Skip to main content

Transition to Universal Credit

Volume 647: debated on Monday 15 October 2018

5. What assessment she has made of the effect on the public purse of the five-week wait to transition to universal credit. (907040)

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.

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?

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?

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?

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

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?

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.

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?

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.