Universal Credit Roll-out — House of Commons, 2017-10-24
Topic: Social Welfare
Marie Elizabeth Rimmer (Labour, Centre-left): The Government ignored the decision taken during the Opposition day debate in Parliament last week. When will this Government of the fifth richest country in the developed world start to listen and learn to govern for the benefit of all people? They ignored the pleas expressed in the Westminster Hall debate on the north-west roll-out in January 2016. They ignored the warnings about fundamental flaws, public hardship, debt creation, complex systems, payment delays and the loss of client information. They were asked to fix the problems before the roll-out, but the roll-out continued. There has been some improvement since then in the administration and some people have got jobs and got a named adviser—that has been helpful—but we have also seen the savage implementation of sanctions on people attending training provided by the DWP, on people going for interviews and on people who are hospitalised or on a hospital visit, just for being slightly late. I suggest that the Minister start to carry out some exit interviews among the staff The Government ignored the warnings from Government-commissioned IT companies on the complexity of the system and on the fact that the development timeframe could not be met. They also ignored warnings from councils and the Local Government Association that they could not develop their systems to fit universal credit in the time allowed. They also ignored the former Secretary of State, who quit days after the 2016 Budget after calling on the Prime Minister to reverse the cuts to universal credit The primary aims of universal credit were to simplify the system, to improve work incentives and to tackle poverty among low income families. This was wrecked in the 2016 Budget. Cuts in work allowances and changes to taper allowances resulted in 63% deductions—exactly the same as the tax credit threshold. The incentive to work was gone. Both measures were introduced by statutory instrument, using the negative rather than the positive procedure, so there was no parliamentary scrutiny. That is how they were sneaked through. There will be a £9.6 billion reduction in support to working families over the next five years, and the figure will be £3.2 billion each year by 2020. That illustrates the difference from the initial universal credit, for which there was much support. The incentives have gone, and a lot less money is going to the recipients. A former Prime Minister has described universal credit as "operationally messy, socially unfair and unforgiving" Universal credit has been a universal shambles from the outset. This Tory Government were stopped in their tracks from cutting tax credits by slipping the cuts through via statutory instruments. Things have got worse under universal credit, with the Government deciding to implement further cuts in benefits for vulnerable people by rolling out the system. There was a public outcry on tax credit cuts because we had a debate in this Chamber and the media took up the issue. The results of these changes include increased personal borrowing and soaring debt, hungry children, cold children and schoolchildren suffering mental health issues and long-term damage to their lives. This must not happen in the fifth richest country. It must be stopped. The Government must listen to Parliament and to the Select Committees and make universal credit fit for purpose.