Labour Talks of Scrapping Universal Credit and Unfreezing Benefits

Labour is going to consider scrapping the government's controversial benefit reforms, Universal Credit, which have been accused of pushing thousands of people into poverty

Asked whether she would scrap it, Ms Greenwood told The Mirror newspaper: "We're not ruling anything out, because we think it's important to be on top of all of the detail of it before making a decision."

Margaret Greenwood, the shadow work and pensions secretary, announced a major review of the "toxic" welfare system, including UC universal credit policy.

This announcement marks a shift in Labour's policy away from their official pledge to "pause and fix" universal credit, which merges six existing benefits into a single payment.

Welcome news for many Ms Greenwood in her speech at the Labour Party conference set out proposals to ban punitive sanctions for people who turn up late to benefits appointments in addition to plans to end the benefits freeze by raising rates in line with inflation. 

“I meet a lot of people in their middle years who say, 'I can't face going to the job centre because I find it too humiliating',” said the Shadow Minister for the Department of Work and Pensions.

“Well that's absolutely wrong, because those people have worked 20, 30 years – they're entitled to get support.

“They shouldn't be made to feel that somehow there's a stigma attached to them."

The Wirral West MP added: “If you talk to people working in the social security system now, I've had it described to me as the circle of hell.

 “We're not going to be squandering money on a punitive regime, which at the moment seems to have lost sight of itself. It seems to be punishment for punishment's sake.”

Ms Greenwood also went further than the party's manifesto by pledging to "end the benefits freeze".  

She told delegates: "We are ambitious for our country and for all of our people. That is why today I am promising a complete change of direction.

"We will end the hostile environment that the Tories have created by completely overhauling our social security system. We will rebuild it and restore dignity at its heart."

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