Labour has secured a vote on the Government’s plan to continue
the roll out of Universal Credit Full Service.
This follows criticism of the Government’s decision to persevere
with the roll out of Universal Credit, which has been shown to be
driving debt and arrears among low income families.
The Department of Work and Pensions’ own data shows that one in
four new claims are not being paid in full in six weeks, with
half of those in rent arrears reporting that they went into debt
after claiming Universal Credit.
Concerns have also been expressed regarding the high cost of
calls to the programme’s helpline, with some callers paying as
much as 55p a minute.
This vote will be a key test of the Government’s flagship welfare
reform policy. At least twenty five MPs from the Conservative
Party are believed to back Labour’s call for a pause to roll out,
more than the Prime Minister’s working majority of thirteen.
MP, Labour’s Shadow Work
and Pensions Secretary, commenting on the
announcement, said;
“The Government is ignoring its own evidence, and the concerns of
its MPs to push ahead with their flawed Universal Credit
programme.
“The social security system should work to prevent people from
getting into debt, not to exacerbate it.
“The numerous problems with Universal Credit are not just
administrative; the delays and cuts made by this Government to
the programme are all contributing to claimant debt. We will work
with them to tackle these issues.
“The Government must pause and fix the programme before the roll
out can cause further harm to those struggling to get by.”
Ends
Notes to editors:
- The debate is due to take place on Wednesday
18th October
The Tories are failing working people
- Real wages are lower now than they were a decade ago and
in-work poverty is at a record high.
“On these projections real wages will, remarkably, still be below
their 2008 levels in 2021.”
IFS, Autumn Statement analysis, 24 November 2016
https://www.ifs.org.uk/uploads/budgets/as2016/as2016_pj.pdf
“One in every eight workers in the UK - 3.8 million people - is now
living in poverty. A total of 7.4 million people, including 2.6
million children, are in poverty despite being in a working family.
This means that a record high of 55 per cent of people in poverty
are in working households.”
Joseph Rowntree Foundation, ‘In work poverty hits record high
as the housing crisis fuels insecurity’, 07 December 2016
https://www.jrf.org.uk/press/work-poverty-hits-record-high-housing-crisis-fuels-insecurity
Universal Credit is making matters even worse
- Universal Credit is creating poverty and debt for families
across the country. According to Citizens Advice:
“79% have priority debts such a rent or council tax, 2 in 5 (41%)
have no money available to pay creditors as their monthly spend
on essential living costs is more than their income. Typically
people on Universal Credit only have around £3 a month left to
pay creditors.”
Citizens Advice, ‘Universal Credit expansion is 'a disaster
waiting to happen' says Citizens Advice’, 11 September 2017
https://www.citizensadvice.org.uk/about-us/how-citizens-advice-works/media/press-releases/universal-credit-expansion-is-a-disaster-waiting-to-happen-says-citizens-advice/
· The Government’s
own data shows that one in four new claims is not being paid in
full in six weeks and half of Universal Credit recipients need a
loan to cover the first six weeks.
DWP, ‘Universal Credit Statistical Ad Hoc: Payment
Timeliness’, September 2017
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/645065/universal-credit-payment-timeliness-statistical-ad-hoc.pdf
- Half of families in arrears under Universal Credit have said
that their rent arrears started after they made their claim.
DWP, ‘Research into families claiming Universal Credit’,
September 2017
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/643978/research-into-families-claiming-universal-credit.pdf
Chancellor Phillip Hammond and 25 Tory MPs have expressed their
concerns with Universal Credit
- Twenty five Conservative MPs are ‘prepared to rebel’ over
Government refusal to pause the roll-out of Universal Credit.
“More than 25 Tory MPs are now prepared to rebel over the
Government's flagship welfare reforms amid mounting calls for
a "pause" in the roll-out of
Universal Credit.”
The Daily Telegraph, 8 October 2017
· Chancellor Phillip
Hammond has conceded there is are “challenges” with Universal
Credit.
“We recognise that there is a challenge around the waiting time
and the cash flow management that people have during that waiting
time.”
BBC Breakfast, 2 October 2017
