Universal Credit Fraud

Maria Caulfield Excerpts

Wednesday 10th July 2019 Commons Chamber

[Justin Tomlinson]

Be patient. I am answering the questions. I can only address one point at a time.

The legacy benefits system was complex. Claimants had to deal with local authorities, HMRC and the DWP. The majority of welfare issues that led to fraud, error or overpayment related to failing to provide information on changes of circumstances. Under the legacy benefits, there was an increased likelihood that people would fail to report changes of circumstances. Universal credit, however, with a single point of contact on a digital interface, makes it easier for claimants to report changes once, and it is easier for us to proactively identify when there are changes. The Government are still on target to see, with the full roll-out of universal credit, a reduction of £1 billion.

We talk about the principle of advance payments, but remember that under legacy benefits at the end of the claim the payment came too soon. We saw that claimants would in many cases be going into work, having spent a long time out of work, being anxious. They were often paid in arrears at work, so would not have access to funding. People who were desperate to work and do the right thing were financially unable to do so. Under universal credit the wait for the money is at the beginning, but with advance payments to bridge that wait. That is vital to ensuring that claimants can transition into work. As I said in my earlier response, it is the need to balance making advances available to claimants quickly and ensuring that payments are paid based on the correct circumstances.

The shadow Secretary of State raised a point about children. When verifying advance payments, we will verify identity, bank accounts, national insurance and, where they are declared a non-UK national, nationality. However, to make sure we can provide support to those who are often the most vulnerable people in society, there is manual checking of housing and children. That is the bit that can take time beyond when we have issued the advance payment, although it would be checked before the actual main claim. As I have said, by using greater access to real-time information and data matching, we will be able to speed up that process to improve confidence that all claimants for advanced payments are valid.

[Maria Caulfield (Lewes) (Con)]

It is vital that we crack down on fraud, but will the Minister reassure us that he will protect the vital advance system, which provides a vital financial lifeline for many, many of my constituents?

[Justin Tomlinson]

My hon. Friend is absolutely spot on. It is absolutely vital that we strike the balance between having absolute confidence that money is being correctly paid out and ensuring that we do not leave vulnerable claimants without access to money. Rightly, the Government have listened to the constructive work with stakeholders to ensure that on the first day of a claim people who need financial support can get it. That is the right thing to do.