The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
I thank the Work and Pensions Committee for its report, which provides important scrutiny of the Department for Work and Pensions, and our response to the coronavirus outbreak. I thank all hon. Members for their contributions to today’s debate, and for their largely constructive tone. Of course, I also thank the Chair of the Work and Pensions Committee, the right hon. Member for East Ham (Stephen Timms), with whom I enjoy a constructive, if not sometimes challenging—and rightly so—relationship.
I will start with some comments on the performance of my Department over the course of the pandemic before moving on to some of the substantive points raised in the debate. I pay tribute to the tireless efforts of my Department’s civil servants, who have stepped up to the challenge with remarkable speed and aptitude when faced with overwhelming demand as a result of the unprecedented pandemic. I thank the Committee for its acknowledgement of the work of our hard-working frontline staff.
Let me offer an insight into the sheer volume of UC claims that we have faced. From 16 March to the end of April, we received over 1.8 million claims for universal credit. The legacy benefits system simply could not have coped with this demand. Rather than the queues in the streets that we would have seen with a paper-based legacy system, our payment timeliness ran at a record high, with over 94% of claims paid in full and on time, and more than 1 million individuals able to access funds quickly via new claim advances. We moved rapidly to roll out a package of emergency and temporary welfare measures, including the injection of billions of pounds into our welfare system this year to support those facing the most financial disruption because of the pandemic. That injection included a temporary increase to the universal credit standard allowance of more than £1,000 for this financial year. We also increased the local housing allowance rates for universal credit and housing benefit claimants to the 30th percentile of local rents from April; this vital financial support for private renters was worth on average £600 throughout this challenging period. We are, though, just one part of an overarching Government commitment to wrap our arms around the public.
Let me turn to the first of the points raised by the right hon. Member for East Ham, on the uprating of benefits and the UC standard allowance. The Secretary of State announced yesterday, as part of the annual review of social security rates, that benefits would again rise in line with inflation at the start of the next financial year. That is a cash increase of around half a billion pounds in 2021-22. We also affirmed the commitment that the increase to local housing allowance rates in April this year will be retained. Earlier this year we invested nearly £1 billion, increasing the local housing allowance rates to the 30th percentile of local market rents, and we will maintain that level of support next year by freezing the rates at current levels.
Let me address the question of the £20 universal credit uplift. The Government introduced a raft of temporary measures—including the furlough scheme, the self-employment income support scheme and, of course, the £20 universal credit uplift—to support those facing the most financial disruption. With the uplift confirmed until the end of March 2021, my right hon. Friend the Chancellor of the Exchequer set out yesterday why it is right that we wait for more clarity on the national economic and social picture before he decides on the best way to support low-income families from April. I stress to the House that discussions are very much ongoing with Her Majesty’s Treasury.
Let me turn to the second point raised by the right hon. Member for East Ham, on returning people to legacy benefits once they have moved over to universal credit. As a matter of fundamental policy design, making a universal credit claim will cease any entitlement to legacy benefits and tax credits that an individual may have. This function is supported in legislation and reflects the overarching principle of universal credit: that it will replace the legacy benefits system. The Department continually makes improvements to the UC service in response to feedback and user research. On 3 June, we introduced a new check-through box to remind claimants to check their eligibility before making a claim for universal credit, and to remind them that legacy benefits will cease when a universal credit claim is made and submitted and they will not be able to return to legacy benefits. I encourage claimants to check their independent eligibility calculators on gov.uk.
Let me turn to the third point raised by the right hon. Member for East Ham, on support for those with no recourse to public funds. Access to DWP income-related benefits such as universal credit flows from an individual’s immigration status. All claimants, regardless of their nationality, are required to be both legally and habitually resident in the United Kingdom in order to access income-related benefits. Ultimately, these matters are governed by the Home Office, and people without recourse to public funds can apply for a change of condition. I stress that support has been available, including through the coronavirus job retention scheme, the coronavirus self-employment income support scheme, the contributory employment support allowance and, of course, support via local authorities, including the new £170 million covid winter support grant, provided that the relevant eligibility criteria are met.
In the interests of time—I am conscious that it is very tight and we have Department for Work and Pensions oral questions on Monday—let me conclude by reiterating our commitment to providing a strong safety net for those who need it and targeting support at those most in need. I take immense pride in our Department’s response to the unprecedented challenges that this year has brought, and I know that the Department will continue to play a key role in delivering crucial services to society’s most vulnerable and disadvantaged over the coming months. As the recovery phase grows, the Department will continue to offer key services through our £30 billion plan for jobs. The Select Committee was right to acknowledge the exceptional work of our Department in supporting people through these unprecedented times, and I look forward to the important role that we will play in ensuring that we build back better in the coming months.
Mr Deputy Speaker (Mr Nigel Evans)
I thank everybody for their contributions and co-operation today, without a time limit being imposed. Everybody behaved impeccably—thank you.
Question put and agreed to.
Resolved,
That this House notes the First Report of the Work and Pensions Committee, “DWP’s response to the coronavirus outbreak”, HC 178; and calls on the Government to increase relevant legacy benefits in line with increases to universal credit, to take steps to return people who have been inadvertently left worse off under universal credit compared with their previous benefits, and to suspend the no recourse to public funds visa condition for the duration of the coronavirus outbreak.