Universal Credit

Lord Framlingham Excerpts

Monday 5th November 2018 Lords Chamber

[Baroness Buscombe]

My Lords, let me make it clear that we are now in a very different place from when that PAC report was drafted. We are injecting an additional £4.5 billion into the system to support the migration on to universal credit. We are in a place where we are already spending £100 billion on benefits for people of working age; we have to think about sustainability and affordability.

When it comes to testing the system, we will adjust and amend our processes according to how claimants respond, which we will identify through ongoing user research with claimants, where we look to establish why claimants did not interact with the service and what they found difficult. We will use that to improve the processes. At the end of the day, though, we cannot leave the process entirely open-ended, where people for whatever reason do not choose to migrate. The important thing is that that is why we are having the whole preparation and learning process—to understand why there could be anyone who fails to go through the process or there is more than one month after the closure of when they should have applied to go on to universal credit.

We will be spending time and a lot of input into advertising campaigns; communications by text, phone and letter; and home visits. Those people will not be falling through the cracks without an extraordinary amount of effort on the part of our 83,000 employees at the DWP, who are not a department in any denial whatsoever. They want this to work. They are excited about it and work hard for it; they will help us to succeed, to the best of our ability.

[Lord Framlingham (Con)]

My Lords, can the Minister confirm that, due to the investment in work allowances, an extra 2.4 million families will keep an extra £630 per year of what they earn, by removing the taper rate from an extra £1,000 of earnings?

[Baroness Buscombe]

My noble friend is absolutely right. The measures in relation to work allowance will make an enormous difference to families. The measure directs additional support in a package worth £1.7 billion across Britain, to some of the most vulnerable, low-paid working families. If a single claimant has responsibility for a child or qualifying young person, or has limited capability, they currently receive a work allowance of £198 per month and those with housing costs £409. With universal credit, raising the current work allowances will mean direct additional funding to working families with children, and working disabled people, by allowing them to keep more of their earnings before the taper rate is applied.