Welfare Reform

Mr Andrew Turner (Isle of Wight) (Con)6. What recent discussions she has had with the Secretary of State for Work and Pensions on welfare reform in Wales.

The Parliamentary Under-Secretary of State for Wales (Mr David Jones)My right hon. Friend the Secretary of State for Wales and I have regular discussions with ministerial colleagues about a range of issues relevant to Wales. The Government have set out our plans to introduce legislation radically to reform the welfare system by creating a new universal credit, which will simplify the system, make work pay and combat worklessness and poverty in Wales and throughout Britain.

Mr TurnerDoes my hon. Friend accept that it would be far better to have a small number of benefits that make sense rather than a huge number of benefits that are complex and confusing, and that no one could possibly understand?

Mr JonesYes—that is why my right hon. Friend the Secretary of State for Work and Pensions proposes to replace six benefits with one universal credit. That will not only simplify the procedure, but encourage people to get back into work.

Hywel Williams (Arfon) (PC)With simplification, there is always the danger of people falling outside categories, and therefore of gross injustices. Will the Minister have a word with the Work and Pensions Secretary about boosting the face-to-face advice that is available from the Department for Work and Pensions, especially in rural areas? That would be a great step forward.

Mr JonesThe hon. Gentleman makes a fair point. As he knows, the matter is the subject of a White Paper and no doubt he will feed into the process. Overall, it is considered that the new benefit will be simpler and easier for people to understand.

Roger Williams (Brecon and Radnorshire) (LD)I am sure that the Minister will be pleased to know that the number of claimants for jobseeker’s allowance in Brecon and Radnorshire has dropped by 25%. Does he agree that that is to do with the resilience of small manufacturing companies such as Beacon Foods—which I visited on Monday—coming through the recession in the way they have?

Mr JonesIndeed, and one must never forget that small and medium enterprises are the backbone of the Welsh economy. The measures that my right hon. Friend the Chancellor has put in place should do much to ensure that they have a successful future.

Mrs Madeleine Moon (Bridgend) (Lab)Is the Minister aware of the impact on constituents of mine in Bridgend of the lowering of mortgage interest relief for those on benefits from the previous rate of 6.8% to 3.67%? A constituent of mine who has a mortgage at a rate of 5.85% has a shortfall of £236 a month, which is getting him increasingly into debt and he faces losing his property. What help can be offered to people such as my constituent?

Mr JonesI am sorry to hear of the predicament of the hon. Lady’s constituent. If she writes to me, I will pursue the matter further.