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Universal Credit is right in principle but problematic in practice unless slowed down
Ignoring the many concerns about Universal Credit could be a disaster for the government, says Debbie Larner
It is time for the government to admit it needs to slow down the roll-out of Universal Credit.
There are now so many concerns about the biggest change to our welfare system in 40 years that it is difficult to understand how David Gauke, the secretary of state for work and pensions, can just press ahead.
Let’s not forget the scale of the change; by the time the full roll-out is complete in 2022 it will affect as many as eight million people across the UK. That is why we have to get this right.
Unfortunately if the experiences of the housing associations we have been speaking to are anything to go by, the speed and scale of the roll-out is causing huge problems for claimants.
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The problem isn’t with the principle of the policy – it is right that people are rewarded for finding work, and it is right that a complex benefits system is simplified so that the incentives needed for this are in place. The problem is how the roll-out is working in practice.
“It is right that people are rewarded for finding work, and it is right that a complex benefits system is simplified so that the incentives needed for this are in place.”
It’s clear from the organisations we have spoken to that a host of administrative issues, faults and delays are causing hardship for many claimants.
Mr Gauke announced this week that advance payments, a way of shielding people from the worst hardship, will be paid more quickly to those who are struggling financially.
How this will work in practice will be crucial. The six-week wait between making a Universal Credit claim and receiving the first payment was ill-conceived.
The landlords we spoke to told us that only a fifth of their tenants who claim Universal Credit have wages to fall back on during the long wait for money.
This is leading to people resorting to borrowing, becoming at risk of eviction, and relying on foodbanks to feed themselves.
It was also clear from the organisations we spoke to that whether people are told about this option is dependent on who they speak to and how well they have been trained.
When information does get through, claimants are often expected to repay the debt over a period of six months – a too-short window which is pushing them into poverty.
“A host of administrative issues, faults and delays are causing hardship for many claimants.”
This is not a glitch, but the harsh reality for many people.
At some housing associations, members tell us that 40% of their tenants claiming Universal Credit need intensive support – mostly to deal with delays and mistakes.
Meanwhile the Department for Work and Pensions estimates that 80% of first payments are made within the intended five to six-week period.
But when 570,000 people are currently claiming Universal Credit, and when this number will climb into the millions, 20% is actually a rather worrying figure.
If, as Mr Gauke says, the roll-out continues at its original pace, the amount of new claimants is set to increase significantly – particularly worrying for those who may have to wait six weeks without any income at the most expensive time of the year.
“The roll-out must be slowed down.”
David Gauke must listen to the many people, including those within his own party – the roll-out must be slowed down so that the Department for Work and Pensions can resolve the operational glitches which are causing such hardship.
Otherwise the abiding legacy of this policy will be to push people into poverty and put them at risk of homelessness.
Debbie Larner, head of practice, Chartered Institute of Housing
