Hammond’s climbdown
MP calls for more changes after U-turn on six-week wait for Universal Credit
PHILIP Hammond is under further pressure to reform Universal Credit after signalling the six-week wait claimants face for payments will be cut to one month.
Philippa Whitford called for the Conservative Chancellor to make Universal Credit “function for the way people live” with a series of practical reforms.
The SNP MP will introduce a 10-minute rule Bill next week highlighting practical steps that could make UC more workable.
It is expected that Hammond will announce a move to a four-week wait period in his autumn budget.
The move to monthly payments is a major climbdown in the face of mounting evidence that it is driving claimants into poverty.
Central Ayrshire MP Whitford said: “There is evidence that we lose about 1400 children a year because of poverty, from low birth weight, through ill health and a whole series of factors caused by a lack of money.
“What we are seeing around Universal Credit is people driven into crisis on top of already crippling levels of poverty.
“People being moved onto UC are already struggling and suddenly they are left with nothing for six weeks. Some people go 10 weeks. The idea of leaving someone with kids with nothing for six weeks or more is clearly ridiculous.”
She added: “Of course it should be on at least a monthly basis, but 47 per cent of people going on to UC are coming from weekly salaries, so they go into the wait period with very little.
Whitford added: “I’d like them to have options of fortnightly payments and we’re asking that the repayments of advanced payments be spread over 12 months rather than three or four to make it a manageable amount.” The Scottish Government are committed to introducing a fortnightly payments option in January as they take over administration of benefits. Whitford also wants the proposed Scottish model of offering claimants the option of having rent paid directly to landlords adopted across the system. When incomes are strained, rent payments are often the first item to be cut back on. Whitford said: “What we are seeing in the pilot areas is a massive increase in rent arrears and councils are spending hundreds of thousands on staff dealing with arrears, and of course this leads to evictions and homelessness.” The former surgeon is also unhappy with the single household payment system that accompanies UC. She said: “The idea that we are going back to daddy the breadwinner and he gets the money is quite bizarre. There should be an easy option for payments to be split.” Meanwhile, Glasgow South East MP Chris Stephens demanded the Government hunt down tax dodgers to help pay for changes to UC. The Resolution Foundation thinktank believe cutting the waiting time for payment to four weeks would cost the government £150200million a year. But the PCS union and Tax Justice Network estimate that £120billion is lost to tax avoidance. The DWP believe the cost of benefits received through fraud or error is £3.5billion. Stephens said: “It’s time that the Tories nailed the rich and Mega Corporations not paying their fair share.”