Universal Credit

On 6 January, it was reported in The Observer that the Government had—

Order. The hon. Lady is always ahead of herself. What she does at this stage is say, “To ask the Minister to make a statement on universal credit”. We will get her full blast in a moment.

(Urgent Question): To ask the Minister to make a statement on universal credit.

As I outlined in the written statement tabled last Friday in the House, we have decided to replace the regulations relating to managed migration previously laid before the House with two new sets of regulations.

These regulations will allow a series of measures relating to universal credit to be put in place. The Government will seek powers in an affirmative set of regulations for a pilot of managed migration so that the Department cannot issue any more migration notices once 10,000 people have been awarded through the process. Those regulations will also deliver on our commitment to provide transitional protection for those managed migrated to universal credit. Separate regulations will put in place a severe disability premium gateway, allowing recipients of this benefit to continue to claim existing benefits until they are managed migrated on to universal credit.

In addition, my statement reported that we were bringing forward the necessary legislation to remove the planned extension of the policy to provide support for a maximum of two children in universal credit. This overall policy ensures that parents receiving benefits face the same financial decisions about the size of their family as those supporting themselves solely through work. We decided, however, that it would not be right to apply the policy to children born before it came into law on 6 April 2017, so we have cancelled that extension.

The benefits freeze up to April 2020 was voted for by Parliament as part of the Welfare Reform and Work Act 2016. As a general point, any changes relating to benefits uprating will be brought before Parliament in the usual way.

On 6 January, it was reported in The Observer that the Government had decided to ask for powers from Parliament for a pilot of the managed migration of 10,000 people from legacy benefits to universal credit, rather than for a pilot of managed migration as a whole. However, on 7 January at oral questions, and the following day in response to an urgent question, Ministers failed to provide clarification of the Government’s plans. Then on Thursday, the Secretary of State told Sky News that she did not expect the social security freeze to be renewed when it came to an end in April 2020.

On Friday 11 January, the Secretary of State made a wide-ranging speech on social security, setting out her intentions in relation to managed migration, private sector rents, childcare costs and the two-child limit, but she did not make it in this House or give Members the opportunity to ask questions about those really important matters. On the same day, the High Court found in favour of four single mothers who had brought a legal challenge against the Government on the grounds that universal credit failed to take into account their fluctuating incomes after they were paid twice in a month because their paydays fell very near the end of the month.

How do the Government intend to respond to the High Court judgement? Does the Minister think that the two-child limit is fair to the children affected, and will the Government not scrap it altogether? Will they address the key concern with managed migration, which is that nobody’s claim for benefits that they are currently receiving must be ended until they have made a successful new claim for universal credit?

Will the Government make sure that the levels set for payments to people in receipt of severe disability premium who have already transferred to universal credit reflect the financial loss they have suffered? Will they take immediate action to ensure that no one has to wait five weeks to receive their initial payment of universal credit? Why are they not cancelling the benefits freeze now rather than waiting until April 2020, given that the Secretary of State says she believes that the reasons for it being introduced no longer apply? Finally, will the Government call a halt to the roll-out of universal credit?

I thank the hon. Lady for her comments. Very many people outside the House—many stakeholders —have welcomed the statements made in the House on Friday and what the Secretary of State said in her speech. I am sorry that the hon. Lady did not welcome the positive changes that have been made and are being proposed.

The hon. Lady talked about a number of issues, and I shall go through them. She mentioned the legal judgment on Friday; as she acknowledged, that judgment came out literally a few days ago. As a Department, we will consider it very carefully and then respond. On the two-child policy, we have of course made that change; as she will be aware, the regulations were laid on Friday. She talked about the overall two-child policy, and we do believe that the overall policy is fair. Ultimately, those receiving support in the welfare system should face the same sort of choices as those who support themselves solely through work. It is worth pointing out that if a family who supported themselves solely through work decided to have another child, they would not automatically expect their wages to go up. This is about sustainability.

The hon. Lady mentioned the pilot. We have made it clear that that will start in July 2019, and we are working with a wide range of stakeholders on it. She talked about the severe disability premium: those regulations have been laid. She also mentioned the benefits freeze. May I ask her to reflect on the reason why we had to make various policy choices in the past? It was the awful financial mess left us by the last Labour Government. [Interruption.] I am sorry, but she cannot get away from that point.

I have one final thing to say to the hon. Lady. She talks about changes to the five-week period. I have said this in the House before: if she is so keen on supporting claimants, particularly the vulnerable, as we on the Government Benches are, why did she not vote for the £1.5 billion of support that came in under Budget 2017 and the £4.5 billion of support announced in the 2018 Budget?

Order. On account of the fact that a prime ministerial statement is to follow and that we then have eight hours of protected time for the debate on the withdrawal agreement, I will seek to conclude these exchanges by 4.15 pm. I am sure that colleagues will want to factor that into their calculations.

I congratulate my hon. Friend the Minister and his Secretary of State on the progress that they are making on eliminating some of the obvious defects that have emerged in this otherwise highly desirable policy. Does he agree that the problem is that the details were designed by people who were well intentioned but too paternalistic in their attempts to introduce people to the disciplines and normal way of life of people in work? They were often dealing with people who were vulnerable and relying day to day on cash.

When it is affordable, after we have really recovered from the consequences of the financial disaster, will my hon. Friend address the five-week delay in the first payment, which does cause hardship and which I hope will be gone by the time the so-called migration comes to my constituency?

I thank my right hon. and learned Friend for his support for the policies that we have announced. On the five-week period, we have ensured that people can get support through 100% advances from day one if they require it; two weeks of housing benefit run-on is also available. As part of the package that we announced in the Budget, additional run-on support will be available from 2020.

My right hon. and learned Friend is right: we need to make sure that throughout this process we support the most vulnerable, and that is exactly what the changes that have been announced have been all about.

First, I want to say how inappropriate it is for the Secretary of State to have made this statement on Friday outside the House and then not even to have bothered to come here today to speak for herself.

We in the Scottish National party welcome this U-turn from the Secretary of State, which vindicates what we, along with a range of charities, women’s organisations and faith groups, have been saying since the July Budget in 2015. However, none of us will be fully satisfied as long as the two-child limit applies to births after 6 April 2017: it must be scrapped now. The Secretary of State has already accepted the fundamental unfairness of the two-child limit, so why does the Minister feel that this policy, with its cruel and pernicious rape clause, must continue, even though it has been ruled unfair for other people? Does he not see that it creates a two-tier system in universal credit depending on when children were born? We cannot plan for everything in our lives.

Has the Secretary of State heard the evidence from Turn2us and the Child Poverty Action Group that the two-child policy is forcing women into terminating healthy pregnancies? Has she heard about the discrimination against religious and ethnic minorities? Does she know that most people claiming this benefit are actually in work, and does she know that in its first year of operation it affected 73,530 people? Where does the 15,000 figure come from?

Friday’s court ruling laid bare flaws in universal credit which many Members have been highlighting in relation to the timings of payments. High Court judges said that the DWP had wrongly interpreted the relevant regulations and, shamefully, had tried to justify that on cost grounds. What steps will the Secretary of State take to put that right, and will she stop wasting money in the courts rather than ensuring that our constituents receive what they are fully entitled to?

I am grateful to the hon. Lady for welcoming the changes that have been announced. She has referred to the Secretary of State. As the hon. Lady will know, the statement about the changes was made in my name, and the regulations were laid in my name. It is therefore entirely appropriate that I should come here and, quite rightly, answer questions asked by colleagues.

The hon. Lady talked about the non-consensual conception clause. Of course I agree with her that women who find themselves in such utterly awful circumstances must be given the help that they need, and that that must be done in the most compassionate way possible. We have discussed the point before, and she knows that it is purely a question of whether the circumstances that are described are consistent with those of someone who has met the criteria for the exception. The individuals who are dealing with this are third-party professionals who already have experience of supporting vulnerable women.

As I have said, we will consider Friday’s court judgment and respond to it.

I welcome the emphasis on helping people into work, and the idea that the implementation of the policy should be compassionate. With that in mind, may I ask whether there will be changes in the timing of benefit so that those who are most in need of it receive it earlier, and whether there will be a review of the housing element, which has sometimes caused trouble as well?

My right hon. Friend is, of course, right: throughout this process, we must provide support for the vulnerable in particular. As he will know, once universal credit is fully rolled out, there will be over £2 billion more in the welfare system than there is under the current legacy benefits. One of the changes made in the Budget was the uplifting of work allowances, which will help young parents and also the disabled.

Any improvements in this hideous programme are welcome, but there will still be thousands of universal credit claimants who are moved on to it this year as a result of natural migration, with no transitional protections. How many people will be pushed into poverty by that move and the Government’s lack of compassion in failing to unfreeze the benefits system?

As I have said previously in the House and as I said earlier this afternoon, we have put more money into the system to support the most vulnerable, which is absolutely right. As for the pilot phase, we will of course work very carefully with stakeholders to make sure that we get it right.

I warmly welcome this excellent move by the Department. Will my hon. Friend please pay tribute to the sympathetic, careful, diligent and effective manner in which the staff of the Jobcentre Plus in Haywards Heath carry out their difficult duties?

My right hon. Friend has highlighted a very important point. He has talked of the incredibly hard-working DWP staff in the Haywards Heath jobcentre, but the Secretary of State and I see the same hard work as we go up and down the country talking to our colleagues in jobcentres. They are all incredibly committed, and they see the benefits of universal credit in helping people and ensuring that claimants have the one-to-one support that was not in place before.