Tag: Universal Credit

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.

Universal credit: Emergency boost needed

The last few weeks have seen an unprecedented change in the economic situation of the UK (writes the TUC’s KATE BELL). Since the Prime Minister announced a full ‘lockdown’ on the 23rd March, economic activity in the UK has been rightly restricted in the service of protecting public health.

The TUC has clear priorities throughout this crisis. First, to ensure that public health is protected. Second, to protect workers’ jobs and livelihoods.

Following calls from the TUC and unions the government has announced welcome schemes to try to keep people in work. Protecting jobs must be the first step to protecting incomes and ensuring the country can get back on its feet when the crisis subsides.

But there is still more to do to ensure everyone who is sick gets the income support they need and support the livelihoods of those who do lose their jobs.

Our safety net has been dramatically undermined after years of underinvestment. The UK has avoided mass unemployment since the recession of the early 1990s, and the devastating unemployment of the early 1980s. Those experiences left deep scars, which we are still seeing the legacy of today. It is vital the government does everything it can to keep people in work now.

But even in the 1990s, our safety net was stronger. In 1993, the last time the unemployment rate went over 10 per cent, the basic rate of unemployment benefit was worth around a fifth of average wages. In 1984, when unemployment was over 11 per cent, the benefit was worth a quarter of the average wage. And in 1979, it was worth 30 per cent of the average wage. Today – even after the welcome recent increase by £20 a week – the basic rate of universal credit is worth around a sixth of average weekly pay (17 per cent).

UC

The UK system also compares poorly to the support provided internationally. In most European countries, unemployment benefits are related (at least in the initial period of unemployment) to previous wages to cushion income shocks, ranging from 60 per cent of previous wages in Germany to 90 per cent in Denmark.

In a new report we call for a new plan to fix the social safety net, building on our previous reports on sick pay, a job retention scheme, and support for the self-employed. We call on the government to urgently raise the basic level of universal credit. Restoring ‘replacement rates’ to the level seen before the long dismantling of the safety net began in the 1980s, would mean increasing the payment of universal credit to £165 a week – around 30 per cent of average wages.

But we think the government should be more ambitious to protect against this income drop. We recommend raising the basic rate of universal credit for this period to the value of 80 per cent of weekly earnings at the national living wage – or £260 a week.

In addition government should:

  • Suspend any conditionality requirements with universal credit, as well as parts of the application process. Applications for universal credit are being delayed by the need to carry out a telephone appointment with a work coach. The requirement to hold a phone interview should be suspended, in addition to any work-related conditionality within the Universal Credit system.
  • Remove the savings rules in universal credit to allow more people to access it.
  • End the five week wait by converting emergency payment loans to grants.
  • Significantly increase Child Benefit payments. Child Benefit is the simplest, quickest and most effective way to get money to households with children. The level has long been too low. This payment would also recognise the additional costs many parents will face with having children at home because schools are closed.
  • Ensure nobody loses out as a result of these changes. The benefits cap should be lifted so that these increases do not just mean a change in the composition of the benefits someone receives. As well as this, no one on legacy benefits should lose the protection of the managed transition to UC as part of this change.
  • Remove the minimum hours requirements in working tax credits. Families still claiming tax credits must work a minimum number of hours to be eligible. This rule should be removed with immediate effect.

Government has acted swiftly to protect jobs. But for those who do lose work it’s vital the safety net is strengthened – fast.

Face-to-face health assessments for benefits suspended

Face-to-face assessments for all sickness and disability benefits will be suspended for the next 3 months, the government announced yesterday.

The temporary move, effective today, is being taken as a precautionary measure to protect vulnerable people from unnecessary risk of exposure to coronavirus as the country’s response ramps up in the ‘delay’ phase. The DWP says they will ensure those who are entitled to a benefit continue to receive support, and that new claimants are able to access the safety net.

It affects claimants of Personal Independence Payment (PIP), those on Employment and Support Allowance (ESA) and some on Universal Credit, and recipients of Industrial Injuries Disablement Benefit.

The suspension of face-to-face assessments also covers new claims to those benefits.

Work and Pensions Secretary Thérèse Coffey said: “As we move into the next phase of our response to coronavirus, it is right we take steps to protect those with health problems.

“Temporarily suspending face-to-face assessments for sickness and disability benefits will allow us to ensure we continue to provide a safety net for those in need, while removing unnecessary risk of exposure to this disease.”

Anyone who has a face-to-face assessment appointment scheduled from today – Tuesday 17 March – onwards does not need to attend and will be contacted to discuss next steps and alternative arrangements, which could involve either telephone or paper-based assessments. DWP expect this measure will be in effect for the next 3 months but will regularly review the position in line with Public Health advice.

No further action is required by any claimant as a result of this change. They will be contacted with advice on next steps.

DWP continues to accept new claims for all benefits. Anyone already receiving PIP, ESA, Universal Credit or Industrial Injuries Disablement Benefit, will continue to receive their current payments as normal while alternative arrangements are put in place to review or reassess their claim.

Suspending face-to-face health assessments is a precautionary measure which reflects the Prime Minister’s decision to trigger the ‘delay’ phase. It is important to note that this change does not affect or change any existing public health advice.

Read the current NHS guidelines on coronavirus, including advice on those who should stay at home.

Change of heart? Parents and guardians given extra time to claim back childcare costs with Universal Credit

Have the Tories got a heart after all? An extra month to claim back childcare costs could mean parents avoid missing out on up to £1,100 per month … Continue reading Change of heart? Parents and guardians given extra time to claim back childcare costs with Universal Credit

Holyrood Committee urges immediate halt to latest Universal Credit rollout

Holyrood’s Social Security Committee has called on the DWP to urgently halt the launch of its latest pilot. It would see those receiving working tax credits moved on to Universal Credit and potentially subject to in-work conditionality including sanctions. Continue reading Holyrood Committee urges immediate halt to latest Universal Credit rollout

Universal Credit responsible for increasing rent arrears, says Holyrood Committee

The introduction of Universal Credit has greatly increased rent arrears and a Scottish Parliament Committee has called for immediate action to tackle this issue. Continue reading Universal Credit responsible for increasing rent arrears, says Holyrood Committee

MSPs demand UK Government protect date of Universal Credit claim

A new service launched by the DWP which does not protect the date a Universal Credit claim begins has been described as ‘deeply alarming’ by Holyrood’s Social Security Committee. Continue reading MSPs demand UK Government protect date of Universal Credit claim

Charity calls for end to Universal Credit five week wait as food bank demand soars

New data released today shows April 2018 to March 2019 to be the busiest year for food banks in the Trussell Trust’s network since the charity opened.

During the past year, 1,583,668 three-day emergency food supplies were given to people in crisis in the UK; more than half a million of these (577,618) went to children. This is an 18.8% increase on the previous year. Continue reading Charity calls for end to Universal Credit five week wait as food bank demand soars

As we see it: the two different sides of Universal Credit

Did you know that the DWP has created a website dedicated specifically to Universal Credit? The site is designed to help claimants and supporters negotiate their way through the often complex and confusing benefit labyrinth. Continue reading As we see it: the two different sides of Universal Credit