MP Ged slams the ‘failure’ of Universal Credit

Killen:‘Labour would deliver real living wage’

More than 300 people in Rutherglen and Cambuslang who earn low pay could be punished by the UK government’s welfare system.

Of the 2,293 people receiving Universal Credit at Rutherglen and Cambuslang job centres, 650 are working and 314 of those are working ‘with requirements’.

This means that despite working full-time the claimant isn’t earning the equivalent of minimum wage.

Universal Credit tops up their pay, however as a result they remain open to sanction if they do not meet the conditions of their Universal Credit claim.

The rules around Universal Credit mean that these people must increase their income – either with a second job, more hours or a higher paid job – or face cuts to their universal credit payments if they fail to meet set conditions.

Despite already being in work, claimants can be forced into arrears, require the use of foodbanks or seek pay day loans if they are hit with the sanctions built into the Universal Credit system.

Rutherglen MP Ged Killen said: “Universal Credit is a failure.

“These new statistics show that despite working hard, those in employment can still face sanction due to a flawed system.

“A report by the Child Poverty Action Group has said that even two parents working full-time on the minimum wage cannot afford a basic standard of living in Theresa May’s Britain.

“Universal Credit sanctions on those in work make this situation worse and can drive families and individuals into poverty.

“In parts of Rutherglen and Hamilton West, one in four children are living in poverty, yet 300 workers in Rutherglen and Cambuslang could face sanctions on Universal Credit because they aren’t earning enough. This affects 14,000 Scots nationwide.

“That isn’t the fault of working people – that’s the fault of a broken economy which sees wages stagnant, a prevalence of zero hours contracts and a soaring cost of living.

“A Labour government would end insecure work and deliver a real living wage of £10 per hour.

“People are being penalised by a broken system.”

A spokesperson for the Department for Work and Pensions said: “It is right that for the first time ever we are supporting claimants who are in low paid work to increase their earnings and progress in their careers.

“Universal Credit is a vital reform that will make work pay and is already transforming lives, with claimants moving into work quicker and earning more than under the old system.”