Press Release: The Rollout of Universal Credit Must be Stopped

Kate Osamor, MP for Edmonton and Shadow Secretary of State for International Development has called for the rollout of Universal Credit (UC) to be halted, and the system re-evaluated.  UC is not fit for purpose and places vulnerable people into greater risk.  The benefits system must be simplified, but UC is failing, and causing greater poverty wherever it is rolled out. 

There is considerable anxiety in Edmonton for the 16,630 households accessing at least one kind of social support that will be replaced by UC – by June this year around 2,040 households had already been moved to the new system.  Many of my constituents who have been moved to UC have reported substantial problems with understanding the new processes, transition to UC, submitting claims, receiving payments and ongoing support: in short, the entire system. 

Last week, the Secretary of State for Work and Pensions, Esther McVey, contradicted the government line that no family will receive less money under UC.  McVey admitted that, “some people will be worse off” when asked in a BBC interview if up to three million people will receive less under UC.  The government has no excuse for pushing ahead with a poorly designed and poorly implemented programme. 

According to the Child Poverty Action Group, difficulties with claiming UC means 1 in 5 universal credit applications currently fail.  This could lead to 400,000 households at risk of losing all their benefit income – for some this will mean losing all household income.  It is unclear how many people are unable to even start their applications, with a DWP survey finding that 30% of universal credit recipients found the online process either “very difficult” or “fairly difficult”, and 43% saying they needed more support in setting up their claim.  People with learning disabilities, those fleeing domestic violence, the very sick, those socially isolated or with limited digital skills or access have been the worst hit. 

Cuts to Universal Credit have already affected millions of people on low incomes.  Research by Citizens Advice Bureau (CAB) shows that those transferred to UC are more likely to have debt problems (26%) than those on the old system (19%).  Recipients are also struggling to pay off their debts, with 41% of CAB’s debt clients on UC reporting they have no spare income to pay creditors.  Across the country such statistics mean millions of working families are set to be worse off. 

While the Labour Party outright opposes the further rollout of UC, there is little enthusiasm for the system even amongst Tories.  Former Conservative Prime Minister, John Major, warned the government last week rolling out UC could push people into debt, rent arrears and force people to turn to food banks for help.  Amber Valley MP Nigel Mills said the rollout should slow down while there were, “widespread concerns about the approach the government is taking”. 

The government must stop the rollout now before millions of families are plunged into poverty and put at risk of homelessness.  Universal Credit needs to be reformed and redesigned.  Labour is committed to delivering a social security system that tackles poverty, rather than exacerbating it, and ensures opportunity for all, rather than obliterating it.  We will build a fairer Britain where no one and no community is left behind, transforming our social security system to ensure that it is there for us all in our time of need.

ENDS