Universal Credit Roll-out

Kevin Foster Excerpts

Thursday 16th November 2017 Commons Chamber

[Kevin Foster (Torbay) (Con)]

It is a pleasure to speak in this debate, and it was also a pleasure to listen to the maiden speech of my hon. Friend the Member for Banff and Buchan (David Duguid). To be fair to his predecessor, she managed one Friday what might be a unique achievement: getting me in the same Division Lobby as the Scottish National party. We were voting in favour of her very welcome and creditable private Member’s Bill, and I join my hon. Friend in wishing her all the best for her future.

I welcome the debate. It is important that we discuss universal credit again as it will have a significant impact on my constituency, as it has on others as it has been rolled out. As we have this debate, we need to be careful not to make out that the current system is fantastic. There has always been an illogicality to having a council system for some benefits—housing benefit and council tax—and then the DWP administering income-related benefits. When I was deputy leader of a large midlands council, a lot of time and resources had to be devoted to administering benefits that were, fundamentally, national benefits. There was no way to change policy or to build in any local flexibility, which raised the question of why local councils were getting involved with housing benefit. I accept that there is a slight difference with council tax, because of variations in rates between areas.

In principle universal credit is the right move, but as well as the change from weekly to monthly payments, I suggest that we also consider wider changes. BrightHouse, a store on Torquay’s high street that I am happy to call a bunch of vultures, advertises weekly costs, which means that they look nice and affordable, but the monthly and final costs are always in very tiny writing. That might be something to consider more widely. If monthly costs were advertised, the real costs of these appalling deals might be brought home to people.

I welcome the phased roll-out over nine years. As many of us remember, the tax credits system was introduced in one go, and because it is administered by HMRC, overpayments are dealt with in the same way as the underpayment of tax, but that is not appropriate for those on lower incomes. People who expect a tax bill at the end of the year will often make provision, but those who assume that they will receive a certain level of benefit under tax credits do not.

In advance of the roll-out in Torbay in May 2018, my office staff have been working with the DWP and receiving training to respond promptly to constituents’ queries. We are working with other partners, too. One concern raised by John Dudley, a benefits adviser at Hele’s Angels, a great organisation in one of the most deprived areas of my constituency, is around the delays to personal independence payment appeals. Given those delays, what reassurances can the Minister give us that work is being done to prevent similar problems from occurring in the very important systems for universal credit?

On the six-week initial wait, I hope that the Government are in listening mode—I am sure they are, given the press speculation this week—although I am conscious that we have the Budget next week and that the Minister might not wish to say too much. I would also be interested to hear more about whether people can have their rent paid directly to their landlord.

I shall conclude as I am short of time. This has mostly been a constructive and useful debate. It is right that we continue to hold these debates to ensure that the system works well when it is rolled out to the remaining 90% of claimants.