Universal Credit

Debate between Anne Begg and George Hollingbery

Thursday 22nd November 2012 Commons Chamber

[Dame Anne Begg]

That is why most of our witnesses supported the basic principles of universal credit. I do not like to say that it will simplify the benefits system, because I do not think there is such a thing as a simple benefits system, but it will be more coherent, transparent and understandable.

However, there is an inherent problem in the single payment. At the moment, if somebody makes a mistake in their housing benefit claim, only their housing benefit is affected, and if they make a mistake in their child tax credit claim, only that tax credit is affected. As universal credit will be a single benefit that is paid in a single monthly payment to each household, if one of those things goes wrong for one reason or another, it could mean that a family’s whole income is withheld. That is why it is a real challenge for the Government to get it right. It might mean that some individuals and households do not get their benefit at all. By the time that is picked up, it might be too late. The concern is over how quickly such people can be helped and how quickly they will be able to access the system. One of our key recommendations is about the speed of that identification.

[George Hollingbery (Meon Valley) (Con)]

I notice from the report that the Committee is keen to ensure that there is digital access via smartphones. I believe that the Government are looking at that idea very carefully and will implement it. I imagine that the hon. Lady will welcome the idea that people will be able to check their real-time universal credit status when they are out on the street or on the move, and will thus have a much better idea of what they can and cannot do when out shopping or transacting in any way.

[Dame Anne Begg]

Ministers’ responses suggest that the smartphone technology may be some way off. There are issues with the security of the data. We have had some assurances from the Government on that. This is such a big reform that we could not, in our short inquiry, look in detail at all of these matters and their implications. That is the challenge for the Government.

On the implementation timetable, the Government have made great play of saying that there will not be a big-bang effect, because universal credit will not come in for everybody on one day, but will have a slow roll-out. In the pathfinders that will operate from next April, it will be the easy claimants that are seen to first, such as single people who are on jobseeker’s allowance. However, people’s circumstances change, so it is imperative that the Government can foresee how universal credit will work in all circumstances for it to work even in the first cases. It will be no comfort to a claimant who receives no benefit in 2013 because there are failures in the system or because it cannot cope with their change of circumstances for the Government to say that the problems will be sorted out by 2017. For each family, there will effectively be a big bang when they make a new claim or when they move on to universal credit. We are hopeful that the Government are alert to those concerns.