William Eichler 23 July 2019

Universal Credit should come with ‘health warning’, MPs say

The Department for Work and Pensions should develop ‘clear and comprehensive guidance’ on when a benefit claimant is to be moved onto Universal Credit, MPs have said.

A new report into the Government’s flagship welfare reform from the Work and Pensions Committee has criticised the ‘six-in-one’ benefit and said it should ‘come with a health warning’.

The DWP’s policy of ‘natural migration’, where a claimant is moved from legacy benefits onto Universal Credit, can leave claimants worse off and without the option of returning to their previous benefits – what the department calls the ‘lobster pot’.

The Work and Pensions Committee found that disabled adults and children are among the groups most likely to see their income fall when they move to UC via natural migration. Bereaved people are also likely to be hit hard.

The committee, which is chaired by Frank Field, warned that the circumstances under which someone is moved onto UC are ‘so complex, it baffles even experienced benefit advisers.’

The DWP should work with stakeholders, Mr Field said, to formulate clear guidance on the circumstances under which a claimant will be moved onto Universal Credit.

‘In the history of humankind, has there ever been an example of a Government introducing a fundamental welfare reform and none of its employees being able to tell if it will leave people better or worse off?’ he said.

‘Hardly surprising that baffled and anxious claimants are finding themselves trapped in what the Department chillingly calls the “lobster pot” of Universal Credit, and with much less to live on as a result.

‘The UC application page needs to come with a health warning, and anyone who gets inadvertently caught in DWP’s lobster pot should be compensated.’

A DWP spokesperson said: 'Universal Credit helps people into work faster than the old system and provides targeted support.

'Around one million disabled households will gain an average of £100 more a month, and changes to work allowances mean 2.4 million households will be up to £630 per year better off.'

SIGN UP
For your free daily news bulletin
Highways jobs

Registered Building Inspector (Band 2/Grade 7)

Health and Safety Executive
£60,760 - £65,776
The Building Safety Regulator (BSR) is transforming building safety regulation across England. United Kingdom / various Locations
Recuriter: Health and Safety Executive

Revenues and Recovery Team Leader

Ashfield District Council
£37,938 - £40,476 per annum (pay award pending)
We have an exciting opportunity for a Revenues and Recovery Team Leader Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Housing Options Officer

Ashfield District Council
£31,067 - £33,366 per annum (pay award pending)
Do you want to make a real difference to the lives of residents in housing need? Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Building Services Operative

Ashfield District Council
£25,584 - £27,269 per annum (pay award pending)
The Facilities team are looking to recruit an enthusiastic individual Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Street Cleansing Technician (CDC)

City Of Doncaster Council
Grade 5, £24,397 per annum (pay award pending)
Do you enjoy working outside, as part of a team that make a direct difference to the communities of Doncaster? Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council
Linkedin Banner