Select committee inquiry
Universal Credit
Closed
What the inquiry looked at
“Universal Credit is a benefit for people of working age which will be introduced over a four year period from 2013 to 2017. It will replace existing means-tested benefits and tax credits (including income-based Jobseekers Allowance and Employment and Support Allowance; Income Support; Child Tax Credits; Working Tax Credits; and Housing Benefit). It is the Government’s key reform to simplify the benefits systems and to promote work and personal responsibility. The Committee’s inquiry reviews the progress being made towards implementation of Universal Credit and also examines aspects of the proposed entitlement conditions and the future operation of the benefit. Terms of reference Terms of reference published 17 July 2012”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
In the committee's words, from the summary of 3rd Report - Universal Credit implementation: meeting the needs of vulnerable claimants - Volume I (Volume I: Report, together with formal minutes, oral and written evidence) ↗
Universal Credit is a new benefit for people of working age, whether they are in or out of work, which will replace six existing benefits. It is a key part of the Government’s welfare reform programme and is being introduced with the objectives of simplifying the benefits system and increasing incentives to work. It will be implemented over a four-year period between 2013 and 2017.
The principles behind Universal Credit have widespread support, which we share. The Government has made significant progress in designing a system which will help ease the transition from benefits to work and it deserves to be congratulated for the progress it has made in this respect. We recognise that the new system will be effective for the majority of claimants but have concerns about the plans in place to take account of some of the more vulnerable benefit claimants.
It is acknowledged that some of the most vulnerable claimants struggle with the existing system and this inquiry has shown that serious concerns persist about how they will be supported with the transition to Universal Credit. The focus of this report is therefore the further steps the Government needs to take to ensure that Universal Credit works properly for all claimants, not just the majority.
The aim of moving to an online benefits claiming system and of increasing digital inclusion is welcome. However, the target for the vast majority of Universal Credit claims to be made and managed on line—“digital by default”—is ambitious and carries a risk that some vulnerable people will have difficulty in accessing their benefit entitlement because they do not know how to make a claim. DWP has not to date provided sufficient information about how this will be addressed. It now needs to set out: how people will know where to go to make a claim; what support they will be able to get; and what resources DWP plans to allocate to providing this support.
There will be a significant increase in demand for advice services during the four-year period of Universal Credit implementation, which will place a heavy burden on the advice sector. DWP needs to ensure that sufficient additional resources are available in the advice sector to support a successful transition to the new system.
Universal Credit entitlement will be assessed on a monthly basis, and paid in a single, monthly amount to each household. The Government believes that this arrangement will help to improve the financial literacy and financial inclusion of benefit claimants by mirroring paid employment. We support this principle but, while the change may be manageable for the majority of claimants, some vulnerable households, who already struggle to manage their finances, may not be able to manage a monthly, single household payment. The Government proposes to use an “exceptions” process to identify and provide support to claimants who may need it. There is a risk that some vulnerable claimants will be identified as such only after they have actually experienced problems.
The default arrangement under Universal Credit will be for rental costs to be paid to the benefit claimant who will then pay their landlord, rather than the landlord being paid directly. This represents a major change for many claimants, particularly for tenants in 4 social housing, and some may struggle to manage this new arrangement for rent payments.
It is more likely to be effective if the Government allows time for a proper evaluation of its current pilots, which are testing the impact of direct rent payments, and to have a phased implementation after appropriate safety net arrangements for vulnerable people have been put in place.
The Government has clearly stated its commitment that Universal Credit will provide more generous support for disabled adults and disabled children than it does for people in similar circumstances who are not disabled. However, there are concerns that some disabled people will be worse off under Universal Credit because of the loss of additional disability payments which are available under the current system. Transitional arrangements will provide some protection but this will erode over time and when claimants’ circumstances change. The Government should reconsider the system of disability additions under Universal Credit, particularly those affecting disabled children and severely disabled people, to ensure that it meets the commitment it has made to disabled claimants and that there is no diminution in their overall benefit package, which includes entitlement under Universal Credit.
The Government plans to calculate monthly Universal Credit payments by using up-to-date monthly information about claimants’ employment earnings taken from HM Revenue & Customs’ new Real Time Information (RTI) system for PAYE taxation. Ministers continue to be confident that RTI will be delivered on schedule, in time for full implementation of Universal Credit from October 2013. This timetable is very ambitious and leaves little opportunity for dealing with any problems which arise. DWP needs to clarify and publish details of the contingency arrangements which will be put in place for claimants to provide earnings information for calculation of Universal Credit if RTI is not available.
Universal Credit implementation is taking place at the same time as a number of other significant changes affecting benefit claimants, most notably the introduction of a system of local council tax support to replace Council Tax Benefit. This new support will sit outside Universal Credit; each local authority will be able to design its own scheme; and it is being introduced in combination with a 10% reduction in funding. Our key concerns about local council tax support are that: it contradicts the aim of simplifying the benefits system; it risks adding complexity to earnings incentives; and it has the potential seriously to undermine one of the objectives of Universal Credit which is to enable claimants to see clearly the financial benefits of taking up a job or working more hours.
The Government should reflect on the possible consequences of the scale of the proposed change for some of the most vulnerable people in society and, if those consequences cannot be adequately addressed, should consider modifying its implementation timescale accordingly. The Government has indicated that it expects to lay the Regulations to implement Universal Credit before Parliament in December. We hope it will take full account of the concerns raised in this report in finalising the detailed arrangements for delivering Universal Credit which it plans to set out in the Regulations.
What the government said
3rd Report - Universal Credit implementation: meeting the needs of vulnerable claimants - Volume II (Volume II: additional written evidence)
No government response is linked to this report.
3rd Report - Universal Credit implementation: meeting the needs of vulnerable claimants - Volume I (Volume I: Report, together with formal minutes, oral and written evidence)
The government responded on 5 February 2013.
Summary written by Accountability Index from the government's response.
The government's response states that it "must and will protect the interests of those who are in vulnerable circumstances" while keeping Universal Credit's main route as digital, with monthly, single household payments as the starting position.
- On online claiming, it states it is not "removing all other channels", will offer claims by phone or in person, and agrees with a smartphone application, with the aim that this will be available "later in 2014".
- On monthly payments, it accepts that alternative payment arrangements "may be required" for a minority of claimants. It also states that decision-makers can split payments between partners "where needed".
- On housing costs, it is "not, however, seeking to define 'vulnerability'" and says any attempt would risk excluding people who need help. Findings from the Direct Payment Demonstration Projects, due to run until June 2013, will be considered before final arrangements are set out.
- On Social Fund localisation, it states that it is "not giving local authorities responsibility for Social Fund discretionary payments". It also notes that Parliament rejected ring-fencing, and it commits to a review in 2014.
Read the government's response ↗ Read the report ↗ Report an error
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 17 July 2012 to its close on 5 February 2013.
- Report 2 reports
- Government response 5 Feb 2013
What it recommended 10 recommendations · 26 conclusions
1It was clear from the evidence received in our inquiry that there is widespread support...
Concluded (the committee's words)
It was clear from the evidence received in our inquiry that there is widespread support for the principles of welfare reform, the general direction of policy development for Universal Credit, and the aim of strengthening incentives to work and facilitating the move from benefits to work. We share this support for the Government’s aims for Universal Credit. It was equally clear, however, that there is considerable concern about the ambitious timetable for introducing Universal Credit; whether there will be sufficient time for the Government to learn from its pilots; and whether it is desirable or necessary to implement so many changes at once. Concerns raised in the evidence centred very much on the impact the changes might have on the most vulnerable claimants, such as some people with disabilities, homeless people and those who already struggle to manage their finances. This report therefore focuses on the nature of the risks for these vulnerable groups and on the Government’s plans for protecting them.
2We welcome the Government’s objectives of moving to an online benefits claiming system and of...
Concluded (the committee's words)
We welcome the Government’s objectives of moving to an online benefits claiming system and of increasing digital inclusion, and we recognise the potential benefits for many claimants as well as the important cost-reduction advantages. We are, however, concerned that some vulnerable claimants will not have the internet access or skills to be able to use the system and so may be unable to obtain their benefit entitlement. Simply removing other channels for claiming benefits will not equip people with the necessary skills and capabilities to make the transition to online claiming.
3For many people smartphones are now the preferred method of accessing the internet.
Recommended (the committee's words)
For many people smartphones are now the preferred method of accessing the internet. We recommend that DWP gives priority to early development of an application to support Universal Credit claims from smartphones.
4The systems design for Universal Credit, the service delivery plan and the final version of...
Concluded (the committee's words)
The systems design for Universal Credit, the service delivery plan and the final version of the Regulations must reflect the reality that some people will need face-to- face support when making a claim for Universal Credit. DWP has been unable to present us with any clear plans for how the Universal Credit service will be delivered to those people who cannot make an online claim. Nor is it clear what DWP’s target of 50% online claims in 2013 actually means; if there is to be no paper form then all claims will have to be online and the target is presumably an indicator of how many claimants will need telephone or face-to-face support. We request that, in response to this Report, DWP provides an explanation of its online targets and a clear statement of its proposed service delivery arrangements, setting out how people will be informed about where to go to make a claim, what support they will be able to get there, and what resources DWP is investing in that support. These arrangements 71 need to be in place before anyone is required to start claiming Universal Credit.
5Some people rely on advisers and other advocates to help them to make and to...
Concluded (the committee's words)
Some people rely on advisers and other advocates to help them to make and to resolve problems with their benefit claims. These intermediaries need to access relevant information about the claims in order to provide assistance and to seek explanations from DWP staff. It is not clear how intermediaries will be able to access this information when it is held online, unless the claimant is actually present and able to sign into their account. We request that, in response to this Report, DWP provides more information on how intermediaries will be able to access claimants’ online information without compromising system security. We also request confirmation that DWP will continue to provide advice helplines for advisers to discuss cases.
6There will be a significant increase in demand for advice services for claimants during the...
Recommended (the committee's words)
There will be a significant increase in demand for advice services for claimants during the four-year period of Universal Credit implementation. We urge DWP to work with the advice sector to quantify and provide the extra resources necessary to fund retraining of advisers and the additional advice services which will be required to ensure a successful implementation of Universal Credit.
7We understand the Government’s preference for moving to a monthly payment system for Universal Credit,...
Concluded (the committee's words)
We understand the Government’s preference for moving to a monthly payment system for Universal Credit, given that 70% of people in work are paid this way, and this amount is increasing. We accept that monthly payments of Universal Credit will make the transition to monthly salary easier for claimants and improve the position for claimants whose work status fluctuates. However, monthly payment is not the norm for many people on a low income and some claimants will return to weekly payments when they return to work. Budgeting weekly or fortnightly can be an effective way of managing a low income, and is not necessarily a sign of poor money management and monthly payment risks disrupting the existing budgeting methods of some households. Financial literacy training is likely to be expensive to provide and is unlikely to solve the difficulties of managing on a tight budget.
8We are concerned that the Government’s proposed exceptions process will be too slow in identifying...
Recommended (the committee's words)
We are concerned that the Government’s proposed exceptions process will be too slow in identifying people who may struggle to adapt to monthly payments and who may fall into debt or suffer further hardship. We recommend that DWP monitors the impact of monthly payments from the start of the Pathfinder in April 2013 and moves quickly to change its approach if this payment system appears to be creating difficulties for claimants.
9A single household payment may not be suitable for every household claiming Universal Credit and...
Concluded (the committee's words)
A single household payment may not be suitable for every household claiming Universal Credit and we therefore see disadvantages in insisting that all households receive their benefit this way. There is potential for women to lose out under this arrangement and a risk that money intended for children or for rent will not be used for its intended purpose. We therefore recommend that DWP decision-makers have the discretion to allow payments to be split between two partners in a household, where circumstances make this necessary. This would not conflict with the Government’s intention of calculating Universal Credit on a household basis.
10The proposal under Universal Credit to pay the costs of rent to the benefit claimant,...
Concluded (the committee's words)
The proposal under Universal Credit to pay the costs of rent to the benefit claimant, rather than direct to the landlord, is a major change to the benefit regime for tenants in the social housing sector and for some in the private rented sector. We note the Government’s view that this will contribute to claimants’ financial capability. While we recognise that many existing social tenants and most tenants in the private rented sector already pay their own rents, we are concerned that some vulnerable claimants will be unable to manage making regular rent payments and may fall into arrears.
11Initial findings from the pilots the Government is running to test the impact of direct...
Concluded (the committee's words)
Initial findings from the pilots the Government is running to test the impact of direct payments of housing costs to claimants, the “housing demonstration projects”, showed that just over half of tenants surveyed felt confident receiving their housing costs payment direct. Pilots receive additional time and attention both from landlords' staff and from local authorities' housing benefit staff in a way which would not be practical as larger numbers are brought into Universal Credit. Care must be taken in drawing conclusions from such small-scale pilots.
12We believe that the Government’s long-term aims for Universal Credit are more likely to be...
Concluded (the committee's words)
We believe that the Government’s long-term aims for Universal Credit are more likely to be achieved if time is allowed for a proper evaluation of the housing demonstration pilots, followed by a phased implementation of direct payments after appropriate safety net arrangements for vulnerable people have been developed and tested. We therefore recommend that, during the initial phases of Universal Credit implementation from April 2013, claimants who currently have their housing costs paid to their landlord should have the option to continue with this arrangement.
13We also recommend that the Government moves quickly to publish a clear definition of “vulnerable”...
Concluded (the committee's words)
We also recommend that the Government moves quickly to publish a clear definition of “vulnerable” groups within Universal Credit for whom it will not be appropriate to include housing costs in their benefit payment. It also needs to establish a robust process for proactively identifying claimants who are struggling to manage their housing costs so that they can be properly assisted before they fall into arrears and face eviction.
14Some potential Universal Credit claimants do not have a bank account.
Recommended (the committee's words)
Some potential Universal Credit claimants do not have a bank account. Some witnesses were concerned that these claimants may have particular problems managing monthly payments and housing costs and may be vulnerable to exploitation, particularly from those loan companies and operators charging excessive interest rates. We welcome the Government’s support for credit unions, but note that it is likely to be some time until credit unions have sufficient national coverage and capacity to offer a solution to everyone who needs it. We therefore welcome the Government’s intention to ensure a range of financial product options are available to claimants. However, it is essential to ensure that any new products provide the same protection for customers as mainstream bank accounts. We note that DWP is proposing to subsidise the first year of customer charges under the proposed new scheme. The Government must assess during that year whether support for subsequent years will also be required, and plan accordingly.
15The Government has clearly stated its intention that Universal Credit will provide more generous support...
Recommended (the committee's words)
The Government has clearly stated its intention that Universal Credit will provide more generous support for disabled adults and disabled children than it does for people in similar circumstances who are not disabled. We have not yet received sufficient evidence that the current plan for additional disability elements ensures this is the case. We are pleased to see that expenditure on disabled people as a whole will not be reduced. Our concern is how individual disabled claimants whose entitlement is reduced under Universal Credit will access substitute help. Transitional protection will mean that they do not lose in cash terms immediately but it will not provide a long-term solution because it diminishes over time and ends if their circumstances change. The Government needs to ensure that schemes are in place to support individuals to adjust. New claimants who may receive less under Universal Credit than they would have done under the existing system will also need help to live within the sum of all sources of support available in addition to Universal Credit. We recommend that the Government addresses concerns about the system of disability additions within and outside Universal Credit, particularly where these affect disabled children and severely disabled people, to meet its commitment to provide generous support to those particularly vulnerable groups of claimants and to ensure that there is no diminution in their overall benefit package which includes their entitlement under Universal Credit.
16We welcome the extension of help with the costs of childcare for Universal Credit claimants...
Concluded (the committee's words)
We welcome the extension of help with the costs of childcare for Universal Credit claimants so that it is available to parents who work fewer than 16 hours a week. However we note that the effective level of support will be less for some families who are currently benefiting from disregards under Housing Benefit and Council Tax Benefit. The costs of childcare are a key factor in achieving real financial benefits 74 from returning to work and the Government will need to monitor the extent to which the childcare element of Universal Credit is effective in promoting work incentives, particularly in the context of the high cost of childcare in the UK.
17Removing Support for Mortgage Interest as soon as any hours of work are undertaken could...
Recommended (the committee's words)
Removing Support for Mortgage Interest as soon as any hours of work are undertaken could discourage some claimants from entering part-time employment, especially single parents who have been able to remain in the family home after separation, and people making a phased return to work after illness. There is also the possibility of unintended higher spending consequences if claimants move to private rented accommodation, where assistance with housing costs will be given. We recommend that the Government looks again at this provision.
18We welcome the Government’s decision to exclude supported exempt accommodation from Universal Credit.
Concluded (the committee's words)
We welcome the Government’s decision to exclude supported exempt accommodation from Universal Credit. However, DWP must urgently finalise and publish the details of the revised arrangements so that providers have the certainty they need to plan ahead and maintain their service provision. DWP must also clarify how the administration of supported exempt accommodation rental charges will operate within the Universal Credit system, and in particular, whether or not housing costs will be paid direct to landlords.
19A clear and easily comprehensible earnings disregard system is critical in order to ensure that...
Concluded (the committee's words)
A clear and easily comprehensible earnings disregard system is critical in order to ensure that benefit claimants can work out the financial advantages of returning to work or increasing their hours. We need more information to be clear that the simplified system set out in the draft Regulations achieves this, particularly for claimants with low housing costs for whom a choice of earnings disregard will exist. We are pleased that the Government is reassessing the proposed disregards.
20Ministers are confident that RTI will be delivered on schedule and in time to support...
Concluded (the committee's words)
Ministers are confident that RTI will be delivered on schedule and in time to support the introduction of Universal Credit. The RTI implementation timetable is, however, very ambitious and leaves little opportunity for dealing with any problems which may arise. Tax, accountancy and business organisations have raised a range of specific concerns about the RTI programme with us. We did not receive satisfactory responses to our questions about these detailed issues in either our formal evidence session or our informal meetings with DWP and HMRC officials. It is therefore unclear whether these issues are under control or what measures will be put in place to deal with problems as they emerge during full implementation.
21We request further information from DWP, in response to this Report, on its contingency plans...
Concluded (the committee's words)
We request further information from DWP, in response to this Report, on its contingency plans for receiving information on earnings for the calculation of Universal Credit payments if the RTI link is not available. We understand that, if this happens when Universal Credit is introduced, claimants will be required to provide information on their monthly earnings using their online accounts. It is not clear how this will operate in practice or what arrangements will be used for those who cannot manage online accounts. We therefore request that the additional information from DWP includes details about how claimants can provide monthly updates on their earnings if they are unable to manage their claim online, and about the resource implications for DWP of verifying earnings information provided directly by claimants.
22We welcome the Government’s efforts to ensure that the self-employed are incentivised to increase their...
Concluded (the committee's words)
We welcome the Government’s efforts to ensure that the self-employed are incentivised to increase their earnings rather than rely on benefits, more closely reflecting the position for the employed or those seeking employment. We also welcome the decision to allow self-employed claimants one start-up period every five years instead of once in a lifetime, but are concerned that the Minimum Income Floor may act as a disincentive to entrepreneurship.
23While welcoming efforts to simplify the provision of information by the self- employed, we share...
Recommended (the committee's words)
While welcoming efforts to simplify the provision of information by the self- employed, we share the concerns of witnesses representing professional and taxation bodies that the use of an accounting method different to that used by HMRC may impose a significant and unnecessary burden on the self-employed and we recommend that DWP liaises with HMRC and the professional bodies as a matter of urgency to address these issues.
24While we support the principle behind the benefit cap, it is imperative that it does...
Recommended (the committee's words)
While we support the principle behind the benefit cap, it is imperative that it does not affect the most vulnerable households in a way which makes it impossible for them to cope. We are therefore pleased that DWP has made additional funding available to help mitigate the impact of the cap on these families. We believe that the Government should consider, in particular, the impact on those in temporary accommodation which often attracts higher rental payments, and how the cap might be adjusted to take account of this. We request that DWP sets out in its response to this Report how it intends to monitor the impact of the cap. DWP also needs to clarify how the threshold for calculating income levels which would exempt households from the cap will take account of other statutory rights such as sick pay and maternity pay.
25DWP has already imposed a more robust conditionality regime on JSA claimants and this will...
Concluded (the committee's words)
DWP has already imposed a more robust conditionality regime on JSA claimants and this will be continued through into Universal Credit. One element is the 76 claimant commitment. This has the potential to help benefit claimants return to work, by making clear what job-search requirements they must fulfil. While we recognise that this is important, we also believe it is essential that DWP supports claimants in the job-search and that the support available to each claimant is clearly set out and actually provided.
26The new regime also includes tougher sanctions with the ultimate penalty of benefit being withdrawn...
Concluded (the committee's words)
The new regime also includes tougher sanctions with the ultimate penalty of benefit being withdrawn for three years. Sanctions are a necessary and important part of the benefits process, but there is little evidence that they strengthen work incentives on their own. The effectiveness of the new regime is likely to depend heavily on the quality of the face-to-face support provided by DWP through Jobcentre advisers. Sanctions must be used by DWP staff primarily as a deterrent and a last resort. Staff need to be properly trained to apply sanctions appropriately, and to explain clearly why they have been applied and what remedial action the claimant needs to take for benefit to be restored. We request that, in response to this Report, DWP explains how Jobcentre staff will be equipped to implement the new conditionality and sanctions regime effectively.
27The additional support currently available to many benefit claimants through passported benefits, particularly free school...
Concluded (the committee's words)
The additional support currently available to many benefit claimants through passported benefits, particularly free school meals, is valued by families, and the entitlement criteria have a significant impact on decisions about returning to work or increasing working hours. Finding a way of administering passported benefits under Universal Credit is a complex issue, involving many other Government Departments and the Devolved Administrations. We accept that there are no easy answers but we believe it is essential for the Government to put fair and workable criteria in place to avoid adding complexity to Universal Credit and the risk of reducing incentives to work.
28DWP has sought and been given detailed advice by the Social Security Advisory Committee about...
Concluded (the committee's words)
DWP has sought and been given detailed advice by the Social Security Advisory Committee about possible ways of establishing new eligibility criteria for passported benefits under Universal Credit. It now needs to make decisions. We welcome the Government’s assurance that, initially, under the Pathfinder, all Universal Credit claimants will retain entitlement to free school meals. A clear indication is now needed on the arrangements it will put in place when Universal Credit is implemented nationally from October 2013, before moving on to consider long-term solutions. We regard “cashing up”—including a cash equivalent of passported benefits in the Universal Credit payment—as an interesting idea which might have the potential to avoid “cliff edges”, the risk of a sudden drop in entitlement as soon as income levels rise above a certain level. DWP should now explore this in greater detail.
29We believe that the Government’s decision to localise council tax support under a proliferation of...
Concluded (the committee's words)
We believe that the Government’s decision to localise council tax support under a proliferation of local schemes, rather than including it within Universal Credit, will work against its objective of simplification of the benefits system. It will introduce local variation, add additional complexity to earnings incentives and has the 77 potential seriously to undermine the objectives of Universal Credit in terms of enabling claimants to see clearly the financial benefits of taking up a job or working more hours.
30The decision to reduce central government funding to local authorities for council tax support by...
Concluded (the committee's words)
The decision to reduce central government funding to local authorities for council tax support by 10%, but at the same time to protect pensioners, means that the burden is likely to fall on low-income working-age households, many of whom will be asked to pay council tax for the first time. The recently announced additional short-term funding for local authorities is welcome and may help to reduce the impact on some low-income families. However, we believe that it is essential that DWP fully understands the interaction between the changes to council tax support and the introduction of Universal Credit, particularly for low-income households, and that it begins monitoring the impact of the new council tax support arrangements as soon as they are implemented from April 2013. We request that DWP sets out its plans for this monitoring work, including the timetable, in response to this Report.
31Social Fund discretionary payments currently provide a safety net for some of the most vulnerable...
Recommended (the committee's words)
Social Fund discretionary payments currently provide a safety net for some of the most vulnerable people. We believe that giving local authorities responsibility for a new system of local welfare assistance without central guidance on how to determine eligibility, and in the absence of ring-fenced funding, will result in uncertainty and inconsistency in the way the support is administered. It may well lead to real hardship for benefit claimants who have nowhere else to turn in crisis situations. We are of the view that the Government should reconsider its position on ring-fencing but, if it is not prepared to do this, we recommend that DWP put systems in place to ensure that it closely monitors the extent to which local authorities are able to meet demand for local welfare assistance and that it is alerted at an early stage to specific instances of genuine need being unmet because of different local priorities or shortage of funds.
32The efficient transfer of data between DWP IT systems and the ATLAS system used by...
Concluded (the committee's words)
The efficient transfer of data between DWP IT systems and the ATLAS system used by local authorities is as important to the successful implementation of Universal Credit as that between DWP and the HMRC RTI system. It is not clear from the evidence we have received from DWP whether the capacity currently exists to ensure information is passed accurately and quickly between central and local government. We request that, in response to this Report, DWP provides us with further details of the steps it has taken to ensure that its interface with local authority IT systems is robust.
33The Government has set a very ambitious implementation timetable for Universal Credit.
Concluded (the committee's words)
The Government has set a very ambitious implementation timetable for Universal Credit. Ministers emphasised that, because implementation will be phased over four years, there will be plenty of time to get it right. While it is true that system enhancements can be developed and refined over time, we believe that the basic structure and the essential elements of service delivery and support must be shown to 78 be in place before the major roll-out of Universal Credit begins in October 2013.
34We believe it is essential for DWP to begin monitoring, and reporting regularly on, the...
Concluded (the committee's words)
We believe it is essential for DWP to begin monitoring, and reporting regularly on, the impact of Universal Credit on the full range of claimant groups as soon as implementation starts with the Pathfinder in April 2013. We request that DWP sets out its plans for impact monitoring in response to this Report.
35Universal Credit development and implementation is taking place at a time of financial austerity and...
Recommended (the committee's words)
Universal Credit development and implementation is taking place at a time of financial austerity and in the context of concurrent significant changes such as localisation of council tax support. We consider that the implementation timetable is ambitious and that there is significant further work to be carried out to ensure that the needs of the most vulnerable claimants can be met. The Government should reflect on the possible consequences of the scale of the proposed changes for some of the most vulnerable people in society and, if those consequences cannot be adequately addressed, should consider modifying its implementation timescale accordingly.
36The Government has indicated that it expects to lay the Regulations to implement Universal Credit...
Concluded (the committee's words)
The Government has indicated that it expects to lay the Regulations to implement Universal Credit before Parliament in December. Ministers emphasised to us the importance they placed on open and effective consultation on drafting this policy. We hope it will take full account of the concerns raised in this report in finalising the detailed arrangements for delivering Universal Credit which will be set out in the Regulations.