Asked by: John Milne (Liberal Democrat - Horsham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, when she plans to lay out the terms of reference for the Government’s review into Universal Credit.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
There are no terms of reference for the review process and we expect the review to take place throughout 2025.
The Government is fulfilling its manifesto commitment to review Universal Credit in a range of ways. We have already announced dedicated strands of activity, like the child poverty taskforce, as well as this work to take stock of the core structures and policies of Universal Credit. We are engaging with a multitude of groups and people. We have begun to invite stakeholders to set out their concerns around Universal Credit and ideas for where it could improve.
Asked by: John Milne (Liberal Democrat - Horsham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, when she plans to launch the review of Universal Credit; and when the review will conclude.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
The review has already begun with the announcement of the Fair Repayment Rate in the Budget, giving 1.2m households an average of £420 per year. We are continuing to review the benefit to ensure it makes work pay and reduces poverty.
Asked by: John Milne (Liberal Democrat - Horsham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether the upcoming review into Universal Credit will be required to regularly report to Parliament on its progress.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
The Government is fulfilling its manifesto commitment to review Universal Credit in a range of ways. The Universal Credit review process is working alongside the child poverty taskforce and others to consider how the full range of Universal Credit policy areas contribute to our objectives to tackle poverty, make work pay and boost growth. We are not expecting to produce a formal report but as part of the review, Parliament will be regularly updated on progress and any future changes.
Asked by: John Milne (Liberal Democrat - Horsham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether the upcoming review into Universal Credit will consult directly with groups of people who have lived experience of receiving Universal Credit.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
The Department has been regularly engaging with stakeholders since the election and is committed to continuing to do so, on Universal Credit and other issues. We recognise the important role of people with a lived experience of receiving Universal Credit in the review process.
We plan to engage with a multitude of groups and people and will continue to use existing forums as well as set up new sessions. In addition, we have also created a mailbox where any customer can express their views on how Universal Credit could be improved to support them, and we will be launching a survey covering customer’s circumstances, knowledge of Universal Credit and their labour market aspirations.
Asked by: John Milne (Liberal Democrat - Horsham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether she has made an estimate of the level Universal Credit Standard Allowance should sit at per week in order to enable households to afford the essentials.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
No assessment has been made at this point. The Government recognises the critical role Universal Credit has to play in tackling poverty and making work pay and has already taken steps to help those in need.
Benefit rates are reviewed each year, increasing by 6.7% in April 2024 and by a further 1.7% from April 2025, in line with inflation.
Around 5.7 million Universal Credit families are forecast to benefit from uprating in financial year 2025 to 2026, with an average annual gain for a family estimated to be £150.
The Fair Repayment Rate, to be introduced from April, will reduce the Universal Credit overall cap on deductions from 25% to 15%. This measure will help approximately 1.2 million of the poorest households benefit by an average of £420 a year.
Asked by: John Milne (Liberal Democrat - Horsham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether she has made an assessment of the potential merits of putting in place an independent process to set benefit levels in line with the cost of essentials.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
No assessment has been made. The Social Security Administration Act 1992 requires the Secretary of State for Work and Pensions to review benefit and State Pension rates each year to see if they have retained their value in relation to the general level of prices or earnings. Where the relevant benefit or State Pension rates have not retained their value, legislation provides that the Secretary of State is required to, or in some instances may, up-rate their value.
Following this review, benefit and State Pension rates are increased in line with statutory minimum amounts and others are increased subject to Secretary of State’s discretion.
Following the Secretary of State’s up-rating decisions for 2025/26, DWP expenditure on state pensions and benefits will increase by £6.9 billion.
Asked by: John Milne (Liberal Democrat - Horsham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment she has made of the potential impact of the judgement in Virgin Media Ltd v NTL Pension Trustees II Ltd, [2023] EWHC 1441 (Ch) on (a) occupational workplace pension schemes and (b) employers.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
We have heard from pension schemes and industry representatives about the impacts arising from this judgment for pension schemes, their members, and sponsoring employers. Potential impacts are likely to be different for individual schemes.
Where schemes do not have a way to demonstrate that historic benefit changes met the reference scheme test, we recognise that this could lead to uncertainty and additional costs.
No final decisions have been made but we are actively considering our next steps and will provide an update in due course.
Asked by: John Milne (Liberal Democrat - Horsham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether she plans to introduce regulations amending section 37 of the Pension Schemes Act 1993 for contracted out defined benefit schemes.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
We have heard from pension schemes and industry representatives about the impacts arising from this judgment for pension schemes, their members, and sponsoring employers. Potential impacts are likely to be different for individual schemes.
Where schemes do not have a way to demonstrate that historic benefit changes met the reference scheme test, we recognise that this could lead to uncertainty and additional costs.
No final decisions have been made but we are actively considering our next steps and will provide an update in due course.
Asked by: John Milne (Liberal Democrat - Horsham)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, if she will make it her policy to allow release of Child Trust Funds to family members where those funds are inaccessible to disabled children unable to manage their finances.
Answered by Sarah Sackman - Minister of State (Ministry of Justice)
Where a young adult lacks mental capacity, including due to a disability, the law requires parents or a guardian to have legal authority to make decisions on their behalf about financial assets or property. This includes in relation to accessing funds held in a Child Trust Fund.
On 9 June 2023, the Ministry of Justice published the Making Financial Decisions for young people: parent and carer toolkit explaining the process by which parents and guardians of disabled children are able to obtain legal authority if no other arrangements are in place. This can be done by making an application to the Court of Protection for an order authorising access to monies held in a Child Trust Fund or Junior ISA. The toolkit is available on Gov.UK.
We understand that concerns remain. We are considering the options for improving access to matured Child Trust Funds while balancing the need to maintain safeguards and protect the best interests of individuals that lack capacity.
Asked by: John Milne (Liberal Democrat - Horsham)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, what steps she plans to take to resolve the issue where Child Trust Funds are inaccessible to disabled children who have been assessed as lacking the mental capacity to manage their own finances.
Answered by Sarah Sackman - Minister of State (Ministry of Justice)
Where a young adult lacks mental capacity, including due to a disability, the law requires parents or a guardian to have legal authority to make decisions on their behalf about financial assets or property. This includes in relation to accessing funds held in a Child Trust Fund.
On 9 June 2023, the Ministry of Justice published the Making Financial Decisions for young people: parent and carer toolkit explaining the process by which parents and guardians of disabled children are able to obtain legal authority if no other arrangements are in place. This can be done by making an application to the Court of Protection for an order authorising access to monies held in a Child Trust Fund or Junior ISA. The toolkit is available on Gov.UK.
We understand that concerns remain. We are considering the options for improving access to matured Child Trust Funds while balancing the need to maintain safeguards and protect the best interests of individuals that lack capacity.