Transition to Universal Credit

Oral Answers to Questions — Work and Pensions – in the House of Commons at 12:00 am on 15 October 2018.

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Photo of Luke Pollard Luke Pollard Shadow Minister (Environment, Food and Rural Affairs) (Fisheries, Flooding and Water) 12:00, 15 October 2018

What assessment she has made of the effect on the public purse of the five-week wait to transition to universal credit.

Photo of Alok Sharma Alok Sharma The Minister of State, Department for Work and Pensions

Claimants are entitled to benefits from the moment of making a successful claim. The first payment under universal credit is made five weeks after the claim date, and all subsequent payments are made monthly thereafter. The five-week wait has no savings implications for the Exchequer.

Photo of Luke Pollard Luke Pollard Shadow Minister (Environment, Food and Rural Affairs) (Fisheries, Flooding and Water)

Unlike the Health Secretary, a lot of people I represent get in touch with me about universal credit, and in particular about how they struggle to repay the loan given to them during the five-week wait period. If entitlement has already been established, will the Minister consider, instead of issuing loans, giving them the money they deserve and are entitled to in the first place?

Photo of Alok Sharma Alok Sharma The Minister of State, Department for Work and Pensions

We talk about giving support to people and, as the Secretary of State pointed out, £1.5 billion of support was put in, so those who are on housing benefit get two weeks’ housing benefit run-on in actual cash and of course people can take advances. I would say this to the hon. Gentleman and all his colleagues sitting there now who are talking about supporting the vulnerable: if that is what they want to do, why did they not support us when we voted for the £1.5 billion?

Photo of Greg Hands Greg Hands Conservative, Chelsea and Fulham

One certain way in which universal credit is helping the public purse is by getting more people into work. Can my hon. Friend confirm that universal credit is forecast to help an additional 200,000 people find work in the coming months?

Photo of Alok Sharma Alok Sharma The Minister of State, Department for Work and Pensions

I can—200,000 people over the roll-out period. Not only that, but people will be taking on extra work as well.

Photo of Catherine West Catherine West Labour, Hornsey and Wood Green

Astronomical numbers of people are applying to food banks during that critical five-week period. Has the Minister—yes or no—read the Trussell Trust report on universal credit roll-out?

Photo of Alok Sharma Alok Sharma The Minister of State, Department for Work and Pensions

I met the Trussell Trust last week and had a very constructive discussion. [Interruption.] I had a very constructive discussion. What I would say to the hon. Lady is that, when it comes to food banks, as she knows, the all-party group on hunger put out a very good report and said there were complex reasons for the use of food banks. You cannot put it down to any one reason.

Photo of Philip Hollobone Philip Hollobone Conservative, Kettering

Five hundred and thirty households presently receive universal credit in the Kettering constituency, but with the roll-out this Wednesday up to 7,700 households could be affected. Can the Minister assure me and my constituents that Kettering jobcentre is ready for the change?

Photo of Alok Sharma Alok Sharma The Minister of State, Department for Work and Pensions

I go up and down the country to jobcentres, and they invariably tell me they are having a good experience. They are learning from the past. What I think my hon. Friend will find is that his jobcentre is absolutely prepared for this further roll-out.