Select committee inquiry
Benefit delivery inquiry
Closed
What the inquiry looked at
“Government response Benefit delivery: Government Response to the Committee’s Fourth Report of Session 2015–16 Benefit delivery: Government Response to the Committee’s Fourth Report of Session 2015–16 (205KB) Committee's report Report: Benefit delivery Report: Benefit delivery (PDF 728KB) The Work and Pensions Committee is holding an inquiry into the timeliness and accuracy of benefit delivery by the DWP. Potential problems that can arise when benefits are delayed or underpaid include people resorting to food banks for emergency food rations.”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
In the committee's words, from the summary of 4th Report - Benefit delivery ↗
As MPs, we hear about many cases where individuals are entitled to benefit support but encounter delays and errors before they receive their payment. Over the last five years, the Department for Work and Pensions has undertaken a series of ambitious reforms to the welfare system against a backdrop of cuts to its administration and programme funding. Our concern is that the day-to-day delivery of accurate and timely benefits should not be neglected in drives for efficiency and change.
Available data
We have been unable fully to scrutinise some benefit delays because of a lack of available data. We are particularly concerned about the absence of ESA Work Capability Assessment and Mandatory Reconsideration clearance time statistics, and Short-Term Benefit Advance application statistics. If DWP have these data, they should publish them. If they do not, then they are making policy decisions in the dark. The Department should address the lack of data immediately.
Processes and guidance
The processes and guidance designed to help particularly vulnerable claimants are not working as effectively as they should. Guidance around Alternative Payment Arrangements and money advice is not always being followed and the related processes are not enough to prevent claimants falling into debt. DWP’s recent guidance for refugees has been welcomed and the Department should now look to build on it using local transition guides. In addition, DWP should investigate the “move-on period” for refugees, as their own research suggests 28 days is insufficient.
Errors in payment
The Department has set no target for reducing underpayments to claimants, despite having a target for reducing overpayments since 2010. This should be remedied immediately as underpayments can have an enormous impact on claimants and their ability to pay for essentials.
Universal credit
The DWP expects Universal Credit, its flagship reform, to simplify the benefit system and make it less open to mistakes. We believe there are further opportunities in it for the Department to exploit. However, during this inquiry we have been made aware of the limitations to Universal Credit improving benefit delivery, including the impact of “built-in delays” to a claimant’s initial payment. Furthermore, Universal Credit will not be fully implemented for several years and it has already been subject to repeated delays. Until it is fully implemented, DWP must not neglect the delivery of “legacy benefits”, which some claimants will receive for at least another 6 years.
What the government said
The government responded on 12 July 2016.
Summary written by Accountability Index from the government's response.
The government welcomes the Committee's report and notes progress on benefit processing speeds, accepting some recommendations in part while declining others, including an underpayments target and a landlord portal trial.
- On Housing Benefit fraud and error, it intends to deliver a new service providing wider use of RTI data, to be tested during 2016 "with a view to" wider provision during 2016–17.
- On underpayments, it states "we do not believe a target for underpayments is necessary", as its fraud and error measures cover over and underpayments alike.
- On a landlord portal, DWP "does not currently accept" the recommendation, but "may incorporate a landlord portal in future releases" if user feedback shows sufficient demand.
- On refugees, it plans to evaluate its process improvements "later this year", with next steps decided once findings are available.
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 15 July 2015 to 12 July 2016.
- Oral evidence 2 sessions
- Report 21 Dec 2015
- Government response 12 Jul 2016
What it recommended 12 recommendations · 14 conclusions
1Fraud and error in housing benefit have increased in the past five years, despite DWP’s...
Recommended (the committee's words)
Fraud and error in housing benefit have increased in the past five years, despite DWP’s use of real-time information on claimant incomes. We recommend the Government set out in detail how it will exploit other sources of data to gain a better picture of claimant circumstances, including living arrangements, and what reductions in fraud and error it expects these to achieve. We expect the DWP’s 2015–16 annual report and accounts to show progress in this area.
2The DWP has a target for reducing benefit overpayments but not for reducing benefit underpayments.
Concluded (the committee's words)
The DWP has a target for reducing benefit overpayments but not for reducing benefit underpayments. This indicates their relative priorities as the Department seeks to reduce costs. Underpayments, however, can have an enormous effect on individuals and can be a false economy as they transfer the burden to other services. Real time earnings information in Universal Credit is expected to improve the accuracy of benefit payments and should result in a reduction in underpayments over the next few years. We welcome the Department’s invitation to hold them to that expected ‘dividend’ from Universal Credit.
3Underpayments totalled £1.5 billion, or 0.9% of benefit expenditure, in 2014–15.
Recommended (the committee's words)
Underpayments totalled £1.5 billion, or 0.9% of benefit expenditure, in 2014–15. We recommend the DWP introduce a target to reduce underpayments to less than 0.5% of expenditure by the end of this Parliament. The Cabinet Office’s Fraud, Error and Debt Steering Group should monitor the Department’s progress towards achieving the target.
4The DWP is already exploring options for online resources in the digital service and Universal...
Concluded (the committee's words)
The DWP is already exploring options for online resources in the digital service and Universal Credit is still in the ‘test and learn’ stage. Now is therefore an opportune time for the Department to develop other online tools, such as a landlord portal for the housing element.
5We recommend the Department trial a landlord portal in an area where the digital service...
Recommended (the committee's words)
We recommend the Department trial a landlord portal in an area where the digital service is operating.
6Alternative Payment Arrangements (APAs) are an important backstop to protect claimants who will struggle to...
Recommended (the committee's words)
Alternative Payment Arrangements (APAs) are an important backstop to protect claimants who will struggle to manage a single monthly benefit payment. We recommend the DWP review its guidance, and application of that guidance, to ensure that (a) there is no requirement for a claimant to have built up rent arrears before an APA can be put in place; and (b) no APA can be cancelled without ensuring the claimant is aware of the change.
7The introduction of Personal Budgeting Support (PBS) money advice is a good step towards helping...
Concluded (the committee's words)
The introduction of Personal Budgeting Support (PBS) money advice is a good step towards helping claimants manage their monthly Universal Credit payment. We are concerned, however, that in these early days it is not being delivered as effectively as it should be and uptake is low.
8We recommend the DWP review the processes for assessing and delivering PBS to ensure claimants...
Recommended (the committee's words)
We recommend the DWP review the processes for assessing and delivering PBS to ensure claimants are receiving the support they need to manage a single monthly payment. We further recommend that DWP conduct a study of the best way to encourage claimants to use the financial products available in order to manage their budget.
9It is too early fully to assess the impact of the five to six week...
Concluded (the committee's words)
It is too early fully to assess the impact of the five to six week wait claimants have for their first Universal Credit (UC) payment. We are concerned the DWP has not properly considered households who have no savings or a final paycheque to fall back on. We will continue to monitor the effects of this built-in delay and return to it when we examine UC in more depth.
10The six “legacy benefits” scheduled to be replaced by Universal Credit will be with us...
Concluded (the committee's words)
The six “legacy benefits” scheduled to be replaced by Universal Credit will be with us for many years yet. Ensuring they are delivered in an accurate and timely fashion should not be neglected in the meantime.
11The lack of available data on ESA and WCA clearance times is unacceptable.
Concluded (the committee's words)
The lack of available data on ESA and WCA clearance times is unacceptable. The DWP cannot properly monitor Maximus’ performance, make clear policy decisions or effectively support claimants without it.
12We recommend, where applicable, the Department publish quarterly official statistics on ESA clearance times, including...
Recommended (the committee's words)
We recommend, where applicable, the Department publish quarterly official statistics on ESA clearance times, including data on time from claim to completion of WCA; time from WCA to decision; and time from decision to payment of benefit, showing not only averages but a breakdown of the ranges of clearance times. We further recommend that in addition to the current average claim processing time target, the Department set a target time within which ALL claims should be processed.
13We welcome both the Secretary of State’s intention to review the nature of the Work...
Concluded (the committee's words)
We welcome both the Secretary of State’s intention to review the nature of the Work Capability Assessment and his commitment to engage with us in this work. However, people with significant health conditions who have been found “fit for work” and who are currently struggling to meet JSA conditionality cannot wait for a more nuanced assessment to be designed and implemented. They require immediate action to prevent them falling in the gap between JSA and ESA.
14We agree with our predecessor Committee that it is inappropriate for those challenging ESA decisions...
Recommended (the committee's words)
We agree with our predecessor Committee that it is inappropriate for those challenging ESA decisions to claim JSA as some claimants are refused JSA due to being “unfit for work”. We recommend that assessment rate ESA be paid to claimants throughout reassessment of their claim, not only once an appeal is lodged.
15We commend the Department on the impressive reduction in waiting times for Personal Independence Payments.
Concluded (the committee's words)
We commend the Department on the impressive reduction in waiting times for Personal Independence Payments. However, there is much work still to be done to ensure that those claimants awaiting an appeal, or their first payment following a successful appeal, receive the correct decision and award in good time.
16We question why the “move-on” period for new refugees is only 28 days, when it...
Recommended (the committee's words)
We question why the “move-on” period for new refugees is only 28 days, when it is clear from research conducted by charities and the Government that it is in many cases insufficient. We recommend the DWP conduct an immediate investigation into the “move-on” period and work with the Home Office to amend the length of time if necessary.
17We welcome the recent guidance for refugees issued by the DWP.
Concluded (the committee's words)
We welcome the recent guidance for refugees issued by the DWP. We also recognise the advantage of local transition guides, which can be used as self-help handbooks for new refugees and their advisors. Such guides can be a low-cost means of assisting refugees with unfamiliar concepts and surroundings.
18We recommend the Department review the Belfast City Council transition guide and consider supplementing existing...
Recommended (the committee's words)
We recommend the Department review the Belfast City Council transition guide and consider supplementing existing national guidance and/or issuing similar guides to other local authorities. These can then by supplemented by local authorities with information tailored to their area.
19Trends in short-term benefit advance applications and awards are unclear.
Recommended (the committee's words)
Trends in short-term benefit advance applications and awards are unclear. We recommend the Government set out its plans for the publication of regular statistics in response to this Report.
20We recommend that the Department include information about Short-Term Benefit Advances as part of the...
Recommended (the committee's words)
We recommend that the Department include information about Short-Term Benefit Advances as part of the mandatory text in Jobcentre scripts. Jobcentre staff should ask every claimant whether they have an urgent financial need rather than wait or the claimant to volunteer that information.
21The statistics available expose flaws in the sanctioning process.
Concluded (the committee's words)
The statistics available expose flaws in the sanctioning process. DWP must address the quality of original decisions in order to maintain a downward trend in the number that are overturned at MR stage.
22We welcome the news that Mandatory Reconsideration clearance times for some benefits are coming down.
Concluded (the committee's words)
We welcome the news that Mandatory Reconsideration clearance times for some benefits are coming down. We also welcome the proposed and long overdue introduction of a Mandatory Reconsideration clearance time target. A remaining concern is the monitoring of long decisionmaking times for individuals in excess of those targets and averages. These people are not just outliers on a clearance time chart.
23We recommend the DWP publish Mandatory Reconsideration clearance time statistics by April 2016.
Recommended (the committee's words)
We recommend the DWP publish Mandatory Reconsideration clearance time statistics by April 2016. These should include the proportion of MRs which were cleared in 1 to 7; 8 to 14; 15 to 30; and more than 30 days. We further recommend the DWP introduce a seven day clearance time target for all Mandatory Reconsiderations.
24Many problems with benefit delivery can be solved by better joint working.
Concluded (the committee's words)
Many problems with benefit delivery can be solved by better joint working. The DWP, welfare advice agencies, MPs and claimants themselves all have a part to play. We encourage local liaison meetings between advice agencies and the DWP, as this can tackle issues before they escalate. Advice agencies should also agree arrangements with their local MP to refer problem cases when appropriate.
25Many parts of the welfare system work well for many people and we wish to...
Concluded (the committee's words)
Many parts of the welfare system work well for many people and we wish to record our thanks to those frontline staff whose efforts ensure a proper service to claimants. In the course of this inquiry, however, we have encountered evidence of too many errors and too many delays. While we are concerned at the lack of monitoring in many cases, these should not be seen as mere statistical and administrative concerns; errors and delays can leave vulnerable people in desperate situations.
26Universal Credit is an ambitious scheme with laudable objectives of simplifying and streamlining much of...
Concluded (the committee's words)
Universal Credit is an ambitious scheme with laudable objectives of simplifying and streamlining much of the working-age welfare system. Its dissemination, and therefore those potential benefits, has repeatedly been delayed. This is a concern. So too, at a time of administrative cuts, is the potential for valuable resources to be consumed by the programme. It is imperative that the business-as-usual delivery of benefits is not sacrificed in pursuit of reform.
Evidence
Oral evidence sessions 2
- 4 Nov 2015No witnesses recordedparliament.uk ↗
- 21 Oct 2015No witnesses recordedparliament.uk ↗