Select committee: Economic Affairs Committee
Conclusion 2
2nd Report - Universal Credit isn't working: proposals for reform
Published 31 Jul 2020
Paragraph 11
Economic Affairs Committee The economics of Universal Credit All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
We are sensitive to the impact of change on a large group of very diverse people. We therefore formulated the conclusions and recommendations in this report against a set of principles. We believe that these should be used to protect claimants, guide the reforms proposed in this report and shape the design of Universal Credit in future. They are derived from the evidence received in this inquiry. Universal Credit must: be grounded on dignity and respect—people from all backgrounds must feel comfortable and supported when interacting with public services. provide claimants with adequate income—and the system must be a safety net for avoiding extreme poverty and hardship. provide security and stability—income must be predictable; reflect the lived experience of claimants—they must be at the heart of its design and involved in devising solutions to problems; be flexible—it must accommodate a diverse range of personal circumstances and provide strong support to the most vulnerable; be fair to all claimants—policy design must be sensitive to its effects on people of different genders, disabilities, ages, black and minority ethnic groups, and those with other protected characteristics; use public money to meet objectives that are achievable—effective policy must be based on strong evidence to ensure that it is not counterproductive; and be understandable—but where necessary, free and intelligible advice must be available to all
From: Economic Affairs Committee, 2nd Report - Universal Credit isn't working: proposals for reform, paragraph 11, 31 July 2020
Government response
The government responded to the whole report on 13 October 2020 (deadline 30 September 2020).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government 'notes' the Committee's recommendations and says it is 'surprised by several of the Committee's observations', and in the areas covered below it does not take forward the main design changes proposed.
- On payment design, the Department says it "will not be taking this recommendation forward" on a three-month fixed award, and "will not be introducing this choice by default" of monthly or twice-monthly payment. It cites accuracy risks and preparation for monthly paid work.
- The Department states that "in 2021 we will be increasing the time over which an advance can be repaid to from 12 to 24 months". It "rejects" the proposed non-repayable two-week initial grant, citing fraud risk.
- The Department "does not accept" the recommendations on the two-child limit and on reducing the taper rate. It says it "keeps the taper rate under review".
- It "intend[s] to keep childcare support integrated as part of UC" and "does not publish estimates of UC take-up rates". On the benefit cap, it "acknowledges" the recommendation and says the statutory review "will happen at an appropriate time".