Benefits System: Working Hours

Oral Answers to Questions — Work and Pensions – in the House of Commons at 12:00 am on 13 November 2017.

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Photo of Theresa Villiers Theresa Villiers Conservative, Chipping Barnet 12:00, 13 November 2017

What steps he is taking to ensure that the benefits system does not penalise people who wish to increase the number of hours they work.

Photo of David Gauke David Gauke The Secretary of State for Work and Pensions

Universal credit is transforming and modernising the welfare state, ending complicated rules around employment hours and the cliff edges of the old system. Universal credit has a clear system of allowances and tapers to ensure that claimants know that they are always better off in work.

Photo of Theresa Villiers Theresa Villiers Conservative, Chipping Barnet

Does the Secretary of State agree that one of the fundamental flaws of the system that we inherited from Labour is that people who wanted to work more than 16 hours a week could lose 90p of every pound that they earned?

Photo of David Gauke David Gauke The Secretary of State for Work and Pensions

My right hon. Friend is absolutely right, and it was about not only the high marginal deduction rates, which obviously we do not see with universal credit, but the fact that people who moved in and out of work, or whose hours fluctuated, could find themselves moving from one benefit system to another. That created additional hassle and uncertainty for claimants, and discouraged people from taking on additional hours.