Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the financial effect of the covid-19 outbreak on people on legacy benefits; and if she will make a statement.

Legacy benefits were increased by 1.7% in April 2020 following the Government’s announcement to end the benefit freeze and 0.5% this coming year.

We increased the Local Housing Allowance rates for Universal Credit and Housing Benefit claimants, so they now cover the lowest 30% of local rents. This increase, costing almost £1 billion, will mean that 1.5 million households see an increase, on average, of £600 this year. We also increased the additional earnings disregard in Housing Benefit to ensure increases in the maximum rate of the basic element of Working Tax Credit did not impact on a claimant’s Housing Benefit award.

We legislated to allow access to Employment and Support Allowance (ESA) from day one of a claim for Covid-19 related cases and we have made it easier to access ESA by launching a portal for new style ESA online claims.

It has always been the case that claimants on legacy benefits can make a claim for UC if they believe that they will be better off. There are special arrangements for those in receipt of the Severe Disability Premium, who are now able to make a new claim to UC. Claimants should check their eligibility before applying to UC as legacy benefits will end when they submit their claim and they will not be able to return to them in the future.

From 22nd July 2020, a two-week run on of Income Support, Employment and Support Allowance (IR) and Jobseeker’s Allowance (IB) is available for all claimants whose claim to UC ends entitlement to these benefits to provide additional support for claimants moving to UC.