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Government slammed for pushing ahead with Universal Credit roll-out
The government has been slammed for failing to pause the roll-out of Universal Credit, despite claimants struggling with debt because of delayed payments.
David Gauke, secretary of state for work and pensions, used his speech at the Conservative Party conference to announce that advance payments for claimants will be made within five working days, or on the same day for those who are particularly struggling financially.
Some in the sector and in the Conservative Party had hoped Mr Gauke would announce a pause in the roll-out of the new system. Last week a group of 12 Conservatives MPs called for such an action because of concerns the reform would push more claimants into debt.
However, Mr Gauke said Universal Credit “is working” and the roll-out “will continue and to the planned timetable”.
“We’re not going to rush things, it is more important to get this right then to do it quickly and this won’t be completed until 2022,” he added.
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Advance payments are loans that are given to claimants while they are waiting for their first Universal Credit payment and have to be paid back through deductions in later payments. Currently these payments are made five to six weeks after a person applies for Universal Credit.
The latest figures from the Department for Work and Pensions (DWP) show there were 25,500 advance payments made in June this year, and the most frequent payment was between £150 and £200. Almost half (49%) of new claims for Universal Credit received an advance payment.
Mr Gauke said: “I understand the concerns that have been raised when people first claim they have to wait six weeks or more before they receive a penny… I am determined to ensure that those who need support early in the month will get it.”
He added: “I can announce today that we are refreshing the guidance to DWP staff to ensure that anyone who needs an advance payment will be offered it up front. Claimants who want an advance payment will not have to wait six weeks, they will receive this advance within five working days. And if someone is in immediate need then we will fast-track the payment, meaning they will receive it on the same day.”
But charities and MPs said the government’s refusal to pause the roll-out would hit claimants hard.
Frank Field, chair of the Work and Pensions Select Committee, said: “David Gauke has today pressed the button that will cause havoc to hundreds of thousands of poorer people’s lives, building up to a meltdown over Christmas. It is not too late for him to act politically wisely as well as compassionately. People must be put before arbitrary roll-out dates of a project which cannot work.”
Citizens Advice said it was “disappointed” that there would be no pause in the roll-out.
Stephen Lloyd, Liberal Democrat spokesperson for work and pensions, said for Mr Gauke to “ignore even his own MPs” shows “just how out of touch with the needs of ordinary people this government is”.
Update: at 2.30pm, 2.10.2017
Sue Ramsden, policy leader at the National Housing Federation, said:“David Gauke’s speech today on Universal Credit has done very little to abate the very real concern that we have around the impact of the 6-week wait on families on very low incomes.
“We have received some assurances from DWP that the process to assess claims has improved and more people receive the correct money in their first payment – but this still needs to go much further.
“DWP must help people make and manage claims effectively and swiftly. The money should be made available on request rather than be dependent on claimants having to demonstrate need.”
