Substantial reform of Universal Credit needed, says Lords report

The House of Lords Economic Affairs Committee report ‘Universal Credit isn’t working: proposals for reform‘, calls on the UK Government to make substantial changes to universal credit in order to protect the most vulnerable.

Universal Credit is failing millions of people, particularly the most vulnerable. The Economic Affairs Committee agrees with the original aim of Universal Credit but blames the scheme’s design for soaring rent arrears and the use of food banks.

Cuts to social security budgets over the last decade is causing widespread poverty and hardship. Universal Credit needs urgent investment to catch up and provide claimants with adequate income. The temporary increase in the standard allowance in response to the Covid-19 pandemic shows that the previous level of awards was too low. The increase should be made permanent.

The Government is using Universal Credit to recover debt, mostly £6 billion of historic tax credit debt. Deductions of up to 30% of the standard allowance, and in some cases more, can be taken from claimants. This has left many households with less money than they are entitled, often at no fault of their own. Tax credit debt should be written off as it is unlikely to be repaid.

The five-week wait for the first Universal Credit payment is the main cause of insecurity. This wait entrenches debt, increases extreme poverty and harms vulnerable groups disproportionately. The Government should introduce a non-repayable two-week grant to all claimants.

The way payments are calculated can result in large fluctuations in income month-to-month, making it extremely difficult for claimants to budget. The level of awards should be fixed at the same level for three months. There should be a mechanism to enable claimants to have an early reassessment if their circumstances change.

Lord Forsyth of Drumlean, Chair of the Economic Affairs Committee, said: “Most people, including our Committee, broadly agree with the original aims and objectives of Universal Credit. However, in its current form it fails to provide a dependable safety net. It has led to an unprecedented number of people relying on foodbanks and not being able to pay their rent.

“The mechanics of Universal Credit do not reflect the reality of people’s lives. It is designed around an idealised claimant and rigid, inflexible features of the system are harming a range of claimant groups, including women, disabled people and the vulnerable.
 
“Universal Credit needs more money to catch up after 10 years of cuts to the social security budget. It requires substantial reform to its design and implementation, the adequacy of its awards, and how it supports claimants to navigate the system and find work.

“The five-week wait for a first payment must be replaced by a non-repayable two-week grant to all claimants. The monthly payment calculations which can result in big fluctuations to claimants’ incomes should be fixed for three months. Historical tax credit debt needs to be written off.

“The punitive nature of Universal Credit has not worked. It punishes the poorest by taking away their sole source of income for minor infractions. It needs rebalancing, with more carrot and less stick, particularly as large numbers of claimants will have ended up on it because of events completely out of their control.”

The Committee’s other key findings and recommendations include:

  • The Government must prioritise helping people into work, particularly with the increase in unemployment that the Covid-19 pandemic is causing. All claimants should have a work allowance, at a higher rate than now, to allow them to keep more of their award as they move into work.
  • The Government should consider reducing the taper rate to ensure that the poorest in society do not pay higher marginal effective tax rates compared to the richest in society.
  • The conditionality requirements on claimants who can look for, or prepare for work, has been increased significantly over recent years. Less emphasis should be placed on obligations and sanctions. Instead, there should be more support to help coach and train claimants to find jobs or to progress in their current roles. Conditionality should be adapted to accommodate changing labour market conditions, including at the local level, particularly in the light of the economic impact of the Covid-19 pandemic.
  • The UK has some of the most punitive sanctions in the world, but there is limited evidence that they have a positive effect. Removing people’s main source of support for extended periods risks pushing them further into poverty, indebtedness and reliance on food banks. There is a substantial body of evidence which shows that sanctions harm people’s mental health. The Government should evaluate the current length and level of sanctions. It should also expedite its work on introducing a written warning system before the application of a sanction. Sanctions must be a last resort.
  • The Government is doubling the number of work coaches in response to potential levels of high unemployment. This may not be enough to support people to find work in a stagnant labour market with high levels of competition for jobs. A cap should be introduced on the number of cases for which each work coach can be responsible.
  • Paying awards on a monthly basis does not reflect the way many claimants live. It causes unnecessary budget and cash flow problems. All claimants should be able to choose whether to have Universal Credit paid monthly or twice monthly.
  • Including childcare support in Universal Credit was a mistake. Paying costs in arrears has been a barrier to in-work progression and in some cases, it has been a disincentive to work. The Government should remove childcare support from Universal Credit and be made into a new standalone benefit paid in advance.

Councils REDUCE Welfare Fund payments during pandemic, says ECAP

Edinburgh Coalition Against Poverty has denounced Scottish councils for not spending the money given to them by the Scottish Government to disburse to needy people via the Scottish Welfare Fund.

In response to the Covid-19 emergency the Scottish government added £45 million to the Scottish Welfare Fund, more than doubling its funding. But despite this, local councils – who administer the Fund – are actually paying out LESS in grants to needy applicants than they did during the same period last year!

The Scottish Welfare Fund (SWF) supports people in real need, and the government promised that by boosting the fund Councils would have greater flexibility in making SWF payments “ to ensure they can fully support people in financial crisis, including workers in the ‘gig economy’.

But Scottish Government figures reveal that while in April and May 2019 Councils disbursed a total of over £6.5 million in SWF grants, in April and May 2020 less than £6 million was paid out to needy people.

Edinburgh Coalition Against Poverty (ECAP) say: “It’s a disgrace – despite having more than twice as much money to make grants, and despite soaring need, at the height of the pandemic Scottish local authorities have actually REDUCED the SWF grants.”

Shirley Anne-Somerville, Cabinet Secretary for Social Security and Older People, stated in the Scottish Parliament on 27/3/20 that the guidelines normally limiting crisis grants to 3 per year were scrapped.

But an investigation by ECAP has revealed that virtually every Scottish local authority still declares on its website that Crisis Grants are normally restricted to three per year. The Highland Council website even declares : “You should not apply for a Crisis Grant if you have already had three crisis grants or awards made to you in the last 12 months”.

Wrongly Refused

One applicant in Edinburgh, applying for a Crisis Grant during the pandemic, was wrongly told that they could not be awarded a Grant because they had already had three grants in the last 12 months.

When ECAP challenged and denounced this as wrong, the City of Edinburgh Council then did pay the applicant a Crisis Grant.

ECAP say: “ How many applicants are being wrongly refused Grants? And how many people are being put off applying by Councils wrongly stating that the Crisis Grant limits still stand? This denial of support to people in need is unacceptable.”

In a statement, ECAP insist: “ The Councils in Scotland must pay out the extra cash they have been given as grants to people in need. Councils must make clear the 3 Crisis Grants per year limit is scrapped and make payments accordingly.

“And the Scottish Government should tell local authorities they must widely publicise the extra support available, massively increase payments, and implement the new rules ending the restriction on Crisis Grant payments.”

More detailed article at http://edinburghagainstpoverty.org.uk/?p=2783

Appointees should be able to collect benefits on behalf of claimants – but safeguards must be in place, say Holyrood Committee

Holyrood’s Social Security Committee has backed a Bill which would allow adult benefit claimants who consent to nominate an appointee to claim benefits on their behalf. However MSPs have warned that suitable safeguards must be put in place to limit fraud and the exploitation of vulnerable people.

The Committee has recommended the Bill be amended to include safeguarding principles that underpin the detail of how the appointee system will work and protect it from abuse. They have urged the Scottish Government to bring forward detailed guidance which should also be statutory.

The Committee published its Stage 1 report in response to the Social Security Administration and Tribunal Membership (Scotland) Bill which makes changes to the Social Security Act of 2018.

They have also backed a change which would allow health professionals, other than doctors, to verify that a claimant is terminally ill meaning their disability benefit claim would be fast-tracked.

Bob Doris MSP, Convener of the Social Security Committee, said: “The Committee welcomes this legislation and strongly supports the general principles of this Bill including allowing anyone in receipt of benefits to appoint someone to collect benefits on their behalf. 

“However, submissions to the Committee from the Equality and Human Rights Commission (EHRC) and the Law Society of Scotland outlined that without suitable safeguards in the legislation, the appointee system would not be compliant with human rights legislation and could be open to abuse.

“The Scottish Government’s principal safeguard is that consent must be given. However, the legislation should go further and build in additional safeguards such as the ability to challenge appointee decisions, undertake periodic reviews and resolve disputes.

“We are also keen to see amendments brought forward at Stage 2 which would ensure there is a duty to inform people of their eligibility for all top up benefits including the Scottish Child Payment.”

Free School Meals: It’s not too late to claim

FREE SCHOOL MEALS 

information for parents and carers

from GRANTON INFORMATION CENTRE

Families of children from P4 to S6 who receive Free School Meals, and those in P1 to P3 who are entitled to clothing grants, will receive a fortnightly electronic payment during term time and the Easter Holidays equivalent to the cost of a school meal.

Payments are £22.50 per child every fortnight until further notice from 23 March.

All children in primary 1 to 3 receive free school meals if they are attending school, but not free milk or a clothing grant.   In the present circumstances, those families won’t receive the £22.50 fortnightly payment unless they are eligible to get the clothing grant and free milk due to low income.

The criteria is the same as for P4-7s.

IT’s NOT TOO LATE TO CLAIM

Parents may still apply for the current academic year and, if eligible, awards will be backdated to 23 March, the start of school closures. 

The eligibility for free school meals and/or substitute payment (including P1-3s) depends on the family’s income and they need to be in receipt of one of the following benefits:

  • Universal credit (with monthly earnings up to £610)
  • Income Support and Income Based Job seekers Allowance or Employment and Support Allowance
  • Child Tax Credits only with gross income up to £16105
  • Child and Working Tax Credits with gross income up to £6900
  • Support under Part VI of the Immigration and Asylum Act 1999

Some families will get an automatic award for 2020-21 but others will have to apply when the time comes (they are not receiving applications yet).

Clothing grants applications closed on 31 March but will reopen for the next academic year later.

For more information and keep up to date with possible changes please visit www.edinburgh.gov.uk/schoolgrants

https://www.edinburgh.gov.uk/food-clothing/free-school-meals-school-clothing-grants/1

Public Holidays & Benefits Payments: info from GIC

Benefits and Tax Credits payment dates will vary because of the upcoming public holidays in May – here’s what you can expect:

Universal Credit is a monthly welfare payment that replaces six other benefits and is paid once a month, usually on the same date.

Those applying for Universal Credit must wait five weeks for their first payment, consisting of a one-month assessment period in which their circumstances and income are checked, and then another seven days for the money to reach their account.

If your first payment was received on April 8, you would normally receive subsequent amounts on the 8th of every month after that – but pay dates vary if they would end up falling on a weekend or bank holiday.

So your payments of Universal Credit and other benefits will vary because of the May bank holidays getting in the way of regular dates.

Universal Credit – May Bank Holiday payment dates

Universal credit is paid every four weeks on the same date. It will also vary slightly over the two bank holidays of May.

Your normal pay date is determined by when your first payment arrives – but it will be moved in any month where your pay date happens to fall on a weekend or bank holiday.

Early May Bank Holiday Weekend

Due: Friday, May 8 (May Day Bank Holiday/Early May Bank Holiday)
Paid: Thursday, May 7

Due: Saturday, May 9
Paid: Thursday, May 7

Due: Sunday, May 10
Paid: Thursday, May 7

Late May Bank Holiday Weekend

Due: Saturday, May 23
Paid: Friday, May 22

Due: Sunday, May 24
Paid: Friday, May 22

Due: Monday, May 25 (Spring Bank Holiday/Late May Bank Holiday)
Paid: Friday, May 22

PIP – May Bank Holiday payment dates

Personal Independence Payment (PIP) is usually paid every four weeks.

Your original decision letter tells you the date of your first payment and what day of the week you’ll usually be paid. It would never be arranged to fall on a weekend.

But if your payment date is on a bank holiday, you will usually be paid before the bank holiday. After that you’ll continue to get paid as normal.

Early May Bank Holiday

Due: Friday, May 8

Paid: Thursday, May 7

Late May Bank Holiday Weekend

Due: Monday, May 25
Paid: Friday, May 22.

Child Benefit – May Bank Holiday payment dates:

Child benefit is usually paid every four weeks on a Monday or Tuesday (you can get it paid weekly if you’re a single parent or if one of you is claiming other benefits) so it would not be paid on a weekend anyway.

Early May Bank Holiday Weekend

Due: Friday, May 8 (May Day Bank Holiday/Early May Bank Holiday)
Paid: Thursday, May 7

Late May Bank Holiday Weekend

Due: Monday, May 25 (Spring Bank Holiday/Late May Bank Holiday)
Paid: Friday, May 22

Child Tax Credit and Working Tax Credit – May Bank Holiday payment dates:

Tax credits such as Child Tax Credit and Working Tax Credit are paid every week or every four weeks. They aren’t arranged to fall on a weekend.

Early May Bank Holiday Weekend

Due: Friday, May 8 (May Day Bank Holiday/Early May Bank Holiday)
Paid: Thursday, May 7

Late May Bank Holiday Weekend

Due: Monday, May 25 (Spring Bank Holiday/Late May Bank Holiday)
Paid: Friday, May 22

Employment Support Allowance (ESA) and Jobseeker’s Allowance (JSA) – May Bank Holiday payment dates:

These are both usually paid every two weeks. Dates would never fall on a weekend.

Early May Bank Holiday Weekend

Due: Friday, May 8 (May Day Bank Holiday/Early May Bank Holiday)
Paid: Thursday, May 7

Late May Bank Holiday Weekend

Due: Monday, May 25 (Spring Bank Holiday/Late May Bank Holiday)
Paid: Friday, May 22

When does the money go in?

Depending on your bank, funds are available sometime after midnight on the day they are due, usually in the early hours.

Some banks deposit money into your account around 11.30pm so you can withdraw it before midnight on benefit payday. Others will release your funds at midnight or just a few minutes after that.

But in some cases you have to wait until 2am to 3am and others will not let you touch your money until at least 6am on payday.

Granton Information Centre’s office is currently closed to the public due to coronavirus restrictions, but the team is still working. If you need support or advice, telephone 0131 551 2459 or 0131 552 0458.

You can also email info@gic.org.uk and a member of staff will get back to you.

Disability groups call for urgent changes to benefits system

The Disability Benefits Consortium (DBC), a network of over 100 organisations, have written an open letter (below) to Thérèse Coffey, Secretary of State for Work and Pensions to call for urgent changes to the benefits system to ensure we protect disabled and seriously unwell people from further physical and financial harm during the covid-19 emergency.

Full details of these proposals can be found in the DBC reports section.

“Dear Secretary of State,

Covid-19 – the Disability Benefits Consortium’s proposals for additional short-term measures to protect disabled people’s incomes

The Disability Benefits Consortium (DBC) is a network of over 100 organisations with an interest in disability and social security. For our full list of members, see https://disabilitybenefitsconsortium.wordpress.com/dbc-members/

Using our combined knowledge, experience and direct contact with millions of disabled individuals, people with long-term health conditions and carers, we seek to ensure that Government policy reflects and meets the needs of all disabled people.

The DBC welcomes the recently announced measures designed to protect the incomes of large numbers of people whose livelihoods have been adversely impacted by the Covid-19 crisis. But we believe that these support measures need to go further.

People living with a disability and those with long-term health conditions tend to have lower real incomes and higher costs than the general population and we are calling on the Government to produce a more comprehensive package of support, to better protect these individuals and their families, at this difficult time.

1. One of the most pressing issues is the current level of demand on the system due to the unprecedented number of new claims. This is causing extremely long waiting times and problems with the digital claims process. We welcome the commitment to expand the Department’s capacity, but the challenge remains considerable. We believe that the Government should give high priority to resolving urgently the technical and capacity issues involved.

Also, clear guidance must be made available (to the public and to staff) regarding the correct process to make both a digital claim for Universal Credit (UC) and a non-digital claim, including how the verification call is to be made – that is, if outbound from the DWP rather than inbound from the claimant.

2. The increase in the UC standard allowance is very welcome, helping to cushion the financial shock, which many will experience. However, other claimants likewise face financial challenges, especially after several years of a benefit freeze. We recommend that the Government should give a corresponding uplift of “legacy” and similar benefits – including, for Employment and Support Allowance (ESA), the restoration of the Work-Related Activity Group (and UC equivalent Limited Capability for Work) addition.

3. We believe that artificial limits that keep many households (mainly with children) below basic benefit levels are particularly inappropriate at this time. We recommend that the Government should suspend the benefit cap and the “two-child policy”.

4. Any Working Tax Credit (WTC) claimant who loses their job over the coming few months will not be able to continue claiming WTC and will have to claim UC instead. This means they will lose Transitional Protection (TP). As you know, this is a temporary top-up payment that would have been added to their UC to offset any losses, when the DWP eventually transferred them from WTC – but it is not payable when you move to UC because of a change of circumstances, such as job loss.

Disabled people in work and parents of disabled children stand to lose far more than most people if they lose TP – sometimes amounting to thousands of pounds a year. This will make it even more difficult for them to recover from the economic shock of the next few months.

The recommendation above to restore the Limited Capability for Work Addition to UC will help, as long as these claimants can retain it in their UC calculation up to and after they return to work.

Also, we recommend that the lower rate of the disabled child element of UC should be restored to its level in the legacy system.

5. New claimants for UC will have to wait at least five weeks until they receive their first payment. We know that this can mean people face a significant reduction in income, leading to worry about how to pay bills and buy food. The DWP offers an “advance payment”, in effect a loan deducted from future payments, which can leave people struggling to make ends meet. We recommend that the Government should make all UC advances for disabled people non-repayable grants.

6. There has been no formal indication that work-related conditionality has been suspended, although it is difficult to see how it could be meaningfully applied in present circumstances. We recommend that the Government should explicitly suspend work-related conditionality and associated sanctions.

7. Currently, 1.3 million claimants have deductions made from their UC payments to pay debts – over half of them losing 20% or more of their basic allowance. We recommend that the Government should suspend all debt repayment deductions from UC, to ease financial hardship for the duration of the current crisis.

8. It is very important that, during this epidemic, people living with a terminal illness have swift access to benefits via the Special Rules for Terminal Illness. It is our understanding that under UC, people with a terminal illness will temporarily be able to apply via the Special Rules without the DWP needing sight of a DS1500 form (a form signed by a medical professional to say that the person has a reasonable expectation of death within six months). If this is the case, then this is a very welcome step. We recommend that the Government should extend this provision to other benefits which can be applied for under the Special Rules: ESA, Personal Independence Payment and Attendance Allowance.

There are further measures that the Government could take that are likely to have an impact on those living with a disability and in need of benefit support at this time, including:

9. As medical professionals come under more pressure over the coming weeks it is unreasonable to expect they will be able to provide medical evidence to support a claimant’s benefit application. We recommend that the Government should extend the time requirements for claimants to return paperwork and to gather medical evidence where necessary.

10. Similar pressures are likely to slow down the Mandatory Reconsideration (MR) process. This will mean people could be receiving less financial support than they are entitled to. We recommend that the Government should pay the basic/ standard rate to claimants whose benefit is suspended pending MR, until the process is completed – and also, fully reinstate a benefit that has been wholly or partly withdrawn and is awaiting MR or an appeal.

11. Help to pay council tax is also crucial at this time of acute financial pressure. We recommend that the Government should encourage Local Authorities to remove features such as the two-child policy and the self-employed claimants’ Minimum Income Floor from their local Council Tax Support/ Reduction schemes. Some have simply copied these rules automatically from DWP benefits, possibly without fully appreciating their adverse impact where claimants are struggling.

We hope that, when something like a normal life returns, the support package as outlined above, which suggests achievable and positive temporary improvements, to be introduced in response to a crisis, might prove a focus for longer-term policy discussion.

Meanwhile, we commend to the Government the above proposals to make immediate changes to complement the emergency measures already taken.

In view of the widespread public interest in the current emergency measures, we shall be releasing these proposals to the media.

Yours sincerely,

Disability Benefits Consortium”

Local help is available if you are experiencing problems with your benefits.

Granton Information Centre provides a free and confidential service. Telephone 0131 551 2459 or 552 0458 or you can email info@gic.org.uk

The office is closed to the public, but the service is very much running!

PIP claims plummet but help is at hand

New claims for PIP have plummeted by more than half since the beginning of the coronavirus crisis, the work and pensions committee was told last week.

At the committee session, Justin Tomlinson, minister for disabled people, stated: “We have seen a significant drop in the number of new claimants. We’re not totally sure why.

“But in January 51,000 new claimants in the month. At the beginning of March it was around about 12,000 a week, that’s now down to 5,000 a week as of last week.

Mr Tomlinson also stated that although there were fewer staff now available to deal with disability benefits, new claims for PIP were actually going through more quickly, partly as a result of a switch away from face-to-face assessments and partly due to a drop in the number of claims.

He said the average length of time from the beginning to end of the process has actually improved.

If you are experiencing problems with a PIP claim or need benefits advice Granton Information Centre can help. Due to the Coronavirus restrictions the office is currently closed to the public, but GIC is still operating!

Please call Monday – Friday, 9.30am – 4pm on 0131 551 2459 or 0131 552 0458 if:

•You would like to arrange a telephone appointment to discuss money, benefits, housing or debt
•You wish to discuss an existing case
•You require a foodbank referral

All messages will be returned as long as you clearly leave a telephone number for us to reach you on.

Emails will be monitored daily – our email address is info@gic.org.uk

Over 110,000 Universal Credit claims since coronavirus outbreak

Claims for Universal Credit in Scotland have increased from an average of 20,000 per month in 2019 to over 110,000 between 1 March and 7 April, highlighting the impact the pandemic is having on people’s finances.

That’s why the Scottish Government, in partnership with the Citizens Advice network, is launching a new campaign to raise awareness of the financial support available to people.

The campaign will provide information and advice on issues including rent and mortgage payments, energy bills, council tax, and benefits people may be entitled to.

People will be able to access this advice online, by phone or by contacting their local Citizens Advice Bureau.

Cabinet Secretary for Social Security and Older People Shirley-Anne Somerville said: “This huge increase in claims for Universal Credit demonstrates just how many people across the country are struggling financially due to the coronavirus pandemic.

“These are difficult and worrying times for everyone, with many people requiring financial support for the first time and even more pressure on those who were already struggling to make ends meet.

“It is welcome that people are claiming the support that they are entitled to from the DWP, and I would encourage people to look into what additional help is available. Even if you are not entitled to Universal Credit, there could be other assistance that you can access so it is worth checking.

“That’s why we’ve been working with the Citizens Advice network in Scotland to create this central source of information – with everything from guidance on benefits, right through to what you can do if you are worried about paying your mortgage or rent.”

DWP entered into a new partnership with Citizens Advice in March last year, providing £39 million of funding to Citizens Advice and Citizens Advice Scotland to provide this service. DWP also funded Citizens Advice and Citizens Advice Scotland a further £12 million to set up delivery to ensure a smooth transition to the new delivery model. 

Citizens Advice Scotland Chief Executive Derek Mitchell said: “The Citizens Advice network in Scotland is known for always being there to help and the support we give will be more important than ever to help people avoid getting into crisis.

There may also be lots of people who have never used our services before and it’s crucial that they know our information and advice is there for them too.

“Our national network of Citizens Advice Bureaux is still operating for those who need it – if you have been financially impacted by the coronavirus outbreak your local Citizens Advice Bureau can help make sure you have access to all the income you are entitled to, as well as giving tailored advice about what’s on offer within local communities across Scotland.

“There’s increased demand for our advice on financial services, that’s why we’ve created dedicated COVID-19 content online so people get the information they need 24/7 and from the comfort of their own homes.

“We’ve also got a dedicated helpline for people who might not be able to access our services online. If you have been financially impacted by the coronavirus outbreak and require free, confidential, financial support, please visit cas.org.uk or call 0800 028 1456.

“Local Citizens Advice Bureaux are situated around the country. To find your local service, simply enter your postcode at cas.org.uk/bureaux

Universal Credit claimants can verify identity through Government Gateway

People applying for Universal Credit will now be able to use their existing Government Gateway account to confirm their identity, helping to speed up their claim, says the Department of Work and Pensions.

The move is expected to help thousands of claimants applying for the benefit and will be available to those who have used the Government Gateway in the last 12 months to access their Personal Tax Accounts, including to check their tax credits, send a personal tax return, or check their state pension.

Others applying for the benefit can continue to confirm their identity using GOV.UK Verify.

The DWP is acting to streamline processes where possible after receiving more than 1.4 million claims since 16 March 2020, as well as urgently redeploying 10,000 staff with a further 5,000 being recruited to aid efforts.

As people apply for Universal Credit, they will have the option to submit their

Government Gateway credentials which the department will use to progress their claim.

The department has already introduced a package of measures in response to COVID-19 providing urgent financial support, including increasing the standard allowance of Universal Credit and basic element of Working Tax Credit and suspending the Minimum Income Floor for the self-employed.

You can find out more about how to apply for Universal Credit here.

MPs want to hear experiences of people claiming benefits

Westminster’s Work and Pensions Committee wants to hear about how coronavirus is affecting people who rely on the benefits system as part of its new inquiry into the DWP’s response to the virus outbreak. 

The Committee is interested in finding out about the experiences of people who are having to claim benefits for the first time, the experiences of people who were already claiming benefits, and the experiences of people who need support but find they can’t claim any benefits.

The Committee has also published a letter from the Permanent Secretary at the DWP responding to several questions about the Universal Credit application process and how the Department is dealing with the unprecedented increase in applications. The letter reveals that nearly a million new claims were made between 16 March and 3 April this year.

Rt Hon Stephen Timms MP, Chair of the Work and Pensions Committee, said: “The DWP’s front line staff are making a herculean effort to deal with the unprecedented numbers of new claims for Universal Credit, and we thank them for everything they’re doing at such a difficult time.

“I know they will be focused on making sure that people who need money urgently get their payments as quickly as possible. But it is disappointing that the Permanent Secretary can’t tell us what proportion of people who’ve asked for an Advance payment have had one, or tell us anything about the delays that people are facing on DWP’s phonelines.

“So we can better understand the issues faced by people who rely on the benefits system, we’d like to hear from people about their experiences getting the support they need. We are keen to hear about any specific problems claiming benefits and also more generally about whether people are getting enough money to support themselves and their families during these immensely difficult days.”

Some of the questions the Committee is interested in are:  
  • How well is the Universal Credit system working for the unprecedented numbers of new claimants?
  • Has there been any improvement in the significant delays that new UC claimants were experiencing in the second half of March?
  • How quickly are people who ask for Advance payments of Universal Credit receiving their payments?
  • What lessons can be learned from the changes that have been made to the processes for verifying the identity of UC claimants? Are there any particular changes that should stay in place after the outbreak ends?
  • How effective have DWP’s communications with the public been during this period?
  • How do the needs of people claiming UC for the first time now differ from the needs of groups who’ve claimed UC in the past? How well is Universal Credit working for these new groups of people?
  • Are there any indications of how well the UC system will work for these claimants as they move into work in the short- to medium-term?
  • How well is the benefits system working for self-employed people who aren’t able to access the Government’s Self-employment Income Support Scheme? Is there a case for temporarily suspending the capital limits in UC during this period?
  • How easy is it for people to understand what they’re entitled to claim? For example:
  1. Is it clear enough how the benefits system interacts with other forms of Government support during this period, such as the Coronavirus Job Retention Scheme?
  2. Is it clear enough how public health guidance interacts with the benefits system?
  • How is the assessment process for Employment Support Allowance working? Have there been any difficulties with obtaining medical evidence to support claims?
  • What impact has the outbreak had on people who were waiting for a Mandatory Reconsideration of a decision, or who were going through the appeals process?
  • Have people who were already claiming benefits when the outbreak began seen any changes to the support they receive from DWP?
  • Are people who are claiming benefits receiving enough money to cover their basic living costs during this period?
  • Are there groups of people who need support but aren’t able to access it through the benefits system? What should DWP be doing to support those people?
  • Are support organisations and charities able to access the resources they need from DWP to support vulnerable people? What more could DWP be doing to facilitate that support?

GET INVOLVED

If you’re someone with personal experience of the benefits system, you might prefer to complete our short survey. The deadline is Wednesday 15 April.

If you’re responding on behalf of an organisation, or you’re an individual who wants to send us a longer written submission, you can send us your evidence here.

You don’t need to answer all of the questions below, and you can tell us anything relevant, even if it isn’t covered by these questions. The deadline for sending your views is 11am on Thursday 16 April.