DWP must not cut off benefits to thousands in move to Universal Credit, MPs warn

MPs have issued a warning to the DWP as thousands are moved to Universal Credit

Thousands of people will be plunged into “real-world misery” if their benefits are cut off as the Government moves them to Universal Credit goes wrong, MPs have warned.

A report says the Department for Work and Pensions (DWP) must ensure it helps claimants, some of whom are vulnerable, to switch from six “legacy” benefits including Jobseeker’s Allowance. It comes after Rishi Sunak vowed to “accelerate moving people from legacy benefits” onto Universal Credit.

This affects people still receiving Working Tax Credit, Child Tax Credit, Housing Benefit, Income Support, income-based Jobseeker’s Allowance, and income-related Employment and Support Allowance. Dame Meg Hillier, who chairs the Public Accounts Committee, said that the creation of Universal Credit was a massive change impacting millions.

“This means if the transition from legacy benefits to UC fails even an apparently small proportion of people, it will lead to real-world misery for thousands,” she said. “The DWP must make sure that people are not cast into financial hardship due to a bureaucratic change, and that robust support is in place for those vulnerable claimants who need it most.”

The PAC report says the DWP expects around 4% of claimants currently on “legacy” benefits would not switch to Universal Credit under a process known as managed migration. As of March last year, there were some 2.2 million households receiving legacy benefits.

The DWP has been working to move 900,000 of these to Universal Credit. The committee stated: “Although the department expects only around 4% of these claimants will not switch to Universal Credit, we would be very concerned if large numbers of these people did not transfer and were to lose their benefits.

“It is vital that the department helps these claimants to make the switch, including offering face-to-face support and making sure people fully understand the process, including the arrangements for transitional protection.” A National Audit Office (NAO) report in February warned that 21% of households claiming legacy benefits had not transferred to UC after receiving a notice to switch.

As a result they’d had these older benefits stopped. Alison Garnham chief executive of the Child Poverty Action Group (CPAG) said: “Warnings like the PAC’s are coming thick and fast as the DWP steamrolls on with managed migration, leaving vulnerable claimants in its wake – without the benefits they are entitled to and need.

“The department’s lack of concern that so many tax credit claimants haven’t moved to UC and have had their benefits cut off as a result is chilling. The DWP must put its spreadsheet targets aside, slow the roll-out of UC right down and come up with a safe process that won’t leave large numbers of claimants falling over a cliff edge into debt.

“The time to do this is now – not later, when even more claimants will be at risk.” A DWP spokesman said: “We disagree with these findings, which do not acknowledge that the vast majority of Tax Credit customers have successfully moved to Universal Credit. There is a range of support to help people move, including dedicated helplines, extensions and transitional protection for those who need it.

“Universal Credit is having a sustained positive impact on the jobs market, with people on Universal Credit more likely to be in work within three, six and nine months of their claim.”