Oral Answers to Questions

Mark Pawsey Excerpts

Monday 29th June 2020 Commons Chamber

[Will Quince]

Any job loss is regrettable, and the Department stands ready to support people who find themselves in that position. The £6.5 billion package included an increase to universal credit of over £1,000, a similar increase to the standard allowance for tax credits and an increase to the local housing allowance. That is over and above measures such as the job retention scheme, the self-employment income support scheme, the £500 million hardship fund via local councils and the £63 million local welfare assistance fund. As the Chancellor said, we will do whatever it takes to support people through covid-19.

[Mark Pawsey (Rugby) (Con)]

What steps her Department is taking to ensure an effective transition between universal credit and the state pension.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

The Government announced in March that anyone reaching state pension age while claiming universal credit will be eligible for a run-on until the end of the assessment period in which they reach state pension age. An estimated 200,000 people will benefit from this measure over the next five years, receiving on average an additional £350 each. I am pleased to confirm that regulations are being laid today to put this measure on a statutory footing.

[Mark Pawsey]

In November 2017, my constituent Caroll Nash visited my advice surgery and told me about a shortfall of £530 as a consequence of transitioning from universal credit to the state pension. Her claim ended on 17 October in anticipation of her receipt of the state pension from 6 November. At that time, no facility for a part-payment was available, although we did manage to resolve the issue. Can the Minister confirm that, as a consequence of the test-and-learn approach that his Department has taken in respect of universal credit, that claimant’s circumstances today would result in a seamless transition?

[Will Quince]

I thank my hon. Friend for his question. He is right, and I am pleased to confirm that everyone who reaches state pension age while on universal credit will be eligible for the new run-on payment. That will mean no gap in benefit provision as people transition from universal credit to the pension-age benefit system.