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DWP spent nearly £200,000 fighting single mothers over Universal Credit change
The Department for Work and Pensions (DWP) spent nearly £200,000 fighting an unsuccessful legal battle against four single mothers over Universal Credit rules that it is now changing, Inside Housing can reveal.
In June, the Court of Appeal ruled that Universal Credit payment period regulations that caused some working claimants’ benefit awards to fluctuate wildly from month to month were “irrational” and “unlawful”.
It came after the government attempted to overturn a January 2019 ruling by the High Court over the “non-banking day salary shift” issue.
Effectively, the bug meant that claimants were treated as having earned double if they received two pay cheques in the same monthly Universal Credit assessment period and nothing if they did not get paid the next month.
During the hearing, the court heard that around 85,000 people are affected, although the government says the number is closer to 1,500.
The case was brought forward by four working single mothers, who claimed that the rules had cost them hundreds of pounds a year and caused them to suffer severe cash flow problems.
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In response to a Freedom of Information Act request from Inside Housing, the DWP said it spent £188,190.82 fighting the cases.
That includes £28,426.02 invoiced by the Government Legal Department to defend the initial challenge and another £31,764.80 for the appeal.
The government was also ordered to pay the mothers’ legal costs following the ruling – amounting to £78,000 in the first instance and a further £50,000 following its decision to appeal.
Labour called the figures “a disgrace”.
Ministers agreed to amend Universal Credit regulations to resolve the issue shortly after the Court of Appeal judgement was handed down.
Legislation effecting the changes was published last week and is due to come into effect on 16 November.
Welfare delivery minister Will Quince said in a response to a written question from Labour MP Stephen Timms that the new regulations will “reallocate a payment of earnings reported via the Real Time Information service to a different Universal Credit assessment period” where needed.
Shadow work and pensions secretary Jonathan Reynolds said: “It is a disgrace that the government have spent nearly £200,000 of taxpayers’ money battling four single mums in the Court of Appeal.
“The fact that these women had to take the government to court, while they were suffering financial hardship, to correct an obvious problem with the system is extremely worrying.”
A DWP spokesperson said: “This regulation has now been amended in line with the court’s decision.”
