The Secretary of State’s Handling of Universal Credit

Heidi Allen Excerpts

Wednesday 11th July 2018 Commons Chamber

[Heidi Allen (South Cambridgeshire) (Con)]

I suspect that everybody in the House became an MP because they wanted to make a difference—I most certainly did, and I know the Secretary of State did too—so I find the motion to be nothing other than an unacceptable personal attack on her. Perhaps President Trump’s visit to the UK this week can serve as a reminder: they go low and we go high.

I have yet to talk to any organisation with deep knowledge of our benefits system past and present that does not agree that universal credit is a vast improvement on legacy systems. Everyone who cares about alleviating poverty and improving the life chances of the vulnerable wants universal credit to succeed. I could look back and say I wish we had had more ministerial stability at the Department, that the roll-out in the last 12 months could have been slower or that the £1.5 billion in the Budget last year could have come a bit sooner, but since she has taken the reins at the DWP the Secretary of State has listened, just as her predecessor did. Deciding not to pursue the court challenges over PIP, and the severe disability payments, which we have heard about today, were both the right things to do. I am confident that when those of us who have constructively assessed the system tell her what more we can do, she will listen.

Let us start with the current system. We need to upgrade universal support to Martini status. Given that just 54% of claimants can enrol for universal credit without assistance, we need to ensure that universal support is available anywhere, everywhere and at any time. This means a full service specification with quality standards that can be monitored. It needs to provide more than was originally envisaged, including debt advice, which should be available through a trusted provider and to every claimant who needs it. I would suggest contracting it out to Citizens Advice, housing associations or some other such organisation.

The universal credit system as a whole needs quality indicators. What does good look like? What payment timeliness are we aiming for? What about accessibility, advanced payments and debt monitoring? Let us think of claimants as valuable clients, as citizens and taxpayers who deserve excellence in their interactions with the DWP. I want us to focus on the most vulnerable claimants—those at risk of ending up in our surgeries and food banks—such as victims of domestic abuse and modern slavery, those with mental health issues and the disabled.

Let us treat them as a special set of customers—platinum customers—and make it our mission to ensure they do not fall through the net. Let us think about fast-tracking them through the system and treating advanced payments as first payments, not loans to be collected back in. Since we pay universal credit in arrears, that advanced payment should be collected right at the end, when, all being well, the customer, with all the positive support of universal credit and the skills and passion of their work coach, has moved into good sustainable employment.

[Paul Masterton]

My hon. Friend mentions work coaches. I was disappointed that the Opposition spokesperson expressed no gratitude to the incredible men and women all over the country working on the frontline of our jobcentres with some of the most vulnerable people in our society. Does she agree that they deserve our support?

[Heidi Allen]

Absolutely, and they care deeply. I have spent time with work coaches all over the country in different jobcentres. They are proud of what they do and deserve our support. Working with them, we need to identify every crack in the system and ensure that our most precious customers—our platinum customers—do not slip through them. In that regard, I am pleased that the Chancellor has agreed to keep an eye on the taper rate.

None of my asks so far would incur big financial costs, but there is one we should ask the Chancellor for: we have to release working-age claimants from the benefits freeze. Universal credit can be the most positive and efficient system in the world, but if people cannot afford to live on it, it will not matter a jot. Furthermore, all this has to be sorted out before we push the button for managed migration. This is important, because when we do that, about two thirds of the claimants who will move across will be ESA claimants. They are our platinum customers and everything has to be perfect for them before we move them across. I will need to be reassured of that before I can vote for that legislation.

Conservative Members want universal credit to work. It is brilliant that we will be working with Citizens Advice, the Trussell Trust, Save the Children and others as they are desperate to engage positively and collaboratively. Getting universal credit right and, in doing so, helping millions of people in this country—that is a motion worth supporting.

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[Stephen Kerr (Stirling) (Con)]

This is a petty and mean motion. My right hon. Friend the Secretary of State is doing a first-class job, and I have only the utmost respect for her and for what she is doing. There is no more passionate an advocate for the principle of work and the eradication of poverty than my right hon. Friend. Her team are attentive, listening and committed to the task, which is to ensure that people are always better off in work than on benefits.

We have had full service universal credit in Stirling for over a year, and I would like to share some observations and suggestions based on our experience. First, is there a way—I think there might have been a suggestion earlier that there is—in which the DWP could extend the concept of trusted partner status to organisations such as Citizens Advice? That would allow Citizens Advice volunteer advisers to have access to named DWP contacts in order to support the resolution of client queries, which would go a long way to making things simpler and resolving things quickly. The second point is on the need to secure mental health training for DWP staff dealing with the migration of legacy benefits. The legacy benefits issue has been well documented, and with more vulnerable clients coming into the system, we need to ensure that DWP staff are well supported when supporting their clients.

Thirdly, there needs to be increased decision-making discretion at local level on reassessment, and particularly on mandatory reconsideration. When clients are well known to the DWP, it is my view that the mandatory reconsideration process is redundant. More than 90% of medical assessment decisions are upheld at that stage, but three quarters are then overturned on appeal. Giving more discretion to local staff on this matter would make the system more efficient and make better use of the working knowledge that staff have of their face-to-face clients.

My fourth point relates to an anomaly in universal credit deductions. When the DWP makes a deduction from a payment, that might not be the only deduction that is coming off that payment. There might also be court deductions or deductions from the local authority. This can often take claimants below the minimum payment level and leave them without anything to live on. That is a real-life experience.

My final point relates to women’s refuges. When a woman goes into a refuge, only one benefit should stop, and the woman should continue to receive payments. In the experience of our local women’s refuge in Stirling, both payments have stopped, and that is unacceptable. That situation needs clarity.

[Heidi Allen]

Does my hon. Friend agree that those sorts of women are the platinum customers that I am talking about? They are the ones who need to be fast-tracked through the system and to have a bespoke work coach with them.

[Stephen Kerr]

Absolutely. The test of this system is how we take care of the most vulnerable people that are touched by it. That point is well accepted by my right hon. Friend the Secretary of State and her team.

Those are the five points that I wanted to make, and I would like to see some movement on them, to help to continue to roll out a fair and improved system that meets the promise of encouraging work and also protects the most vulnerable in society. I look forward to hearing the Minister’s response.