Second Report - Welfare policy in Scotland

Select Committee
Scottish Affairs Committee HC 55 23 June 2021
Report Status Government responded
Conclusions & Recommendations 148 items (37 recs)
Government Response (AI assessment · 148 of 148 classified)
Government response
First Special Report - Welfare policy in Scotland: UK and Scottish Government Responses to the Committee’s Second Report · published 19 Nov 2021

Recommendations & Conclusions

27 results
18 Recommendation Rejected
Para 111
We recommend that the UK Government closely review the issue of making permanent the £20...
Recommendation
We recommend that the UK Government closely review the issue of making permanent the £20 uplift in the run up to the expiration of this policy at the end of September 2021, whilst also taking into account the significant financial … Read more
Government Response Summary
The government rejects the recommendation to extend the £20 uplift to legacy benefits, stating there was never a plan to do so, and implies the uplift for UC was a temporary measure during the pandemic, now focusing on the 'Plan for Jobs' for economic recovery.
Scotland Office
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19 Recommendation Rejected
Para 112
We also recommend that DWP raise the work allowance for Universal Credit claimants and re-establish...
Recommendation
We also recommend that DWP raise the work allowance for Universal Credit claimants and re-establish work allowances for single adult claimants so that they can keep more of the money they earn, to allow them to work their way out of poverty.
Government Response Summary
The government rejects the recommendation to extend work allowances to single adults, stating it has no such plans and that work allowances are targeted at those with the greatest barriers to the labour market. It highlights previous increases and annual uprating.
Scotland Office
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20 Conclusion Rejected
Para 122
We welcome the improvements made to the advance payment system, such as the doubling of...
Conclusion
We welcome the improvements made to the advance payment system, such as the doubling of the amount of time to repay, and a reduction in the rate at which deductions can be made. We also acknowledge the advance system is … Read more
Government Response Summary
The government explains the existing advance payment system, including extended repayment periods, and rejects non-repayable advances due to fraud risk, administrative burden, and high costs.
Scotland Office
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21 Recommendation Rejected
Para 123
We recommend that the DWP consider alternative arrangements to the five week wait for a...
Recommendation
We recommend that the DWP consider alternative arrangements to the five week wait for a first payment and associated advances system (which currently acts as an interest free loan) and should consider again the recommendation from the Work and Pensions … Read more
Government Response Summary
The government rejects alternative arrangements like a 'starter payment', defending its existing New Claim Advances system and citing increased fraud risk, administrative burden, and high costs for non-repayable grants.
Scotland Office
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23 Recommendation Rejected
Whilst the economy is in the midst of recovering from the covid-19 pandemic, and with...
Recommendation
Whilst the economy is in the midst of recovering from the covid-19 pandemic, and with the jobs market in great difficulty and 490,000 people (as of March 2021) in Scotland claiming Universal Credit, based on the overwhelming evidence from witnesses, … Read more
Government Response Summary
The government rejects the recommendation to pause sanctioning, stating that Work Coaches already ensure claimant commitments are reasonable and consider Covid-19 circumstances, and existing appeal and hardship payment processes are in place.
Scotland Office
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94 Recommendation Rejected
We recommend that there should be an increase in resources and support for claimants who...
Recommendation
We recommend that there should be an increase in resources and support for claimants who struggle or cannot make a claim online—for example telephone and or video call appointments. The DWP should provide more financial resources for the Help to … Read more
Government Response Summary
The government rejects the call for increased resources, stating existing provisions are sufficient, including the Freephone helpline, Jobcentre support, recruitment of additional Work Coaches, and continued funding for Citizens Advice Scotland's Help to Claim service.
Scotland Office
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98 Conclusion Rejected
Many of the stakeholders told us that increasing the amount of money that claimants receive...
Conclusion
Many of the stakeholders told us that increasing the amount of money that claimants receive through Universal Credit would be effective in reducing poverty in Scotland. We heard from Kirsty McKechnie at the Child Poverty Action Group that ‘the way … Read more
Government Response Summary
The government stated that the Universal Credit uplift was temporary, focusing instead on supporting people back into work through schemes like Kickstart rather than a permanent increase in benefits.
Scotland Office
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102 Recommendation Rejected
We are also aware of other Parliamentary Committees and statutory bodies that have investigated the...
Recommendation
We are also aware of other Parliamentary Committees and statutory bodies that have investigated the issue of making the £20 uplift permanent and extending it to legacy benefit claimants. The Work and Pensions Select Committee recommended in their Report into … Read more
Government Response Summary
The government rejected making the £20 uplift permanent or extending it to legacy benefits, stating the uplift was temporary and focused on Universal Credit/Working Tax Credit claimants due to the pandemic's specific economic shock. Instead, the government emphasized its Plan for Jobs.
Scotland Office
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103 Conclusion Rejected
The Scottish Government in their evidence to us highlighted that they had a ‘number of...
Conclusion
The Scottish Government in their evidence to us highlighted that they had a ‘number of concerns around the adequacy of the payment [on Universal Credit] even before coronavirus.’259 The Cabinet Secretary for Social Security and Older People also said that … Read more
Government Response Summary
The government rejects the view that the Universal Credit uplift should be made permanent and extended to legacy benefits, stating it was a temporary measure and there was no plan to extend it, focusing instead on helping people into work through its Plan for Jobs.
Scotland Office
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104 Conclusion Rejected
The UK Government announced in the Budget in March 2021 that the £20 uplift would...
Conclusion
The UK Government announced in the Budget in March 2021 that the £20 uplift would remain until the end of September 2021.265 In explaining to us why the uplift was not made permanent the Minister for Welfare Delivery noted the … Read more
Government Response Summary
The government reiterated that the Universal Credit uplift was a temporary measure during the pandemic, and its strategy focuses on supporting people back into work through initiatives like the Plan for Jobs and Kickstart Scheme.
Scotland Office
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105 Conclusion Rejected
We have heard in evidence that there are other levers that the DWP could pull...
Conclusion
We have heard in evidence that there are other levers that the DWP could pull to change the Universal Credit system to help to tackle poverty in Scotland alongside increasing adequacy of payments. One option that Citizens Advice Scotland and … Read more
Government Response Summary
The government explicitly states it has no plans to extend the work allowance to single adults, explaining its current policy of targeting those with the greatest barriers to the labour market and detailing past increases.
Scotland Office
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107 Conclusion Rejected
Should a claimant earn more than their work allowance, their Universal Credit payments will be...
Conclusion
Should a claimant earn more than their work allowance, their Universal Credit payments will be reduced at a rate (known as a taper rate) of 63p for every £1 earned.275 However, since 2015 ‘only people with limited capability for work, … Read more
Government Response Summary
The government defends its policy of targeting the work allowance to those with the greatest barriers to the labour market, stating it has no plans to extend it to single adults, and highlights past increases to work allowances.
Scotland Office
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108 Recommendation Rejected
Neil Cowan from The Poverty Alliance told us that with current work allowance arrangements have...
Recommendation
Neil Cowan from The Poverty Alliance told us that with current work allowance arrangements have led to employment ‘becoming less, rather than more, reliable as a route out of poverty.’279 Nina Ballantyne of Citizens Advice Scotland called for the work … Read more
Government Response Summary
The government rejects extending the work allowance to single adults, stating it is targeted at those with the greatest barriers to the labour market and is increased annually as part of the normal uprating process.
Scotland Office
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111 Recommendation Rejected
We recommend that the UK Government closely review the issue of making permanent the £20...
Recommendation
We recommend that the UK Government closely review the issue of making permanent the £20 uplift in the run up to the expiration of this policy at the end of September 2021, whilst also taking into account the significant financial … Read more
Government Response Summary
The government rejects the recommendation, stating the £20 uplift was always a temporary measure for Universal Credit claimants and there was never a plan to extend it to legacy benefits, instead focusing on helping people into work.
Scotland Office
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112 Recommendation Rejected
We also recommend that DWP raise the work allowance for Universal Credit claimants and re-establish...
Recommendation
We also recommend that DWP raise the work allowance for Universal Credit claimants and re-establish work allowances for single adult claimants so that they can keep more of the money they earn, to allow them to work their way out … Read more
Government Response Summary
The UK Government rejects extending the work allowance to single adults and states that work allowances are increased annually as part of normal uprating, highlighting a past increase in 2018, but does not commit to a specific new raise beyond routine adjustments.
Scotland Office
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113 Conclusion Rejected
Beyond the adequacy of the Universal Credit system we heard further evidence highlighting that there...
Conclusion
Beyond the adequacy of the Universal Credit system we heard further evidence highlighting that there were other issues with how Universal Credit works and that these issues were causing hardship for claimants in Scotland. A particular issue was the five … Read more
Government Response Summary
The government explained how Universal Credit Advance payments function to mitigate the five-week wait, including an extended repayment period, and rejected the introduction of non-repayable advances due to fraud risks, administrative burden, and significant costs.
Scotland Office
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114 Conclusion Rejected
Universal Credit is paid once a month, usually into a claimant’s bank, building society or...
Conclusion
Universal Credit is paid once a month, usually into a claimant’s bank, building society or credit union account. After applying for Universal Credit, it usually takes around five weeks for a new claimant to get their first payment. Universal Credit … Read more
Government Response Summary
The government details the existing repayable advance system and rejects the introduction of non-repayable advances, citing increased fraud risk, potential for inappropriate gain, and estimated costs between £2.2 and £2.8 billion.
Scotland Office
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117 Conclusion Rejected
The Poverty Alliance in their written evidence to us highlighted that from their research they...
Conclusion
The Poverty Alliance in their written evidence to us highlighted that from their research they found that the five week wait was ‘the most negative aspect of Universal Credit for many people.’295 They argue that the policy is a major … Read more
Government Response Summary
The government stated that claimants can access advances on their Universal Credit payment, detailing the repayment terms and recent changes. It rejected the idea of non-repayable advances, citing increased fraud risk, administrative burden, and significant costs.
Scotland Office
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118 Conclusion Rejected
Should a claimant require money before the five week wait has been completed they can...
Conclusion
Should a claimant require money before the five week wait has been completed they can apply for an advance payment. This means a claimant can receive an advance worth the amount of their first estimated payment on Universal Credit.299 According … Read more
Government Response Summary
The government outlines the existing repayable advance system, including the extended 2-year repayment period for advances, and rejects the introduction of non-repayable advances due to fraud risks, potential for inappropriate gain, and significant costs.
Scotland Office
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119 Conclusion Rejected
Again, the UK Government provides an example on their website: • Your first estimated payment...
Conclusion
Again, the UK Government provides an example on their website: • Your first estimated payment is £344 and you get £344 as an advance. 291 Department for Work and Pensions, Universal Credit: How you’re paid, accessed 14 April 2021 292 … Read more
Government Response Summary
The government explained that New Claim Advances allow claimants to access their estimated Universal Credit payment upfront, with repayment now spread over 2 years for advances issued from April 2021. It rejected the introduction of non-repayable advances, citing fraud risk, administrative burden, and estimated costs of £2.2-£2.8 billion.
Scotland Office
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120 Conclusion Rejected
The advance payment system was commented on critically by our witnesses.
Conclusion
The advance payment system was commented on critically by our witnesses. Kirsty McKechnie of the Child Poverty Action Group said that advances ‘contribute to the ongoing hardship that people experience on Universal Credit and the difficulty in making ends meet … Read more
Government Response Summary
The government details the existing repayable advance system, including recent changes, and rejects the introduction of non-repayable advances, citing fraud risks, potential for inappropriate gain, and significant costs between £2.2 and £2.8 billion.
Scotland Office
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121 Conclusion Rejected
Our colleagues on the Work and Pensions Select Committee recently held an inquiry entitled Universal...
Conclusion
Our colleagues on the Work and Pensions Select Committee recently held an inquiry entitled Universal Credit: the wait for a first payment. They recommended the DWP should: pay all first time claimants of Universal Credit a “starter payment” equivalent to … Read more
Government Response Summary
The government rejects the introduction of non-repayable advances, explaining that New Claim Advances already allow claimants to receive payment upfront and arguing that non-repayable grants would increase fraud risk, impose administrative burdens, and be costly.
Scotland Office
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123 Recommendation Rejected
We recommend that the DWP consider alternative arrangements to the five week wait for a...
Recommendation
We recommend that the DWP consider alternative arrangements to the five week wait for a first payment and associated advances system (which currently acts as an interest free loan) and should consider again the recommendation from the Work and Pensions … Read more
Government Response Summary
The government rejects the recommendation to consider alternative arrangements, such as a starter payment, stating that introducing non-repayable advances would increase fraud risk, allow inappropriate gain, and cost between £2.2 and £2.8 billion.
Scotland Office
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129 Recommendation Rejected
Whilst the economy is in the midst of recovering from the covid-19 pandemic, and with...
Recommendation
Whilst the economy is in the midst of recovering from the covid-19 pandemic, and with the jobs market in great difficulty and 490,000 people (as of March 2021) in Scotland claiming Universal Credit, based on the overwhelming evidence from witnesses, … Read more
Government Response Summary
The government implicitly rejects pausing sanctions, stating that Work Coaches will continue to ensure claimant commitments are reasonable and consider 'good reason' for failures, including Covid-19 related circumstances, when deciding on sanctions.
Scotland Office
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138 Conclusion Rejected
Another barrier to people signing up to Scottish Choices is that claimants cannot access the...
Conclusion
Another barrier to people signing up to Scottish Choices is that claimants cannot access the choices immediately, instead having to wait until they have received their first Universal Credit payment before taking up one or both options. Citizens Advice Scotland … Read more
Government Response Summary
The government explains that the Scottish Government's policy is to offer Scottish Choices in the second assessment period, allowing time for Alternative Payment Arrangements to protect vulnerable claimants, effectively justifying the current delay in access.
Scotland Office
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142 Recommendation Rejected
Polly Jones from The Trussell Trust told us that: There are quite complicated discussions and...
Recommendation
Polly Jones from The Trussell Trust told us that: There are quite complicated discussions and arrangements between DWP and Scottish Government on how this is managed and how many minutes a work coach can spend talking about Scottish Choices in … Read more
Government Response Summary
The government rejects the implied recommendation to present Scottish Choices in the first interview, stating that the current policy offers them in the second assessment period to allow claimants time to consider DWP Alternative Payment Arrangements.
Scotland Office
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148 Recommendation Rejected
The Scottish Government and the DWP should work together and seek agreement before announcing further...
Recommendation
The Scottish Government and the DWP should work together and seek agreement before announcing further Scottish Choices options to ensure there is no delay in roll out. We therefore recommend the following: a) That Scottish Choices be made available to … Read more
Government Response Summary
The government rejected the recommendation to make Scottish Choices available from the start of a Universal Credit claim, stating current policy offers it from the second assessment period to allow consideration of DWP Alternative Payment Arrangements.
Scotland Office
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