The Minister for Welfare Reform takes issue with assertions in a post on the PF Blog yesterday and says the government is committed to protecting vulnerable claimants throughout the transition to Universal Credit
Nigel Keohane of the Social Market Foundation has raised some interesting points on the PF Blog around support for claimants of Universal Credit that I would like to clarify.
We are paying Universal Credit monthly to reflect the fact that 75% of people in work are paid that way. The system will be designed as an online service, where people can make a claim and report changes just as they do with online banking.
And although we know the majority of people on low incomes manage their money well, we recognise that some Universal Credit claimants will need extra support.
First and foremost, we are making sure that face-to-face and telephone support remains in place for those who need it.
We are also looking at how banks and credit unions can offer suitable budgeting accounts so that claimants can budget and put by sums of money each month to pay their rent and household bills.
Alongside we will ensure vulnerable claimants, such as people with debt problems or those with poor numeracy skills, are given practical support at the onset of their claim.
We are also testing the direct payment of Housing Benefit to tenants in the social rented sector in six areas across England, Scotland and Wales ahead of the introduction of Universal Credit to make sure we understand the implications for both claimant and landlords.
Early findings from the projects showed just 54% of respondents thought they would be able to manage direct payment of housing benefit. In fact, around 90% of payments are being made on time.
I am heartened that Nigel recognises the steps we are taking to ensure that vulnerable claimants are supported. As he says in his article, the Department for Work & Pensions and Local Government Association have only this week published a Local Support Services Framework, which sets out the principles for that support.
He also mentions that claimants will be able to access a Universal Credit Personal Planner. But he has misunderstood its true purpose. It’s not designed to define or identify 'vulnerability'. It is, in fact, designed to help claimants understand their readiness for Universal Credit – producing a personalised action plan and links to national organisations for advice on getting online and personal budgeting.
The planner is an added-value tool – but the decision to make an alternative payment arrangement will be made following a conversation between the claimant and a Universal Credit adviser or a landlord and not as a result of a statement issued by the planner.
The process of making exceptions to the standard Universal Credit payments is now set out in guidance.
In just under two months time, Universal Credit will go live in the Greater Manchester and Cheshire regions to test the system with claimants, employers and local partners in a live environment.
The programme will roll-out nationally from October 2013 as planned. We will do all this in a controlled way, which is right and appropriate for such a large programme.
This will be a gradual process to ensure we do get it right. And we’re committed to protecting vulnerable claimants throughout the transition to the new benefit.
Lord Freud is the Minister for Welfare Reform
