Universal Credit: Court of Appeal Judgment

The Government has accepted the Court's judgment and will not appeal. The issue affects around 1,500 claimants out of 5.2 million universal credit recipients. While immediate solutions are complex due to current pressures on the department, efforts are underway with HMRC to address employer reporting issues.

Urges the Department to provide more details about the number of affected individuals and to expedite system fixes. Emphasises that the Court's decision highlights the irrational nature of the policy, affecting claimants' financial stability.

Welcomes the Government’s decision but stresses the complexity of implementing a fix and the need to ensure universal credit remains aligned with its purpose of ensuring people are better off in work. Requests an update before the summer recess.

Questions the rationale behind fighting this case for so long, highlighting that universal credit's rigidity undermines its flexibility claims. Calls for a review of policies including the five-week wait to improve fairness and effectiveness.

Acknowledges the extra £7 billion investment in welfare during the pandemic, benefiting approximately 10 million families. Commends the Government for supporting those facing financial disruption through universal credit.

Acknowledges the complexity of the issue raised by Neil Grey and agrees that it is not a simple fix. Stresses the importance of maintaining a monthly assessment period to mirror the world of work, and notes that over 75% of people in this country are paid monthly.

Points out that about 1.24 million new applicants relied on the universal credit system to process their claims within days during March, highlighting the positive aspects of the automated digital system introduced by the Government.

Expresses satisfaction with the court decision and the Minister's response. Asks if the mistake will be retrospectively corrected and inquires about help for those who took out loans to cover the month where they lost full payment.

Concerned about the minimum income floor for individuals working in the creative arts sector, asking if it will be maintained for the foreseeable future.

Comments on the resilience of the universal credit system under pressure during recent weeks and highlights that only 10 inquiries relating to UC were encountered out of thousands of other cases received by his office.

Acknowledges the ability of the computer system to deal with an unprecedented crisis but raises concerns about the inflexibility that comes with automation, questioning if this is a case of 'computer says no' or 'computer says not yet'.

Raises concern over the suffering many people on low incomes have endured due to the Government's failure in addressing this flaw. Asks for urgent attention to cases of constituents who have been affected.

Acknowledges the success and robustness of the computer system behind universal credit but suggests that human intervention might help prevent cases from falling through the cracks when the computer says no.

Draws attention to a problem with the UC system, questioning why under-25-year-old single parents receive less on UC than they would have done under legacy benefits.

Defended the Department's actions in operationalising measures quickly to help those financially disadvantaged due to covid-19. Acknowledged that legacy benefits will be reviewed and uprated ahead of April 2021 as usual. Exploring timing of assessment periods, considering feedback from experienced members like Nigel Mills but noting challenges with changing them. Emphasised the system's handling of claims since March and criticised Labour for not having a replacement plan.

Asked if there is merit in reviewing the timing of assessment periods to align with end-of-month dates, suggesting this could resolve recurring issues.

Critiqued the welfare system as failing and asked for Government support to collaborate on basic income pilots in Scotland.

Suggested there is dignity in an automated, modern benefits system that simplifies processes. Suggested employers should align their dates with the system for employee benefit.

Congratulated women on a social justice victory and criticised the Government's pursuit of a case to the Court of Appeal, arguing that universal credit does not work for people like them.

Complimented staff at Harlow jobcentre for their efforts and raised concerns about childcare costs impacting single parents' financial decisions negatively under universal credit.

Welcomed the Government's decision not to prolong court cases but questioned the Department’s reasons for flawed approaches, asking for clarity on their defences in recent Court of Appeal decisions.

Raised concerns about the unfairness of universal credit's assessment period issues affecting individuals like Danielle who lost £500 annually, questioning why these problems occur despite an agile system.

Highlighted the importance of advance payments for over a million claimants and praised universal credit's ability to provide support quickly during the pandemic.

Acknowledged staff efforts but criticised the failure in identifying affected individuals. Suggested using algorithms with human checks for fair treatment, requesting assurance on Department's actions to identify those affected.

Asked the Minister to consider a system whereby an alert is triggered when people's pay suddenly increases, allowing for corrections in benefit levels.

Acknowledged Bob Blackman’s suggestion and expressed willingness to explore it. Emphasised the benefits of real-time earnings information in Universal Credit compared to the legacy system. Stated that once fully rolled out, Universal Credit will be £2 billion more generous a year than the old system.

Welcomed the court’s judgment and Minister's response but highlighted flaws in Universal Credit. Asked for a devolution of aspects of social security administration to Wales.

Responded that the suggestion may be addressed by the Secretary of State and highlighted the benefits Universal Credit offers, including financial support for disabled households and unclaimed benefits under the old system.

Inquired if the Minister's solution would consider real income as opposed to the Department’s assumptions about earned income based on assessment periods.

Defended the assessment period as fundamental to the design. Noted that while there are fluctuations, they affect a small number of people and highlighted that Members’ postbags do not contain many complaints about Universal Credit.

Asked for discussions with local government to ensure claimants do not have bills they cannot afford due to Department's errors, citing an example of a constituent who has faced significant increases in council bills.

Offered to look into the case in detail and was willing to meet Chris Stephens to discuss passported benefits further.

Critiqued the Minister's lack of contrition regarding mistakes made with Universal Credit, emphasising financial impacts and loss of trust in government among constituents. Asked for an apology and lessons to be learned.

Asserted that Universal Credit is working well and acknowledged continuous improvements based on feedback from Members, stakeholders, and the public. Suggested Opposition should work with the Government to improve the system further.