Stockport Labour are calling for a halt to Universal Credit, to allow for problems to be fixed, or for the programme to be scrapped altogether.
The Labour Group will bring a motion on Universal Credit to the Full Council meeting of the 29th November, requesting the Council to call on Government to pause rollout in Stockport, and elsewhere, to allow for a comprehensive solutions to the problems associated with the programme to be found.
The motion highlights problem many have experienced with Universal Credit, including increased poverty and hardship, particularly for low income working families; people having to choose between food and rent; indebtedness due to delayed payments; increased rent arrears for tenants in social housing; and the system making it harder for victims of domestic abuse to escape relationships. Furthermore, instances where these factors have led to loss of employment – the exact opposite of that the system was designed to promote – are noted.
Stockport Cabinet Member for Reform and Governance, and Councillor for Davenport & Cale Green Elise Wilson said:
“As the motion makes clear, we are disappointed in the Government’s budget response to fixing Universal Credit. The recent budget offered a real opportunity to address the problems, with proper funding and a pause to allow the reforms needed.
“However, the Government response has been too little, too late.
“It is time we put a halt to the system, and have a fundamental reappraisal of where this is going. We all want a system which helps people into work, however Universal Credit is doing the opposite.
“It has caused people fall into debt due to delayed payments, even causing some to lose their homes. It has meant some are unable to get to work or find work opportunities – exactly the opposite of what it should be doing.
“We are working hard with our partners, such as the Citizen’s Advice Bureau to mitigate what impacts we can here in Stockport– but what is needed is real action by national Government.
“Our message is simple – we call on the government to put a halt to universal Credit to properly fix these problems – and if they cannot do so, the system should be scrapped in full.”
Councillor for Brinnington, Andy Sorton added:
“The rationale behind the Universal Credit was, where possible, to help people into work and ensure that work always pays. Yet, where Universal Credit has been rolled out, there are more people turning to foodbanks, falling into rent arrears, and getting into problem debt. It is hurting those it is supposed to help, the most vulnerable.
“More and more children and being placed into poverty. To continue rolling out such a flawed system knowing of the consequences, in particular on young vulnerable children, is an act of cruelty.
“The Government must pause roll out UC until the problems are resolved. Otherwise this government will be deliberately placing children and vulnerable people in poverty and hardship.”
The full rollout of Universal Credit was begun in Stockport from the 21st November.
ENDS
NOTES:
The full text of the motion follows:
This Council notes:
- cross-party backing for the principles behind Universal Credit (UC), including the amalgamation of benefits, access via one application portal and ensuring work always pays;
- the work of this Council and the Citizen’s Advice Bureau to help and support people in relation to navigating the changing benefits system and mitigating the risks of change; and
- that despite this, the Government’s approach to UC rollout has raised significant concern in relation to monthly payments in arrears, overuse of sanctions, the pacing of transition and rollout; opacity in relation to the benefits entitlement, and cuts to the benefits system which not reflective of need.
This Council further notes concerning reports that for many people, this has led to:
- exacerbated poverty and hardship;
- increased poverty for low income working families;
- people having to choose between food and rent;
- indebtedness due to delayed payments;
- increased rent arrears for tenants in social housing;
- making it harder for victims of domestic abuse to escape relationships;
- disadvantages for non-IT literate people; and
- instances where these factors have led to loss of employment.
This Council believes that:
- the measures contained in the recent Budget to provide resources to help improve the taper and help with return to work are to be welcomed, but do not and cannot fully address the aforementioned concerns;
- as such, this Budget represented a missed opportunity to halt Universal Credit rollout completely, and allow for the full, systemic and funding review of implementation approach needed to fully address these problems.
This Council therefore resolves to:
- Continue to work with partner organisations to mitigate as far as possible the risks and challenges associated with this month’s UC rollout; and
- Request that the Chief Executive write to the Chancellor of the Exchequer requesting that funding be urgently found to address the needs of UC recipients and plug the wait times gap, and write to the Secretary of State for Work & Pensions urging an end to the current system of monthly payments in arrears, or a halt to further rollout of the ‘Full Service’ system.
Moved By: Cllr Elise Wilson Seconded by: Cllr Andy Sorton