Conservatives have finally listened to Labour and scrapped premium phone helpline for claimants - Debbie Abrahams

Debbie Abrahams MP, Labour’s Shadow Work and Pensions Secretary, commenting on today’s Universal Credit statistics, said:

“The increase in the number of people on Universal Credit is worrying given the Government's chaotic handling of its roll out.

“The Conservatives have finally listened to Labour and scrapped the premium phone helpline for claimants, now they need to listen to the calls of charities and councils and back Labour's motion today to immediately pause and fix the roll out of Universal Credit, before more people are pushed into rent arrears, poverty and homelessness.”

Ends

Notes to Editors

• ·         Statistics published today show an increase to 610,000 claimants of Universal Credit

DWP, Universal Credit statistics, 18 October 2017

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/652253/universal-credit-statistics-to-14-sept-2017.pdf

• ·         David Gauke has confirmed the Government has scrapped the premium phone helpline for Universal Credit claimants

“In recent days, there has been criticism over the telephone charges that exist in respect of Universal Credit. Now, as we’ve previously said, the Universal Credit 0345 numbers are charged at a local rate, which is included in the call package of most mobile phone and landline phone deals. Contrary to some reports, these are not premium lines. DWP does not make a profit from these lines. Nonetheless, given the recent attention and concern that this could place a burden on claimants, I have decided that this will change to a Freephone number over the next month.”

David Gauke, Work and Pensions Select Committee, 18 October 2017

• ·         At PMQs last week (Wednesday 11 October 2017) Jeremy Corbyn urged the Government to end the 55p-a-minute helpline rate https://www.theguardian.com/society/2017/oct/11/corbyn-urges-benefits-universal-credit-rethink-and-end-to-55p-a-minute-helpline-charge

• Labour’s opposition day debate calling for a pause in the roll out of Universal Credit is due to take place today (Wednesday 18^th October)

• Labour’s motion, tabled on Tuesday, states;

That this House calls on the Government to pause the roll out of Universal Credit Full Service.

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 per cent have priority debts such a rent or council tax, 2 in 5 (41 per cent) 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 http://www.telegraph.co.uk/news/2017/10/08/25-tory-mps-prepared-rebel-universal-credit-roll-out/

• 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