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Committee warns of ‘insufficient information’ on key Universal Credit regulations
A committee has warned the House of Lords has “insufficient information” to approve crucial regulations paving the way for the next stage of Universal Credit.
The Secondary Legislation Scrutiny Committee, set up to refer regulations to the House of Lords if it believes they are of particular interest, flagged concern over the rules surrounding its pilot of ‘managed migration’.
This process, which will begin in July next year, will see some two million households claiming legacy benefits transferred over to the new system in a major expansion of Universal Credit.
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The committee, which is chaired by Conservative peer Lord David Trefgarne, said in a report last week: “There is a wide degree of concern that current plans for the migration process are rather too vague and aspirational. It seems therefore that DWP may have acted prematurely in seeking such extensive powers.
“We take the view that the House has been given insufficient detail to make an informed decision on DWP’s proposals.”
It suggested the DWP should have sought legislation for the pilot.
Managed migration will involve switching 2.09 million households containing 2.87 million people onto Universal Credit – which combines six means-tested benefits into one monthly payment.
It will begin with a limited pilot, with only 10,000 households due to be switched over in 2019, before expanding in pace rapidly to complete the process by 2023.
This is distinct from the current roll-out of Universal Credit, which only kicks in for new claimants or when a change in circumstances requires someone to make a new claim.
The report noted that this means a range of claimants “many of whom are especially vulnerable people on long-term benefits” will be affected by the new phase. These include those with disabilities, full-time carers, those who are illiterate or do not have good English, and those without access to a computer.
There is particular concern because claimants will not be moved over automatically and will be required to make a claim for Universal Credit within three months of being notified or have their benefits stopped entirely – a feature known as the ‘hard stop’.
“The House may wish to seek assurance from the minister that there will be adequate emergency help and additional resource available to assist this particularly vulnerable group through the migration process,” the report said.
Margaret Greenwood, shadow secretary of state for work and pensions, said: “[The government’s] so-called ‘managed migration’ plans could result in many people losing their entire income overnight.
“Ministers should stop and listen to the concerns raised by the committee and to those of the people who are going to be hit by these changes.”
A DWP spokesperson said: “We are taking a slow and managed approach to migration, ensuring vulnerable claimants are fully supported.
“This report is part of a standard procedure for scrutinising legislation and we will address concerns when the regulations are debated in parliament.”
