Universal Credit: Highlands

Damian Hinds Excerpts

Monday 20th March 2017 Commons Chamber

[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 and bringing his feedback and critique to the Floor of the House today.

I recognise the concerns that have been raised, and I want to reassure the hon. Gentleman that work is already well under way to improve delivery. Today’s debate presents an opportunity to share some of the ways in which the Department has sought, and is seeking, to resolve obstacles to this ground-breaking project.

There are now 470,000 people on universal credit, 2,400 of whom are in the hon. Gentleman’s constituency. As we would expect of a full-scale reform programme of this magnitude, there have been challenges along the way, but I assure hon. Members that we are working quickly to deal with them to ensure that UC is delivered safely and securely. I recognise specifically that the hon. Gentleman has encountered a number of universal credit claimants who have had issues with the service, and I am aware that he has already been in discussion with the Department for Work and Pensions district manager for the north of Scotland, who has invited him into the local jobcentre to assist in mutual understanding of the issues. I also acknowledge what the hon. Gentleman says in outlining occasions where things have gone wrong—if something has been mislaid and so on—and, of course, for those occasions I am sorry.

I commend what the hon. Gentleman is doing both for and with local organisations and his constituents. Bringing together local stakeholders, trying to address the details, and helping people to solve problems is important to ensuring the safe delivery of this historic reform. The hon. Gentleman has spoken, too, of the diligence, commitment and work ethic of our key stakeholders, local partners and staff, and I echo that.

Looking ahead to other highland areas that are due to roll out the universal credit full service, our implementation strategy is under way and we will soon be having conversations at a more local level. The remaining jobcentre sites aligned to the Highland Council area will roll out in July 2017 and, as part of the implementation activities, we have an external plan to ensure that all involved have a proper overview of universal credit before it arrives at the jobcentres.

[Drew Hendry]

I welcome the Minister’s words in recognising the issue, and I think that is the right thing to do. Before the roll-out continues into the rest of the highlands, will he take up my offer of coming to visit, to speak to the organisations locally and understand directly what is happening to claimants in my constituency?

[Damian Hinds]

Let me thank the hon. Gentleman for that offer. I welcome the opportunity to speak to local organisations throughout the country. My most recent visit to a jobcentre was this morning, and I plan to make another on Thursday. There are several hundred jobcentres throughout the country, and my aim is to get representative feedback and critiques to help our understanding of these issues. I also welcome the communication that I have had from and with the hon. Gentleman in that regard.

[George Kerevan]

Will the Minister give way?

[Damian Hinds]

I will not, if the hon. Gentleman will forgive me.

We have established a dedicated team of employer and partnership staff, who are deployed to engage directly with stakeholders, including local authorities and landlords, to ensure that there is a joined-up approach to supporting universal credit claimants.

I know that housing arrears are an area of concern, which is why that is a regular subject of discussion in our Highland operational forum. Discussing the issues in this way has led to the introduction of some effective troubleshooting measures. To begin with, we are embarking on a specific piece of work to monitor Highland Council cases involving housing costs, to try to establish the root causes of any delays in the process. I appreciate the concerns over rent arrears. I know that it is an issue that matters to a lot of people, but the reality is that a lot of complex, overlapping factors are at play. The roll-out of universal credit is by no means the sole factor contributing to arrears. Let us consider for a moment that, according to the latest report published by the National Federation for Arm’s-Length Management Organisations, over three quarters of its ALMO tenants who have fallen into arrears were already behind with their rent before commencing their universal credit claim.

Some of the rent arrears are clearly attributable to the charging policies of landlords that can create book arrears from the outset of a tenancy. This is a simple definitional point. A landlord who previously charged rent on a weekly basis will of course appear to be missing rent payments under the new system, which pays claimants’ housing costs on a monthly cycle in arrears. We have been clear about the reasons for this change. The key motivation is to create a welfare system that more closely mirrors the world of work. Our research shows that the majority of UC claimants are comfortable managing their own budgets. Furthermore, we know that after four months, the proportion of UC claimants who were in arrears at the start of their claim fell by a third.

[Drew Hendry]

Will the Minister give way?

[Damian Hinds]

If the hon. Gentleman will forgive me, I want to make sure that I cover all the points, but if there is still time afterwards, I will of course give way.

Ultimately, the fact that many people are coming on to universal credit with pre-existing arrears is contributing to the overall rent arrears issue. Please let me reassure the House that there are safeguards in place for claimants, including advances, budgeting support and alternative payment arrangements, and research shows that claimants successfully reduce their arrears over time.

This work goes hand in hand with our work on improving the number of claims put in payment by the end of the first assessment period. This includes refining the customer journey, improving the payment of housing costs, improving communications to landlords and local authorities, and streamlining the way in which information is verified. Those in the project team regularly monitor the timeliness of payments, and if they identify delays, they quickly take action. I can confirm that there is a positive trend in the hon. Gentleman’s constituency, with significant improvements in timeliness month on month.

I recognise that rural areas such as the Highlands might face particular challenges. Indeed, concerns were raised by colleagues regarding the pace of roll-out. We listened to those concerns and, in tandem with a buoyant local labour market, we made the decision to adjust the roll-out schedule at remaining Highlands sites. We have moved the target roll-out date for remaining Highlands sites—Dingwall, Fort William, Invergordon, Portree and Wick—back from November 2016 to July 2017.

I am also aware that some claimants have reported that they face increased travel times to meet their work coach and hand over documentation. In response to that, we have made changes to the design of the universal credit digital service so that, before the end of this year, claimants will be able to upload certain evidence to the online system. I should also mention that claimants can deliver evidence at any time during the monthly assessment period. This gives claimants valuable leeway to find a convenient time to visit their local office or to make use of the postal service to deliver evidence. Although universal credit is oriented around claimants making use of the online service, claimants can also telephone their service centre for help and support or to exchange information. I reiterate that the service does not involve claimants having to dial a premium rate number. Ofcom regulations require all phone providers to treat calls to 03 numbers the same as a call to a normal home or business landline. If claimants remain concerned about the costs of calling, they can, as the hon. Gentleman acknowledged, ask to be called back.

I appreciate that the hon. Gentleman’s constituents have also reported excessive wait times on such calls. We recognise that improvements can be made in that area, which is why we have committed additional resources to reducing waiting times. The latest data show that claimants are now waiting a maximum of eight to nine minutes before their call is answered. With even more resource being invested throughout March to support telephony service levels, I feel confident that the long wait times reported in the local area will become a thing of the past.

I was also pleased to know that an agreement has been reached at a local level—I believe to the satisfaction of the hon. Gentleman—in connection with the case of one of his constituents experiencing particular problems with delivering evidence to the Department about childcare costs, involving that constituent posting verification direct to Inverness jobcentre and also sending things by email.

Several hon. Members have previously expressed concern about the procedures under universal credit that determine whether a Member of Parliament can access the personal details of their constituents. If they are not already aware of it, I draw hon. Members’ attention to the statement made by my right hon. Friend the Secretary of State for Work and Pensions on 13 March, in which he agreed that the implicit consent arrangements that exist in legacy benefits can continue for MPs within universal credit. That will ensure that MPs are able to act quickly on the behalf of their constituents. I hope that hon. Members will also feel reassured about that helpful change.

[Drew Hendry]

First, on the subject of avoiding arrears, I have given a couple of examples of where debt by default, not digital by default, is happening with universal credit. What is the Minister going to do to tackle that? Secondly, on the ability of Members to contact somebody on behalf of a constituent, that may be what has been said in this Chamber, but the reality is that that message has not reached the people on the ground. There is confusion every day about who can access what information at what stage.

[Damian Hinds]

Of course I recognise what the hon. Gentleman says about the need to continue working on the housing issues that we have been discussing. That is a matter of ongoing work. The change on implicit and explicit consent is quite recent, but I will endeavour to ensure that it is clearly understood in the Inverness jobcentre.

The hon. Gentleman also referred to the freedoms afforded to the Scottish Government under our devolution arrangements. We continue to work closely together with Scottish Government colleagues to implement the Scottish flexibilities that have been agreed. We have listened to Scottish Government colleagues who said that they needed action earlier and, in response, we introduced the alternative payment arrangements easement in April 2016, which pushed back the APA claimant review date to 24 months. Discussions with the Scottish Government are progressing well, and DWP officials continue to work positively, openly, and collaboratively on the detail of the administrative flexibilities.

Let me be clear, though: under the universal credit Scottish flexibilities, the Scottish Government have the power to pay the UC award fortnightly instead of monthly, to implement alternative payment arrangements for 100% of cases, and to pay the housing element of universal credit direct to the landlord. Although we do not think that is the best approach, we fully accept their right to do so and look forward to them actioning these matters quickly. We further acknowledge that they have the powers to create new benefits, to top up existing benefits, and to provide discretionary payments in any area of welfare. Again, we look forward to them speedily delivering on and making full use of those powers.

I recognise that there are areas for improvement in the service, but with every release of new software and every new office that goes live with the full digital service, enhancements are made that improve the experience of using the service for staff, claimants, landlords and our delivery partners. The hon. Gentleman has seen for himself the drive, commitment and passion that so many of our staff, stakeholders and people across the programme have. They want to see this revolutionary welfare reform through, and I am certain that they will.

Question put and agreed to.