Universal Credit

Earl of Clancarty Excerpts

Thursday 12th November 2020 Lords Chamber

[Baroness Stedman-Scott (Con)]

The Government recently increased the national living wage to £8.72 per hour, which means the annual earnings of a full-time worker on the national living wage have increased by nearly £3,700 since 2016. The Spring Budget confirmed a tax cut for 31 million working people, and other tax changes make basic rate taxpayers over £1,200 better off. We have been able to extend the holiday activities and food programme with £220 million, and the Covid winter grant scheme has £170 million, so be in no doubt: the Government do care and do take action.

[The Earl of Clancarty (CB)]

My Lords, every citizen, whether in paid work or not, deserves an income that allows a decent standard of living. We should not be permitting a system where discomfort and, indeed, poverty are built in. You cannot live on the standard allowance—no one can—and that is apart from delays in payment. How can the Minister possibly defend universal credit, even as a viable safety net, when demand for food banks is at a record high and homelessness is rapidly rising, even with the extra £20 a week?

[Baroness Stedman-Scott (Con)]

I understand the noble Earl’s point, but as I said, we have put out a raft of additional support. I could read it out, but it would take the whole 10 minutes, if not longer. I understand his point, but the Government are taking action to make life better for people.

Covid-19: People Living in Poverty

Earl of Clancarty Excerpts

Thursday 30th April 2020 Lords Chamber

[The Earl of Clancarty (CB)]

My Lords, in normal times it is the duty of a Government to provide an adequate safety net for the poorest in society. There is no clearer indication of the Government’s failure to do so since the financial crash than the rise in the demand for food banks, the use of which last year was the highest ever recorded. Behind the help currently being given to some, we are nevertheless still “austerity Britain” with a level of welfare provision that is wholly inadequate for those being left with little or no income.

The effect of Covid on top of continuing austerity is a double whammy. The Government need to recognise this, otherwise why would 1.5 million UK citizens not be eating for a whole day, and why would already struggling councils be handing out emergency grants? The welfare system should cover those needs, even in a crisis, although better still would be a basic income. Welfare needs to be reformed to speed up payments, remove the restrictive conditionality and, significantly, raise the level of payments far beyond the current modest increases. When food banks are a thing of the past, we can start to stop talking about poverty.