Universal Credit Work Allowance — House of Commons, 2016-01-06
Topic: Labor
James Spencer Cleverly (Conservative, Centre-right): It must surely be a fact that Members in all parts of the House want to see more people in good jobs. This must be a central focus of any Government. There is a pragmatic economic argument for this, as well as a social and moral argument. Labour’s policies in this area were no doubt well intentioned, but proved to be expensive, bureaucratic and in some cases—too many cases—counterproductive. The growth in job vacancies in the UK economy today is a reflection of the success of this Government’s policies and provides opportunities for people currently out of work and people who want a better job. Some 2 million more people are now in work, which means that we are creating 1,000 jobs every day. Estimates vary, but there are between 750,000 and 1.2 million more vacancies in the economy than before the recession. On a parochial note, I welcome the latest figures showing that the number of people in my constituency, Braintree, claiming jobseeker’s allowance or universal credit fell by 110 in 2015. There has been a staggering 59% drop since the economic and welfare reforms that the Government introduced in 2010 However, looking forward, we have to ask why we have so many vacancies, yet so many people under-employed. Surely the past welfare system must be a contributory factor. We can recognise the impact of perverse incentives without vilifying the unemployed or the under-employed. At no point in this debate have I heard the word "scroungers" uttered from the Government Benches, but many times from the Opposition Benches. That is unfortunate We have all had people in our surgeries saying something along the lines of "I am working my 16 hours." How on earth have we come to this? If taking more work brings extra paperwork, extra uncertainty but little extra money, is it any wonder that so many people decide not to do it? This is fundamentally wrong and must be rectified if we are serious about dealing with long-term under-employment Universal credit extends financial incentives to people working less than 16 hours per week and removes the limit on the number of hours that some people can work. The single 65% taper helps claimants clearly understand the advantages of working and planning for the long term. As a Conservative, I want to give people real choices in life. A life trapped on welfare is a life without choices. It is our duty to change this and give people a well-deserved chance to make the very best of themselves and their families. The financial imperative is important, but just as important is the fact that universal credit is a means of getting more people into work and more people into good work I have listened to the contributions from Opposition Members. Their arguments are all based on people not changing their circumstances. This fundamentally misses the point of universal credit. I want people to change their circumstances. If they are trapped in low-paid part-time jobs, I want them to change their circumstances. If their employers will not invest in their training because they are only on 16 hours a week, I want them to change their circumstances. If they are stuck on the minimum wage, I want to see them able and confident to get better jobs and therefore change their circumstances. Universal credit will be a game changer. I welcome it and I commend it to the House.