Finance boss calls for halt to ‘damaging’ Universal Credit roll-out

Cllr Rebecca Rennison, cabinet member for finance and housing needs. Photograph: Hackney Council

Hackney’s finance chief has called for a halt to the “damaging” roll-out of Universal Credit (UC) across the borough, in the wake of former prime minister John Major comparing the new benefit system to the notorious poll tax.

Cllr Rebecca Rennison (Lab, Kings Park), cabinet member for finance and housing needs, wrote to Secretary of State for Work and Pensions Esther McVey in September to urge to address issues with the system.

However, the council’s fears around UC’s implementation remain unassuaged.

Cllr Rennison said: “I can see nothing new from the government that suggests the changes needed to protect people from the most damaging elements of Universal Credit have been introduced.

“We will do everything we can to support people with limited access to, or experience of, digital technology in Hackney.

“Universal Credit’s delivery as an entirely online benefit will act as a barrier to many people accessing the support they need and are entitled to.

“We will do everything we can to support people living in Hackney as Universal Credit is introduced, but ultimately the government needs to recognise the harm this benefit is causing and halt its damaging roll-out.”

Universal Credit is a single monthly payment combining six former benefit payments – child tax credit, housing benefit, income support, income-based jobseeker’s allowance (JSA), income-related employment and support allowance (ESA), and working tax credit.

All new benefit claimants in Hackney, as well as existing ones who have experienced a change in their circumstances, were transferred to Universal Credit on 3 October.

A report by the National Audit Office (NAO) in June concluded that UC “has not delivered value for money and it is uncertain that it ever will”, citing evidence that many people have suffered difficulty and hardship during the roll-out.

In March, 21 per cent of claimants did not receive their full entitlement on time, with 13 per cent receiving no entitlement on time.

The DWP has said that from April 2018 the government also continues to pay Housing Benefit claimants’ rent for two weeks when moving onto UC.

The NAO did add that, as the changes had now become embedded in the system, that there was no practical alternative but to continue with UC, which was designed as a simple and flexible system with the goal of increasing properly-rewarded employment for those able to work.

Borough-specific concerns raised by Cllr Rennison regarded the impact of the online-only applications process on digitally excluded Hackney residents, as well as questioning what work had been done to make sure claims were being paid out on time.

The finance boss specifically raised concerns as to how UC will impact members of Hackney’s Orthodox Jewish community “whose access to technology is restricted for religious and cultural reasons”.

Janet Zamornii, customer services operations manager for Dalston Jobcentre Plus, said: “UC offers tailored support, which includes more personalised help from a work coach.

“The new system is also more flexible, which means people can take on short-term work to develop their skills and build up their experience.

“Our staff are trained to support people throughout the claim process. We’d encourage anyone who needs extra help or information to come and talk to their work coach.”

Alok Sharma, minister for employment, added: “UC is central to our commitment to help families improve their lives by moving into work.

“We know it’s working – with Universal Credit people are moving into work faster and staying in work longer than under the old system.”

Hackney has experienced delays with UC prior to the roll-out, with the scheme originally intended for implementation in the borough in June.

The council previously employed the services of consultancy Policy in Practice (PiP) to analyse the potential impact of controversial changes to its council tax reduction scheme.

PiP is run by Deven Ghelani, who was described in a column for the Guardian newspaper in 2013 as the “architect of Universal Credit”.