8. 8. Plaid Cymru Debate: Universal Credit

Part of the debate – in the Senedd at 5:34 pm on 25 October 2017.

Alert me about debates like this

Photo of Mark Isherwood Mark Isherwood Conservative 5:34, 25 October 2017

Diolch. I move our amended motion. As it states, the National Assembly for Wales acknowledges concern about the roll-out of universal credit. Two weeks ago, I wrote to the UK Secretary for Work and Pensions regarding universal credit helpline charges, imploring him to immediately explore and consider alternative options in a situation in which some people have been charged up to 55p a minute to discuss their individual claim in English, creating further barriers and much distress, whereas the Welsh language helpline is free. We were therefore pleased to hear last week’s announcement that this charge would be scrapped. We also welcome reports that UK Ministers could reduce the waiting time for universal credit payments from six weeks. As the MP for Stevenage said on Saturday, on that particular issue I think we are very, very close to getting a resolution.’

It is, in fact, great to see backbenchers in the Government party doing their democratic job and their Government listening, and a shame that we haven’t seen the same here from Labour backbenchers on issues ranging from warnings over a decade ago that Labour’s massive social housing cuts would create a housing supply crisis, to their failure to speak up publicly now in support of disabled campaigners fighting Welsh Government plans to scrap the Welsh independent living grant.

Our amended motion also welcomes the principles behind universal credit. As the communities Secretary said here himself last week, the principle of the universal credit programme wasn’t wrong’.

When the Centre for Social Justice, which has two Labour Members on the board, envisaged universal credit, they found that most people claiming benefits wanted to work but were held back by a system that did not incentivise employment. They found that, despite a massive redistribution programme, worklessness was becoming ingrained in many parts of the UK. Research, however, found that universal credit claimants in the initial roll-out were 13 per cent more likely to have been in work than those on jobseeker’s allowance and earning more money than those on jobseeker’s allowance.

Evidence today shows people are moving into work faster and staying longer in their job as a result of universal credit. Claimants will no longer need to go through the bureaucracy of changing their benefit claim when they enter work, as universal credit stays with them. Advances are available for anyone who needs them, and around half of people take this up. For those who can’t wait until their first full payment, interest-free benefit payment advances are available within five working days, and if someone needs it urgently, this can be made on the same day. Over 50 per cent of new claimants have made use of these payments.

At the beginning of this year, 55 per cent of people on universal credit weren’t getting their first payment on time, but now over 80 per cent get the right amount on time the first time, with the remaining 20 per cent having missing information. The most recent expansion phase will only take the proportion of the forecast universal credit claimant population from 8 per cent currently to 10 per cent by the end of January, with time to address issues as they arise built into the roll-out schedule. Over three quarters of tenants were already in rent arrears before they started claiming universal credit, but, after four months on universal credit, this had fallen by a third.