IRRV Alert - week ending 19th October 2018
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Universal Credit: Red lines and running costs
Universal Credit: Red lines and running costs
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Evidence sessions
The Committee holds two evidence sessions this week, focussed on the impact of DWP’s rollout of Universal Credit and migration of existing claimants onto the new, unified benefit, which replaces six “legacy” benefits.
Amid growing concerns about the Government’s approach the Chair last week wrote to the NAO and DWP on the "red lines" or key tests DWP should set for itself, and meet, before it “contemplates extending” Universal Credit any further, to new or existing claimants.
Committee to question department on its running costs
In the first session this week, on Wednesday 17th (when there will be an Opposition Day debate on Universal Credit in the afternoon), the Committee will question Department officials on achieving the expected reduction of its Departmental Expenditure Limit: in particular how the Government will simultaneously cut its running costs, and achieve, and maintain, satisfactory service levels while also migrating existing claimants on to Universal credit and rolling it out to new areas.
This is an especially acute issue in the context of the NAO’s recent report on Universal Credit, which cast doubt on whether DWP will ever realise the efficiency savings it has claimed as a key benefit of the flagship welfare reform. The report conversely suggested that Universal Credit may ultimately cost more than the legacy benefits it replaces: Shambolic” Universal Credit may never realise promised benefits
The Department faces further expenditure issues in the administration of PIP and ESA benefits, having apparently conceded that the contracted-out medical assessments for the benefits might have to be brought back in house: PIP assessments: Atos and Capita on notice to “start delivering, or else”
Urgent session on managed migration of Universal Credit
In response to the Chair’s request on UC “red lines”, Employment Minister Alok Sharma will give evidence in a second, urgently convened session this week on Thursday 18th. This will focus on how the Department will make the decisions on whether to start, delay, or pause the process of managed migration, and whether it will apply the key tests the Chair has requested the NAO put forward.
The Committee will also look at the support available to claimants as they are migrated onto UC, and how the Department will go about understanding and identifying those in need of support.
Witnesses
Wednesday 17 October 2018 - Universal Credit rollout
Wilson Room, Portcullis House
At 9.30am:
- Peter Schofield, Permanent Secretary, Department for Work and Pensions
- Nick Joicey, Finance Director General, Department of Work and Pensions
- Tara Smith, Finance Director Central Services, Department of Work and Pensions
Thursday 18 October - Migration of existing customers
Grimond Room, Portcullis House
At 11.00am:
- Alok Sharma MP, Minister for Employment, Department for Work and Pensions