Universal Credit inquiry
Closed
What the inquiry looked at
“The Government’s flagship Universal Credit programme began in 2010 and was originally scheduled to be completed in October 2017, replacing six pre-existing means-tested benefits. Following problems, the Department for Work and Pensions reset the programme in 2013 with a revised completion date in 2022; this subsequently slipped to March 2023. A new National Audit Office report into the progress of the programme found that the Government could not yet prove the programme would deliver value for money. Nor was the NAO convinced that the Government would ever be able to prove this. Delivery against some key objectives, such as reducing fraud and error and cutting administrative costs, was unclear. Whilst finding that some elements of the Universal Credit programme were working well – for example, relationships between claimants and Job Centre work coaches – some claimants have struggled to adjust to Universal Credit with one in five not receiving payments on time. In some areas where Universal Credit has been rolled out, foodbank use has increased, whilst local authorities and landlords have seen increases in rent arrears owed to them by claimants. The Committee has examined the Universal Credit programme twice since 2015. The Committee will take evidence from the Department for Work and Pensions about the programme’s value for money and the experience of claimants under the new scheme.”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
The introduction of Universal Credit is causing unacceptable hardship and difficulties for many of the claimants it was designed to help. However, while the Department is responsive to feedback on its digital systems from staff, it has persistently dismissed evidence that Universal Credit is causing hardship for claimants and additional burdens for local organisations, and refuses to measure what it does not want to see.
In 2013 this Committee raised concerns about the Department’s culture of reporting good news and denying problems that emerge. In further reports in 2015 and 2016 the Committee warned about the Department’s continued lack of transparency. It is hugely regrettable that the Department has not heeded these warnings. Instead of listening to organisations on the frontline supporting claimants, the Department has continued with its fortress mentality and as a result is failing claimants who struggle to adapt to the way Universal Credit works.
The recent announcement by the Secretary of State of a further delay and a “slow and measured” approach to the rollout is not a solution on its own and the Secretary of State has admitted that some claimants will be worse off under Universal Credit. If the current problems are not addressed and the funding needed is not forthcoming the hardship is likely to continue. It needs to work with third party organisations to help shape the new programme in light of the real life experiences of recipients.
What the government said
No government response is linked to this report.
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 14 June 2018 to 2 July 2019.
- Oral evidence 9 Jul 2018
- Report 26 Oct 2018
- Correspondence 2 letters
What it recommended 0 recommendations · 34 conclusions
1The Department’s systemic culture of denial and defensiveness in the face of any adverse evidence...
2Universal Credit causes financial hardship for claimants including increased debt and rent arrears, and forces...
3The Department is failing vulnerable claimants because it places too much reliance on the discretion...
4The package of support to help claimants adjust to Universal Credit is not fit for...
5Universal Credit is pushing costs onto the local organisations that support claimants - including local...
6The Department is unable to measure its objective of getting 200,000 more people into work.
7We are seriously concerned about the Department’s ability to transfer around 4 million people from...
8Since our evidence session, the Secretary of State for Work & Pensions has announced that...
9Following the Comptroller and Auditor General’s report, which raised concerns over the implementation of Universal...
10When the system runs smoothly, claimants now face a mandatory wait of five weeks for...
11Around 60% of claimants receive an advance from the Department to tide them over while...
12We heard from Newcastle City Council that claimants going onto Universal Credit face increased rent...
13The Trussell Trust has seen a 52% increase in foodbank use in areas where Universal...
14The Department repeatedly refused to accept that Universal Credit causes hardship for some claimants, and...
15The Department relies on Jobcentre work coaches to tailor Universal Credit to meet a claimant’s...
16The Department’s own research has highlighted that its staff reported: lacking time and ability to...
17The Department has no means to monitor the experience and treatment of vulnerable claimants, such...
18The Department recognised that some claimants would need help to adjust to Universal Credit and...
19Current Universal Support provision is inadequate and inconsistent across the country.42 Charities reported that Universal...
20The Department’s funding of Universal Support is also an issue.
21We also heard concern that the assistance available from Universal Support was ‘very brief’.47 The...
22Charities have raised concerns that Universal Support does not go far enough.50 For example, personal...
23Local authorities report that they face additional administrative burdens as a result of the introduction...
24Leicester City Council raised two specific issues in relation to moving claimants from housing benefit...
25Newcastle and Leicester City Councils told us they had each set aside over £4 million...
26Other organisations that support claimants, such as Citizens Advice and foodbanks, have seen a substantial...
27In response to questions about the additional cost burdens on local authorities of Universal Credit...
28The Department confirmed it would consider paying local authorities for any additional costs of implementing...
29The Department expects that Universal Credit will lead to £8 billion of benefits a year...
30The Department’s estimate of how many people will enter work because of Universal Credit has...
31The Department’s inability to prove the number of jobs in the economy as a result...
32The number of claimants on Universal Credit is set to increase from around 1 million...
33The Department expects that four million people currently claiming legacy benefits, will not experience a...
34The Department’s official start date for managed migration is July 2019, although during the evidence...
Evidence
Oral evidence sessions 1
- 9 Jul 2018No witnesses recordedparliament.uk ↗
Correspondence 2 letters
- 2 Jul 2019Letter from Neil Couling to Chair in response to the follow-up letter dated 18.06.19 in relation to the Committee's report on Universal Credit - dated 27 June 2019To committee
- 19 Jun 2019Letter from Chair to Peter Schofield in relation to treasury minute response on Universal Credit - dated 18 June 2019To committee