In the news

SEPTEMBER 2019

More changes to reporting of UC childcare costs

LATEST UPDATE Since this news page was first published, the DWP has further updated this procedure in a written statement to parliament (9th September) so that parents now have 'an additional month' to report childcare costs.

The government had previously unexpectedly changed the reporting procedure for childcare costs in UC (4th September).

​

In an unforeseen and unmarked amendment to its most recent edition of Touchbase Edition 136 (issued 9th August and updated on 4th September), the procedure to report costs had previously changed from 'within 30 days' to 'with good reason'.

​

Following the 4th September amendment, and in response to a question in parliament, DWP Minister Mims Davies has since said that parents will be able to ask their Work Coaches for the Flexible Support Fund (FSF) in order to pay 100% of  childcare costs upfront.

Childcare costs reported after UC assessment period 'without 'good reason' will not be paid but FSF can be used.

Spending Round gives £40m for private DHPs

The Autumn Spending Round has promised £40m for Discretionary Housing Payments (DHPs) to claimants in private housing in England and Wales, following a report by the Residential Landlords Association saying the UC has affected rent payments to private landlords.

​

Sajid Javid's first Spending Round as Chancellor of the Exchequer also allocated an additional £36m to ensure that DWP decision-making is accurate and application processes are straightforward and safeguarding is improved.

​

In addition, as part of his £106m Plan for DWP Excellence, Mr Javid has included £7m to expand Jobcentre support in schools and £23 for 'a range of other plans', including support for recent veterans of the Armed Forces, for vulnerable people migrating to UC and outreach activities for those who are homeless. 

Sajid Javid's first Spending Round was fast tracked to 'clear the ground ahead of Brexit'.

Funeral Expenses Payments process improved

Recent changes to the Funeral Expenses Payment process mean that a claim can be made before the date of the funeral is finalised.

A DWP press release says that the new process means that rather than needing a funeral invoice as evidence of cost, families can submit their contract with the funeral director. This will be accepted as long as all other key information has been provided, which should significantly speed up the payment of claims.

UC design + inadequate LHA rates = family hardship

The design of Universal Credit combined with inadequate local housing allowance rates is pushing families unnecessarily towards hardship, rent arrears and homelessness, according to a Shelter report.

​

In its report 'From the Frontline', the national housing charity says that if these issues were rectified, Universal Credit could make a 'historic difference' but that 'the programme will not function as intended without tackling both'.

Managed migration pilot reveals more cracks

UC assessment period remains while case continues

The DWP will continue to block UC payments to working UC claimants who receive more than one payment for work within a single UC assessment period until their case has been heard by the Court of Appeal.

​

A High Court decision in January 2019 found that multiple payments within the monthly UC assessment period were unlawful but, according to a Commons Library briefing,  the government is using 'the powers of social security law' to bypass the ruling until the case is completely closed.

Six Pins & Half a Dozen Needles: Sculpture by Alex Chinneck outside Assembly London.

The pilot for managed migration to Universal Credit has opened yet another can of legal, political and practical UC worms since its launch in Harrogate in the last week of July.

First, the legality of the pilot is in question - it commenced before there was time for its regulations to be scrutinised by parliament. The House of Lords said the government  had been disrespectful to start the pilot without prior parliamentary debate and went onto express their 'surprise and disappointment' that a negative procedure was followed to enable the launch.

This led to members of the Opposition tabling an Early Day Motion which seeks to annul the statutory instrument governing the managed migration regulations. UC Change Director Neil Couling countered that any such annulment would lead to a block on SDP payments to the most vulnerable.

​

And as all other government business takes second place to the ongoing Brexit debacle, it is unclear if or when the Early Day Motion will go through parliament. In the meantime, Couling has told the W&P Committee that they had 'already started the learning' from morning one.  Hmmm.

Compensation paid to SDP claimants

The first former Severe and Enhanced Disability Premium (SDP and EDP) claimants have received payments for lost income since their forced migration to UC.

​

The first payments were timed and promoted by the government to deflect attention from their over-hasty managed migration pilot launch (see above) .

According to UC Change Director Neil Couling, any shortfall between these amounts and former legacy benefits was because these payments were 'compensation' rather than 'transitional protection'.  This shortfall has since been the subject of letters to and from Mr Couling from NAWRA (National Association of Welfare Rights Advisors).

​

A third challenge to the government on behalf of those who previously received both the SDP and EDP and were moved onto UC before 16 January 2019 has been taken up by Leigh Day Solicitors.

​

The government has since issued guidance for those seeking transitional protection for loss of the SDP and with compensation and TP payments amounting to £16m having been paid up to the end of August, and average payments of £2000 per claimant, there is some good news to report.

​

However, the government has also simultaneously backtracked on providing transitional protection for those who only receive their SDP via housing benefit but do not receive an unemployment benefit, such as income related ESA. This will affect people with other income sources, such as  a private pension or partner's income.

​

We will be further discussing this and other issues affecting people migrating to Universal Credit, on our forthcoming  Universal Credit Overview course in  London on 30th October, for which some places are still available.