Source · Select Committees · Work and Pensions Committee
Recommendation 28
28
DWP was right to increase the standard allowance for Universal Credit and support for housing...
Conclusion
DWP was right to increase the standard allowance for Universal Credit and support for housing costs as part of its response to the pandemic. Benefit rates, and in particular support for housing costs, had become detached from the actual cost of living—in particular from the cost of private rents—and people were struggling to find a home for their family and to meet the costs of basic essentials. The Department should commit to maintaining the increases in support that have been provided during the pandemic. This should include keeping Local Housing Allowance 82 Universal Credit: the wait for a first payment at the 30th percentile and conducting an annual review of rates to ensure they remain appropriate for each area. It should maintain the £20 a week increase in standard allowance for Universal Credit and Working Tax Credit, with annual inflation-based increases thereafter. (Paragraph 122) Support for claimants
Government Response
Rejected
HM Government
Rejected
We are committed to providing tailored support to all claimants, including through split payments where appropriate. However, we believe that most couples can and want to manage their finances jointly which is why UC is a household benefit. Claims are paid to women in the majority of cases and we will continue to explore how we can ensure money is paid to the main carer. We recognise that there may be circumstances in which split payments are appropriate and where that is the case, we will continue to put them in place. No information relating to why a split payment has been requested or granted will be notified to the claimant’s partner. However, the Department does not agree that this requires a broader review.