This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/society/2017/oct/17/pm-will-not-reduce-six-week-wait-for-universal-credit-despite-mps-warnings
The article has changed 12 times. There is an RSS feed of changes available.
| Version 7 | Version 8 |
|---|---|
| PM will not reduce six-week wait for universal credit despite MPs’ warnings | PM will not reduce six-week wait for universal credit despite MPs’ warnings |
| (about 1 month later) | |
| Theresa May will not reduce the six-week delay faced by many universal credit claimants despite being warned by Conservative MPs that the policy is hurting vulnerable families, sources have told the Guardian. | Theresa May will not reduce the six-week delay faced by many universal credit claimants despite being warned by Conservative MPs that the policy is hurting vulnerable families, sources have told the Guardian. |
| The prime minister’s decision not to budge on the issue, after a private discussion with Heidi Allen, Sarah Wollaston and Johnny Mercer, could lead to confrontation as Labour urged Tories to support its motion to pause the rollout of the benefit. | The prime minister’s decision not to budge on the issue, after a private discussion with Heidi Allen, Sarah Wollaston and Johnny Mercer, could lead to confrontation as Labour urged Tories to support its motion to pause the rollout of the benefit. |
| Universal credit is the supposed flagship reform of the benefits system, rolling together six benefits (including unemployment benefit, tax credits and housing benefit) into one, online-only system. The theoretical aim, for which there was general support across the political spectrum, was to simplify the benefits system and increase the incentives for people to work, rather than stay on benefits. | Universal credit is the supposed flagship reform of the benefits system, rolling together six benefits (including unemployment benefit, tax credits and housing benefit) into one, online-only system. The theoretical aim, for which there was general support across the political spectrum, was to simplify the benefits system and increase the incentives for people to work, rather than stay on benefits. |
| The project was legislated for in 2011 under the auspices of its most vocal champion, Iain Duncan Smith. The plan was to roll it out by 2017. However, a series of management failures, expensive IT blunders and design faults have seen it fall at least five years behind schedule. | The project was legislated for in 2011 under the auspices of its most vocal champion, Iain Duncan Smith. The plan was to roll it out by 2017. However, a series of management failures, expensive IT blunders and design faults have seen it fall at least five years behind schedule. |
| The original design set out a minimum 42-day wait for a first payment to claimants when they moved to universal credit (in practice this is often up to 60 days). After sustained pressure, the government announced in the autumn 2017 budget that the wait would be reduced to 35 days from February 2018. This will partially mitigate the impact on many claimants of having no income for six weeks. The wait has led to rent arrears (and in some cases to eviction), hunger (food banks in universal credit areas report notable increases in referrals), use of expensive credit and mental distress. | The original design set out a minimum 42-day wait for a first payment to claimants when they moved to universal credit (in practice this is often up to 60 days). After sustained pressure, the government announced in the autumn 2017 budget that the wait would be reduced to 35 days from February 2018. This will partially mitigate the impact on many claimants of having no income for six weeks. The wait has led to rent arrears (and in some cases to eviction), hunger (food banks in universal credit areas report notable increases in referrals), use of expensive credit and mental distress. |
| Ministers have expanded the availability of hardship loans (now repayable over a year) to help new claimants while they wait for payment. And housing benefit will now continue for an extra two weeks after the start of a universal credit claim. However, critics say the five-week waiting time is not enough and want it reduced to two or three weeks. | Ministers have expanded the availability of hardship loans (now repayable over a year) to help new claimants while they wait for payment. And housing benefit will now continue for an extra two weeks after the start of a universal credit claim. However, critics say the five-week waiting time is not enough and want it reduced to two or three weeks. |
| Plenty. Multibillion-pound cuts to work allowances imposed by the former chancellor George Osborne mean universal credit is far less generous than originally envisaged. According to the Resolution Foundation thinktank, about 2.5m low-income working households will be more than £1,000 a year worse off when they move on to universal credit, reducing work incentives. Landlords are worried that the level of rent arrears racked up by tenants on universal credit could lead to a rise in evictions. It's also not very user-friendly: claimants complain the system is complex, unreliable and difficult to manage, particularly if you have no internet access. | Plenty. Multibillion-pound cuts to work allowances imposed by the former chancellor George Osborne mean universal credit is far less generous than originally envisaged. According to the Resolution Foundation thinktank, about 2.5m low-income working households will be more than £1,000 a year worse off when they move on to universal credit, reducing work incentives. Landlords are worried that the level of rent arrears racked up by tenants on universal credit could lead to a rise in evictions. It's also not very user-friendly: claimants complain the system is complex, unreliable and difficult to manage, particularly if you have no internet access. |
| The shadow work and pensions secretary, Debbie Abrahams, said she wanted Conservative MPs to “vote with their conscience”, arguing that the system was supposed to “protect people from debt and arrears, not exacerbate their situation”. | The shadow work and pensions secretary, Debbie Abrahams, said she wanted Conservative MPs to “vote with their conscience”, arguing that the system was supposed to “protect people from debt and arrears, not exacerbate their situation”. |
| In the opposition day debate on Wednesday, the Labour frontbencher will reveal new figures, shared exclusively with the Guardian, that suggest universal credit cuts could push 1 million more children into poverty by 2020. | In the opposition day debate on Wednesday, the Labour frontbencher will reveal new figures, shared exclusively with the Guardian, that suggest universal credit cuts could push 1 million more children into poverty by 2020. |
| The figure is included in a report by the Child Action Poverty Group, to be published in the next few weeks, which also warns that 300,000 of those affected will be under the age of five. | The figure is included in a report by the Child Action Poverty Group, to be published in the next few weeks, which also warns that 300,000 of those affected will be under the age of five. |
| Labour will say claim that benefit recipients could be spending more than £50m a year calling a Department for Work and Pensions helpline, at a cost of up to 55p a minute, after government figures showed the helpline received 31.8m calls from mobiles last year. | Labour will say claim that benefit recipients could be spending more than £50m a year calling a Department for Work and Pensions helpline, at a cost of up to 55p a minute, after government figures showed the helpline received 31.8m calls from mobiles last year. |
| Abrahams will warn that the benefit is failing in its core aim of making work pay, will question the status of the rollout, claim people are being forced into rent arrears and to food banks, and raise the question of the six-week delay. | Abrahams will warn that the benefit is failing in its core aim of making work pay, will question the status of the rollout, claim people are being forced into rent arrears and to food banks, and raise the question of the six-week delay. |
| However, the Guardian understands that the work and pensions secretary, David Gauke, will argue that the government believes advance payments for claimants, available within five days, are enough to solve any problems with the long wait. | However, the Guardian understands that the work and pensions secretary, David Gauke, will argue that the government believes advance payments for claimants, available within five days, are enough to solve any problems with the long wait. |
| Sources said ministers were “relaxed” about the vote in the House of Commons, which could be won by Labour with the support of Tory rebels and potentially the DUP, which has previously voted with the opposition on this issue. | Sources said ministers were “relaxed” about the vote in the House of Commons, which could be won by Labour with the support of Tory rebels and potentially the DUP, which has previously voted with the opposition on this issue. |
| May’s government has tried to downplay the significance of opposition day debates, with MPs sometimes told there is no need to vote. | May’s government has tried to downplay the significance of opposition day debates, with MPs sometimes told there is no need to vote. |
| However, any rebellion by Tories on an issue relating to the way the government treats poorer families would prove embarrassing for May. | However, any rebellion by Tories on an issue relating to the way the government treats poorer families would prove embarrassing for May. |
| It was unclear if May had managed to reassure the potential Tory rebels, who made clear they were unsure what would happen during the vote on Labour’s motion. They support the principle of universal credit but are concerned about practical problems. | It was unclear if May had managed to reassure the potential Tory rebels, who made clear they were unsure what would happen during the vote on Labour’s motion. They support the principle of universal credit but are concerned about practical problems. |
| Raising the issue at PMQs last week, Allen thanked the secretary of state for advertising the advance payments but said she and Tory colleagues believed that the number of people requiring the money showed the “inbuilt six-week wait just doesn’t work”. | Raising the issue at PMQs last week, Allen thanked the secretary of state for advertising the advance payments but said she and Tory colleagues believed that the number of people requiring the money showed the “inbuilt six-week wait just doesn’t work”. |
| She asked the prime minister: “Would she consider meeting with me so I can explain to her why if we reduce that six-week wait we can do a better job for those just-about-managing families?” | She asked the prime minister: “Would she consider meeting with me so I can explain to her why if we reduce that six-week wait we can do a better job for those just-about-managing families?” |
| A senior official admitted to the Guardian that the reason claimants had to wait even longer than a month for their first payment was because of an administration system that saved the government about £140m. They suggested that if ministers had that money to spend, they would not plough it back into reducing the six weeks, because they believed the advance payments were robust enough. | A senior official admitted to the Guardian that the reason claimants had to wait even longer than a month for their first payment was because of an administration system that saved the government about £140m. They suggested that if ministers had that money to spend, they would not plough it back into reducing the six weeks, because they believed the advance payments were robust enough. |
| However, Gauke and May have also come under pressure from the chair of a parliamentary committee who claimed the government had “no idea” whether universal credit was working effectively. | However, Gauke and May have also come under pressure from the chair of a parliamentary committee who claimed the government had “no idea” whether universal credit was working effectively. |
| Frank Field, who leads the work and pensions committee, said an 11th-hour response to his questions on the policy suggested ministers did not know the characteristics of claimants waiting over six weeks – nor how much longer they waited. | Frank Field, who leads the work and pensions committee, said an 11th-hour response to his questions on the policy suggested ministers did not know the characteristics of claimants waiting over six weeks – nor how much longer they waited. |
| He said they were putting much faith into an advance payment system but couldn’t say how many people had applied, why applications were rejected or what share of their full award claimants got in advance. | He said they were putting much faith into an advance payment system but couldn’t say how many people had applied, why applications were rejected or what share of their full award claimants got in advance. |
| Andy Burnham, the Labour mayor of Greater Manchester, also piled pressure on the government to pause the rollout on Wednesday, as he said it would drive more people to homelessness and rough sleeping. | Andy Burnham, the Labour mayor of Greater Manchester, also piled pressure on the government to pause the rollout on Wednesday, as he said it would drive more people to homelessness and rough sleeping. |
| “The near universal view on universal credit is if the rollout proceeds as planned it will make our problem with rough sleeping and homelessness dramatically worse,” Burnham told the BBC’s Today programme. | “The near universal view on universal credit is if the rollout proceeds as planned it will make our problem with rough sleeping and homelessness dramatically worse,” Burnham told the BBC’s Today programme. |
| He said this was not speculation but based on real evidence from pilots in Oldham and Wigan. “The evidence showed that people on universal credit were more likely to be in rent arrears -80% more likely in Wigan - and the size of those arrears is likely to be larger than in the past.” | He said this was not speculation but based on real evidence from pilots in Oldham and Wigan. “The evidence showed that people on universal credit were more likely to be in rent arrears -80% more likely in Wigan - and the size of those arrears is likely to be larger than in the past.” |
| In a letter to the committee, Gauke said he had reviewed the rollout of universal credit and concluded that it was “safe to proceed” with the system, which he said was “operating within acceptable parameters.” | In a letter to the committee, Gauke said he had reviewed the rollout of universal credit and concluded that it was “safe to proceed” with the system, which he said was “operating within acceptable parameters.” |
| He is due to appear before Field’s committee on Wednesday morning to answer questions about the progress of universal credit. | He is due to appear before Field’s committee on Wednesday morning to answer questions about the progress of universal credit. |
| But his letter to the committee, released on Tuesday night, makes it clear that he considers that the system is working well, and that 82% of claimants were satisfied with universal credit. This was a far cry from “the picture being painted by some of the witnesses to the inquiry”, the letter said, although it admits that the satisfaction ratings refer to the interim universal credit service, not the full service. | But his letter to the committee, released on Tuesday night, makes it clear that he considers that the system is working well, and that 82% of claimants were satisfied with universal credit. This was a far cry from “the picture being painted by some of the witnesses to the inquiry”, the letter said, although it admits that the satisfaction ratings refer to the interim universal credit service, not the full service. |
| Gauke also said the rollout had been subjected to “extensive scrutiny” by DWP officials, the Cabinet Office and the independent Infrastructure and Projects Authority. It concluded that the IT system was robust enough, there were enough staff, and that claimants received “an acceptable level of customer service”. | Gauke also said the rollout had been subjected to “extensive scrutiny” by DWP officials, the Cabinet Office and the independent Infrastructure and Projects Authority. It concluded that the IT system was robust enough, there were enough staff, and that claimants received “an acceptable level of customer service”. |
| A DWP spokesman said: “Universal credit lies at the heart of our commitment to help people improve their lives by providing additional tailored support to move into work and stop claiming benefits altogether. And it’s working. | A DWP spokesman said: “Universal credit lies at the heart of our commitment to help people improve their lives by providing additional tailored support to move into work and stop claiming benefits altogether. And it’s working. |
| “With universal credit, people are moving into work faster and staying in work longer than under the old system.” | “With universal credit, people are moving into work faster and staying in work longer than under the old system.” |
| He argued that no one had to wait six weeks and said the ministry had updated its guidance on advance payments, which could be available on the same day in emergencies. | He argued that no one had to wait six weeks and said the ministry had updated its guidance on advance payments, which could be available on the same day in emergencies. |
| “Budgeting support is available for anyone who needs it, but the vast majority of claimants tell us they are comfortable managing their money.” | “Budgeting support is available for anyone who needs it, but the vast majority of claimants tell us they are comfortable managing their money.” |
| If you have been affected by this story you can share your experiences in the encrypted form below: | If you have been affected by this story you can share your experiences in the encrypted form below: |
| Universal credit | Universal credit |
| Poverty | Poverty |
| Benefits | Benefits |
| Theresa May | Theresa May |
| Conservatives | Conservatives |
| Labour | Labour |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on Google+ | Share on Google+ |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |