Universal Credit rollout for 3million people could be scrapped over concerns of ‘catastrophic’ effects on claimants
Amber Rudd will no longer seek a vote to allow all existing claimants of relevant benefits to be moved to the new system
THE next phase of the Universal Credit rollout for 3million people could be scrapped amid concerns of the "catastrophic" effects the new system has on claimants.
Work and Pensions Secretary Amber Rudd is to ditch an imminent Commons vote on plans allowing all existing claimants of relevant benefits to be moved on to the new all-in-one payment.
Instead she plans to seek approval to move just 10,000 claimants on to UC to monitor the way the new system works.
Committees in both Houses of Parliament had raised concerns about the plan to move around three million claimants on to UC and the Government faced losing a Commons vote on the "managed migration" programme.
Allies of the Work and Pensions Secretary insisted the decision to overhaul the migration was not due to fear of a Tory revolt but because it was the right way to handle the change.
And Ms Rudd said today she wanted to roll out the system "carefully".
The change comes after Ms Rudd took over from Esther McVey at the Department for Work and Pensions in November.
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The news comes after The Sun launched its Make Universal Credit Work campaign last month, demanding changes to the flagship policy before it's too late.
We've told how Brits are drowning in debt waiting for their first payment and are struggling with getting their childcare costs paid back to them.
Theresa May said today that more information would be revealed in the coming days.
She told the BBC this morning: "Throughout the intro of Universal Cred we have been clear we would roll out as a slow process, learn as we go along.
"We have made changes... We will be saying more about future in the coming weeks."
Tory MP Nick Boles praised Ms Rudd's decision to hit pause on the rollout.
He said: "She is really showing the difference that can be made by a confident Secretary of State who knows her own mind."
The Sun wants to Make Universal Credit Work
Universal Credit replaces six benefits with a single monthly payment.
One million people are already receiving it and by the time the system is fully rolled out in 2023, nearly 7 million will be on it.
But there are big problems with the flagship new system - it takes 5 weeks to get the first payment and it could leave some families worse off by thousands of pounds a year.
And while working families can claim back up to 85 per cent of their childcare costs, they must find the money to pay for childcare upfront - we’ve heard of families waiting up to 6 months for the money.
Working parents across the country told us they’ve been unable to take on more hours - or have even turned down better paid jobs or more hours because of the amount they get their benefits cut.
It’s time to Make Universal Credit work. We want the government to:
- Get paid faster: The government must slash the time Brits wait for their first Universal Credit payments from five to two weeks, helping stop 7 million from being pushed into debt.
- Keep more of what you earn: The work allowance should be increased and the taper rate should be slashed from from 63p to 50p, helping at least 4 million families.
- Don’t get punished for having a family: Parents should get the 85 per cent of the money they can claim for childcare upfront instead of being paid in arrears.
Together, these changes will help Make Universal Credit Work.
Join our or email Universa[email protected] to share your story.
A source said Ms Rudd had taken a "no-holds-barred" approach and wanted a "fresh mandate" from Parliament for the rollout of UC once it had been trialled.
reported Ms Rudd is expected to announce the proposed pilot scheme within days.
Since taking the Work and Pensions brief she has signalled that she wants to make changes to UC and demand more money from the Treasury for the system.
The process of moving all claimants to the new system is due to be completed by the end of 2023.
A Whitehall source said: "Amber has come into the Department and taken a no-holds-barred approach to reform.
"Therefore she wants Universal Credit to receive a fresh Parliamentary mandate and being personally sure the system is working in the interests of every claimant.
"So she will move 10,000 claimants, and carefully monitor this, before returning to Parliament to report on her findings and seek that fresh mandate for the full roll-out."
Frank Field, Labour chairman of the Commons Work and Pensions Committee, said: "The Government seems finally to have woken up to the human catastrophe that was waiting to happen under its ill-formed plans for moving people on to Universal Credit."
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Paul Farmer, head of the mental health charity Mind, said: "There are hundreds of thousands of people with mental health problems yet to move across to Universal Credit and we have been clear that pushing ahead with these plans would be catastrophic for people who are too unwell to navigate the complex and often bewildering process of making a new claim."
Universal Credit replaces six existing benefits — Employment Support Allowance, Income Support, income-based Jobseeker's Allowance, Housing Benefit, Working Tax Credit and Child Tax Credit — with a single payment.
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