Asked by: Andrew Gwynne (Independent - Gorton and Denton)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 28 October 2021 to Question 62643 on Universal Credit, whether his Department has made an assessment of the potential merits of reforming the universal credit assessment period and payment structure; and what assessment she has made of the implications for her policies of the Court of Appeal Judgement of 22 November 2020 [2020] EWCA Civ 778.
Answered by David Rutley
The Department has no plans to change either Universal Credit assessment periods or payment structures. They are fundamental parts of the design, reflecting payment patterns in the world of work, where the majority of people are paid monthly. Ensuring similarities between paid employment and receiving benefits eliminates an important barrier which could prevent claimants from adjusting to paid employment.
The Court of Appeal judgment in the case of Johnson and others, handed down on 22 June 2020, ruled that the way the Department calculated Universal Credit awards involving earnings in an assessment period was a correct application of the regulations, but that the Department’s position of not considering the impact on the small number of specific cases of those paid calendar monthly who are affected by ‘a non-banking day salary shift’ should change.
The Court of Appeal Judgment was narrowly focussed on calendar monthly paid claimants who are affected by a ‘non-banking day salary shift’ resulting in two payments being counted in one assessment period, none in another and the loss of a work allowance. The legislation changes we made to remedy these cases came into force on 16th November 2020 and allow us to move one of these monthly payments to the assessment period where there is none. Moving an additional four-weekly payment from the assessment period with two payments would not have the same effect, but would simply mean there would be two payments in a different assessment period.
Asked by: Andrew Gwynne (Independent - Gorton and Denton)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential merits of (a) increasing financial support for people in receipt of the State Pension and (b) bringing Government expenditure on the State Pension in line with that in other countries, such as France and Germany.
Answered by Guy Opperman
The State Pension is the foundation of support for older people. Under this Government, the full yearly amount of the basic State Pension is now over £2,050 higher than in 2010.
The Secretary of State is required by law to conduct a review of applicable benefit and pension rates each year. The review is on-going and decisions will be announced shortly.
International comparisons are misleading due to differences in the pension systems as there are many factors to take into account.
Asked by: Andrew Gwynne (Independent - Gorton and Denton)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, pursuant to the Prime Minister's answer to the Oral Question asked by the hon. Member for Linlithgow and East Falkirk on 3 November, Official Report, col 912, what options the Government is assessing to ensure that 1950s-born women receive fair pensions.
Answered by Guy Opperman
Under this Government, the full yearly amount of the basic State Pension is now over £2,050 higher than in 2010. For future pensioners, auto-enrolment into workplace pensions has transformed pension saving for millions of workers and our 50 plus: choices agenda aims to maximise the labour market opportunities for people to earn and save for longer.
Auto-Enrolment has been especially transformative for women, low earners and young people, who have historically been poorly served by or excluded from workplace pensions. Between 2012 and 2020 participation for private sector eligible women increased from 40% to 86% (equal to men) and double what it was in 2012.
The Reforms to the State Pension in 2016 put measures in place to improve State Pension outcomes for most women. Over three million women stand to receive an average of £550 more per year by 2030 as a result.
Pension Credit also provides invaluable financial support for the most vulnerable pensioners. We are undertaking a range of actions to raise awareness and increase take up.
Asked by: Andrew Gwynne (Independent - Gorton and Denton)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps her Department is taking to ensure that universal credit claimants who are paid every four weeks and who may on occasion receive a double payment in one assessment period are not penalised.
Answered by David Rutley
Universal Credit is a means-tested benefit and the amount of Universal Credit paid each monthly assessment period will reflect, as closely as possible, the actual circumstances of a household in that assessment period, including any earnings reported by the employer. As Universal Credit is paid monthly, those who are also paid their earnings on a monthly basis will normally get one payment in each assessment period. For those who are paid differently such as four weekly the frequency of their pay will impact on the amount of Universal Credit they will receive.
Those who are paid four-weekly will normally get one payment in each assessment period and their Universal Credit will reflect the four weekly amount they are paid. For one assessment period a year they will receive two four-weekly payments. This is because there are 12 assessment periods a year and those who are paid four-weekly will receive 13 payments a year. As their income rises in that assessment period, Universal Credit is reduced and this is in line with the long standing general principle of means-tested benefits. However, whilst the Universal Credit amount will reduce in the assessment period where the household has received two payments of four-weekly earnings, they will still have the benefit of the higher income from their earnings.
The Universal Credit assessment period and payment structure are fundamental parts of its design. Universal Credit reflects payment patterns in the world of work. Ensuring similarities between paid employment and claiming benefits eliminates an important barrier which could prevent claimants from adjusting to paid employment.
Asked by: Andrew Gwynne (Independent - Gorton and Denton)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 8 September 2021 to Question 41749 on State Retirement Pensions: Administrative Delays, what the average waiting time is for initial payments as at 9 September 2021.
Answered by Guy Opperman
This information is only available at disproportionate cost to The Department for Work & Pensions.
Asked by: Andrew Gwynne (Independent - Gorton and Denton)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 8 September 2021 to Question 41749 on State Retirement Pensions: Administrative Delays, when she first became aware of the backlog; and what steps her Department took to notify those people facing payment delays.
Answered by Guy Opperman
The number of State Pension claims awaiting processing increased as a result of Pandemic and its consequences.
We are prioritising any State Pension claims that are currently overdue and claims where the customer is close to their date of entitlement.
We send an SMS text message to customers to let them know that their claim has been received and is being processed, with written confirmation of their award by post.
Asked by: Andrew Gwynne (Independent - Gorton and Denton)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if she will reform the three-year award duration for claims made under the Special Rules for Terminal Illness and bring it in line with longer ongoing awards available under the normal rules.
Answered by Justin Tomlinson
For the majority of cases made under the SRTI, people are given three year awards. This approach is based on a recommendation from an expert advisory group, initially for DLA, but later adopted in other benefits. The three year awards given to SRTI claims strikes a balance that recognises making a prognosis is not an exact science and that people who do live longer than expected should continue to receive the support provided to them by benefit system, while also enabling those who live for much longer than expected, to be looked at afresh in light of their circumstances as they come towards the end of their award. The majority of claims made under the special rules sadly do not reach three years but for those that do, we want to ensure that people are receiving the right level of support.
As part of the health and Disability Green Paper consultation, we are consulting on reform of assessments and seeking views on policy proposals. Following the consultation, detailed proposals will then be brought forward in a White Paper next year, setting out how we can better enable people to take up work and live more independently, and outline the changes we want to make to the benefits system to better address structural and delivery challenges.