Recommendations & Conclusions
33 items
1
Conclusion
Fourth Report - The Benefits System in …
The demographic, economic and geographic challenges we have highlighted set the context for the benefits system in Wales. While it is a reserved competence, that does not mean the environment in which it operates is identical to that elsewhere in Great Britain. While the evidence shows that the key challenges …
Government response. The Department for Work and Pensions is committed to continually improving access to Universal Credit for those most vulnerable in society. As there is a large amount of personal information held within an individual’s Universal Credit account, any data breach …
Wales Office
2
Conclusion
Fourth Report - The Benefits System in …
The pandemic demonstrated how resilient the UK social security system can be in the face of significant challenges. Despite the huge surge in demand, Universal Credit continued to function and benefits were paid out to a markedly increased pool of claimants. That Universal Credit was able to withstand these pressures …
Government response. Statutory Sick Pay should not be looked at in isolation, more than half of employees (60%) receive more than the statutory minimum from their employer. In the response to ‘Health is Everyone’s Business’ consultation published in 2021, the UK Government …
Wales Office
3
Conclusion
Fourth Report - The Benefits System in …
We were concerned to hear that welfare rights advisors believe that Universal Credit’s explicit consent model has impeded their ability to help claimants and has led to some people sharing personal data such as passwords. We would welcome the UK Government reviewing its decision to end the implicit consent model …
Government response. The Department for Work and Pensions is committed to continually improving access to Universal Credit for those most vulnerable in society. As there is a large amount of personal information held within an individual’s Universal Credit account, any data breach …
Wales Office
4
Conclusion
Fourth Report - The Benefits System in …
The DWP should run a consultation with welfare rights advisors on Universal Credit’s explicit consent model and examine whether any changes are necessary.
Government response. The UK Government rejects this recommendation. The UK Government has always been clear that the £20 increase was a temporary measure to support those households most economically affected by the economic shock of Covid-19. It was always intended to be …
Wales Office
5
Conclusion
Fourth Report - The Benefits System in …
The UK Government must urgently review the level at which Statutory Sick Pay (SSP) is set. At only £96.35 per week, it is equivalent to only 20 per cent of the average wage—compared to 100 per cent in Germany and 90 per cent in France. In the interest of public …
Government response. The UK Government rejects this recommendation. The Secretary of State for Work and Pensions is required by law to undertake an annual review of benefits and pensions. The Consumer Prices Index (CPI) in the year to September is the latest …
Wales Office
6
Conclusion
Fourth Report - The Benefits System in …
Given the comparatively high proportion of low paid workers in Wales, we were concerned to hear of issues regarding the eligibility criteria for Statutory Sick Pay. While we acknowledge that there may be other support available to unwell workers, the pandemic has highlighted the dangers of someone attending work when …
Government response. The UK Government has already taken action in response to Baroness McGregor-Smith’s report, commissioned by the Secretary of State, to significantly improve the work incentives in Universal Credit. Since last November, the UK Government has cut the Universal Credit taper …
Wales Office
7
Conclusion
Fourth Report - The Benefits System in …
We welcome the swift changes to the financial support many claimants received during the pandemic, as well as to the operation of the overall system. We received evidence of the significant difference that the temporary £20 uplift made to those eligible claimants, as well as other support measures such as …
Government response. There were various support mechanisms available to the self-employed, though eligibility will have varied according to how their enterprises were structured. As for the Department for Work and Pensions, its support included the easement on the Minimum Income Floor. The …
Wales Office
8
Conclusion
Fourth Report - The Benefits System in …
We acknowledge that the UK Government has difficult choices to make in ensuring that the benefits system is financially sustainable in the long-term. We welcome its reduction of the taper rate and increase in the work allowance in the autumn Budget.
Government response. The Office of the Secretary of State for Wales is committed to continually improving its working relationships across Government with the aim of supporting the people of Wales in their day to day lives. The Office of the Secretary of …
Wales Office
9
Conclusion
Fourth Report - The Benefits System in …
However, in light of concerns about the rising costs of living, there is a need for a discussion about how to ensure benefits are adequate, affordable and sustainable. On the basis of the evidence presented there is a need for an urgent review of: ending the £20 UC uplift; the …
Government response. The UK Government rejects these recommendations. The Department for Work and Pensions Ministers already have constructive engagement channels with Ministers in the Welsh Government on matters of mutual interest, and where areas of devolved and reserved power intersect. For example, …
Wales Office
10
Conclusion
Fourth Report - The Benefits System in …
It is clear that current benefit levels are inadequate. In the short term, the £20 uplift should be reintroduced at the Budget in March 2022 and extended to legacy benefits.
Government response. The UK Government rejects this recommendation. The UK Government has always been clear that the £20 increase was a temporary measure to support those households most economically affected by the economic shock of Covid-19. It was always intended to be …
Wales Office
11
Conclusion
Fourth Report - The Benefits System in …
Without the uplift, benefits for the unemployed are at their lowest real-terms level since the early 1990s. Had they grown in line with GDP per capita since 1990, they would be £40 a week higher. The future value of benefits is also being reduced given the increasing cost of living, …
Government response. The Department for Work and Pensions is undertaking a range of actions to raise awareness of Pension Credit and encourage eligible pensioners to claim, as part of a new national communications campaign, launched on 4 April. The campaign features promotional …
Wales Office
12
Recommendation
Fourth Report - The Benefits System in …
We urge the UK Government to use nearer-term forecasts to increase benefits in line with the actual rate of inflation that will apply in April 2022. As a long-term solution to these issues, the DWP should outline what the benefit system is trying to achieve and how this can be …
Government response. In Scotland, social security includes both reserved and devolved elements, so a toolkit was created to help work coaches navigate the situation for their claimants. Social security is reserved in Wales, so the need is not so apparent. However, the …
Wales Office
13
Conclusion
Fourth Report - The Benefits System in …
Around 39% of claimants are in work. Many of those who became eligible for Universal Credit during the pandemic will have done so through losing income while on furlough rather than through losing a job. For those whose pay is supplemented by Universal Credit, the issue is not finding work, …
Government response. This recommendation is for the Welsh Government.
Wales Office
14
Conclusion
Fourth Report - The Benefits System in …
The UK Government should take forward the recommendations of the In-Work Commissioner and review how the taper rate and work allowances can best support in-work progression.
Government response. The UK Government is committed to helping workers progress into higher pay. It will respond to Baroness McGregor-Smith’s recommendations shortly. In the latest Spending Review in October 2021, the UK Government announced that £99m would be allocated to provide around …
Wales Office
15
Conclusion
Fourth Report - The Benefits System in …
We welcome the extent of support that the UK Government provided during the pandemic, but we note that not all self-employed people were eligible. We welcome 44 The Benefits System in Wales the UK Government’s acknowledgement that it has “learned more” about the issues with capital limits and we would …
Government response. The Department for Work and Pensions has advised the Welsh Government how Universal Credit would be affected by payments under the proposed basic income pilot. HMRC has similarly advised about the treatment of taxation.
Wales Office
16
Conclusion
Fourth Report - The Benefits System in …
We welcome the extent of joint working between ministers throughout the pandemic, including meetings between the Secretary of State for Wales and the First Minister and other Welsh Government Ministers, as well as multilateral meetings chaired by various UK Ministers. This reflected not only the gravity of the situation but …
Government response. The UK Government has no intention to devolve social security to the Welsh Government. The Committee’s report acknowledges the advantages of the current system, highlighting its strength during the Covid response. The evidence gathered during the inquiry showed that attitudes …
Wales Office
17
Conclusion
Fourth Report - The Benefits System in …
We welcome the establishment of an Interministerial Group on Welfare, as part of the recently published Review of Intergovernmental Relations. However, while this will provide an important forum for bringing together the four UK governments to discuss welfare and social security issues, we believe this should be underpinned by a …
Government response. The UK Government rejects these recommendations. The Department for Work and Pensions Ministers already have constructive engagement channels with Ministers in the Welsh Government on matters of mutual interest, and where areas of devolved and reserved power intersect. For example, …
Wales Office
18
Recommendation
Fourth Report - The Benefits System in …
The two governments should establish a UK-Welsh government Inter-ministerial Advisory Board on Social Security. Such a Board could build on the good examples of joint working which were seen during the pandemic. Minutes of its meetings should be published.
Government response. The UK Government rejects these recommendations. The Department for Work and Pensions Ministers already have constructive engagement channels with Ministers in the Welsh Government on matters of mutual interest, and where areas of devolved and reserved power intersect. For example, …
Wales Office
19
Conclusion
Fourth Report - The Benefits System in …
UK Government ministers should consult with the Welsh Government in advance of new social security policies being implemented, especially in areas linked closely to devolved areas of competence such as housing and skills. The UK-Welsh government Inter-ministerial Advisory Board on Social Security would be a suitable vehicle for managing these …
Government response. The UK Government rejects these recommendations. The Department for Work and Pensions Ministers already have constructive engagement channels with Ministers in the Welsh Government on matters of mutual interest, and where areas of devolved and reserved power intersect. For example, …
Wales Office
20
Conclusion
Fourth Report - The Benefits System in …
We received evidence regarding a lack of awareness among the wider public of key benefits, most notably Pension Credit. The UK Government should address this directly through a UK-wide income maximisation campaign and design its messaging so that it not only raises awareness of the benefit but also addresses any …
Government response. The Department for Work and Pensions is undertaking a range of actions to raise awareness of Pension Credit and encourage eligible pensioners to claim, as part of a new national communications campaign, launched on 4 April. The campaign features promotional …
Wales Office
21
Conclusion
Fourth Report - The Benefits System in …
The DWP and Welsh Government should work together with local authorities to run a take-up campaign on Pension Credit, with messaging designed to both raise awareness but also address any reservations some older people may have about claiming it.
Government response. The Department for Work and Pensions is undertaking a range of actions to raise awareness of Pension Credit and encourage eligible pensioners to claim, as part of a new national communications campaign, launched on 4 April. The campaign features promotional …
Wales Office
22
Conclusion
Fourth Report - The Benefits System in …
We welcome efforts to improve awareness among claimants of all UK Government, Welsh Government, and local authority support, but written evidence suggests that there is still a long way to go. People requesting help need to feel confident that they have been informed of all the benefits and grants available …
Government response. In Scotland, social security includes both reserved and devolved elements, so a toolkit was created to help work coaches navigate the situation for their claimants. Social security is reserved in Wales, so the need is not so apparent. However, the …
Wales Office
23
Conclusion
Fourth Report - The Benefits System in …
The DWP and Welsh Government should work together to improve the signposting of benefits, grants, and allowances by producing a toolkit for Work Coaches. It should cover all devolved and local authority support. The DWP should report back to us in six months with an update on progress.
Government response. In Scotland, social security includes both reserved and devolved elements, so a toolkit was created to help work coaches navigate the situation for their claimants. Social security is reserved in Wales, so the need is not so apparent. However, the …
Wales Office
24
Recommendation
Fourth Report - The Benefits System in …
While we note the positive comments regarding the Welsh Government’s response to the pandemic via the Discretionary Assistance Fund, we also heard concerns about the application process for various Welsh Government and local authority grants and allowances. We welcome the fact that the Welsh Government is seeking to streamline their …
Government response. This recommendation is for the Welsh Government.
Wales Office
25
Conclusion
Fourth Report - The Benefits System in …
39% of Universal Credit claimants are already in work: the issue for them is not finding a job but finding a higher paid one or more hours. We welcome the UK Government’s commitment to providing claimants with in-work support and look forward to hearing further details about how its Progression …
Government response. The UK Government is committed to helping workers progress into higher pay. It will respond to Baroness McGregor-Smith’s recommendations shortly. In the latest Spending Review in October 2021, the UK Government announced that £99m would be allocated to provide around …
Wales Office
26
Conclusion
Fourth Report - The Benefits System in …
We note that the In-Work Commissioner’s report on Supporting People out of Low Pay found that most Jobcentre Plus support is tailored to help people get into work: there is less support and training available for those who are already there. We support its recommendation that Jobcentres should provide a …
Government response. The UK Government is committed to helping workers progress into higher pay. It will respond to Baroness McGregor-Smith’s recommendations shortly. In the latest Spending Review in October 2021, the UK Government announced that £99m would be allocated to provide around …
Wales Office
27
Conclusion
Fourth Report - The Benefits System in …
The UK Government should accept the In-Work Commissioner’s recommendation to provide a credible in-work offer for all working benefit claimants. The UK Government should outline how it will take this work forward with the Welsh Government and report back to us in 12 months on the progress made. The UK …
Government response. The UK Government is committed to helping workers progress into higher pay. It will respond to Baroness McGregor-Smith’s recommendations shortly. In the latest Spending Review in October 2021, the UK Government announced that £99m would be allocated to provide around …
Wales Office
28
Conclusion
Fourth Report - The Benefits System in …
Care-leavers are a vulnerable group and there is a strong case for arguing that they should have enhanced support. While the Welsh Government supports a basic income pilot for this group, we note that the UK government opposes universal basic income.
Government response. The Department for Work and Pensions has advised the Welsh Government how Universal Credit would be affected by payments under the proposed basic income pilot. HMRC has similarly advised about the treatment of taxation.
Wales Office
29
Conclusion
Fourth Report - The Benefits System in …
We have received a range of concerns regarding the limitations of the pilot and there are also considerable issues concerning how the pilot will affect the benefits of the participants. It is crucial that those considering participating are aware of how it will affect the benefits they receive and the …
Government response. The Department for Work and Pensions has advised the Welsh Government how Universal Credit would be affected by payments under the proposed basic income pilot. HMRC has similarly advised about the treatment of taxation.
Wales Office
30
Conclusion
Fourth Report - The Benefits System in …
In the interests of the young people considering taking part in the Welsh Government’s Basic Income pilot, the DWP and the Welsh Government should work together to conduct an impact assessment on the benefits received and the amount of taxes paid by the average potential participant.
Government response. The Department for Work and Pensions has advised the Welsh Government how Universal Credit would be affected by payments under the proposed basic income pilot. HMRC has similarly advised about the treatment of taxation.
Wales Office
31
Conclusion
Fourth Report - The Benefits System in …
The evidence collected during the inquiry showed that attitudes to the idea of devolving welfare vary significantly. Some were concerned about the financial implications and many felt that they did not have enough information. However, during the course of the inquiry many experts noted the potential merits of being able …
Government response. The UK Government has no intention to devolve social security to the Welsh Government. The Committee’s report acknowledges the advantages of the current system, highlighting its strength during the Covid response. The evidence gathered during the inquiry showed that attitudes …
Wales Office
32
Recommendation
Fourth Report - The Benefits System in …
It is important to make the distinction between devolving the administration of certain welfare benefits and the wholescale devolution of welfare and we recommend that, as a first step, the UK-Welsh Government Inter-ministerial Advisory Board on Social Security should undertake an assessment of the potential merits of devolving the administration …
Government response. The UK Government has no intention to devolve social security to the Welsh Government. The Committee’s report acknowledges the advantages of the current system, highlighting its strength during the Covid response. The evidence gathered during the inquiry showed that attitudes …
Wales Office
33
Conclusion
Fourth Report - The Benefits System in …
In the event of the Welsh Government submitting formal proposals to the UK Government, the DWP should provide us with an update in 12 months regarding the nature and progress of its discussions with the Welsh Government. (Paragraph 162) The Benefits System in Wales 47
Government response. The UK Government has no intention to devolve social security to the Welsh Government. The Committee’s report acknowledges the advantages of the current system, highlighting its strength during the Covid response. The evidence gathered during the inquiry showed that attitudes …
Wales Office