Oral Answers to Questions

Jeremy Corbyn Excerpts

Wednesday 25th October 2017 Commons Chamber

[The Prime Minister]

My hon. Friend raises an important issue, and this is something that we have been looking at very closely over the past year since my right hon. Friend the First Secretary of State, the right hon. Member for Ashford (Damian Green) commissioned work on it in September last year, when he was Work and Pensions Secretary. I can confirm that we will be publishing our response to that consultation on Tuesday 31 October, and it will look at a wide range of issues. We need to ensure that the funding model is right so that all providers of supported housing can access funding effectively. We need to look at issues such as the recent significant increases in service charges, making sure that we are looking at cost control in the sector.

I can also say today that as part of our response to the review, we will not be applying the local housing allowance cap to supported housing; indeed, we will not be implementing it in the wider social rented sector. The full details will be made available when we publish our response to the consultation.

[Jeremy Corbyn (Islington North) (Lab)]

I join the Prime Minister in wishing the rugby league team all the very best in the competition. I hope they win it.

Last week, the House voted 299 to zero to pause the roll-out of universal credit. Will the Prime Minister respect the will of the House?

[The Prime Minister]

As I have said before, we acknowledge the fact that people have raised concerns with universal credit. That is why, as we have been rolling it out, we have been listening to those and changes have been made. Perhaps I could just update the House on where we are on the roll-out of universal credit. Currently, of people claiming benefits, 8% are on universal credit. By January of next year, that will rise to 10%. The roll-out is being conducted in three phases, and the intention is that it will be completed by 2022, so it is being done in a measured way, and I am pleased to say that four out of five people are satisfied or very satisfied with the service that they are receiving. Universal credit helps people into the workplace and it makes sure that work pays, and that is what the welfare system should do.

[Jeremy Corbyn]

I would have thought that if only 8% of the roll-out has taken place and 20% of the people in receipt of it are dissatisfied with it, that is a cause for thought and maybe a pause in the whole process. Last week, only one Conservative MP had the courage of their convictions to vote with us on suspending the universal credit roll-out. Then a Conservative Member of the Welsh Assembly, Angela Burns, said:

“For the life of me I cannot understand why a 6 or 4 week gap is deemed acceptable.”

She called universal credit

“callous at best and downright cruel at worst”,

and concluded by saying she is “ashamed” of her Government. Can the Prime Minister ease her colleague’s shame by pausing and fixing universal credit?

[The Prime Minister]

As I have said to the right hon. Gentleman, we have been making changes to the implementation of UC as it has gone through the roll-out, but let us be very clear about why we introduced universal credit. It is because it is a system—[Interruption.]

[The Prime Minister]

We introduced universal credit as a simpler, more straightforward system that ensures that work pays and helps people into the workplace. Let us look at what happened in the benefits system under Labour. Under Labour, the low-paid paid tax and then had it paid back to them in benefits. Under Labour, people were trapped in a life on benefits for years. Under Labour, the number of workless households doubled, and Labour’s benefit system cost households an extra £3,000 a year. What the Conservatives have done is given the low-paid a pay rise, given the workers a tax cut and ensured we have a benefit system that helps people into work.

[Jeremy Corbyn]

Under Labour, 1 million children were lifted out of poverty. Under Labour, we introduced the principle of the national minimum wage—opposed by all Tories over there.

If the Prime Minister is not prepared to listen to Angela Burns, perhaps she could listen to the architect of universal credit, the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), who said:

“One of the reasons I resigned from Government was I didn’t actually agree with the additional waiting days. This is something the government needs to look at”.

Does the Prime Minister agree with him?

[The Prime Minister]

This is the answer that I have given not just three or four times in this PMQs but in previous PMQs: as we look at universal credit roll-out, we look at how we are introducing it. The right hon. Gentleman talks about what happened under Labour, and I am happy to talk about what happened under Labour—[Interruption.]

[The Prime Minister]

The right hon. Gentleman is talking about rolling out new benefit systems, but let us think about what happened when Labour rushed to introduce tax credits. I was not the only Member of Parliament who had people in my constituency surgery who had filled the forms in properly and given information to the authorities only for the Government to come back years later and land them with bills for thousands of pounds. That is what happens when you rush into a system rather than introducing it properly, as we are.

[Jeremy Corbyn]

I thought that we had passed a threshold last week and that the Prime Minister was going to answer questions, but we obviously have not achieved that yet. Labour introduced working tax credits to help people on low pay out of poverty and it made a very big difference. The sad truth is that universal credit is in such a mess that councils are forced to pick up the Bill. Let me give an example. Croydon Council, which piloted the scheme, is now spending £3 million of its own budget to prevent tenants from being evicted due to rent arrears caused by universal credit. Does the Prime Minister think that it is right or fair that hard-pressed local authorities, having their budget cut by central Government, should have to dip into what little money they have left to prevent people from being evicted when they know full well that it is this Government and their system of universal credit that are causing the problem?

[The Prime Minister]

Labour introduced working tax credits and then clawed thousands of pounds back from people who were working hard. The right hon. Gentleman raises the issue of rent arrears and I know that Members have concerns about people who are managing their budgets to pay their rent. For the vast majority of people on universal credit, managing their budgets is not an issue. After four months, the number of people on universal credit who are in arrears has fallen by a third, but we recognise the issue so we are working with landlords. We have built flexibility into the system so that landlords can be paid directly, and I want to be clear that nobody can be legally evicted from social housing because of short-term rent arrears. That is an important point for us to get across to people, but I come back to the essential point about universal credit: this is about a welfare system that helps people into work, makes work pay and does not trap people in a life on benefits for years.

[Jeremy Corbyn]

I note that the Prime Minister could not say anything about people being evicted from the private rented sector because of universal credit problems. The costs in the benefit system are being driven by low pay and high rents. In 2015, the then Chancellor, her former friend, promised a £9 an hour living wage. However, in the March Budget it was sneaked out that the Government’s minimum wage would reach only £8.75. The welfare state was not created to subsidise low paying employers and overcharging landlords, so will the Budget in November put the onus back—[Interruption.]

[Mr Speaker]

Order. Mr Hoare, I expect better of you. You were much better behaved when you were at Oxford University—what has happened to you, man? Calm yourself.

[Jeremy Corbyn]

My question is this: will the Budget in November put the onus back on to employers to pay a decent wage so that workers can make ends meet?

[The Prime Minister]

Of course we want to ensure that there are higher-paid jobs in this country. That is precisely why we are investing in the economy for the future. It is precisely why we are investing in our infrastructure and investing in skills for young people, and it is why we are introducing a modern industrial strategy. The right hon. Gentleman says the welfare system was not created to subsidise employers who are paying low wages. That is exactly what Labour’s working tax credits system did.

[Jeremy Corbyn]

The Government’s own Social Mobility Commission reported that low pay was endemic in the United Kingdom. One in four workers are permanently stuck in low-paid jobs. That is why Labour backed a real living wage of £10 per hour to make work pay. The Government do not really know whether they are coming or going. The Conservative party and the Government say they have full confidence in universal credit, but will not vote for it. They say they will end the NHS pay cap, but will not allocate any money to pay for it. The Communities Secretary backs £50 billion of borrowing for housing, but the Chancellor says it is not policy. The Brexit Secretary says they are planning for a no-deal Brexit. The Chancellor says they are not. Is it not the case that the Government are weak, incompetent, divided and unable to take a decision—[Interruption.]

[Mr Speaker]

Order. I said that the responses from the Prime Minister would be heard and the remarks of the right hon. Gentleman will be heard. You can try to shout him down and other Members can try to shout the Prime Minister down. It will not work. End of.

[Jeremy Corbyn]

Is it not the case that this Government are weak, incompetent and divided, and unable to take the essential decisions necessary for the good of the people of this country?

[The Prime Minister]

Of course we want to see people earning higher wages. Of course we want, as we are doing, to be able to ensure we can invest in our public services. But the way to do that—the way to have a higher standard of living, to have higher wages, to invest in our public services, to have a better future for people in this country—is to build and continue to build that stronger economy. You do not build a stronger economy by losing control of public finances. You do not build a stronger economy by uncontrolled borrowing. You do not build a stronger economy by hitting people with the highest taxes in our peacetime history. You do not build a stronger economy by voting against progress in our Brexit negotiations. You do not build a stronger economy by planning for capital flight and a run on the pound. That is what Labour would do and we will never let it happen.