Universal Credit (Transitional Provisions) Amendment Regulations 2022

Baroness Stedman-Scott Excerpts

Monday 24th October 2022 Lords Chamber

Given the concerns expressed by SSAC, the SLSC and stakeholders about the risks to claimants in vulnerable circumstances and the erosion of accountability to Parliament, I hope that, even at this late date, the DWP will think again and withdraw what, as my noble friend said, are really quite shocking regulations.

[The Parliamentary Secretary, Cabinet Office, and Parliamentary Under-Secretary, Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

I thank the noble Baroness, Lady Sherlock, for raising this Motion, and noble Lords for their contributions. I would also like to thank representatives of the Secondary Legislation Scrutiny Committee and members of the Social Security Advisory Committee for their detailed scrutiny of these regulations and for reports relating to their assessment of the impact of these regulations. We have continued ongoing dialogue with SSAC. From the meeting we had with the noble Baroness, Lady Sherlock, we were able to confirm to her that we were in a much better place with SSAC and the committee.

I will endeavour to answer all the questions, because I want to, but I am sure that there will be some things that I have to write about. I ask noble Lords to allow me to do that. Because of the technical nature and depth of the questioning, it is very important that I get those things right. I should also say that we had a pre-brief meeting with the noble Baroness, Lady Sherlock, and I am happy to put on record that after this debate, however it transpires, we are prepared to have further meetings so that people can raise points which we can learn from as we go on. I hope that demonstrates that we wish to get this right and be transparent.

The Universal Credit (Transitional Provision) Amendment Regulations 2022, laid on 4 July, came into force on 25 July 2022. These regulations build on insights from the previous Harrogate pilot and from the pandemic and improve the existing legislative framework so that it better supports the DWP’s revised strategy, published in April 2022, Completing the Move to Universal Credit. I can confirm that the strategy is to migrate all legacy benefit claimants into a single, streamlined and simplified benefit system by the end of 2024.

The Motion tabled today by the noble Baroness is driven not by criticisms of the technical provisions and amendments within the regulations; these make needed improvements to legislation that sets out how claimants should be migrated to UC and protections they receive in doing so. They will also remove unnecessary complexities that benefit neither the claimant nor the taxpayer or provisions that do not reflect our policy intent. The concerns are instead focused on the removal of a statutory limit on the number of claimants, in the belief that this risks a lack of oversight of DWP’s progress and transparency about the nature of our plans for migration. These reflect concerns raised by the Social Security Advisory Committee and the Secondary Legislative Scrutiny Committee, and whilst I am sympathetic to their origins, I can assure the House that they are misfounded.

First, moving to universal credit is a good thing for claimants. Overall, we estimate that most people are better off under UC. We estimate that 55% of all legacy claimants will have a higher entitlement under UC, relative to legacy benefits; around 10% of legacy claimants will see no changes; and 35% will have a lower entitlement. That 35% who are not better off will be considered for an assessment for transitional protection to support that move over. Once they are moved over, they take advantage from a more dynamic system of support that focuses on work, incentives and earnings.

However, despite these advantages, the startling fact is that those who could benefit most—those still to migrate over—either are not aware or do not share this opinion of universal credit. Internal work looking at claimants’ attitudes suggests that there is a hesitancy towards moving to universal credit as there is concern that they will not be better off.

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[Baroness Sherlock (Lab)]

Just to clarify, nobody who has raised the question of uprating has asked the Minister to comment on the amount by which benefits will be or should be uprated. On the assumption that every year there is some uprating, the value of transitional protection will be different before the next financial year or after, so if somebody moves before, they will be worse off than if they move after. The questions are, first, whatever those rates are, will the Government do anything about that? Secondly, will the department warn a claimant who could choose to migrate either side of the line that they will be worse off if they go this side of the line?

[Baroness Stedman-Scott (Con)]

The answer to that question is that I will need to write to the noble Baroness. She raised it in our meeting and I have asked my officials to prepare me a written answer so that I get it correct. I will write to the noble Baroness and place a copy in the Library.

All noble Lords who have taken part today have asked a number of justifiable and understandable questions. I will make sure with my officials that they are all answered in a subsequent letter. I thank all noble Lords who spoke whose questions enable us to clarify in more detail. Be reassured that the Government are fully aware of the concerns over the scrutiny of managed migration. We believe that managed migration to UC is the right step for claimants and that this is the right time. We believe we know how to protect claimants and are learning from the discovery phase. Given my response, I respectfully ask the noble Baroness to withdraw her Motion to Regret.

[Baroness Sherlock (Lab)]

My Lords, I thank all noble Lord who have spoken tonight and thank the noble Lord, Lord Storey, for making some important points about the position of vulnerable claimants and asking some good questions. I thank my noble friend Lady Lister for a powerful speech illustrating the range of issues that will have to be considered very carefully over the weeks and months ahead. I am grateful to the noble Lord, Lord Farmer, for raising the questions he did and to the Minister for answering them.

Given the lateness of the hour and the business ahead of the House, I will not respond at great length, but I want to say a couple of things. First, the Minister said that my Motion was “mis-founded” because universal credit is good for claimants, so they should be encouraged to move across, and they do not want to do anything that gets in the way of that. She is right that many people will be better off on universal credit, but others will not. For those who will be worse off, it is small comfort that someone else will be better off. It is incredibly important that those who will be worse off, and especially the significant numbers who are vulnerable, are given appropriate support, that their needs are properly attended to and they are not simply left behind, as she said, when others are moved across.

Secondly, she is right that a number of people are worried about universal credit, but not just on the grounds of media comment. The experience of some universal credit claimants has not been good: waiting a long time for benefits, complicated processes, things that they did not understand. I know, just from the charities and churches that I have spoken to, that the experience has not always been straightforward. There are good reasons for people to be concerned.

There are a number of questions here. The Minister is right: she said the Government wanted to change the regulations because the new approach better fits with their strategy and the old approach placed some regulatory constraint. That was the point: the point was to place some constraint. That is why the Secretary of State did it; that is what it was for; and that is what the Government have simply abandoned.

The Minister has said several times that she will update Parliament at the appropriate stages. The fact is, once these regulations go through, there is nothing to require her to come to the Floor of this House and say anything. The only reason she is here tonight is because I tabled a Motion against these regulations, so once they go through, the department will have complete freedom to whatever it wishes. I am really grateful for the time and the detailed responses she has given, but will she please commit to going through Hansard with some care? I think she will find when she does that there were questions that were not answered, or not answered fully. Secondly, will she please look for opportunities to engage this House and not simply the Work and Pensions Select Committee, so that we, as well as the other place, can properly have our say?

[Baroness Stedman-Scott (Con)]

I think I have emphasised the value of regular meetings, updating people and giving them the opportunity to advise us of things they are worried about and things that have gone wrong. I have given my word here. I know our Secretary of State—

[Baroness Lister of Burtersett (Lab)]

Whoever it is.

[Baroness Stedman-Scott (Con)]

The noble Baroness, Lady Lister, saves the best line till last. I have no doubt that we want to take people with us; we want to know what does not work, and we want to amend it. I give noble Lords my word and the Government’s word that we will have that interface.

The point the noble Baroness raises about the people who will be better off and those who will not—they will not be any worse off with transitional protection—is a very fair one. These are the sort of things that people talk to each other about and get very worried about, so I will take that back and try to give a more definitive answer than I have given, if that is acceptable to the noble Baroness.

[Baroness Lister of Burtersett (Lab)]

The Minister keeps talking as if transitional protection is the answer. As noble Lords have pointed out, many people will not get it or will not get it for very long, and there is the whole question of the inflation uprating. It is worrying for people: if they know what is going to happen, they know that transitional protection may not last long at all. So, please do not talk as if that is the answer.

[Baroness Stedman-Scott (Con)]

I have no intention of talking as if that is the answer and nothing will be wrong after that. I understand that it has a fixed life. Our job is to work with these people, and I understand the vulnerabilities. I understand the barriers people face when work coaches are trying to find them extra hours they can do, taking into account the things that are stopping them now. The relationship with their work coach will be invaluable. There is nothing in a work coach’s job description that says they must say, “You’ve just got to do this”. I hope that the relationship with the work coach will make a huge difference, and that they will go to their superiors when there are real issues that cannot be overcome through those channels.

[Baroness Sherlock (Lab)]

My Lords, I thank the Minister for her answers. There are still some outstanding questions, and I remain very worried about the impact on people who are utterly dependent on the benefits they get to keep body and soul together. I very much hope that we will have opportunities to discuss this. However, I have reached the limit of what I can do about these regulations, and voting on this Motion would not change them. In the light of that, I beg leave to withdraw the Motion.