ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

Universal Credit roll-out must be put on hold, say MSPs

A group of MSPs say the roll-out of Universal Credit has been “littered with mistakes”, as they call on the UK government to halt the latest pilot. 

 

Linked InTwitterFacebookeCard
Picture: Getty
Picture: Getty
Sharelines

“Deeply concerned” MSPs tell the UK government to halt the roll-out of Universal Credit #ukhousing

Holyrood’s Social Security Committee first raised concerns about the next phase of the Universal Credit roll-out, which is due to commence in North Yorkshire this month, in a report published in January.

“Priority should be given to addressing the existing concerns with Universal Credit before seeking to move up to three million people currently on legacy benefits on to Universal Credit,” said the report, which criticised the “unpredictability” of payments and the lack of support available for those transitioning to the new system.


READ MORE

Government to seek volunteers for first switch to Universal CreditGovernment to seek volunteers for first switch to Universal Credit
Harrogate’s great migration: why the leafy district has been chosen to trial Universal CreditHarrogate’s great migration: why the leafy district has been chosen to trial Universal Credit
Six asks to make Universal Credit work for tenantsSix asks to make Universal Credit work for tenants

The Department for Work and Pensions (DWP) did not respond to the committee’s report and confirmed benefit claimants in Harrogate would be the first to be transitioned from the old benefits system to Universal Credit in this month’s pilot.

Universal credit was rolled out across all job centres in the UK by December last year, however only new benefit claimants have been placed on the new system so far.

The next stage, known as ‘managed migration’, will see existing claimants moved onto the benefit – a process which is expected to mean dealing with more complex cases.

Bob Doris, MSP for the Scottish National Party and convenor of the Social Security Committee, said: “We are deeply concerned that despite raising this issue as part of the committee’s In-Work Poverty Inquiry with the DWP in January, and the UK government’s failure to appear at our committee to give evidence, they have carried on with plans for implementation regardless.

“This movement represents a huge cultural shift and we do not believe it is right to sanction the working poor, effectively punishing people for going to their work.

“The DWP has said they are currently taking a ‘light touch’ approach to in-work conditionality or sanctions but there is little confidence that when the system rolls out more widely that low-paid and part-time workers won’t suffer as a result.

“It is vital that this latest pilot is put on hold to ensure that there is no negative impact upon claimants who rely on this money.”

DWP have been approached for comment.

Universal Credit timeline: how the policy developed

Universal Credit timeline: how the policy developed

September 2009 – Centre-right thinktank the Centre for Social Justice, chaired by former Conservative leader Iain Duncan Smith, publishes Dynamic Benefits: towards welfare that works.

The report advocates simplifying the existing 51 potential benefits into two simple “universal credits”.

 

May 2010 – David Cameron becomes prime minister and Mr Duncan Smith is appointed work and pensions secretary.

 

July 2010 – The government publishes ‘21st Century Welfare’ – a consultation document that proposes ‘Universal Credit’, a system to “remove much of the complexity that burdens the system today” by rolling six payments into one. In October’s Spending Review the system is adopted.

 

February 2011 The Welfare Reform Bill, which provides the legislative framework for the system, is introduced to parliament.

Universal Credit timeline 2

March 2012 – The bill passes into law as the Welfare Reform Act 2012. In July, small pilots are launched in six areas testing the ‘direct payment’ of housing benefit.

 

February 2013 – The Major Projects Authority, which oversees government projects, expresses serious concern about the policy. The Department for Work and Pensions (DWP) “resets” the programme. Early evidence from the pilots shows soaring rent arrears as a result of the direct payment of benefit.

 

April 2013 – Roll-out of a limited ‘live service’ begins in specific pilot areas, focusing at first only on single claimants with straightforward circumstances for claiming. The DWP plans a ‘test and learn’ approach which will see it use evidence from the early roll-out to inform its development of the ‘full’ service.

 

September 2013 – A damning National Audit Office (NAO) reportaccuses the DWP of “weak management, ineffective control and poor governance” in developing the new system.

 

June 2014 – The live service begins to roll out across North West England, beyond the pilot areas. By October, the service is rolled out to 17,850 claimants, with roll-out steadily continuing.

Universal Credit timeline 3

July 2015 – After securing a majority in the general election in May, Conservative chancellor George Osborne (pictured) announces £3.2bn of cuts to the service, including a controversial reduction in work allowances.

 

Sept 2015 – As fears over rent arrears mount, 33 social landlords test a ‘trusted partner pilot’ which allows them to recommend tenants be switch back to direct payment of rent to landlords.

 

November 2015 – The roll-out of the full service begins, with south London boroughs Southwark and Croydon the first to experience it.

 

March 2016 – The roll-out of the ‘live service’ to new single, healthy claimants completes across the UK, and the roll-out of the full service expands at pace. Mr Duncan Smith resigns citing “too much emphasis on money saving” in the welfare programme.

Universal Credit timeline 4

February 2017 – “Compelling evidence” of problems with the full roll-out leads to an inquiry from the Work and Pensions Committee led by Frank Field (pictured). In September, the committee calls for the roll-out to be paused, warning of a “human and political catastrophe”.

 

November 2017 – In the Budget, the government slows the roll-out, scraps the seven-day wait for new claims to be processed and makes other changes aimed at limiting negative impacts.

 

March 2018 – Full roll-out to all claimants is delayed until 2023.

 

June 2018 – Another damning NAO report slams the policy for failing to deliver the planned savings and exposing claimants to hardship.

Research from housing association trade bodies across the UK shows 73% of Universal Credit claimants are in arrears compared to 29% of all other tenants.

 

June 2018 - Inside Housing asks housing association sector leaders for their views on how the policy can be fixed:

 

Click here to read their suggestions

 

October 2018 – In his Budget speech, the chancellor increases work allowances. The Office for Budget Responsibility says Universal Credit will cost “billions” more than the legacy system.

 

December 2018 – Roll-out of the full service completes, going live in the final 44 Jobcentre areas in the UK.

 

Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.