Commons Sense

House of Commons · Westminster Hall

Universal Credit: Farmers

24 April 2024 · 3 other contributors · 4,329 words

Opened by Wendy Chamberlain Lib Dem North East Fife

Responding minister: Jo Churchill

Benefits & WelfareAgriculture & Rural Affairs

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

Read the full transcript on Parliament.uk

At a glance

Wendy Chamberlain raised concerns about universal credit: farmers in Westminster Hall. A government minister responded.

Key points

  • Farmers are facing financial distress due to the transition from tax credits to universal credit during peak farming months.
  • The universal credit system does not accommodate variable and averaged farming incomes, causing farmers to miss essential work.
  • Farmers urge the government to review the impact assessment and consider reforms that reflect the realities of farming incomes.

Key requests to Government

The Government should review the impact assessment on universal credit rollout to farmers and consider reforms that reflect farming realities such as variable income averaging over multiple years, without administrative burdens or assumptions about minimum incomes.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Wendy Chamberlain Lib Dem North East Fife

Farmers are struggling due to the transition from tax credits to universal credit, which is occurring during peak farming months like lambing season. The system does not account for variable and averaged incomes, forcing farmers to miss critical work due to administrative requirements. Some farmers are experiencing severe financial distress, including loss of benefits at crucial times, leading to food insecurity and mental health issues.

Other contributors (3)
  • Alistair Carmichael Lib Dem Orkney and Shetland

    Sheep farmers have income from selling sheep, basic payments, and less favoured area support scheme, but this income is spread throughout the year, making it difficult to fit into a monthly universal credit system. The difficulty is that even at the end of the transitional period for Universal Credit, there will still be self-employed farmers with income coming in significant sums but at small points in the year. This means no fundamental change to the business model.

  • Iain Stewart Con Milton Keynes South

    Acknowledged the concerns raised by Wendy Chamberlain and highlighted the importance of a smooth transition to universal credit for farmers. Mentioned the need for clear communication from the Government to address issues faced by farmers.

  • Jim Shannon DUP Strangford

    Farmers may experience three months of income followed by nine months of hardship, making the monthly system inappropriate for their seasonal work. The universal credit system might discourage farming and affect food security.

Government Response

Jo Churchill

It is a pleasure to see you in the Chair, Mrs Murray. Before I respond, I would like to pay tribute to Lord Field... I strongly encourage people to engage with the migration notice so that they can access the support and income protection as we make the move to universal credit.

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