The Minister for Employment (Damian Hinds)
I congratulate the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) on securing a debate on this important matter. These are, of course, extremely difficult situations, and we in turn must always be careful to treat them with the highest level of sensitivity.
I will begin by setting out the recently announced changes to universal credit, which of course apply to all recipients, before addressing the hon. Gentleman’s specific points. We continue to roll out universal credit gradually, constantly improving the way the system works as we do so. I am sure that hon. and right hon. Members on both sides of the House welcome the changes to universal credit that my right hon. Friend the Secretary of State for Work and Pensions announced in his statement to the House last Thursday.
New guidance will be issued to staff next month to ensure that claimants in the private rented sector who have their housing benefit paid directly to landlords are offered that option when they join universal credit. We will make two changes to advances from January. First, the maximum period over which an advance is recovered will increase from six months to 12 months, making it easier for claimants to manage their finances. That will apply regardless of the level of advance claimed. Secondly, we are increasing the amount of support that a claimant can receive through an advance from up to 50% of their estimated entitlement to up to 100%. Of course, the advance is interest-free.
If someone is in immediate need, we can fast-track the payment so that they receive it on the same day. In practice, new claimants in December can already receive an advance of up to 50% of their estimated overall entitlement, and may receive a second advance in the new year to take it up to 100%. Taken with the first scheduled payment, that means that claimants in need could receive nearly double the amount of cash that they would previously have received over that period.
In addition, from spring next year, we will make it possible to apply for an advance online, further increasing accessibility for those who need it. From February we will remove the seven-day waiting period, reducing the time claimants might wait to receive their first full payment. From April, for new claimants already receiving support towards their housing costs, we will provide an additional payment of two weeks’ housing benefit to support them as they transition to universal credit, which will help to address the issue of rent arrears for those most in need.
It is important that I explain that the personal independence payment is a separate benefit to universal credit. It will continue to be paid weekly in advance to provide important financial support to help people to meet the additional costs of disability in the latter stages of their life. PIP is also not taken into account when assessing entitlement to universal credit. To be clear, PIP is not a benefit that is being replaced by universal credit. PIP and UC are not comparable, as they are not intended for the same thing.
Income-related employment and support allowance and the linked disability premiums, including the severe disability premium, are being replaced by universal credit as part of the process of simplifying benefits to help us address overlaps. To mirror the design of ESA, universal credit has two disability elements for adults. The higher rate is set at a substantially higher level than the equivalent support group level in ESA. By structuring the rates in that way, the Government are making it clear that they are not looking to make savings. Transitional protection will also be provided for those claimants who are transferred across to universal credit by the Department for Work and Pensions and who have not had a change of circumstances.
We will continue to listen to and act on feedback as we roll out universal credit. I regret to say that mistakes can be made in any benefits system and, when errors happen, I am sorry. Of course we recognise that people with health conditions or disabilities face extra challenges. People may be dealing with more than one condition or disability, and the same condition can affect people in different ways.
Drew Hendry
Will the Minister take on board some of the specific points that I raised? These things are easy to do and would cost nothing. Specifically, will he address the issues relating to self-certification? I also referred to other things that would be very easy to deliver, so will he consider any of those?
Damian Hinds
Perhaps the hon. Gentleman will allow me to continue. As we roll out universal credit, we are absolutely committed to ensuring that terminally ill patients are treated with the utmost sensitivity and care, and receive the support they need to make a UC claim.
It might be helpful if I briefly set out to the House how the claim process works in the pre-existing system—the legacy benefit system. Under that system, additional financial support can be obtained by someone who is terminally ill by making a claim to ESA. This is a manual process that requires an application to be completed via a telephone call or a paper-based form. As part of the process, the claimant is asked whether they would like to apply for ESA under “special rules”, as the hon. Gentleman mentioned. For ESA, “special rules” means someone who has a terminal illness with a prognosis of less than six months. The claimant is asked to provide medical evidence from their GP or medical practitioner confirming this. If the claimant has already provided the medical evidence to another part of the DWP, the Department will confirm that and make a referral to an expedited work capability assessment. That is entirely clerical; it is a review of papers. The healthcare professional will provide a report, usually within 48 hours, confirming the claimant’s prognosis and condition to the DWP, which will then be able to award immediate additional financial support by allocating the claimant to the support group. As the hon. Gentleman mentioned, the UC full service is designed to be accessed and claimed for online, although a claim can be made over the phone or via a home visit, which can be arranged if needed. Universal credit has a similar process in place to support claimants when they have been diagnosed as terminally ill to make sure that additional support is provided as quickly as possible.
I am are aware of the concerns raised by the hon. Gentleman about the process of notifying the DWP about a claimant’s terminal illness. However, we do not need to change the consent rules in UC to support these claimants; we can already accept information directly from claimant representatives, such as claimant appointees and third-party organisations representing the claimant. However, we are also aware that there are instances when this is not happening as intended, and we are working very hard to make sure that the system works properly, with all the necessary guidance and procedures in place to support terminally ill claimants and to help our operational staff to assist them.
As part of the training that our staff receive, they are made aware that claimants might not know their prognosis or condition and that they therefore should not record or refer to the nature or detail of the illness on the full service journal or in discussions, unless requested by the claimant. Our approach is, and always has been, that we must ensure that terminally ill claimants are treated sensitively and with empathy at all times.
When a claim is made to UC where the claimant is terminally ill, we want to ensure that claimants receive any eligible additional financial support as quickly as possible. To make sure that that happens, the claimant is asked if they have a terminal illness. We have already asked that question of ESA claimants, but using the terminology of “special rules”. I must stress that, in effect, the two questions are the same. We changed the wording to make things clearer to the individual, and to make sure that people would be able to get the support to which they are entitled and which they need. That applies to new claims and to existing claims on a change of circumstances.
When somebody presents with such an illness, they are given the option of continuing to provide further information themselves, or of receiving support from the DWP to do so. When they indicate that they would like support, it becomes a high-priority task for a case manager to telephone the claimant to gather the information on their behalf. A home visit can also be arranged.
The most usual way for claimants to supply evidence of such an illness is by providing the DS1500 form to which the hon. Gentleman referred. It is issued for the DWP by a GP or healthcare professional, either to the claimant or to their representative. We check our systems immediately and as a matter of course to see whether we already hold a DS1500 that was submitted as part of another claim. If one is already held, we reuse it for the universal credit claim. Receipt of that information indicates to us that the claimant must receive immediate access to DWP support, and that support immediately results in an additional £318.78 per month being included in their universal credit entitlement. The additional amount is payable from day one of their claim. In addition, the claimant is completely removed from any conditionality requirements.
The Department and the universal credit programme have regular meetings with key stakeholders, including Macmillan, Maggie’s centres and Mind, to understand how our policies are working, and to identify and discuss possible areas for improvement. I recognise that the hon. Gentleman has encountered universal credit claimants who have had issues with the service in his constituency. As I acknowledged earlier, things can go wrong, and when they do, I am sorry for that. If cases involve vulnerable claimants, it is particularly important that they are escalated, investigated and resolved quickly. I am aware that the hon. Gentleman has an effective direct relationship with the Scotland complaint resolution team, as well as with our local operations team, which has helped to manage a number of urgent cases to successful resolution.
As we continue to deliver the full universal credit service—it is now available in 178 jobcentres—with its expanded claimant base, we are continuing to review and further develop the customer journey for claimants with complex needs, including by looking into how we support terminally ill claimants to engage in the process. In that context, I welcome the hon. Gentleman raising these important issues on the Floor of the House. I do recognise that there are areas for improvement in the service, but he has seen for himself the drive, commitment and passion of so many of our staff, stakeholders and people working across universal credit to see this important reform through.
Question put and agreed to.