THE UK Government has been criticised for its “dismissive attitude” towards the problems with Universal Credit after rejecting more than a dozen recommendations on improvements to the system.
Westminster’s Work and Pensions Committee completed a report two years ago on the issues with the system, and the problems it was causing for vulnerable and impoverished people all over the country.
It set out the problems faced by people moving from existing benefits to Universal Credit (UC) because of a change in their circumstances, concluding that this led to many people struggling financially.
It also highlighted that repayable advances—designed to address the problems caused by the initial wait for a first payment—left people facing the "impossible choice between hardship now or hardship later"
Despite publishing the report in 2019, the government has only this week responded to it, rejecting the committee's 16 recommendations entirely.
Among the suggestions made to improve the system include giving a back-payment to families of disabled children to make up for money they will lose on out when they move to Universal Credit (UC) from other so-called legacy benefits.
The Government said it did not accept this recommendation but recognised the issues raised, adding ministers were “committed to supporting those with disabilities through UC and has focused support for those with the greatest need.”
MPs also urged the government to address the problems with the five-week wait for the first payment of UC, and suggested ministers compensate people who were moved to the UC system too early and suffered as a result.
In response, the government said it “does not accept this recommendation” adding: “The existing maladministration process is sufficient.
“Where a claimant suffers a loss of statutory benefit entitlement solely due to the Department’s maladministration or service failure, and it is not possible to restore the lost benefit entitlement, the Department can already make special payments of the equivalent amount to restore the claimant to the position they would have been in without our maladministration.
“Providing special payments in circumstances where the Department is not at fault would not be a responsible use of taxpayer funds.”
Labour MP Stephen Timms, who chairs the Work and Pensions Committee, savaged the government’s response to their report.
He said: “It has taken the Government nearly two years to produce this wholly unconstructive response to the previous Committee’s report.
“That approach is symptomatic of the Government’s dismissive attitude to well-evidenced concerns about the impact that flaws in Universal Credit are having on people every day.
“There is now nearly two years’ extra weight of evidence that the delay in providing a first payment is causing real hardship.”
He added: “The Government persists in parroting the line that nobody has to wait for a UC payment—refusing to acknowledge that its system of Advance loans continues to present vulnerable people with the toughest of choices: going without income in the short term or facing a future of debt.
“Charities, support groups and politicians from all parties have all made the case for change. We’ll continue to press the Government to do what is needed to develop a benefits system that properly supports everyone who needs it.”
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