Universal Credit policy raises concerns

04 October 2017

Frank Field, Chair of the Work and Pensions Committee, has written to David Gauke, Secretary of State for Work and Pensions, questioning a policy announcement made at the Conservative Party conference.

Advance payments

In his announcement, Mr Gauke confirmed that the accelerated rollout of Universal Credit would proceed as planned. The Secretary of State added that claimants would receive advance payment loans up-front. Advances would be given within 5 working days, or on the same day in cases of immediate need.

The Committee has asked for copies of the revised guidance, the timetable for its introduction and for a definition of "immediate need". This follows other requests for information ahead of Mr Gauke's appearance before the Committee on 18 October.

'Flawed Universal Credit'

Commenting on Mr Gauke's announcement and the letter, Rt Hon Frank Field MP, Chair of the Work and Pensions Committee, said:

"That the Government is pressing ahead with the accelerated rollout of a flawed Universal Credit brings depressing news for poorer families who will be affected, particularly in the run-up to Christmas.

We have written to the Secretary of State today to press him on the details of the new guidance on advance payments announced in his conference speech. What had rather the air of hasty afterthought seems to be being held out as a structural reform that will save the Universal Credit rollout, which it is not.

The Government’s move is against the consensus for a pause that has emerged across parties and nations, fuelled by the unanimous and damning evidence we have collected from councils, housing associations, landlords and claimants across the UK. Offering advance payments up front is, of course, a welcome and overdue development. But short term discretionary loans can only be a sticking plaster on a policy that has many fundamental flaws, flaws that go far beyond the statutory full 6 week delay in receiving the first payment.

The hundreds of thousands of families who will suffer as the Government presses ahead against the weight of evidence and consensus deserve more than a sticking plaster. It is not too late to pause it now and stop these problems snowballing to a near inevitable Christmas crisis and beyond. Far better to return to the rollout once the adjustments Government is already planning in recognition of these problems are in place, and shown to be working.

Evidence based policy making should also be evidence based policy implementation."

Further information

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