls that universal credit claims are not being maintained and payments are being delayed.

[Alok Sharma]

I wager that I have been to rather more jobcentres than the hon. Gentleman, and I invariably hear from jobcentre staff that things are working well. However, where we can improve, we do, and staff can feed back about improvements. That is what the “test and learn” process is all about.

[Kevin Foster (Torbay) (Con)]

Universal credit was rolled out in Torbay last month, and I have so far seen a reduction in casework from those who have experienced housing benefit delays, for example, and those who have received demands for overpaid tax credits. Will the Minister outline how he is monitoring the roll-out in Torbay and how he will ensure that it continues to be a success?

[Alok Sharma]

My hon. Friend is assiduous at talking to local jobcentres and acting on his constituents’ behalf. We, of course, have a process whereby jobcentres can feed back information on some of the key metrics, which we monitor regularly.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Given that no lessons whatsoever seem to have been learned from the roll-out of full service universal credit since last year, how on earth would just slowing down the roll-out stop the misery, deprivation and even destitution that millions are facing?

[Alok Sharma]

We are learning as we go along, which is what the “test and learn” process is all about. I hope that the hon. Lady will appreciate the roll-out of the landlord portal and the ability to upload childcare costs. The changes we are making are helping the very people whom require that help: her constituents and mine.

[Helen Whately (Faversham and Mid Kent) (Con)]

I welcome how universal credit is encouraging and enabling people to do more work, but will my hon. Friend assure me that those for whom work is a real challenge, such as single parents of pre-school children, will have sufficient income under universal credit?

[Alok Sharma]

As I have just said, 85% of childcare costs can be recouped under universal credit, which is an improvement on the legacy system.

[Stephen Timms (East Ham) (Lab)]

I welcome the reports of imminent reform. Ministers can justify the five-week delay in universal credit only in cases where people have just left a monthly paid job. Yesterday, he told the House:

“The five-week wait has no savings implications for the Exchequer.”—[Official Report, 15 October 2018; Vol. 647, c. 395.]

Will he therefore now scrap it?

--- Later in debate ---

[Alok Sharma]

As I said both earlier and yesterday, the reason why we ensured that people can get 100% of their advance up front and an extra two-week run-on of housing benefit was to help them with their cash flows. The vast majority of people in this country are paid monthly, and the whole point is that we are replicating the world of work.

[Vicky Ford (Chelmsford) (Con)]

On 5 December in my constituency, people on UC live—about 660 people—will transition to full-service UC. As claimants move to full-service UC, will the Minister confirm that they will see no change in their benefits? Will he also confirm that he will meet specialists, such as those from the charity Mind, to ensure that there is support for disabled people before full migration from legacy benefits?

[Alok Sharma]

As I said, I am in the process of meeting stakeholders, and I have indeed met Mind, as have other colleagues. We will of course ensure that we do everything that we can to take care of the vulnerable.

[Alex Cunningham (Stockton North) (Lab)]

Yesterday, I raised an issue affecting a constituent who lost her regular universal credit payment because two months’ wages, paid on the last day of consecutive months, were taken into account, but the Under-Secretary of State for Work and Pensions, the hon. Member for North Swindon (Justin Tomlinson), dismissed my question. Will Ministers now investigate that anomaly, which is affecting countless people, and put the matter right?

[Alok Sharma]

The hon. Gentleman can write to me, or I am happy to discuss that particular case.

[Several hon. Members rose—]

[Huw Merriman (Bexhill and Battle) (Con)]

Will the Minister give all the work coaches a big pat on the back? They will be disappointed as they listen to this type of spectacle, but they work incredibly hard to turn people’s lives around.

[Alok Sharma]

My hon. Friend is right. Work coaches across the country work incredibly hard, and I wish that Opposition Members would sometimes praise them, rather than denigrating the system.

[Several hon. Members rose—]

--- Later in debate ---

[Alok Sharma]

I have no wish to be abrasive, and if I have been, I of course apologise. However, the appropriate time to talk about any financial measures is at the Budget, as I have said. Such matters are for the Chancellor and the Prime Minister, and there will be an opportunity in a couple of weeks’ time for Members to raise their points of view when the Chancellor comes to the House.

[James Cartlidge (South Suffolk) (Con)]

We hear today that Britain has just seen the strongest growth in wages for nine years. We should make real work pay through stronger real wages, not by going back to the bad old days of unsustainable growth in the benefits bill.

[Alok Sharma]

My hon. Friend is right. Regular wages are up 3.1% this year, and I agree that we now have a system in place whereby work pays. The analysis that we have published shows that people get paid more under universal credit.

[John Woodcock (Barrow and Furness) (Ind)]

Universal credit is due to be rolled out in Barrow just three weeks before Christmas this year—the worst possible time—and there is currently no certainty that debt relief will be provided for the area. Will the Minister rethink and postpone the roll-out?

[Alok Sharma]

The roll-out in Reading, which I represent, took place prior to Christmas last year. There were no issues, and I very much hope that things will be the same in the hon. Gentleman’s constituency, but I am happy to have a discussion to ensure that he is talking to his jobcentre and that he gets the comfort he needs.

[Nigel Huddleston (Mid Worcestershire) (Con)]

There is strong support for the principles and intent of universal credit among not only Conservative Members, but my constituents. However, the Minister can be assured that if more money or further changes to universal credit are required, that will also receive the support of Conservative Members and my constituents.

[Alok Sharma]

As I have said, we are taking a “test and learn” approach to universal credit. We make changes when we are required to do so, and I have talked about some of the changes that we have made. My hon. Friend mentions money, but as I have said, the proper time to have any such discussions is at the Budget, and such matters are ultimately for the Chancellor and the Prime Minister.

[David Linden (Glasgow East) (SNP)]

The Minister will recall that I have invited him several times to meet my local housing associations, which expect universal credit to be rolled out in December. When will he come to Glasgow to hear the message that he needs to halt the roll-out of universal credit and fix it?

[Alok Sharma]

I apologise if I have not been to Scotland yet—I hope I will put that right in near time—but I have been going up and down the country to jobcentres, talking to people, and I have to say to the hon. Gentleman that universal credit is working.

[Bob Blackman (Harrow East) (Con)]

Universal credit replaces six complex benefits, some of which are mutually exclusive. My hon. Friend the Minister has confirmed that 700,000 people do not claim the benefits that they are entitled to. When universal credit applies to those people, how much on average will they gain?

[Alok Sharma]

My hon. Friend is right: people have been underpaid benefits. On average, households will gain £285 a month. Under the previous system, 1.4 million people spent a decade trapped on benefits instead of being helped into work. That is changing under universal credit.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

During yesterday’s Work and Pensions questions, I raised with the Minister for Disabled People, Health and Work cases of my constituents who were not in receipt of transitional protection during a change of circumstances. The Minister told me I was wrong. I double-checked those cases with the Library and with others—I have dozens of similar cases—and it was not me who was wrong but the Minister. I think that there is a desire that such people will get that protection, but they do not at the moment. If Ministers do not know their policy, how can the rest of us have confidence in universal credit?

[Alok Sharma]

To clarify, what will happen under universal credit, once we pass the regulations—[Interruption.] What will happen under managed migration, when we pass the regulations, is that anyone who is currently—[Interruption.] If I may explain, anyone on legacy benefits who is moved across to universal credit will have transitional protection.

[Mr Marcus Jones (Nuneaton) (Con)]

The principles of universal credit are sound. Only a small number of people have come to my office to challenge it, and when there have been challenges, the Government have clearly listened. Will the Government continue to listen to issues raised by Members and look to refine the system to make sure that we get this absolutely right for people?

[Alok Sharma]

We are a listening Department in a listening Government, as we have shown with universal credit.

[Anna Turley (Redcar) (Lab/Co-op)]

Universal credit is due to be rolled out in Redcar and Cleveland on 28 November—just before Christmas, as my hon. Friend the Member for Barrow and Furness (John Woodcock) said. Will the Minister guarantee today that none of the 11,000 households that are due to be transitioned, of which 6,000 include children, will be financially worse off? If he cannot guarantee that, will he stop the roll-out now?

[Alok Sharma]

Universal credit is a new benefit that simplifies the system. Ultimately, this is about having a system that helps the most vulnerable, that is fair to the taxpayer, that is sustainable and, importantly, that helps people into work and to get better-paid work. That is precisely what we are doing through universal credit.

[Stephen Lloyd (Eastbourne) (LD)]

I thank the right hon. Member for Birkenhead (Frank Field) for securing this important urgent question. There has been movement from the Government on the gig economy for the self-employed, which pleases me because I have advocated that for a few years, including when I was in the coalition. There has also been movement on making rental payments to private sector landlords, which again I am pleased about, as it was something I advocated. In that spirit of positivity, will the Minister acknowledge that if the Chancellor were to replace the work allowance money that was cut in 2015 by the previous Chancellor, it would make a substantial difference to the success of universal credit?

[Alok Sharma]

I am pleased that the hon. Gentleman outlines some of our positive changes, which prove that “test and learn” works. I am sorry to disappoint him once again, but those are matters for the Chancellor and the Prime Minister, and we will hear more about the Budget at the appropriate time.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

I secured a debate on universal credit 18 months ago to highlight the misery it had caused in Newcastle, as a pilot area. The misery continues: rent arrears in social housing have doubled; private landlords will not accept universal credit claimants; and the city council has spent £750,000 supporting vulnerable claimants. What is the point of a pilot if the Government continue to roll out the misery regardless?

[Alok Sharma]

On rent arrears, the hon. Lady may have seen the report produced by the National Federation of ALMOs—I believe it came out in July—which stated that, of their tenants moving on to universal credit, 76% were already in arrears. That was before they moved on to universal credit. We introduced changes with the extra £1.5 billion to help people moving from housing benefit with their cash flow, giving them a two-week run-on, which does not have to be repaid. It is possible under universal credit to have alternative payment arrangements with payments made directly to landlords.

[Ms Karen Buck (Westminster North) (Lab)]

Has the Minister also seen the research that was published yesterday by the Residential Landlords Association, which found that two thirds of private landlords are concerned about universal credit tenants falling into arrears and that the average arrears owed has doubled in the last year? What urgent action will he take to resolve that problem?

[Alok Sharma]

As I said, we are rolling out the landlord portal for social housing, which is working. It is also possible for alternative payment arrangements to be put in place for tenants of private landlords—that is part of the system.

[Ben Lake (Ceredigion) (PC)]

Universal credit full service reaches Ceredigion in December. Further to questions asked by other Opposition Members, does the Minister share our concern that, just when it will be needed most, our constituents will have limited access to support, as services will be reduced over the festive period?

[Alok Sharma]

Again, I am happy to discuss the hon. Gentleman’s concerns with him and his jobcentre staff to make sure that he gets the assurances that he wants.

[Mr Clive Betts (Sheffield South East) (Lab)]

The Minister failed to answer the question from my hon. Friend the Member for Redcar (Anna Turley), so I will ask it again. When universal credit is rolled out in Sheffield next month, will he guarantee that none of my constituents will be worse off?

[Alok Sharma]

I repeat my previous answer: it depends on people’s individual circumstances. This new benefit system is ultimately about making sure that we help people into work. I have to say that, under the last Labour Government, many people were trapped on benefits, but that is changing.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The National Audit Office says that there is no way of measuring outcomes of the universal credit roll-out, yet the Government and Government Members peddle the myth that universal credit somehow magics people into jobs. Will the Minister therefore explain why 930 more people are now registered as unemployed in my constituency compared with a year ago—a 54% increase?

[Alok Sharma]

I do not know whether the hon. Gentleman is referring to the claimant count, but people both in and out of work receive universal credit. I encourage him to look at the universal credit business case that we produced, which shows that, as a result of the universal credit roll-out, another 200,000 people will be in work.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

Wolverhampton Homes, which runs council housing in Wolverhampton, reports that 67% of universal credit claimants are in rent arrears and that those rent arrears are going up by £60,000 a month. Will the Minister call a halt to the roll-out until the problems of debt, stress and, possibly, impending homelessness are addressed?

[Alok Sharma]

We have put in support for individuals—I have talked about that. Of course, also very importantly, we now have this partnership with Citizens Advice, which is a respected, nationwide, independent organisation. It is there to help and assist the most vulnerable.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

The two-child policy limiting the financial support to low-income families has already affected 400,000 children, making their families £4,000 a year worse off. When it is eventually rolled out through universal credit, some 3 million children will be affected. Will the Minister commit today to scrapping this abhorrent part of the wider welfare policy?

[Alok Sharma]

Universal credit is a welfare system that is about being fair to the most vulnerable people and to taxpayers, and being sustainable. The reason for that policy is that taxpayers face similar choices. It is important to say that we have exemptions in place, which will include kinship carers.

[Patrick Grady (Glasgow North) (SNP)]

If the system is such a success, will the Minister explain why everyone—whether constituents or those from advisory services—who came to my special surgeries at the start of this month were so concerned? Is not it the fact that the austerity that is hard-wired into universal credit has been an ideological choice for years? Will the Government therefore now make the choice to pause universal credit in Glasgow and elsewhere until these issues are sorted out?

--- Later in debate ---

[Alok Sharma]

I would be happy to hear from the hon. Gentleman about where he has found that his constituents have issues getting on to universal credit, and I will take up those individual cases.

[Emma Reynolds (Wolverhampton North East) (Lab)]

Can we take it from the Minister’s answers to the questions of my hon. Friends the Members for Redcar (Anna Turley) and for Sheffield South East (Mr Betts) that he is admitting to the House that people are being made worse off as a result of universal credit?

[Alok Sharma]

I have said that under universal credit we have a system that is finally delivering for the most vulnerable and for taxpayers, that is sustainable and that—above all—is helping people into work. That means that people get into work faster, they stay in work longer and, really importantly, they earn more.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Yesterday, the Under-Secretary of State for Work and Pensions, the hon. Member for North Swindon (Justin Tomlinson), promised the House that, under managed migration, vulnerable people would be guaranteed a face-to-face interview. When will trials of that approach start so that we can all test and learn whether the Government are getting it right?

[Alok Sharma]

We are of course talking to the key stakeholders, particularly those who deal with the most vulnerable people, and we want to ensure that we put in place processes to support them. We are thinking very deeply about this matter.

[Nick Smith (Blaenau Gwent) (Lab)]

How many families will see their universal credit incomes fall by up to £200 a month?

[Alok Sharma]

As I have said, we have a system of universal credit that is about being fair to the most vulnerable and taxpayers and that is sustainable. The hon. Gentleman will know that changes made previously were voted on in the general election in 2015 and in this House in 2016. The key thing is to ensure that we are supporting the most vulnerable people. Under managed migration, we will give protections to those who are migrating across from legacy benefits; 1 million disabled households will gain and half a million people on severe disability premium will also be protected.

[Janet Daby (Lewisham East) (Lab)]

The DWP has no process in place to identify people with high support needs and instead relies on claimants to self-identify. What will the Minister do to ensure that disabled claimants who experience difficulties making a claim will not be left without the support and finance that they need?

[Alok Sharma]

People will get one-to-one support under universal credit. They have an opportunity to have a discussion with their work coach and develop that relationship, meaning that they can be signposted to the support that they need. It is working.

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

Universal credit was introduced with three principles: it was supposed to simplify the system, but more than 300,000 people will be paid late this year through no fault of their own; it was supposed to save money, but it costs three times as much to administer; and it was supposed to get people into work, but the NAO states clearly that the Government

“will never be able to measure”

whether they have achieved that goal. What went wrong and who has taken responsibility for this failure?

[Alok Sharma]

It is interesting that the hon. Gentleman talks about employment on the day that we have reached a record low level of unemployment since 1975. The policies of this Government are clearly working: 80% of first payments are made fully and on time; in some cases, that figure gets up to 90%. It is important that we get the right information from people to be able to verify their costs. If we are able to do that, payments are made.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Despite the Minister’s responses today, universal credit is causing chaos, hardship and unnecessary suffering to people in my constituency as they seek to access essential support. Will he accept my invitation to visit my constituency to discuss the challenges of universal credit with my constituents so he can explain to them why he believes that universal credit is working?

[Alok Sharma]

I do visit jobcentres in different parts of the country. If the hon. Lady would like, we could have a discussion with the people in her jobcentre who are delivering this service; I am happy to arrange a call together with her.

[Louise Haigh (Sheffield, Heeley) (Lab)]

Now that the Minister has confirmed that some people will be worse off when universal credit rolls out in Sheffield on 7 November, will he make it clear to the House exactly who those people will be?

[Alok Sharma]

People’s individual circumstances determine what they get under any benefit system. The point of the urgent question was to talk about the whole process of roll-out and managed migration. As I said, when people migrate across under managed migration, they will receive transitional protection.

[Several hon. Members rose—]

[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

Speculation, rumours, confusing—mentioned by the Minister earlier. Was that the “Dancing Queen” speech about austerity being over?

[Alok Sharma]

I apologise; I did not hear the hon. Gentleman’s question clearly. I think he talked about rumours, which I will not be commenting on.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Five years after the start of the universal credit pilot in Inverness, Highland Council has had a £2.5 million bill for administering universal credit, paid by every single household in the highlands. When will the Minister respond to Highland Council’s request—and mine—to pay that money back?

[Alok Sharma]

There is a new burdens policy in place, and the DWP has paid out to local councils. I believe that the figure for 2017-18 was around £13 million. If the hon. Gentleman forwards me the correspondence, I would be happy to look at it.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

Last Wednesday marked World Mental Health Day. The Mental Health Nurses Association stated in its letter to the Secretary of State that universal credit

“will make matters much worse, especially for those living with mental ill health.”

Given the stress, uncertainty and poverty caused by universal credit, is it not time to scrap the roll-out?

[Alok Sharma]

My ministerial colleagues and I have regular discussions with key stakeholders, particularly those representing the most vulnerable. We will continue to do that, and we will work with them to ensure that the managed migration process delivers for the most vulnerable.

[Ged Killen (Rutherglen and Hamilton West) (Lab/Co-op)]

It is reported in today’s Daily Record that South Lanarkshire Council has warned its employees that because they are on four-weekly pay and will get two payments in November, they stand to lose their universal credit over Christmas and will have to reapply. What will the Minister do to fix this shambles?

[Alok Sharma]

I am happy to have a discussion with the hon. Gentleman on the particular case he raises.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

What will the Minister do to address the fact that too many applications for vital alternative payment arrangements are being delayed, ignored or even lost by the DWP, totally undermining their purpose?

[Alok Sharma]

If the hon. Gentleman has individual cases of constituents facing these difficulties, he should bring them to me. I cannot react to general comments, which we hear quite a lot from the Opposition. When Members have specific cases, they should bring them forward and we will deal with them.

[Mr Jim Cunningham (Coventry South) (Lab)]

I will be as brief as I can. For all the reasons outlined by my colleagues, the roll-out should be stopped and people should not lose out, especially given that a lot of people have been driven into the hands of money lenders as a result of the roll-out.

[Alok Sharma]

As I have said, we will be bringing forward the managed migration regulations later this year. If the Opposition want to support people and ensure that they are protected, they should vote for those regulations together with us.

[Alison Thewliss (Glasgow Central) (SNP)]

Someone making a claim on 5 December, the day that universal credit starts at Shettleston jobcentre—not Bridgeton, as the Minister found out yesterday, because he has already shut that jobcentre—will receive no money until 9 January. Is the Minister happy to be known as the Grinch that stole Glasgow’s Christmas?

[Alok Sharma]

I have never been described as a Grinch before. The hon. Lady ought to be encouraging her constituents—clearly this discussion is had by work coaches when claimants come in—to talk about the advance that is available for people. [Interruption.] Well, it is interest-free. Also, as I have said, those on housing benefit get two weeks’ run-on.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

Some 72% of universal credit sanctions in Scotland hit those aged under 30, one in five of whom are 18 or 19 years old. As full-service universal credit rolls out at Springburn jobcentre in my constituency from 31 October, will the Minister at least suspend all sanctions until after Christmas?

[Alok Sharma]

Sanctions are implemented only once there has been a detailed process, and there is an opportunity for individuals who are facing a potential referral to explain to decision makers why there are mitigating circumstances.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

Universal credit comes to Castlemilk jobcentre in December. The Minister will know that one, because he tried and failed to close it down. Can he guarantee that there will be no more closures or changes to jobcentre provision in the city of Glasgow?

[Alok Sharma]

We have reconfigured the jobcentre estate, as the hon. Gentleman knows. He will also know that part of the reason was that we were paying for 20% of space that we were not using. We now have a jobcentre estate that is fit for the 21st century.

[Martin Whitfield (East Lothian) (Lab)]

The Minister has answered a number of questions about double payments in a four-week period. Christmas is coming, and the majority of part-time workers who claim universal credit will be double-paid, so their universal credit will then be affected in the next payment period. These are not individual cases, although they are individual people. This is a system fault and it should be put right for this Christmas.

[Alok Sharma]

As I have said, universal credit adjusts depending on the amount of money that people are earning. In periods when they are not earning a salary, obviously their universal credit payment would go up.

[Brendan O’Hara (Argyll and Bute) (SNP)]

Can the Minister assure those in my constituency—a vast area of 7,000 sq km, with 23 islands and only five jobcentres—with limited connectivity that they will not be penalised as they are unable to access their online journals?

[Alok Sharma]

As the hon. Gentleman will know, it is possible to phone jobcentres, and in cases where people are vulnerable, it is also possible for home visits to be made.

[Frank Field]

May I thank you for granting this urgent question, Mr Speaker? Huge numbers of people will know after our proceedings that they have not been deserted by their MPs. Thank you very much.

Oral Answers to Questions

Alok Sharma Excerpts

Monday 15th October 2018 Commons Chamber

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

5. What assessment she has made of the effect on the public purse of the five-week wait to transition to universal credit.

[The Minister for Employment (Alok Sharma)]

Claimants are entitled to benefits from the moment of making a successful claim. The first payment under universal credit is made five weeks after the claim date, and all subsequent payments are made monthly thereafter. The five-week wait has no savings implications for the Exchequer.

[Luke Pollard]

Unlike the Health Secretary, a lot of people I represent get in touch with me about universal credit, and in particular about how they struggle to repay the loan given to them during the five-week wait period. If entitlement has already been established, will the Minister consider, instead of issuing loans, giving them the money they deserve and are entitled to in the first place?

[Alok Sharma]

We talk about giving support to people and, as the Secretary of State pointed out, £1.5 billion of support was put in, so those who are on housing benefit get two weeks’ housing benefit run-on in actual cash and of course people can take advances. I would say this to the hon. Gentleman and all his colleagues sitting there now who are talking about supporting the vulnerable: if that is what they want to do, why did they not support us when we voted for the £1.5 billion?

[Greg Hands (Chelsea and Fulham) (Con)]

One certain way in which universal credit is helping the public purse is by getting more people into work. Can my hon. Friend confirm that universal credit is forecast to help an additional 200,000 people find work in the coming months?

[Alok Sharma]

I can—200,000 people over the roll-out period. Not only that, but people will be taking on extra work as well.

[Catherine West (Hornsey and Wood Green) (Lab)]

Astronomical numbers of people are applying to food banks during that critical five-week period. Has the Minister—yes or no—read the Trussell Trust report on universal credit roll-out?

[Alok Sharma]

I met the Trussell Trust last week and had a very constructive discussion. [Interruption.] I had a very constructive discussion. What I would say to the hon. Lady is that, when it comes to food banks, as she knows, the all-party group on hunger put out a very good report and said there were complex reasons for the use of food banks. You cannot put it down to any one reason.

[Mr Philip Hollobone (Kettering) (Con)]

Five hundred and thirty households presently receive universal credit in the Kettering constituency, but with the roll-out this Wednesday up to 7,700 households could be affected. Can the Minister assure me and my constituents that Kettering jobcentre is ready for the change?

[Alok Sharma]

I go up and down the country to jobcentres, and they invariably tell me they are having a good experience. They are learning from the past. What I think my hon. Friend will find is that his jobcentre is absolutely prepared for this further roll-out.

[Liz Twist (Blaydon) (Lab)]

6. What steps her Department has taken to ensure that claiming universal credit online is accessible to blind and partially sighted people.

--- Later in debate ---

[Stephen Kerr (Stirling) (Con)]

7. What assessment she has made of the effectiveness of the advice and support offered to recipients of universal credit in Scotland.

[The Minister for Employment (Alok Sharma)]

We have over 1,600 work coaches across 84 jobcentres in Scotland, who are trained to offer support and advice to claimants. As the Secretary of State pointed out earlier, we have a brand-new partnership with Citizens Advice Scotland.

[Stephen Kerr]

Citizens Advice’s Stirling district is a superb independent source of advice, having published a plain English guide to universal credit. Does the Minister agree that independent advice on benefits is essential and that ensuring it is provided without political point scoring from the Scottish Government and local government will serve claimants better?

[Alok Sharma]

I congratulate my hon. Friend, who is a great champion of his constituents, and he works very well with the local jobcentre. He is absolutely right: what Citizens Advice is providing is a huge amount of experience; it is an independent organisation with a national footprint. I absolutely agree that the last thing the vulnerable need is political point scoring. What they want is support, and that is what they are getting under universal credit.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

What assessment has the Minister made of the closure of six jobcentres across Glasgow—

[Mr Sweeney]

Seven jobcentres in Glasgow. What assessment has he made of those closures as universal credit rolls out this month?

[Alok Sharma]

As the hon. Gentleman will know, we have reconfigured our estate. One of the reasons that has happened is that we had over-provision of space— 20% more than we needed—and we now have jobcentres that are actually delivering. At the end of the day, one of the reasons for this is that we have much lower levels of unemployment than in 2010. I hope that is something the hon. Gentleman welcomes.

[Alison Thewliss (Glasgow Central) (SNP)]

I recently held a drop-in surgery at the Kinning Park Complex in my constituency, because roll-out in Glasgow has already begun. The big issue that people raised was that they did not even know that this was going to affect them. There is a huge gap in awareness. What is the Minister going to do about this so that people actually get the benefits they are entitled to and do not lose out on transitional payments?

[Alok Sharma]

As I said, when I go to jobcentres, it is very clear to me that they are working extremely hard in engaging and in letting claimants know things ahead of time, and indeed in engaging with local Members of Parliament. I hope the hon. Lady has had a chance to visit her jobcentre. If she wants to have a detailed discussion about this, I am very happy to have a discussion with her after these oral questions.

[Alex Cunningham (Stockton North) (Lab)]

8. What assessment her Department has made of recent trends in the average level of household debt for people in receipt of universal credit.

--- Later in debate ---

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

13. What progress she has made on the roll-out of universal credit throughout the UK.

[The Minister for Employment (Alok Sharma)]

Universal credit is now live in 495 jobcentres available to new claimants, and within weeks it will be available throughout the country.

[Andrew Bowie]

In two weeks’ time the remaining two thirds of my constituency will receive universal credit, following the one third who have already received it. Notwithstanding the frankly irresponsible narrative that we hear from Opposition Members, the work and pensions staff in the Aberdeen jobcentre cannot wait to get started and to deliver this transformative benefit. Can the Minister confirm that it is on track to be rolled out in two weeks’ time?

[Alok Sharma]

I thank my hon. Friend for engaging with his local jobcentre, which is not always done by Opposition Members. I hear the same thing from other jobcentre staff across the country. Universal credit is working, and I say to the Opposition, “Stop scaremongering: you are not helping the people who need the support.”

[Caroline Flint (Don Valley) (Lab)]

As universal credit is rolled out, the Government have announced that they are removing local authority funding support for claimants and placing the role solely with Citizens Advice. When will Doncaster Citizens Advice, and all the other branches in the country, know for sure exactly what resources they will receive, and when?

[Alok Sharma]

Let me be clear. Local authorities will continue to provide that support until the end of the current financial year, and will work in parallel with Citizens Advice, which is starting its work in the autumn.

[Mr Speaker]

We now come to topical questions. Brevity is of the essence.

--- Later in debate ---

[Marsha De Cordova (Battersea) (Lab)]

Under universal credit, severely disabled people will lose out on disability premiums worth up to £80 per week, and will also lose the £30 “limited capability for work” component. Last week, the Secretary of State said that 1 million disabled people would be “significantly better off” under universal credit. Let me ask her now whether that is really the case. Is not the reality that after the premiums and the £30 component have been scrapped, disabled people will in fact be worse off overall under universal credit?

[The Minister for Employment (Alok Sharma)]

The Secretary of State has made it absolutely clear that we will be protecting people who currently receive the severe disability premium. [Interruption.] Will the hon. Lady just listen? A million disabled households who are now receiving legacy benefits will gain, on average, £110 a month on universal credit. Those are the facts, and the hon. Lady should try to accept them.

[Eddie Hughes (Walsall North) (Con)]

T2. The roll-out of universal credit will come to Willenhall in my constituency on Wednesday. Will the Minister join me in endorsing the work of Walsall Housing Group and its Rent First programme, which is helping tenants to prepare for that transition?

[Stephen Lloyd (Eastbourne) (LD)]

T4. Shortly after the 2015 general election, the then Chancellor removed £3 billion per annum from universal credit. That would never have been allowed to happen had the Liberals still been in government. Members of all parties in the House have urged the Secretary of State to urge the Chancellor to replace the £3 billion work allowance so that work really does pay; will she do so?

[Alok Sharma]

It is absolutely clear that under universal credit work is paying. That is why we have over 3 million more people in jobs than in 2010.

[Mike Wood (Dudley South) (Con)]

T5. I welcome the announcement that Citizens Advice will be providing universal support in Dudley South and across the country. Can the Minister explain how this will benefit my constituents, and particularly their timely access to universal credit?

[Alok Sharma]

Through Citizens Advice, which we are rolling out across the country, it will be possible particularly for the most vulnerable to get support in terms of budgeting help and also digital support.

[Chris Williamson (Derby North) (Lab)]

T3. We have heard a lot of warm words from the Secretary of State and Members on the Government Benches about universal credit, but I was recently approached by a constituent who has had to give up a well-paid job because of severe anxiety and depression and who, after the wait for universal credit, is going to be £400 a month worse off, so will the Secretary of State disown the Prime Minister’s assertion that austerity is over, because it certainly isn’t for people on universal credit?

[Alok Sharma]

We have been absolutely clear that there are going to be protections in place for those currently on legacy benefits as we move across to universal credit. I do wish the Opposition would stop scaring people from moving on to universal credit.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

T7. I welcome the announcement that the Department is providing work experience, and working with Barnardo’s to provide work experience, for care leavers. What further support is my hon. Friend offering to care leavers to ensure they fulfil their potential?

--- Later in debate ---

[Stephen Timms (East Ham) (Lab)]

T8. Ministers defend the five-week wait for universal credit on the basis that employees will have had a month’s pay in their bank account when they left their previous job. Does the Minister accept that that case simply does not apply to employees paid weekly or those on zero-hours contracts?

[Alok Sharma]

I have huge respect for the right hon. Gentleman, as he knows, but that is precisely why we introduced this £1.5 billion of support earlier this year, which means people can get advances up front—up to 100%—and those on housing benefit get a two-week run-on, which is money that does not have to be repaid.

[Philip Davies (Shipley) (Con)]

I recently hosted a Disability Confident event in Baildon in my constituency. As somebody who employs somebody with multiple disabilities, I know that many workforces are losing out on a huge pool of talent. May I therefore urge the Minister to advertise the benefits of Access to Work more widely so we can get even more disabled people into work?

--- Later in debate ---

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

Birmingham’s food banks have had their busiest year ever—70% of their demand is due to universal credit. Can I give the Secretary of State a choice? Either pause this crazy roll-out or come to Birmingham and help us to raise the tonne and a half of food we need each month to replenish the empty food bank stock.

[Alok Sharma]

We have had this discussion in a number of questions now. Can I be absolutely clear? The right hon. Gentleman should look at the report produced by the all-party parliamentary group on hunger, which said that the reasons for food bank usage are complex and myriad, and cannot be put down to any single reason.

[Paul Masterton (East Renfrewshire) (Con)]

I warmly welcome the announcement by the Under-Secretary of State, my hon. Friend the Member for Hexham (Guy Opperman), of a consultation on collective defined contribution schemes. However, I had anticipated that it would come out before my ten-minute rule Bill on Wednesday. Will he give us an update as to when we might see it?

--- Later in debate ---

[Kate Green (Stretford and Urmston) (Lab)]

Under managed migration, claimants of legacy benefits will effectively have to apply anew for universal credit, and some vulnerable claimants may not realise and lose transitional protection as a result. Will the Minister look again at how those claimants can ensure that they retain their transitional protection?

[Alok Sharma]

The Secretary of State, other Ministers and I are having detailed engagement with the various health groups that the hon. Lady is talking about. We are, of course, looking at the recommendations made by the Social Security Advisory Committee.

[Kirstene Hair (Angus) (Con)]

On Friday, I am hosting Angus’s first Disability Confident event in Forfar. Will my hon. Friend join me in celebrating employers who are taking part to learn how they can benefit from the untapped potential of those living with disabilities in our communities?

[Chris Elmore (Ogmore) (Lab)]

One of the concerns being expressed by constituents about the universal credit roll-out is literacy levels and people’s unwillingness and fear about being able to complete forms. Given that universal credit is to be fully rolled out in my constituency in December, what assurance can the Minister give me that those with poor literacy levels with receive the support they need to get the benefits that they need and deserve?

[Alok Sharma]

Universal support has been available since 2017, but our partnership with Citizens Advice is clearly a step up. I hope that that will make a positive difference to the hon. Gentleman’s constituents.

Contingency Fund Advance

Alok Sharma Excerpts

Wednesday 18th July 2018 Written Statements

[The Minister for Employment (Alok Sharma)]

The Department for Work and Pensions has identified the need for minor revisions to two statutory instruments. These relate to the award of some premiums to people entitled to income-based jobseeker’s allowance, and to the application of the shared accommodation rate for foster carers in universal credit. Both drafting points date back to April 2013.

No customers have been adversely affected in either circumstance and payments of benefit have been—and continue to be—made fully in accordance with the policy intent.

The Department will amend the relevant legislation as soon as practically possible to ensure that these payments are included on the statutory framework.

Parliamentary approval for resources of £21,400,000 for this new service has been sought in the main estimate for the Department for Work and Pensions. Pending that approval, urgent expenditure estimated at £21,400,000 will be met by repayable cash advances from the Contingencies Fund.

Once the Supply and Appropriation (Main Estimates) (No.2) Bill achieves Royal Assent, the advance will be repaid in full and ongoing expenditure will legitimately rest on the sole authority of the Supply and Appropriation Act, until the amending legislation is in place.

[HCWS875]

The Secretary of State’s Handling of Universal Credit

Alok Sharma Excerpts

Wednesday 11th July 2018 Commons Chamber

[The Minister for Employment (Alok Sharma)]

I believe that each of us in this House, whatever our political persuasion, came into politics to help build a fairer society. Indeed, that sense of fairness is part of the very DNA of the British people, and the desire for fairness extends to our welfare system—a system where we support the vulnerable, those looking to get into work and those wanting to increase their hours. That is precisely what universal credit does. It takes a complicated benefits system and simplifies it. Under this system, the claimant is provided with one-to-one support for the first time by their work coach. This support is making a real difference to progress into employment and is increasing people’s earnings.

We have published research that shows that, once people are on universal credit, they get into work fast and stay in work longer and that they will be earning more. Just last month, we published a survey that showed that the percentage of those in employment almost doubles between the point of making the claim and nine months into universal credit. For every extra hour worked, people get to keep more of their own money. Under universal credit, work absolutely pays.

The Opposition have said that we are ploughing ahead with the universal credit roll-out. This argument simply does not hold water. We are listening, learning and improving, getting the delivery of universal credit right, with a roll-out taking place at a measured rate. Let me give an example. In the autumn Budget, we announced a £1.5 billion package of extra support for claimants. My right hon. Friend the Secretary of State has set out precisely what was in that package. We listened; we acted; and we helped claimants.

[Several hon. Members rose—]

--- Later in debate ---

[Alok Sharma]

I will not give way.

What did the Opposition do? They cynically voted against the regulations that allowed the £1.5 billion of support to be made available to claimants. I get that the Opposition are there to oppose, but that should not be at the cost of helping the very people they claim to represent. Opposition Members have raised individual cases of claimants who have been suffering hardship. How many of those hon. Members have looked those individual claimants in the eye and explained why they voted to deny them the help and support that they needed? [Interruption.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. The Minister has listened to all the questions and is now answering them, so he should not be shouted at by hon. Members on either side of the House.

[Alok Sharma]

Let us talk about the help that the work coaches are giving. The NAO report says:

“A survey of live service claimants found that claimant satisfaction levels were similar to those on legacy benefits and in our visits to jobcentres we observed good relationships between work coaches and claimants.”

The support is available, and it is working and helping people to get into work.

[Neil Coyle]

rose—

[David Linden]

Will the Minister give way?

[Alok Sharma]

No, I will not give way.

Thanks to the policies of this Conservative Government, we are at record levels of employment. Once universal credit is fully rolled out, we will support another 200,000 people into work. The tone and the wording of Labour’s motion today has been disappointing and, frankly, ill-judged in personally attacking my right hon. Friend the Secretary of State.

My right hon. Friend set out in her speech some of the positive changes that she has made, with the support of the whole brilliant DWP team. She has instigated these changes since coming into her role. Labour Members should actually be thanking her for her proactivity, not seeking to censure her today. They have offered absolutely no solutions today—just scaremongering. Their only answer appears to be to let people languish in a legacy system that effectively washes its hands of them.

When we go forward with universal credit, of course we are going to listen. But at the heart of universal credit there lies a very simple but incredibly powerful idea—that we should help people to achieve their full potential, and that is precisely what this Government are going to do.

Question put.