Opposition Day debate on Universal Credit, House of Commons, 11 July 2018

We support the principle of Universal Credit, which is to incentivise work and increase income from employment. Councils want the transition to be a success, however there are concerns about funding reductions for the programme, the impact of the freeze to working age benefits, and shortfalls in funding for supporting claimants with additional needs.

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Key messages

  • We support the principle of Universal Credit, which is to incentivise work and increase income from employment. Councils want the transition to be a success, however there are concerns about funding reductions for the programme, the impact of the freeze to working age benefits, and shortfalls in funding for supporting claimants with additional needs.
  • Councils play an important role in managing the impacts of welfare reform in their communities. Many are reporting that Universal Credit appears to behaving a short-term adverse effect on the ability of some households to manage their finances. The Government needs to work with local authorities to prevent this.
  • Local authorities are working with the Department for Work and Pensions (DWP) to design and implement local support services. This includes administering Housing Benefit and providing Council Tax Support. To ensure Universal Credit is responsive to local need, this partnership must be strengthened and the role of councils formally recognised.
  • Rolling out the Universal Credit programme has been a hugely complex task for the Government. The current emphasis on process over outcome is reflected in the Government’s narrow prescription of the support councils are being asked to offer. This has been detrimental to the wider strategic objective of improving the relationship between work and welfare.
  • The transition to a single welfare payment may have a greater chance of achieving successful outcomes for individuals if assessed alongside existing pressures. These include the unaffordability of the private housing market, coupled with the Local Housing Allowance rate freeze and the shortage of social housing.

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Opposition Day debate on Universal Credit, House of Commons, 11 July 2018