Source · Select Committees · Work and Pensions Committee
Recommendation 21
21
Paragraph: 109
For this group of claimants, the burden of future repayments of Advances is likely to...
Conclusion
For this group of claimants, the burden of future repayments of Advances is likely to be particularly difficult to bear. Given that benefits broadly provide people with a subsistence level of income, any system that reduces that monthly income, including through repaying an advance, is very likely to cause people difficulty. The Department already plans to extend the repayment period for Advances from 12 to 24 months, and to reduce the cap on deductions from an award of Universal Credit to 25% of the Universal Credit Standard Allowance. But even a 25% cap leaves claimants receiving substantially less than a subsistence level of income. And these changes will not happen until October 2021—some three years after they were first announced. The Minister says that he would love to be able to do this sooner, but cannot because of constraints in the Universal Credit build programme: : a clear case of “computer says no”.
Paragraph Reference:
109
Government Response
Acknowledged
HM Government
Acknowledged
DWP except in clear cases of deliberate fraud. Similarly, where a claimant is expected to complete a Work Capability Assessment to assess how much money they are entitled to, the onus should be on the Department to schedule the assessment and make a decision within the usual initial waiting period for the benefit. If there are delays to the WCA process, through no fault of the claimant, claimants should be paid at the highest rate until their claim has been determined. Payment timeliness in UC in ‘normal’ times is already well above the levels in legacy benefits. Where there are opportunities to improve timeliness further, without damaging efforts on verification, we will take them, but ultimately we must continue to take a holistic approach which ensures we balance objectives appropriately. For example, there is a need to balance pursuing higher rates of payment timeliness with other Departmental objectives such as supporting people back into work, and reducing fraud and error. There will continue to be reasons why payment timeliness will never be 100%, including the provision of necessary information by claimants required to complete and substantiate a claim. The policy is that the WCA process should be completed in a timescale such that any ensuing award of an additional amount of benefit can be applied when it is due. That is once the relevant period ends and from the start of the subsequent assessment period. The relevant period is three months from the start of the health related claim. The only additional amount of benefit that may be awarded in health-related claims is the amount for claimants who have been determined, following the outcome of a WCA, to have limited capability for work and work related activity. However, it is not the case that a WCA outcome will necessarily result in a determination of having Limited Capability for Work and Work Related Activity (LCWRA). Delays in making a decision are often a consequence of the claimant’s non-cooperation within the process. Surges in demand for WCAs – the incidence of health and disability conditions, and their geographical location - are by no means uniform and may present The Centre for Health and Disability Assessments with short-term capacity issues in particular assessment centres. However, should there be a delay for any reason, any award of the additional amount for having LCWRA is backdated to the date from which it should have been paid. It must also be borne in mind that the claimant is not without money whilst waiting for a decision following their WCA; like all UC claimants, the standard allowance, plus, where appropriate, additional amounts for, for example, children and housing costs, are paid from the beginning of a claim.