Universal Credit rollout will not be paused, says Work and Pensions Secretary

By Jon Vale and Andrew Woodcock2nd October 2017News EnglandAusterity, Government / Politics, News England, Poverty / Austerity, Unemployment, Welfare Reform

The rollout of Universal Credit will not be paused, Work and Pensions Secretary David Gauke has said.

He told the Tory Party conference he would tweak the system to ensure claimants are offered advance payments upfront, amid criticism people are waiting six weeks for any money and getting into debt.

But he insisted the “rollout will continue” despite pressure for a pause from a dozen Tory MPs, as well as Labour and a number of charities.

Chancellor Philip Hammond also said on Tuesday that Universal Credit created “challenges” for claimants who find themselves waiting weeks for their first payments.

But in his speech in Manchester, Mr Gauke said: “Universal Credit is working.

“So I can confirm that the rollout will continue, and to the planned timetable.

“We’re not going to rush things, it is more important to get this right than to do this quickly, and this won’t be completed until 2022.

“But across the country, we will continue to transform our welfare system to further support those who aspire to work.”

Universal Credit combines a number of benefits such as housing benefit and tax credits into a single payment.

From October the pace of its rollout is due to be ramped up, with 50 Jobcentres moving to the service every month from October.

Government figures show 23% of new claimants do not receive their first full payment within six weeks, which has been linked to rent arrears and other debts for claimants.

Mr Gauke said he understood the concerns, adding that people can get advance payments to tide them over.

“I am determined to ensure that those who need support earlier in the month will get it,” he said.

“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 upfront.

“Claimants who want an advance payment will not have to wait six weeks. They will receive this advance within five working days.”

People with an immediate need will have their payments fast-tracked, Mr Gauke added.

He called Universal Credit the most radical reform to welfare since the Second World War, ensuring that work pays for claimants.

But the implementation has been criticised by the likes of Dame Louise Casey, the former head of the Government’s troubled families team, as well as former Treasury mandarin Lord Macpherson and charity Citizens Advice.

Twelve Tory MPs also sent a letter to Mr Gauke urging him to pause the expansion, according to the Daily Telegraph.

In his speech, Mr Gauke revealed that twice as many people than originally thought are set to benefit from plans not to reassess people with the most severe conditions for employment and support allowance, the main long-term sickness benefit.

He added that 1,800 work coaches had been trained to support claimants with mental health issues, amidst criticism Jobcentre staff found it daunting dealing with them.

Debbie Abrahams, the shadow work and pensions secretary, said: “It is an insult to those being pushed into debt and rent arrears by this Government’s punitive six-week wait policy that the Work and Pensions Secretary is suggesting they get another loan to make ends meet.

“The Work and Pensions Secretary could and should immediately end the misery caused by the six-week wait for payment of Universal Credit.”

New figures released on Monday show 76% of new Universal Credit claimants received their full payment on time in the latest week for which figures are available, up from 65% at the start of the year.

Gillian Guy, chief executive of Citizens Advice, said: “It is reassuring to see that David Gauke recognises there are problems with Universal Credit, and his commitment to making sure people can access advance payments is welcome.

“However, we are disappointed he has not taken this opportunity to pause the rollout to ensure the problems are fixed before it speeds up significantly.

“Evidence from Citizens Advice and others – including the DWP itself – shows many people risk getting into serious debt as a result of delayed first payments.

“Advance payments can help people make ends meet during this period, but they must be combined with more action to reduce the number of people waiting more than six weeks for their initial payment.”

Liberal Democrat work and pensions spokesman Stephen Lloyd said ministers “continue to bury their heads in the sand over the shocking impact the rollout of Universal Credit is having on thousands of people’s lives”.