PM rejects calls to halt Universal Credit roll-out as helpline charges scrapped
Theresa May has again rejected calls to pause the roll-out of Universal Credit as ministers announced that controversial charges of up to 55p a minute to call a helpline were to be scrapped.
Appearing before a Commons committee, Work and Pensions Secretary David Gauke (pictured) said the line would be switched to a freephone number over the next month.
But at Prime Minister’s Questions, Mrs May insisted that the overall system was working and she dismissed a call by Jeremy Corbyn for a delay to “fix” the problems.
The Labour leader, who highlighted the helpline charges in the House last week, told her: “The fundamental problems of Universal Credit remain. The six-week wait, rising indebtedness, rent arrears and evictions.”
However, Mrs May said: “It is a simpler system. It is a system that encourages people to get into the workplace. It is a system that is working because more people are getting into work.”
The exchanges came as Labour sought to highlight concerns among Tory MPs over the roll-out of Universal Credit with an opposition day debate on the issue.
Earlier, Mr Gauke told the Work and Pensions Committee that all Department for Work and Pensions’ helplines would be free of charge by the end of the year.
He said the 0345 number for the UC hotline was charged at local rate and was included as a free call in many landline and mobile phone packages. The number was not a premium-rate number and DWP made no money from it, he said.
But he added: “Given the recent attention and concern that this could place a burden on claimants, I have decided that this will change to a freephone number over the next month.
“It has been DWP’s longstanding position to operate local line charges for benefit inquiry lines, but having reviewed this matter more widely I will be extending freephone numbers to all DWP phone lines by the end of the year.”
His announcement was welcomed by Conservative MP Heidi Allen – a member of the cross-party committee and a leading critic of the 55p charge – as “really, really great news”.
Ms Allen was among a group of potential rebels invited to Downing Street for talks with the Prime Minister on Tuesday ahead of the Commons vote.
But in a sign there would be no revolt, Johnny Mercer, another MP who met the Prime Minister, tweeted a link to Labour’s motion with the words “no chance”.
Last month, Labour received backing from the Democratic Unionist Party (DUP), which is propping up the minority Government, in opposition day votes on NHS pay and tuition fee increases, which forced the Tories to abstain on the non-binding motions.
In a hint the same tactic could be followed for the Universal Credit vote, Tory MP Douglas Ross is not even expected to be in the Commons for the proceedings – because he will be an assistant referee in a Champions League football match in Barcelona.
The Moray MP’s absence has been condemned by Labour and the SNP.
Mr Gauke told the committee that 81% of Universal Credit claimants were now receiving their benefits in full within six weeks and 96% within 10 weeks.
He said he was “keen” for more claimants to apply for cash advances which are available to cover the waiting period.
“There clearly have been cases where people should have had an advance and for one reason or another haven’t had an advance. I am keen to correct that,” he said.
He said he was aware of only one case of people being evicted from social housing because of rent arrears which built up during the waiting period, and said guidance had been given to judges that it was not acceptable for evictions to be sought on this basis.
But Ms Allen said the number of claims suggested advance payments were “papering over the fact that the six-week wait just doesn’t work”.
Committee chairman Frank Field said food banks in his Birkenhead constituency were trying to amass 15 additional tonnes of supplies for the Christmas period to cover the roll-out of UC in the area, and asked if the minister thought they were “alarmist” to do so.
“You can’t guarantee that there won’t be a surge in food bank use in areas where the roll-out is occurring, such as Birkenhead,” said Mr Field.
Mr Gauke said: “We do think that a system whereby payment timeliness is improving – which it is – and payment of advances is increasing – which it is – is likely to mean that those people who have undoubtedly faced pressures in the period before their first payment are not likely to see those pressures being as great in future.”
A senior Downing Street source signalled that Conservatives are likely to abstain from Wednesday’s Universal Credit vote, as they did when facing probable defeat on non-binding Labour motions on NHS pay and university tuition fees in September.
Asked whether the Prime Minister was concerned about Mr Ross’s absence, the source said: “I would point you to the comments of the member in question, who has said that this does not interfere with his parliamentary duties and he wouldn’t do anything that would do so.
“I have said previously that on some of these debates, we may say to MPs ‘If you feel your time would be better spent elsewhere, then…'”
The source said “Tory MPs who take an interest in this” will take part in the debate, but declined to confirm whether the party would push it to a vote.
A senior Labour source said abstaining would be “a sign of the paralysis and failure of the Government”.
Describing Mr Ross’s absence as “completely unacceptable”, the source said: “It’s an obligation on Conservative MPs, if they care about the suffering their constituents are experiencing over this shambolic and cruel policy, to take part.
“If they fail to do that, it is a mark of their own lack of responsibility and commitment to their constituents.”
The chief executive of the Child Poverty Action Group, Alison Garnham, welcomed the helpline decision but said the Government would need to go “much further” to address “deep-seated problems” with Universal Credit.
“The Chancellor has the opportunity to take substantive remedial action in next month’s Budget,” said Ms Garnham.
“A rethink of the cuts and restoration of the work allowances which help people get better off through earnings are essential first steps to rehabilitate Universal Credit.
“Today the Secretary of State acknowledged that it would be possible to reduce the waiting period for a first payment.
“We hope he will act on mounting evidence that Universal Credit is causing debt and rent arrears and bring the waiting time down to two weeks.”
Mark Atkinson, chief executive at disability charity Scope, said: “It’s welcome news that disabled people will no longer have to face unreasonable phone charges as they start a claim for Universal Credit.
“But for some disabled people the switch to Universal Credit could leave them up to £400 a month worse off on the money needed for the basics in life, such as food, clothing and heating.
“If the Government doesn’t address this, it will unfairly penalise disabled people for moving over to Universal Credit.”
After hearing Mr Gauke’s evidence, Mr Field said: “The baked-in minimum six week wait for a first payment simply does not work.
“Universal Credit is supposed to mimic the world of work, but I know of no one who waits six weeks or more for a paycheck.
“Advance loans of two weeks’ worth of payment are a sticking plaster over a far more fundamental flaw in the system.
“I remain bemused as to how the DWP can proceed with accelerating this mega-reform without basic data about long waits for payment or the effects of UC on rent arrears and food bank use, all while thinking up fixes for free school meals, the self-employed and renters on the fly.
“I will be pressing for more data on how UC is operating in practice as even those pushing out the reform seem to be in the dark.”
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