← Back to House of Commons Debates
Underpayment of Benefits: Compensation
13 January 2022
Lead MP
David Rutley
Debate Type
Ministerial Statement
Tags
EmploymentBenefits & Welfare
Other Contributors: 18
At a Glance
David Rutley raised concerns about underpayment of benefits: compensation in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Minister apologised to Ms U for the experiences highlighted in the Parliamentary and Health Service Ombudsman's report. He reminded the House that ESA was introduced in 2008, and the Department began reassessing people on incapacity benefits from March 2011. The priority was ensuring claimants received the financial support they were entitled to. A special exercise was undertaken to review all cases potentially affected by underpayments, with up to 1,200 staff involved at peak times. The correction exercise was completed last year, and as of June 1st, 2021, approximately 600,000 cases were reviewed and 118,000 arrears payments totalling £613 million were made to eligible claimants.
Jon Ashworth
Lab
Derby South
Question
Ashworth paid tribute to welfare rights advisors and criticised the DWP's incompetence, citing a case where someone was forced to live on less than 50% of what they were entitled to. He asked if the injustice would be remedied via compensation as recommended by the ombudsman.
Minister reply
The Minister agreed with Ashworth’s comments about welfare advisors and confirmed that compensation payments will be made for Ms U's case. However, on broader compensation, he stated they received the report only recently and need to consider its recommendations carefully.
David Johnston
Con
Penrith and The Border
Question
Johnston asked for assurances that steps are being taken to prevent similar issues from happening again.
Minister reply
Lessons have been learned, and the Minister will work closely with other Ministers to see what further lessons can be learned as a result of this report.
Alan Brown
SNP
Kilmarnock and Loudoun
Question
Brown highlighted multiple issues including the underpayment scandal, pension cuts, and the cost-of-living crisis. He asked for specific timescales on providing justice to claimants and inquired about assessing extra top-ups.
Minister reply
Arrears have been paid to 118,000 claimants but additional processes are available for those who feel they should receive further compensation. The Minister agreed that increasing people's awareness of pension credits is necessary.
Bob Blackman
Con
Harrow East
Question
During the period of the inquiry, the benefits system was incredibly complicated and civil servants did not know which elements were mutually exclusive. Will the Minister ensure that the system is straightforward and people can understand it?
Minister reply
The Minister acknowledges the complexity of the current benefits system and recognises the need to communicate clearly with vulnerable individuals about available benefits.
Stephen Timms
Lab
East Ham
Question
What is the position regarding payment of interest in cases like these? Will the Department work out proactively who should receive compensation and report to the Select Committee on progress?
Minister reply
The Minister will respond appropriately to the report, noting that mechanisms are in place for those seeking further compensation. The Department will make appropriate responses to the Select Committee.
Question
Will the Minister commit himself to maintaining the resilience of universal credit as praised by the Resolution Foundation?
Minister reply
The Minister affirms the importance of maintaining the resilience of universal credit, acknowledging its role during the pandemic and commitment to continuous improvement.
Clive Efford
Lab
Eltham
Question
Will the DWP comply with the ombudsman’s recommendations for Ms U's case including an apology, compensation of £7,500, and interest on arrears?
Minister reply
The Minister assures compliance with the ombudsman’s recommendations and commits to providing the necessary compensation and interest promptly.
Florence Eshalomi
Lab Co-op
Vauxhall
Question
How many people in Vauxhall were impacted by underpayments, and when can they expect their compensation?
Minister reply
The Minister acknowledges the impact but lacks constituency-specific data. He assures that mechanisms are available for constituents to follow up on issues.
Question
Can the Minister assure that every possible effort will be made to prevent such incidents from happening again?
Minister reply
The Minister commits to learning lessons and taking proactive measures, noting previous actions taken in response to similar issues.
Wendy Chamberlain
Lib Dem
North East Fife
Question
What is the DWP doing when issues are highlighted by MPs or rights agencies to ensure they are dealt with at an early stage?
Minister reply
The Minister expresses a willingness to follow up on specific concerns and acknowledges the value of correspondence from MPs in informing departmental action.
Ian Mearns
Lab
Gateshead
Question
Would welfare rights workers be necessary if DWP was doing its work properly, efficiently, and timely? Will he outline how many people in Gateshead were affected?
Minister reply
The Minister acknowledges the necessity of welfare rights workers due to current system inefficiencies but lacks constituency-specific data and commits to follow up.
Kirsty Blackman
SNP
Aberdeen North
Question
Does the Minister agree that dignity and respect should be at the heart of social security decisions rather than being dragged to court or ombudsman?
Minister reply
The Minister understands the point but notes challenges such as taxpayer demands, acknowledging the Scottish Government's efforts in this area.
Diana R. Johnson
Lab
Kingston upon Hull North and Cottingham
Question
May I just say that it is very disappointing that this had to be an urgent question today, rather than a statement from the Government? It is also very disappointing that the Minister does not have the basic information that most constituency MPs will want to know, which is how many of our constituents have been affected by the maladministration of his Department. Can he reassure me that he will employ the same energy his Department uses to pursue those who receive overpayments to ensure that those people who should get compensation and payments for benefits that they did not receive will do so?
Minister reply
Yes. We are a very large operational Department that takes care of the needs of millions of people. It is disappointing to me when we make errors. I work as hard as I can day in, day out to ensure we do not make errors. Sometimes we do and they are genuine and then we need to rectify them speedily. Sometimes they are fraudulent situations, and when we have a figure of £8.4 billion for fraud, partly because of the increase in welfare payments around coronavirus, we have to go through procedures, because some people, sadly and disappointingly, are trying to rip off the taxpayer and take money away from people who deserve it. There is a difficult balance. I understand the point that the right hon. Lady makes and I can assure her I am working hard on those points.
Andrew Gwynne
Ind
Gorton and Denton
Question
It is not the first time that there has been a finding of maladministration at the DWP; there was a similar judgment on the pensions of 1950s-born women. That does prompt questions about the DWP’s competence. On this specific issue, I was going to ask the Minister how many people in the Denton and Reddish constituency are affected, but he does not have that data, which I find astounding, quite frankly. That is basic data that Members of Parliament need. Why is the onus on individuals to come forward to the DWP? Why is he not being proactive in going out to the individuals who are affected? That seems like common sense to me.
Minister reply
We were very active in engaging in with the 118,000 people to make sure that their arrears were paid. As I said, if people still believe that arrears are owed or that they should receive further compensation, they can get in touch with the available helplines. We will, as I said, consider and review the report, which we received—as it was published—only today.
Question
The Minister will know that the UK was found to be in breach of the human rights of people with disabilities by the United Nations special rapporteur on extreme poverty and human rights. He will know that some 7 million people live in food insecurity and food poverty in Britain. In Wales, we earn only 70% of the UK average, so thousands of vulnerable people in Swansea have been hit by this. Will he ensure not just that those people are paid, but that payments are made to charities for disabilities, and that we look again at universal credit uplift and perhaps a universal basic income so that the poorest do not continually fall through the net during the cost-of-living crisis?
Minister reply
I think I have highlighted what we are going to do in response to this particular situation. The hon. Gentleman makes some other points about what we are doing on food security and for those vulnerable people. As he knows, we have created an additional support fund—in England, it is called the household support fund—of £500 million across the UK. A chunk of that money—around £21 million, from memory; it is over £20 million anyway—has gone to Wales, and the Welsh Government are using it to help vulnerable people. We recognise that there are people who need further support.
Question
The Minister has said that we are talking about some of the most vulnerable people, so does he not think it shameful that 42% of families relying on disability benefits are still living in poverty? Can he tell us what long-term strategy his Government have to address that and lift those families out of poverty? Will he make sure that the DWP will permanently continue virtual and telephone health assessments to help remove some of the barriers for disabled people who need the support? Often, that is the most stressful part of the entire process of claiming support.
Minister reply
More needs to be done to make those processes simpler. Again, this specific area is not part of my portfolio or brief, but we have made significant progress in getting disabled people into work, and we want to move that forward with the disability strategy and a clear action plan. I know that my colleague the Minister for Disabled People will actively drive that forward across the nations, and will work very closely on that with the Scottish Government as well.
Jim Shannon
DUP
Strangford
Question
I thank the Minister for his replies. There is no doubt that the inaccuracy of benefit payments will have a detrimental impact on individuals and their families throughout the United Kingdom of Great Britain and Northern Ireland. Many of those 118,000 people are vulnerable and face the injustice of arrears. Those moneys belong to those people. Will the Minister confirm a timescale in which those affected are likely to receive their compensation? How many of the people to whom unpaid money is due are from Northern Ireland? What amount of money is due for Northern Ireland? I would appreciate an answer today, but if the Minister does not have the figures, I am very happy to wait for a written response.
Minister reply
The exercise to pay the arrears to the 118,000 people is complete. As of 1 June 2021, we have reviewed 600,000 cases. The 118,000 arrears payments were made to those who were eligible, and a total of £613 million has been paid. I will follow up on the hon. Gentleman’s other points.
Shadow Comment
Jon Ashworth
Shadow Comment
The shadow Minister paid tribute to the Greenwich Welfare Rights Service for their work. He criticised the DWP's incompetence and failure to provide compensation, which led to over 100,000 people unable to access benefits such as free prescriptions despite being highly vulnerable. The ombudsman ruled this maladministration and inconsistent with the Department’s own principles of remedy. Jon Ashworth called for remedying the injustice via compensation recommended by the ombudsman.
▸
Assessment & feedback
Summary accuracy
About House of Commons Debates
House of Commons debates take place in the main chamber of the House of Commons. These debates cover a wide range of topics including government policy, legislation, and current affairs. MPs from all parties can participate, question ministers, and hold the government accountable for its decisions.