Universal Credit: DWP is a ‘department in denial’

DWP is a ‘department in denial’

A Westminster committee is the latest body to criticise the UK Government’s flagship welfare reform, Universal Credit. In a report published today, the Public Accounts Committee says the rollout of Universal Credit by by the Department for Work and Pensions is leading to increased debt, rent arrears and food bank use.

The report concludes that:

• DWP’s dismissive attitude to real-world experience is failing claimants
• Recent announcement of delayed roll-out is not a solution
• Department must work with third-party organisations to shape programme
• The introduction of Universal Credit is causing unacceptable hardship and difficulties for many of the claimants it was designed to help.

However, while the Department is responsive to feedback on its digital systems from staff, it has persistently dismissed evidence that Universal Credit is causing hardship for claimants and additional burdens for local organisations, and refuses to measure what it does not want to see.

In 2013 this Committee raised concerns about the Department’s culture of reporting good news and denying problems that emerge. In further reports in 2015 and 2016 the Committee warned about the Department’s continued lack of transparency.

“Slow and measured” is not a solution

It is hugely regrettable that the Department has not heeded these warnings. Instead of listening to organisations on the frontline supporting claimants, the Department has continued with its fortress mentality and as a result is failing claimants who struggle to adapt to the way Universal Credit works.

The recent announcement by the SoS of a further delay and a “slow and measured” approach to the rollout is not a solution on its own and the SoS has admitted that some claimants will be worse off under UC.

If the current problems are not addressed and the funding needed is not forthcoming the hardship is likely to continue. The Department needs to work with third party organisations to help shape the new programme in light of the real life experiences of recipients.

Public Accounts Committee Chair Meg Millier MP said: “This report provides further damning evidence of a culture of indifference at DWP – a Department disturbingly adrift from the real-world problems of the people it is there to support.

“Its apparent determination to turn a deaf ear to the concerns of claimants, frontline organisations and Parliament is of real concern. The culture needs to change.

“A Department in denial cannot learn from its mistakes and take the action necessary to address the desperate hardship suffered by many Universal Credit claimants.

“DWP’s dismissive attitude points to a troubling pattern of behaviour in the Department – something highlighted by our recent report on errors in Employment and Support Allowance.

“The Department’s painfully slow approach to correcting underpayments, years after it accepted responsibility, indicated weaknesses at the highest levels of management.

“As a priority the Department must demonstrate a tangible shift in the way it listens and responds to feedback and evidence.

“Meanwhile, the Government’s recent announcement of changes to the roll-out of Universal Credit offers no guarantee that the problems facing claimants will be resolved.

“We will be watching Monday’s Budget carefully and, in its formal response to this report, expect Government to take meaningful action on our recommendations.”

The Department for Work & Pensions (the Department) is introducing Universal Credit to replace six means-tested benefits. The Department started work on Universal Credit in 2010 with an original completion date of October 2017. However, the government ‘reset’ the programme in 2013, following a series of problems managing the programme and developing the necessary technology.

The Department introduced a twin-track approach in November 2013. It started to develop its long-term digital solution, known as ‘full service’, alongside making use of the systems it had built before the reset for its ‘live service’ (available mainly to single unemployed claimants with straightforward claims).

Since the Department began rolling out full service in May 2016 there have been several further delays to the programme, which is now unlikely to complete before 2023.

By the end of March 2018 the Department had spent £1.3 billion of the £2 billion it expects to invest in the programme by 2024–25, and by June 2018, 980,000 people (around 12% of the expected caseload) were claiming Universal Credit.

A further 7.5 million people are still to come onto the new benefit before the programme completes.