Labour MP for Redcar calls for Universal Credit roll out to be stopped
Labour MP for Redcar, Anna Turley, is to call for an end to the rollout of Universal Credit in Parliament tomorrow, warning that families on Teesside will lose thousands of pounds.
The government's flagship welfare reform, Universal Credit, is being rolled out in Redcar & Cleveland at the end of November. The reform is designed to simplify the welfare system by merging several benefits in to one single payment. This includes Housing Benefit; Child Tax Credit; Income Support; Working Tax Credit; Income-based Jobseeker’s Allowance; Income-related Employment and Support Allowance.
Tomorrow (Wednesday 17th October) Labour will hold a debate on Universal Credit in the House of Commons to challenge the government on the rollout which has proven to be a total disaster in the areas it has been rolled out in. Ministers have combined the reform with large cuts and there have been huge administration problems. This year an estimated 270,000 people have had to deal with delayed payments.1 According to major food bank charity, the Trussell Trust, in areas where the rollout has already occurred there has been a 52% increase in food bank use.
The Work and Pensions Secretary, Esther McVey, has admitted that half of lone parents and about two thirds of working-age couples with children would lose the equivalent of £2,400 a year.
In Parliament Anna will call on the government to stop the rollout before 10,800 people in Redcar & Cleveland are affected. Across the Tees Valley, an estimated 64,962 will be affected when the benefit has been fully rolled out.4
Speaking ahead of the debate, Anna said:
“Universal Credit is going to be devastating for people in our area and low income families are going to see the support they receive slashed. The Conservatives have used the reform to try to disguise massive cuts to welfare. Rather than making work pay, as they claim they want to do, the new system will leave vulnerable people reliant on food banks and forced in to personal debt. It is appalling and we must do everything we can to stop it being rolled out here.
“I have been pushing Ministers in Parliament to drop the scheme and will be repeating that call tomorrow. I have also launched a petition so that we can send a clear message to the government that this is just not acceptable. The hallmark of a decent society is how we treat the most vulnerable. The welfare system has to be fair, providing a decent standard of living for those who cannot work through no fault of their own and providing a guiding arm for those who can. Slashing this support as the Conservatives are doing is cruel and shortsighted. It must be stopped.”
Anna’s petition to stop Universal Credit can be found online at: https://annaforredcar.org.uk/stop-universal-credi
A DWP spokesperson said:
“Universal Credit (UC) replaces an out-of-date, complex benefits system with cliff edges that disincentivised work and often trapped people in unemployment. Under UC, people are moving into work faster and staying in work longer than under the old system.
“Through our ‘test and learn’ approach, we have listened to feedback from stakeholders and claimants and made improvements, including increasing advances to 100%, removing the 7-day waiting period and paying people’s Housing Benefit for two weeks while they wait for the first UC payment.
“The reasons why people use food banks are complex, so it’s wrong to link a rise to any one cause.”
"We continue to spend around £90 billion a year supporting people who need it, including those who are out of work or on a low income."