The Government has no plans for any U-turn, delay or halt in the rollout of universal credit, placing its faith in a flexible business plan and the 'evangelical' zeal of its jobcentre staff.
Baroness Sherlock (Lab) asked the Government what plans they have for the continued rollout of Universal Credit following the report by the National Audit Office Rolling out Universal Credit.
Baroness Stedman-Scott (Con) replied:
“… we will continue to deliver universal credit as planned, completing the national rollout for new claims by the end of 2018, and from 2019 we will start to move people from the old benefits system and tax credits to universal credit. We have taken a test-and-learn approach; we have learned a lot, and we will continue this. We have made changes—advance payments, direct payments to landlords, the two-week housing benefit run-on, removing waiting days, support for kinship carers and extending transitional protection—and I have no doubt that the list will get longer.”
Baroness Sherlock (Lab) then asked:
“….A National Audit Office report says that only 10% of claimants are on universal credit and it will be 2023 before it is rolled out. Every claim costs £700 to process, and the NAO found no evidence that universal credit will be cheaper to run. It says that the DWP has no idea whether universal credit is reducing fraud and error, and that it found no evidence for the Minister’s repeated claim that it will help an extra 200,000 into work. Meanwhile, 40% of claimants are in financial trouble and, on top of the planned delay in payment of five or six weeks, 10% of new claimants waited 11 weeks or more for full payment and 5% waited for five months. When universal credit hits an area, food bank use rises and rent arrears go up. My question is simple: the DWP keeps insisting that all is well but it is not, so will the Government now urgently review universal credit and stop pushing people into debt and hardship?”
To which Baroness Stedman-Scott replied:
“…..There have been issues…. We have a business plan for the rollout. In any good business you have a business plan with targets, you measure them, you review them and, when you do not hit them, you revise your plan. We will approach this in a business-like but compassionate way to make sure that we do all to serve people who are influenced by it."
Lord Kirkwood of Kirkhope (LD) asked:
“….In the autumn, when the universal credit managed migration regulations are published, will she personally ensure that the transitional protection arrangements within those regulations are adequate for the purpose, will be automatically available to claimants and will serve in future to reduce further financial distress?"
Baroness Stedman-Scott said:
“My Lords, we do not want people to be distressed in any way…. I know noble Lords do not like it but I can say to them that out there is a band of work coaches who are doing an amazing job. One of their jobs is to take people on a journey, help them, guide them and mitigate stress, and I have every confidence that they will be doing that. On the noble Lord’s point about transitional protection, I will talk to officials to make sure that when I tell him yes, I am doing it with confidence."
Lord Fink (Con) added:
“My Lords, I had the pleasure of visiting the main south-inner-London jobcentre at Kennington Park this morning. The staff there could not have been more evangelical in their support for universal credit, and many of those who were handling legacy claims were only waiting for the time when those claims moved over to universal credit. They said that the new system had much more flexibility, that most of the cases and examples in the NAO report had already been addressed and that in fact it was already out of date because the new system was so flexible and adjustable. …"
The saga continues