Universal Credit

Baroness Sherlock Excerpts

Tuesday 8th January 2019 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

My Lords, with the leave of the House, I will repeat as a Statement an Answer given to an Urgent Question in another place by my right honourable friend the Minister for Employment. The Statement is as follows:

“Mr Speaker, universal credit is a vital reform that overhauls a legacy system that trapped people out of work. With six different benefits administered by three different government departments, it was utterly confusing for claimants. All new claimants now receive universal credit. In the future, we will move claimants who have not changed circumstances from legacy benefits to universal credit in an approach known as managed migration.

It is right that the Government should seek to align provision for all, in order to eventually operate one welfare system. The department has long planned to initially support 10,000 people through this process, in a test phase, before increasing the number of those migrated. This first phase will give us an opportunity to learn how to provide the best support, while keeping Parliament fully informed of our approach.

Universal credit is proceeding as planned, with no change to the timetable of completing managed migration by December 2023”.

My Lords, that concludes the Statement.

[Baroness Sherlock (Lab)]

My Lords, I thank the Minister for repeating that Answer. I woke on Sunday to news suggesting that universal credit rollout was being delayed. Joy, I confess, was unconfined in Sherlock Towers and doubtless all around the land. But it was not so. It seems that the Government are pressing ahead with the 1.4 million people currently getting universal credit, and another 1.5 million people will join them in the next year. So any delay seems to relate only to the regulations on managed migration, which Ministers had told us were incredibly urgent. These are very controversial because, rather than transferring people across to universal credit, in practice the DWP will simply end legacy benefit claims and invite people to apply for the new benefit. The DWP was to pilot it this summer and roll it out to some 3 million people from next year.

Our Secondary Legislation Scrutiny Committee urged Ministers to take only the powers and regulations to run the pilots and then come back to the House before going for the full rollout—so I hope that maybe that is what the Government are doing. But Ministers down the other end could not confirm this at all.

I do not want a general bit of debate or flannel: I just want to know what is being delayed and until when. So will the Minister tell the House whether the Government are delaying consideration of the managed migration regulations until after the pilots have been evaluated? If so, how will they get the powers to run the pilots and introduce the concession they have made on the severe disability premium? If they are not doing that, what on earth is going on?

[Baroness Buscombe]

I will respond by saying first that perhaps we should ask the press what on earth is going on. The news that there is a delay is wrong. The Government previously committed to hold a debate on the affirmative regulations in relation to managed migration, and that will happen in due course on the Floor of the House. We will debate them as and when parliamentary time allows, but we will also make sure that we meet our commitment to severe disability premium recipients. To ensure a start date from July 2019 for those 10,000 people, we have long said that we will work with a test-and-learn process.

The noble Baroness talked about a pilot. We have always called it a test. It is perhaps just different terminology. In my response to a debate put to the House by the noble Lord, Lord Bassam of Brighton, on 1 November, I made it very clear that we were always going to have the test-and-learn phase starting at the end of July 2019, whereby we would manage-migrate only 10,000 people through the following 12 months. A debate will be held on the regulations to allow for the managed migration.