Universal credit is designed to help people into work, support people who need help or cannot work and it replaces a system which discouraged people from working more than 16 hours a week – and saw nearly 1.5 million people trapped on out of work benefits for nearly a decade.
Unlike the disastrous roll out of tax credits, which saw millions of people facing claw backs after overpayments of £7.3 Billion, Universal Credit is being introduced gradually.
People are moving into work faster and staying in longer.
It is only six weeks since the last Plaid Cymru debate on Universal Credit, where I noted:
- That I had written to the UK Secretary for Work and Pensions regarding Universal Credit Helpline charges before his announcement that they were being scrapped
- And that backbench Conservative MPs were doing their democratic job by calling for a reduction in the six week waiting time for Universal Credit payments.
When I recently visited the new Job Centre Plus District Manager for North and Mid Wales and staff at their Mold Office, they told me that they can now focus on the claimants needs, that instead of spending their days helping people filling out long forms as they come off and back on Job Seekers Allowance, and dealing with queries about delays in payments, they can now concentrate on coaching people about how to find extra work and become financially independent.
They also told me about the personal budgeting support they provide and about the advance payments available, although these had rarely been taken up so far.
I urge all Members to visit a Job Centre Plus Office in their area.
The House of Commons Work and Pensions Select Committee stated in 2012 “the principles behind Universal Credit have widespread support, which we share”.
Labour’s Shadow Work and Pensions Secretary three years ago said “Labour supports the principle of Universal Credit”.
Most of the respondents to UK Government’s 21st Century Welfare consultation paper agreed with the need for fundamental reform and the principles underpinning Universal Credit.
I therefore move amendment 1, noting that the principle behind Universal Credit is widely supported.
Rather than scrapping it, Labour’s 2017 UK Manifesto said “Labour will reform and redesign Universal Credit, ending 6 weeks delays in payments”- and in this context amendment 1 “welcomes the wide-ranging package announced in the UK Government’s Budget to address concerns around the transition to universal credit”.
This £1.5 Billion package, which reduces a claimants wait for their first payment to five weeks, is significantly more generous that reducing the payment to one month.
AND it is about more than just money, it is about helping people get into work, stay in work and live independently.
From next month, claimants will be offered an advance of up to 100%.
In practice, this means that new claimants in December can already receive an advance of up to 50% - and may now receive a second advance of up to 100% in the New Year.
Payment of advances will be recoverable over 12 months rather than 6.
Claimants who have previously received housing benefit will receive an extra 2 weeks support, worth an average £233, which will be unrecoverable, automatic and received early in the first assessment period.
The UK Government has also allocated £8 million over 4 years to develop evidence over what works to help people progress in work.
DWP Officials have been working with the devolved administrations since March 2012 on plans for Universal Credit rollout - and the UK Government issued the Universal Credit Local Support Services Framework’, in February 2013, developed between the DWP and partners including the Welsh Local Government Association, to help claimants not yet ready to budget for themselves and those who need alternative payment arrangement.
When we hear, for example, that in Wales, the average value of rent arrears under Universal Credit is £450, more than 3x the UK average, we therefore have to ask the Welsh Government what has gone wrong here.
Community Housing Cymru believe that some of the issues surrounding Universal Credit could be targeted by improving communications between DWP, tenants and landlords.
We also need to consider solutions such as like the Social Change ARK Passport Scheme, allowing tenants to separate and prioritise rent and other payments, and giving landlords greater security.
AND we need to engage with the UK Government’s 10 year strategy to transform disability employment and help a million more disabled people into employment.