Speaking in today’s Debate on Universal Credit, North Wales Assembly Member Mark Isherwood said new evidence has revealed that people are moving into work faster and staying longer in their job as a result of Universal Credit.
He also acknowledged both concern about the roll-out of Universal Credit and the support for Universal Credit claimants (‘Universal Support’) provided by the UK Government, but said the Welsh Government need to be asked why ‘Universal Support’ isn’t operating better in Wales.
Speaking in the Chamber he said:
“When the Centre for Social Justice envisaged Universal Credit, they found that most people claiming benefits wanted to work but were held back by a system which did not incentivise employment.
“They found that despite a massive redistribution programme, Worklessness was becoming ingrained in many parts of the country.
“Research found that Universal Credit claimants in the initial roll out were 13 per cent more likely to have been in work than those on Jobseeker’s Allowance, and earning more money than those on Jobseeker’s Allowance.
“Evidence today shows people are moving into work faster and staying longer in their job as a result of Universal Credit. Claimants will no longer need to go through the bureaucracy of changing their benefit claim when they enter work, as Universal Credit stays with them.
“Advances are available for anyone who needs it – and around half of people take this up. For those who cannot wait until their first full payment, interest-free benefit payment advances are available within five working days. If someone needs it urgently, this can be made on the same day. Over 50 per cent of new claimants have made use of these payments.
“Over three-quarters of tenants were already in rent arrears before they started claiming Universal Credit – but after four months on Universal Credit this had fallen by a third.
He added:
“It has always been recognised that although most people on low incomes manage their money, some will need extra support – which is why the UK Government issued the ‘Universal Credit Local Support Services Framework’, in February 2013, developed between the DWP and partners including the Welsh Local Government Association.
“This ensures that claimants who are not yet ready to budget for themselves on a monthly basis, or are unable to use the internet, are protected and assisted onto the new system; that claimants who have debt problems or other vulnerabilities such as poor numeracy skills, substance abuse or mental health issues are given practical support at the onset of their claim through a network of local services, and that alternative payment arrangements will be available to help claimants who need additional support:
“This now comes under the banner “Universal Support”. As I highlighted in this Chamber 4 years ago, DWP officials had been working with the Devolved Administrations since March 2012 on plans for Universal Credit roll out - and we must therefore ask the Welsh Government why Universal Support isn’t operating better in Wales.”