THE ROLLOUT of Universal Credit has been delayed again to 2024.
Over seven years after it was originally supposed to be implemented in full and over a decade after it was first piloted, the scheme has lurched from crisis to crisis in its troubled history.
Universal Credit merges six existing benefits, including housing benefit and child tax credits, into one monthly sum.
The government’s stated aim is to simplify the welfare system, both to help claimants, cut fraud, and encourage work. However, its ultimate effect has been to slash welfare payments to the most vulnerable and plunge claimants into debt as they wait for their first payment of the new benefit.
The fresh delay, to September 2024, was uncovered in an upcoming BBC documentary about the government’s contentious welfare reform. It will add an estimated £500m to the Universal Credit programme, which is already billions over budget.
The delay has arisen because fewer people than expected had signed up to the new system, according to a new BBC documentary, Universal Credit: Inside the Welfare State.
In an excerpt released by the BBC, Neil Couling, the DWP’s director-general for Universal Credit said, in August last year: “We’ve had a lot of anecdotal evidence of people being scared to come to Universal Credit.
“It’s a potentially serious issue for us, in terms of completing the project by December 2023, but I’m urging people not to panic,” he said.
Mr Coulting continues in a subsequent meeting to say: “Three, six or nine months, it doesn’t matter – the headline will be: ‘Delay, disaster’.
“I would say, ‘Go safe, put the claimants first, and I’ll take the beating.'”
This week, the DWP admitted the delay was necessary because the number of people who had moved on to UC was lower than official estimates.
The BBC documentary shows the DWP acknowledging that the reason for the lower-than-expected uptake was the fear that new Universal Credit claimants would lose out.
Gross and ongoing delays in making benefit awards on the new system have plunged people into debt recouped from their benefits due to the waiting period for its first payment imposed by the UK Government.
Universal credit was phased in during 2013.
The benefit was first due for full rollout by April 2017. However, transferring claimants to the new system has been plagued by a series of technical delays. Those delays include a fiasco over IT infrastructure and the failure of the system to account for varying incomes for the self-employed and those employed on casual or zero-hour contracts.
Last week, the UK Government lost a major case on the benefit’s rollout.
In a decision handed down in the Court of Appeal by the Master of the Rolls, Lord Justice Singh, the court ruled transitional provisions relating to the treatment of disabled persons were discriminatory. It found that a severely disabled person who moved from an area where UC had not been rolled out to an area in which it had would be treated less favourably than a person who did not move. In a second case, the court quashed provisions meaning those who migrated ‘naturally’ from Severe Disability Premium to Universal Credit less favourably than those who made the transition under the managed migration scheme.
Last year, former DWP Secretary Amber Rudd said that payment delays of Universal Credit were ‘the main issue’ leading to dependence on foodbanks.
The delay’s announcement follows the publication of a report by the Resolution Foundation
The report notes that the final – and most challenging – phase of the roll-out, involving the transfer of existing benefit and tax credit claimants onto UC, is due to start later this year.
The Foundation states that a marginal average increase of a whacking £1 a week for some claimants ‘masks sizeable groups of families that lose out by large sums, and significant geographical variation across the UK. Thanks to factors such as local rent and earnings levels, and the characteristics of local populations, some parts of the country will be left significantly worse off as the switch to UC goes ahead’.
In areas with a relatively high proportion of single parents, out-of-work single people and disabled people, all of whom fare badly under UC, claimants lose out. Also, while Universal Credit favours working families with high rents, it hits those in areas with below-average rent levels.
The Foundation adds that policymakers in Whitehall, and across the UK, need to consider the impact of Universal Credit at a local level. At exactly the time that policy debates are rightly focusing on what can be done to close economic gaps between parts of the UK, this major welfare reform will be rolled out with very different impacts on those places.
Laura Gardiner, Research Director at the Resolution Foundation, said: “Welcome recent reforms mean that Universal Credit is now set to be marginally more generous than the benefits it is replacing. But this average hides a complex mix of winners and losers, with families in some areas of the UK faring particularly badly.
“As well as making reforms at a national level – such as helping families to overcome the first payment hurdle and offering more flexibility for those with childcare – policymakers across the country need to better understand the effect Universal Credit will have in different places. That understanding should be central to policy debates that are rightly focusing on what can be done to close economic gaps between parts of the UK.”
Welfare minister Will Quince said: “Universal Credit is the biggest change to the welfare system in a generation, bringing together six overlapping benefits into one monthly payment and offering support to some of the most vulnerable people in society.
“It is right that we revisit our forecasts and plan, and re-plan accordingly – ensuring that the process is working well for people on benefits.
“Claimants will not lose money due to this forecasting change.”
Town Council re-directs funds to food bank
Ammanford Town Council has taken a decision to donate £1500 to their local food bank. The decision was taken to re-allocate funding from their events budget in light of the current Covid-19 crisis. This re-allocation will support the local food bank in maintaining their operations as they provide support to some of the most highly affected members of the community during these unprecedented times. Starting with a donation of £500, the council has made further subsequent donations, now totalling £1500.
Town Council Mayor, Julia Bell said:
I’m extremely proud of our decision as a town council, and of our fantastic volunteers. This is one of several projects the town council is running to support the community. We thank everyone for doing their absolute best in some very difficult circumstances.
Mr Jonathan Edwards, MP for Carmarthen East and Dinefwr said:
“This decision by the Ammanford Town Council is highly commendable. The Covid-19 crisis is multiplying the financial pressures that face the more vulnerable in society, and the foodbank will play an essential role in the coming weeks and months”
For further information contact Jonathan Edwards MP on email@example.com 07534984376
Opinion: The Big Question Facing Kier Starmer – Jonathan Edwards
In the midst of the Coronavirus crisis the election victory of Sir Kier Starmer as Labour Leader didn’t achieve the column inches one would normally expect. As is customary, I would like to wish Kier well in his role. I can not claim to know him as a person having only conversed on a few occasions, however I have respect for his debating ability, his considered tone and his eye for detail. I consider him a serious politician.
The challenges he faces are enormous of course. Labour have now lost four Westminster elections on the bounce. His decision making must quickly shift from efforts to unify his party to the far more important task of presenting a credible challenge to the Conservative party at the next Westminster election.
Labour has a defining choice to make, and this decision will have far reaching consequences for all political parties operating in the British State. On the one hand, Labour could revert to its usual tribal inward-looking tendencies. However, essentially this would mean writing off the next election as a part of a wider rebuilding strategy aimed at the 2029 election. A stark admission as it would mean Labour having been out of power at Westminster level for twenty years at best.
Alternatively, Kier Starmer could acknowledge that Labour on their own will not be able to challenge the Tories for power at the next Westminster election. This path would then require Starmer reaching out to all the other opposition parties in Westminster apart from the DUP. I am talking about more than just coordination of parliamentary activity in Westminster. In a first past the post electoral system we are talking about the need for non-aggression pacts, and a joint programme of government. I would go as far as to suggest that the government itself would need to be a unity administration delivering on the agreed programme.
Parliamentary boundary changes makes the task even more pressing. Whatever one thinks of his opportunistic politics, Boris Johnson has succeeded in unifying the right of the political spectrum. However, the centre and left have a host of parties vying for support. In a political system based for two horse races, the end result is brutal as we saw in December.
What sort of programme could Plaid Cymru, SNP, Green, Liberals, SDLP, Alliance and Labour unite around? There would be little difficulty in agreeing a progressive economic and social policy platform. A proportional voting system would be a must to enable all parties to compete equally in subsequent elections. The big challenge for me seems to be the constitutional question when it comes to Scotland and Wales. For Plaid Cymru and the SNP there would need to be a commitment for a fully Confederal system leaving only foreign affairs, defence, and macro-economic policy reserved – the sort of settlement promised by Cameron and Brown on the eve of the Scottish independence poll. This should be supported with House of Lords reform into an elected Senate of the Nations of the British State. Both Wales and Scotland would also require the statutory right to hold independence referenda at time of their own choosing. This should be uncontroversial as it is the policy of the Labour Welsh Government.
This is the very simple choice facing the new leader of the Labour party. Does he want to be Prime Minister, or effectively a plumber performing a re-patching job on a tired and insular party.
Council to consider new regional relationship for school improvement
CARMARTHENSHIRE County Council’s Executive Board will meet next week to discuss the authority’s future as part of the regional school improvement consortium ERW (Educational Regional Workforce).
The council, along with authorities in Ceredigion, Neath Port Talbot, Pembrokeshire, Powys and Swansea, has been a part of the consortium since it was established in 2014.
However, the Executive Board could decide to withdraw from the consortium to support a new arrangement for school improvement services based on the footprint of the Swansea Bay Region.
Neath Port Talbot Council has already served notice to withdraw.
Cllr Emlyn Dole, Leader of Carmarthenshire County Council, has recognised the many positive achievements of the consortium in recent years, but said it was right to discuss what was best for Carmarthenshire going forward.
“ERW has achieved many positive things, however it is fair to say that it has also navigated through some difficult times with changes in political and managerial leadership,” he said. “The large geographical area of the ERW footprint has added to these challenges.
“We truly value working with our neighbours, but it is timely to review the regional arrangements and potentially look to realign with other partnerships across the Swansea Bay City Region which could have bigger benefits for Carmarthenshire’s children and young people.”
The Executive Board will meet on March 16 (2020) to review the authority’s position, but has promised to work with partners to ensure a seamless and robust transition should members decide to withdraw.
Cllr Glynog Davies, the council’s Executive Board Member for education and children’s services, added: “We are committed to working in partnership and across local authority boundaries where this delivers benefits for our communities.
“It’s right to acknowledge the significant progress of ERW over the last 12 months, in terms of staffing and organisation, but we must be confident that we are providing the very best support for our schools and it’s timely to look at how this can best be achieved.”
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