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Universal Credit: Court of Appeal Judgment
25 June 2020
Lead MP
Stephen Timms
Debate Type
General Debate
Tags
TaxationEmploymentBusiness ComplianceBenefits & Welfare
Other Contributors: 34
At a Glance
Stephen Timms raised concerns about universal credit: court of appeal judgment 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:
Lead Contributor
Opened the debate
Universal Credit claimants are facing financial instability due to the system treating double payments as a significant increase in earnings, leading to benefit reductions and reapplication issues. The Court of Appeal ruling found the policy 'irrational', urging immediate action from the Department of Work and Pensions.
Will Quince
10:31:00
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.
Stephen Timms
Lab
East Ham
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.
Mark Harper
10:31:00
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.
Jonathan Reynolds
Lab Co-op
Stalybridge and Hyde
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.
Richard Holden
Con
Basildon and Billericay
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.
Will Quince
Con
Brentwood
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.
Jerome Mayhew
Con
Broadland and Fakenham
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.
Jim Shannon
DUP
Strangford
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.
James Sunderland
Con
Bracknell
Concerned about the minimum income floor for individuals working in the creative arts sector, asking if it will be maintained for the foreseeable future.
Marco Longhi
Con
Woking
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.
Ben Spencer
Con
Runnymede and Weybridge
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'.
Blackpool North and Fleetwood
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.
Selaine Saxby
Con
North Devon
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.
Jessica Morden
Lab
Newport East
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.
Will Quince
Con
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.
Nigel Mills
Con
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.
Ronnie Cowan
Ind
Critiqued the welfare system as failing and asked for Government support to collaborate on basic income pilots in Scotland.
Andrew Griffith
Con
Arundel and South Downs
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.
Mary Foy
Lab
City of Durham
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.
Robert Halfon
Con
Complimented staff at Harlow jobcentre for their efforts and raised concerns about childcare costs impacting single parents' financial decisions negatively under universal credit.
Neale Hanvey
SNP
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.
Debbie Abrahams
Lab
Oldham East and Saddleworth
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.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
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.
Bob Blackman
Con
Harrow East
Asked the Minister to consider a system whereby an alert is triggered when people's pay suddenly increases, allowing for corrections in benefit levels.
Will Quince
10:31:00
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.
Hywel Williams
10:31:00
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.
Will Quince
10:31:00
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.
Steve McCabe
10:31:00
Inquired if the Minister's solution would consider real income as opposed to the Department’s assumptions about earned income based on assessment periods.
Will Quince
10:31:00
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.
Chris Stephens
10:31:00
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.
Will Quince
10:31:00
Offered to look into the case in detail and was willing to meet Chris Stephens to discuss passported benefits further.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
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.
Will Quince
10:31:00
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.
Government Response
The Department will not appeal and is looking at remedial options to address budgeting issues caused by double payments, working closely with HMRC to ensure accurate reporting. The scope of the case is limited, affecting around 1,500 claimants out of 5.2 million universal credit recipients. Acknowledges complexity of issue, stresses importance of monthly assessment period to mirror world of work. Discusses positive aspects and resilience of the system, commitment to finding a fix. Defended the Government’s quick action and emphasised the benefits of universal credit despite criticisms. Stressed the importance of employer compliance with HMRC guidance for effective operation. Addressed several concerns raised by MPs, including suggestions for improving Universal Credit's responsiveness to income fluctuations and addressing financial impacts on constituents.
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