Local MP Justin Tomlinson has highlighted the positive transformational change Universal Credit as he made an impassioned & personal speech in Parliament.
Previously, people in need of support had to negotiate a minefield of different types of support and when they did receive support, they often encountered an absurd cliff-edge which meant that any entitlement to support once they worked more than 16 hours a week. But Universal Credit simplifies six benefits into one and removes the cliff-edge which acted as a disincentive to move in to work and progress in a career.
The ultimate aim of Universal Credit is to ensure it always pays to be in work, and to achieve this ‘work allowances’ have been introduced as part of the scheme. Work allowance is the amount a clamant can earn while still receiving the maximum Universal Credit they are entitled to, once they are earning above that amount their pay is tapered away gradually.
In the 2016 Autumn Statement the Chancellor announced that the taper rate for Universal Credit would be reduced in April this year from 65% to 63% - meaning people keep more of what they earn and will be better rewarded for increasing their hours or pay. The move effectively operated as a targeted tax cut worth £700m in 2021-22 for those on low incomes, and will benefit 3 million households in the UK.
Alongside these changes, the Government has also introduced dedicated work coaches for the first time. These coaches will support an individual who is seeking employment, and then continue to provide tailored advice to encourage a person to progress further.
An independent review of Universal Credit concluded that those who had already been transferred across to the new benefit were:
- 13 per cent more likely to have been employed
- On average, working 12 days more
- On average, earning more
- More than twice as likely to be trying to work more hours if they were working less than 30 hours a week
Families on Universal Credit who move into work are also able to claim back up to 85% of their childcare costs – boosting their finances by over £13,000 a year. This helps ensure that families with children are not disadvantaged when seeking work or looking to progress in their career or take on extra hours.
While the roll-out has led to the welcome improvements above, the Government is working to ensure the system work for everyone. While additional support, like Discretionary Housing Payments, are already available for those who face immediate challenges, the Government has listened to experts so that the system can be improved further.
Last week the Work & Pensions Secretary David Gauke MP announced:
- Claimants who need an advance payment will not have to wait six weeks. They will receive this advance within 5 working days.
- If someone is in immediate need, we fast track the payment, meaning they will receive it on the same day.
These changes will improve the tailored support available to people while ensuring that more people across the country can move across to Universal Credit.
Text of Justin's speech:
Justin Tomlinson (North Swindon) (Con): In highlighting the fact that these are real people, the hon. Member for Bradford South (Judith Cummins) insinuates that Government Members have no understanding, which is absolute nonsense. I went to a school at the bottom of the league table, my father died at an early age, we had bailiffs at the door, and there was no support. We absolutely understand the importance of providing opportunity. That is what drove me into politics and why I support universal credit. I do not want it paused because it offers people a transformational opportunity.
I am not just plucking stats out of the air. I have hosted roundtables, I have visited jobcentres, I have talked to vulnerable people having to navigate incredibly complex, unique and individual challenges, and for the first time, with predominantly cross-party support, we have now introduced a system designed to treat people as individuals and give them tailored support.
For me, the key is the simplification of benefits. One had to be a nuclear physicist to navigate the old system. We all saw in our casework some of the most vulnerable people missing out on benefits to which they were entitled. That was the driving priority for introducing universal credit, which removes the cliff edge for those wanting to enter or progress at work and those desperate to build up their hours, particularly those with disabilities and fluctuating health conditions, but unable to break through the 16-hour barrier. That has now been removed.
One of the most important benefits of universal credit is that for the first time people have a named work coach—an individual who will provide them with their own unique and tailored support, whether that be extra training, childcare, housing or, for the first time, in-work support. When I talk to staff in jobcentres, I see how incredibly enthused they are. We have empowered them to identify and bring together the help and support people need. That has been combined with a refresh of our jobcentres. For the first time, there is an attitude of wanting to help, a “can do” attitude—an attitude not of trying to find reasons why people cannot do things, but of doing everything we can to give them that opportunity.
I was asked in the intervention what the fixes were. The obvious one—the one we all wanted to see—was changes to the telephone number, so the announcement today was welcome. I also want to see greater engagement with employers, however, to bring them into jobcentres. My right hon. Friend the Member for Broxtowe (Anna Soubry) mentioned that we were close to full employment, and many of those still looking for work, being very far from the jobs market, need additional help. When I was Minister for disabled people, I talked to many people who were desperate for an opportunity and had skills, but the employers were not coming forward to hook up with that. We, as a society, through our refreshed jobcentre network, need to reach out to employers and say to them, “Where are your skills gaps? How can we help you change and adapt to take advantage of the huge wealth of talent?” With the right support, those people can contribute and make a positive difference both to employers and themselves. That has to be a priority.
We must also recognise the need for local solutions around the training options provided. We all represent diverse constituencies and have different employers. If a town is predominantly retail or manufacturing, that should be reflected in the 12-week programmes. Jobcentres must work with employers to set the type of training available in a way that maximises opportunities.
We have to grasp this opportunity to support people in work. This has never happened before. Most of us were pushed by our families to succeed. If we did well on our first entry into work, we were told to push for a promotion. For many of those entering work, however, particularly those on the national living wage who do not necessarily have that extra support, we should be providing mentoring and support. If they are turning up for work regularly, they should be talking to their employer and asking for a promotion, to be made a supervisor, or whatever it might be. We all want full employment and career progression. This is a huge opportunity and we all have a duty to get behind it. Yes, we are right to challenge the detail, but universal credit is transforming people’s lives and I fully support it
