Commons Sense

House of Commons · Ministers' Questions

Universal Credit: Removal of Uplift

Monday 13 September 2021 · 11 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 9 Not answered 0

Key points

  • Karin Smyth questioned the Secretary of State about reversing the planned removal of the 20 uplift to the standard allowance of universal credit, citing local economic impacts in Bristol South.
  • Karl Turner inquired whether the Government would cancel the planned cut to the universal credit uplift, suggesting the need for actions matching previous rhetoric in areas like east Hull.
  • Karen Buck questioned whether the Department had assessed the economic impact of the planned cut to universal credit, to which the Secretary of State replied that an impact assessment was not undertaken due to the temporary nature of the uplift.

Topics (select to filter)

Questions & Answers

Q1 Karin Smyth Lab Bristol South
Benefits & Welfare
Context

The £20 temporary uplift to the universal credit will end within a month.

Question

If she will reverse her Department's planned removal of the £20 uplift to the standard allowance of universal credit. The circumstances in Bristol South are different, with people and businesses unhappy about the cut, which would pull £11 million from the local economy.

Answer from Therese Coffey

The hon. Lady may be aware that more than £400 billion of support has been given to the UK economy and people during this difficult time, with over £7 billion invested in welfare system supports. As employment grows, we aim to encourage work progression through our doubled number of work coaches.

Partly answered

Not addressed: Reversed plans for removal of the £20 uplift was not addressed

How: Redirecting To General Support Measures

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Q2 Karl Turner Ind Kingston upon Hull East
Benefits & Welfare
Context

The universal credit uplift is set to end, affecting local economies and families.

Question

Time and again the Government have promised investment in areas like east Hull but now a £35 million cut will pull funding from the local economy. Is it time for the Government to match their rhetoric with actions by cancelling this cut?

Answer from Therese Coffey

The hon. Gentleman may not be aware that we extended the uplift beyond the pandemic's lockdown elements, and during Labour's late noughties crisis no changes were made to benefits.

Partly answered

Not addressed: Cancellation of cut was not addressed

How: Reference To Historical Actions

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Q3 Gerald Jones Lab Merthyr Tydfil and Aberdare
Economy Benefits & Welfare
Context

Residents and businesses in Bristol South are unhappy about the removal of the £20 uplift.

Question

People in Bristol South are not happy about the cut and businesses will lose £11 million from the local economy. The Secretary of State should be unhappy too. Will she change her mind?

Answer from Therese Coffey

The hon. Lady may know that more than £400 billion of support has been given to the UK economy and people during this difficult time, with over £7 billion invested in welfare system supports.

Partly answered

Not addressed: Reversing decision was not addressed

How: Redirecting To Overall Economic Support

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Q4 Karin Smyth Lab Bristol South
Benefits & Welfare
Context

Rising rental costs and high house prices in areas outside London have made the private rental sector difficult for people on low incomes.

Question

Will the Secretary of State look at how the universal credit housing element operates in areas affected by property and rental prices, such as constituencies just outside London?

Answer from Therese Coffey

I am conscious of my right hon. Friend's concerns. When we made the uplifts over a year ago, we put an extra £900 million a year into support for housing costs through changes to the local housing allowance rate.

Partly answered

Not addressed: Specific review was not addressed

How: Mentioning Existing Measures

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Q5 Chris Grayling Con
Energy Benefits & Welfare
Context

There is a potential mismatch between the energy cap for those with general electricity bills and that for prepayment meter users.

Question

Will the Secretary of State look at whether universal credit goes as far as it can in meeting rising pressures on living costs, especially regarding the interaction between the energy cap for general electricity bills and that for prepayment meters?

Answer from Therese Coffey

My hon. Friend is right to raise that issue. The warm home discount is administered through BEIS in conjunction with energy companies, although the DWP facilitates automatic claiming for benefit claimants.

Partly answered

Not addressed: Specific review was not addressed

How: Mentioning Existing Measures

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Q6 Paul Maynard Con
Economy Employment
Context

Unemployment is down, with record high job vacancies in areas like Stoke-on-Trent North.

Question

Does the Secretary of State agree that our economy is showing signs of recovery? In Stoke-on-Trent North, Steelite International has a jobs fair for over 100 vacancies. Is this the way to help people on universal credit into work?

Answer from Therese Coffey

My hon. Friend is absolutely right. Today, the Government have announced a £650 billion infrastructure programme over 10 years to generate 425,000 jobs in the next four years with well-paid wages.

Partly answered

Not addressed: Specific support for approach was not addressed

How: Mentioning Overall Economic Measures

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Q7 Karen Buck Lab
Benefits & Welfare
Context

The Joseph Rowntree Foundation reports that nearly four out of every five families with children are receiving Universal Credit or Working Tax Credit, rising to 45% in the north-east, Yorkshire and Humber, and west midlands. These families face a £1,000 annual income reduction due to an upcoming cut.

Question

The research by the Joseph Rowntree Foundation indicates that nearly four out of every five families with children are receiving Universal Credit or Working Tax Credit, rising to 45% in certain regions. Can the Secretary of State share her Department's assessment of how these families will manage losing £1,000 a year due to the upcoming cut?

Answer from Therese Coffey (Secretary of State for Work and Pensions)

It may surprise the hon. Lady to know that more than half of recipients of Universal Credit are households without children. We have injected several hundred million pounds specifically to help people with children with financial challenges over the past year, but now that the jobs market is well and truly open, we will be doing whatever we can to help people get into work and better-paid work.

Partly answered

Not addressed: Specific assessment of how families will manage losing £1000 per year was not provided

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Q8 Karen Buck Lab
Economy Benefits & Welfare
Context

The Resolution Foundation indicates that a quarter of all households in the north-east will lose £1,000 annually due to an impending cut. This will strip millions of pounds from the economies of some of the poorest communities.

Question

It is not clear if the Secretary of State's Department has undertaken any form of assessment on the income shock; however, it is also about the wider economic consequences. Has her Department assessed the economic impact of the cut coming into effect in a few weeks?

Answer from Therese Coffey (Secretary of State for Work and Pensions)

My understanding is that, as we always knew the uplift was going to be temporary, an impact assessment was not undertaken because it would have been limited in time.

Partly answered

Not addressed: Specific economic impact of the cut was not assessed

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Q9 David Linden SNP
Benefits & Welfare Standards & Ethics
Context

People have already struggled due to £37 billion of Tory cuts to social security between 2010 and 2019. Now facing a significant cut, can the Secretary of State confirm if she is lobbying the Treasury to stop these cuts?

Question

Given that the Secretary of State is her Department's voice around the Cabinet table, can she confirm with a simple yes or no whether she has been lobbying the Treasury to stop these cuts?

Answer from Therese Coffey (Secretary of State for Work and Pensions)

As the Chancellor set out in the Budget, when we had the discussion about extending support beyond lockdown time, it was not necessary to lobby the Treasury. We have increased work coaches in jobcentres in Scotland.

Not addressed: Did not confirm lobbying efforts or deny them directly

How: Changed Subject

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Q10 Jacob Young
Benefits & Welfare
Context

The question is about the financial cost of extending the temporary uplift for Universal Credit and potential measures to cover this expense.

Question

Can the Secretary of State outline how much it would cost to extend the temporary uplift for Universal Credit? Can she also think of any measures to pay for it?

Answer from Therese Coffey (Secretary of State for Work and Pensions)

The estimated annual cost for a year of extending Universal Credit is about £5 billion. The Chancellor has set out plans including the lifetime skills guarantee, sector-based work academy programme, to invest in people to help them get into better-paid jobs.

Partly answered

Not addressed: Did not provide specific measures to fund the extension directly

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Q11 Stephen Timms Lab East Ham
Benefits & Welfare
Context

Single parents in work face a £87 monthly income reduction due to an upcoming cut. Witnesses from the Work and Pensions Committee have shared struggles such as skipping meals.

Question

Single parents who are employed reported difficulty sustaining the £87 monthly income drop this cut will cause, even resorting to skipping meals to ensure their children do not go hungry. Surely social security must provide better support than that?

Answer from Therese Coffey (Secretary of State for Work and Pensions)

I hope the right hon. Gentleman will direct that individual to have a chat with their work coach. We encourage people to talk to their work coaches to help them get on in life and be more prosperous.

Not addressed: Did not address the need for better social security support directly

How: Changed Subject

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