Universal Credit

Nigel Mills Excerpts

Thursday 22nd November 2012 Commons Chamber

[Dame Anne Begg]

We heard a lot of evidence from members of employers’ organisations and from organisations representing accountants, and others, who were concerned about HMRC’s real-time information requirements, on which the system strongly depends. They felt that there was not enough knowledge among employers who will have to operate the process. One of our recommendations was that the Government should be liaising more closely with those organisations and helping with publicity. Another recommendation was that the Government should be wary of trying to keep to the ambitious timetable that has been set.

The Committee has two other areas of concern. First, there are still decisions to be made about how to deal with passported benefits. Secondly, the decision to localise council tax benefit seems to fly completely in the face of the basic principles of universal credit. That might create extra computer problems, because the Department for Work and Pensions’ computer system would have to interface not only with the HMRC’s computer systems but those of local authorities.

Let me look at these matters in a bit more detail. “Digital by default” sounds great in theory, but it might be more difficult to manage in practice because the number of people likely to be applying for universal credit who do not have access to a computer or are not digitally aware or computer literate will be much higher than in the general population. We are keen that the Government should lay out exactly what will happen in the case of claimants who are unable to make any kind of digital claim, because we understand that there will not be a paper form. Indeed, the Government expect that only 50% of claimants will make their claim online in 2013, when universal credit starts to be rolled out.

[Nigel Mills (Amber Valley) (Con)]

I congratulate the hon. Lady on her speech. Does she agree, though, that many people find the existing multiple claims processes very difficult to deal with and get right? Does she also agree that there are advantages to people using computers and becoming familiar with the internet because it will help them to get into work, where they may well be expected to do those things?

[Dame Anne Begg]

As we say in the report, it will not be a problem for the majority of people, but it will be for some. We must remember that the people who will get universal credit are not just run-of-the-mill out-of-work claimants; some will have very severe disabilities because employment and support allowance is part of the new system. Some people will have quite profound barriers to accessing benefits of any kind on the internet. We hope that they will have help, but it would be useful for the Government to spell out in more detail exactly how that help will be accessed.