Universal Credit and Working Tax Credit Debate

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Department: Department for Work and Pensions

Universal Credit and Working Tax Credit

Gerald Jones Excerpts
Monday 18th January 2021

(3 years, 2 months ago)

Commons Chamber
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Gerald Jones Portrait Gerald Jones (Merthyr Tydfil and Rhymney) (Lab) [V]
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I wish to speak, albeit briefly due to the time available, in favour of the motion tabled by my right hon. and learned Friend the Leader of the Opposition, the shadow Work and Pensions Secretary and other hon. Friends.

Let me start by saying that at the very least the Government should rule out the cutting of this uplift in April and give certainty to families across the country. We know that the UK is in the midst of one of the most deadly global pandemics in a century and we are currently at the peak of the second wave. £20 a week is making a huge difference to the 8,306 people in receipt of UC in my constituency and to 6.2 million families across the UK. In many cases, it is making the difference between being able to put food on the table and not.

We know that times are incredibly tough. Our food banks are busier than ever, trying to support as many people as they can. In my constituency, we have a range of other voluntary organisations and community groups offering support with meals, and it is abundantly clear that families need more support, not less, although it seems that that is not clear to the Government. For them to consider this cut in the best of times would be callous, but to do it at this time, arguably the worst of times, is an absolute disgrace and plain cruel. Let us make no mistake: this cut will hit Britain’s poorest households and the Government must think again.

It appears that the Government are looking to make low-income families pay as a result of the Government’s incompetence and chronic mismanagement of the pandemic, which has caused Britain to suffer the worst recession of any major economy. This will make matters worse. In Merthyr Tydfil and Rhymney alone, this cut will mean a £7.8 million per annum loss to the local economy. We all remember when the Chancellor said at the start of the pandemic that the Government would do “whatever it takes” to support people through this crisis. How hollow those words sound now. Not only have the Government created the worst recession in any major economy, but they are now failing to take action to stop children and families going hungry. I hope that the Minister will tell us today what it will take for the Government to get real, see sense and stop this callous cut to the most vulnerable families in the country.

We also know that since the beginning of the pandemic the Government have chosen to exclude people on so-called “legacy benefits”, including the disabled, the sick and carers, from the extra support given to those on universal credit—the Government said it would take too much time to update the systems needed. They have had 10 months to put this right but, instead of trying to solve one problem, they are set to go headlong into creating another, affecting millions of families. We heard examples of this from our local citizen’s advice bureau just this morning. I urge all Members across the House, on all Benches, to put the needs of the most vulnerable families in the country first and to support the motion.