The Benefits System in Wales

Welsh Affairs Committee Closed Inquiry
Opened: 11 Jun 2021 Closed: 16 Oct 2023 Parliament page
The Welsh Affairs Committee has launched an inquiry examining the benefits system in Wales. The new inquiry comes following a period of unprecedented challenge for the benefits system as a result of the COVID-19 pandemic. If you live in Wales, fill out our short survey to send in your views … Read more
15 Recommendations
18 Conclusions
1 Report
5 Oral sessions
1 Letter
5 Events
Activity timeline 13 events
7 Sep
2022
Correspondence
6 Jul
2022
Report published
17 Mar
2022
Report published
8 Dec
2021
Oral evidence
8 Dec
2021
Formal meeting (oral evidence session) · Room 6, Palace of Westminster
2 Dec
2021
Oral evidence
2 Dec
2021
Formal meeting (oral evidence session) · Room 8, Palace of Westminster
3 Nov
2021
Oral evidence
3 Nov
2021
Formal meeting (oral evidence session) · Room 5, Palace of Westminster
21 Oct
2021
Oral evidence
21 Oct
2021
Formal meeting (oral evidence session) · Hybrid meeting
16 Sep
2021
Oral evidence
Oral evidence sessions 5 sessions
8 Dec 2021
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Oral evidence
Andrew Latto · Department for Work & Pensions David Rutley MP · Foreign, Commonwealth & Development Office Geth Williams · Wales Office Sarah Pearson · Department for Work and Pensions
2 Dec 2021
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Oral evidence
Alison Corriea · Cartrefi Conwy Housing Association Cordelia Deady · Wrexham County Borough Council Gwennan Hardy · Citizens Advice Cymru Jane Hutt MS · Welsh Government Megan Thomas · Meta Paul Neave · Welsh Government
3 Nov 2021
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Oral evidence
Anna Coote · New Economics Foundation Dr Malcolm Torry · University of Bath Jonathan Williams · UBI Lab Wales Professor Paul Spicker · Robert Gordon University
21 Oct 2021
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Oral evidence
Anvar Sarygulov · Bright Blue Charlotte Pickles · Reform Charlotte Pickles · Social Security Advisory Committee Dr Mike Brewer · Resolution Foundation Dr Victoria Winckler · Bevan Foundation
16 Sep 2021
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Oral evidence
Emma Congreve · Fraser of Allander Institute Professor Christina Beatty · Centre for Regional Economic and Social Research, Sheffield Hallam University Professor Lisa Scullion · University of Salford
Title HC No. Published Items Response
Fourth Report - The Benefits System in Wales HC 337 17 Mar 2022 33 Responded
Recommendations & Conclusions
33 results
1 Conclusion Not Addressed
Fourth Report - The Benefits Syste…
The demographic, economic and geographic challenges we have highlighted set the context for the benefits...
The demographic, economic and geographic challenges we have highlighted set the context for the benefits system in Wales. While it is a reserved competence, that does not mean the environment in which it operates is identical to that elsewhere in … Read more
Government Response
The government response focuses on improving access to Universal Credit and data protection, without addressing the demographic, economic, and geographic challenges in Wales or acknowledging the need for welfare policy to be conscious of the Welsh context.
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2 Conclusion Acknowledged
Fourth Report - The Benefits Syste…
The pandemic demonstrated how resilient the UK social security system can be in the face...
The pandemic demonstrated how resilient the UK social security system can be in the face of significant challenges. Despite the huge surge in demand, Universal Credit continued to function and benefits were paid out to a markedly increased pool of … Read more
Government Response
The government acknowledges the resilience of the social security system during the pandemic. However, the government believes that the pandemic was not the right time to introduce changes to the rate of Statutory Sick Pay and is keeping the system under review.
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3 Recommendation Acknowledged
Fourth Report - The Benefits Syste…
We were concerned to hear that welfare rights advisors believe that Universal Credit’s explicit consent...
We were concerned to hear that welfare rights advisors believe that Universal Credit’s explicit consent model has impeded their ability to help claimants and has led to some people sharing personal data such as passwords. We would welcome the UK … Read more
Government Response
The Department for Work and Pensions is committed to continually improving access to Universal Credit. A policy of explicit consent exists to help reduce the risk of fraud. The Department welcomes any input through its ongoing discussions with a broad group of stakeholders.
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4 Recommendation Not Addressed
Fourth Report - The Benefits Syste…
The DWP should run a consultation with welfare rights advisors on Universal Credit’s explicit consent...
The DWP should run a consultation with welfare rights advisors on Universal Credit’s explicit consent model and examine whether any changes are necessary.
Government Response
The government rejects the recommendation for a temporary increase to Universal Credit arguing that the £20 uplift was a temporary measure and has been replaced with over £15bn in support towards cost-of-living pressures and schemes to help people find employment.
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5 Recommendation Rejected
Fourth Report - The Benefits Syste…
The UK Government must urgently review the level at which Statutory Sick Pay (SSP) is...
The UK Government must urgently review the level at which Statutory Sick Pay (SSP) is set. At only £96.35 per week, it is equivalent to only 20 per cent of the average wage—compared to 100 per cent in Germany and … Read more
Government Response
The government rejects the recommendation to review Statutory Sick Pay levels, stating that it is reviewed annually and that more than half of employees receive more than the statutory minimum from their employer. They are keeping the system under review.
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6 Recommendation Accepted
Fourth Report - The Benefits Syste…
Given the comparatively high proportion of low paid workers in Wales, we were concerned to...
Given the comparatively high proportion of low paid workers in Wales, we were concerned to hear of issues regarding the eligibility criteria for Statutory Sick Pay. While we acknowledge that there may be other support available to unwell workers, the … Read more
Government Response
The government states it has already improved work incentives in Universal Credit in response to a report, cutting the taper rate and increasing work allowances.
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7 Conclusion
Fourth Report - The Benefits Syste…
We welcome the swift changes to the financial support many claimants received during the pandemic,...
We welcome the swift changes to the financial support many claimants received during the pandemic, as well as to the operation of the overall system. We received evidence of the significant difference that the temporary £20 uplift made to those … Read more
Government Response
There were various support mechanisms available to the self-employed, though eligibility will have varied according to how their enterprises were structured. As for the Department for Work and Pensions, its … Read more
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8 Conclusion Acknowledged
Fourth Report - The Benefits Syste…
We acknowledge that the UK Government has difficult choices to make in ensuring that the...
We acknowledge that the UK Government has difficult choices to make in ensuring that the benefits system is financially sustainable in the long-term. We welcome its reduction of the taper rate and increase in the work allowance in the autumn Budget.
Government Response
The Office of the Secretary of State for Wales is committed to improving working relationships across Government to support the people of Wales and will continue to advise and support the DWP on matters impacting Wales, ensuring UK policy is delivered effectively and communicating policy decisions across Wales.
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9 Conclusion
Fourth Report - The Benefits Syste…
However, in light of concerns about the rising costs of living, there is a need...
However, in light of concerns about the rising costs of living, there is a need for a discussion about how to ensure benefits are adequate, affordable and sustainable. On the basis of the evidence presented there is a need for … Read more
Government Response
The UK Government rejects these recommendations. The Department for Work and Pensions Ministers already have constructive engagement channels with Ministers in the Welsh Government on matters of mutual interest, and … Read more
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10 Conclusion
Fourth Report - The Benefits Syste…
It is clear that current benefit levels are inadequate.
It is clear that current benefit levels are inadequate. In the short term, the £20 uplift should be reintroduced at the Budget in March 2022 and extended to legacy benefits.
Government Response
The UK Government rejects this recommendation. The UK Government has always been clear that the £20 increase was a temporary measure to support those households most economically affected by the … Read more
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11 Conclusion Accepted
Fourth Report - The Benefits Syste…
Without the uplift, benefits for the unemployed are at their lowest real-terms level since the...
Without the uplift, benefits for the unemployed are at their lowest real-terms level since the early 1990s. Had they grown in line with GDP per capita since 1990, they would be £40 a week higher. The future value of benefits … Read more
Government Response
The DWP is undertaking a national communications campaign to raise awareness of Pension Credit, including promotional activity on social media, search engines, newspapers, leaflets and posters. They also engage regularly with the Welsh Government on Pension Credit take-up activities.
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12 Recommendation Deferred
Fourth Report - The Benefits Syste…
We urge the UK Government to use nearer-term forecasts to increase benefits in line with...
We urge the UK Government to use nearer-term forecasts to increase benefits in line with the actual rate of inflation that will apply in April 2022. As a long-term solution to these issues, the DWP should outline what the benefit … Read more
Government Response
The DWP states that social security is reserved in Wales and that they will continue to work with Welsh Government colleagues to discuss improvements in signposting grants and allowances.
Wales Office
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13 Conclusion
Fourth Report - The Benefits Syste…
Around 39% of claimants are in work.
Around 39% of claimants are in work. Many of those who became eligible for Universal Credit during the pandemic will have done so through losing income while on furlough rather than through losing a job. For those whose pay is … Read more
Government Response
This recommendation is for the Welsh Government.
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14 Recommendation Accepted
Fourth Report - The Benefits Syste…
The UK Government should take forward the recommendations of the In-Work Commissioner and review how...
The UK Government should take forward the recommendations of the In-Work Commissioner and review how the taper rate and work allowances can best support in-work progression.
Government Response
The government will allocate £99m to provide around 2.1m low-paid benefit claimants with support to progress into higher-paid work through work coach support and Progression Champions working with local partners.
Wales Office
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15 Conclusion Not Addressed
Fourth Report - The Benefits Syste…
We welcome the extent of support that the UK Government provided during the pandemic, but...
We welcome the extent of support that the UK Government provided during the pandemic, but we note that not all self-employed people were eligible. We welcome 44 The Benefits System in Wales the UK Government’s acknowledgement that it has “learned … Read more
Government Response
The Department for Work and Pensions has advised the Welsh Government how Universal Credit would be affected by payments under the proposed basic income pilot and HMRC has similarly advised about the treatment of taxation, not providing more details about the lessons it has learned regarding capital limits and self-employed people.
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16 Conclusion
Fourth Report - The Benefits Syste…
We welcome the extent of joint working between ministers throughout the pandemic, including meetings between...
We welcome the extent of joint working between ministers throughout the pandemic, including meetings between the Secretary of State for Wales and the First Minister and other Welsh Government Ministers, as well as multilateral meetings chaired by various UK Ministers. … Read more
Government Response
The UK Government has no intention to devolve social security to the Welsh Government. The Committee’s report acknowledges the advantages of the current system, highlighting its strength during the Covid … Read more
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17 Conclusion
Fourth Report - The Benefits Syste…
We welcome the establishment of an Interministerial Group on Welfare, as part of the recently...
We welcome the establishment of an Interministerial Group on Welfare, as part of the recently published Review of Intergovernmental Relations. However, while this will provide an important forum for bringing together the four UK governments to discuss welfare and social … Read more
Government Response
The UK Government rejects these recommendations. The Department for Work and Pensions Ministers already have constructive engagement channels with Ministers in the Welsh Government on matters of mutual interest, and … Read more
Wales Office
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18 Recommendation Rejected
Fourth Report - The Benefits Syste…
The two governments should establish a UK-Welsh government Inter-ministerial Advisory Board on Social Security.
The two governments should establish a UK-Welsh government Inter-ministerial Advisory Board on Social Security. Such a Board could build on the good examples of joint working which were seen during the pandemic. Minutes of its meetings should be published. Read more
Government Response
The government rejects the recommendation to establish a UK-Welsh government Inter-ministerial Advisory Board on Social Security, stating that existing engagement channels are sufficient.
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19 Recommendation Rejected
Fourth Report - The Benefits Syste…
UK Government ministers should consult with the Welsh Government in advance of new social security...
UK Government ministers should consult with the Welsh Government in advance of new social security policies being implemented, especially in areas linked closely to devolved areas of competence such as housing and skills. The UK-Welsh government Inter-ministerial Advisory Board on … Read more
Government Response
The government rejects the recommendation to consult with the Welsh Government in advance of implementing new social security policies, stating that existing engagement channels are sufficient.
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20 Recommendation Accepted
Fourth Report - The Benefits Syste…
We received evidence regarding a lack of awareness among the wider public of key benefits,...
We received evidence regarding a lack of awareness among the wider public of key benefits, most notably Pension Credit. The UK Government should address this directly through a UK-wide income maximisation campaign and design its messaging so that it not … Read more
Government Response
The Department for Work and Pensions is undertaking a national communications campaign, launched on 4 April, to raise awareness of Pension Credit and encourage eligible pensioners to claim.
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21 Recommendation Accepted
Fourth Report - The Benefits Syste…
The DWP and Welsh Government should work together with local authorities to run a take-up...
The DWP and Welsh Government should work together with local authorities to run a take-up campaign on Pension Credit, with messaging designed to both raise awareness but also address any reservations some older people may have about claiming it.
Government Response
The DWP is undertaking a national communications campaign to raise awareness of Pension Credit, including promotional activity on social media, search engines, newspapers, leaflets and posters. They also engage regularly with the Welsh Government on Pension Credit take-up activities.
Wales Office
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22 Conclusion Deferred
Fourth Report - The Benefits Syste…
We welcome efforts to improve awareness among claimants of all UK Government, Welsh Government, and...
We welcome efforts to improve awareness among claimants of all UK Government, Welsh Government, and local authority support, but written evidence suggests that there is still a long way to go. People requesting help need to feel confident that they … Read more
Government Response
The DWP states that social security is reserved in Wales and that they will continue to work with Welsh Government colleagues to discuss improvements in signposting grants and allowances.
Wales Office
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23 Recommendation Deferred
Fourth Report - The Benefits Syste…
The DWP and Welsh Government should work together to improve the signposting of benefits, grants,...
The DWP and Welsh Government should work together to improve the signposting of benefits, grants, and allowances by producing a toolkit for Work Coaches. It should cover all devolved and local authority support. The DWP should report back to us … Read more
Government Response
The DWP states that social security is reserved in Wales and that they will continue to work with Welsh Government colleagues to discuss improvements in signposting grants and allowances.
Wales Office
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24 Recommendation
Fourth Report - The Benefits Syste…
While we note the positive comments regarding the Welsh Government’s response to the pandemic via...
While we note the positive comments regarding the Welsh Government’s response to the pandemic via the Discretionary Assistance Fund, we also heard concerns about the application process for various Welsh Government and local authority grants and allowances. We welcome the … Read more
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25 Conclusion Accepted
Fourth Report - The Benefits Syste…
39% of Universal Credit claimants are already in work: the issue for them is not...
39% of Universal Credit claimants are already in work: the issue for them is not finding a job but finding a higher paid one or more hours. We welcome the UK Government’s commitment to providing claimants with in-work support and … Read more
Government Response
The government will allocate £99m to provide around 2.1m low-paid benefit claimants with support to progress into higher-paid work through work coach support and Progression Champions working with local partners.
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26 Conclusion Accepted
Fourth Report - The Benefits Syste…
We note that the In-Work Commissioner’s report on Supporting People out of Low Pay found...
We note that the In-Work Commissioner’s report on Supporting People out of Low Pay found that most Jobcentre Plus support is tailored to help people get into work: there is less support and training available for those who are already … Read more
Government Response
The UK Government will allocate £99m to provide around 2.1m low-paid benefit claimants with support to progress into higher-paid work through work coach support, addressing skills gaps, training opportunities, and progression opportunities, supported by Progression Champions in every Jobcentre District working with key partners.
Wales Office
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27 Recommendation Accepted
Fourth Report - The Benefits Syste…
The UK Government should accept the In-Work Commissioner’s recommendation to provide a credible in-work offer...
The UK Government should accept the In-Work Commissioner’s recommendation to provide a credible in-work offer for all working benefit claimants. The UK Government should outline how it will take this work forward with the Welsh Government and report back to … Read more
Government Response
The UK Government is committed to helping workers progress into higher pay and announced that £99m would be allocated to provide around 2.1m low—paid benefit claimants with support to progress into higher—paid work. They will provide work coach support, Progression Champions, and work with key partners.
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28 Conclusion
Fourth Report - The Benefits Syste…
Care-leavers are a vulnerable group and there is a strong case for arguing that they...
Care-leavers are a vulnerable group and there is a strong case for arguing that they should have enhanced support. While the Welsh Government supports a basic income pilot for this group, we note that the UK government opposes universal basic income.
Government Response
The Department for Work and Pensions has advised the Welsh Government how Universal Credit would be affected by payments under the proposed basic income pilot. HMRC has similarly advised about … Read more
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29 Conclusion
Fourth Report - The Benefits Syste…
We have received a range of concerns regarding the limitations of the pilot and there...
We have received a range of concerns regarding the limitations of the pilot and there are also considerable issues concerning how the pilot will affect the benefits of the participants. It is crucial that those considering participating are aware of … Read more
Government Response
The Department for Work and Pensions has advised the Welsh Government how Universal Credit would be affected by payments under the proposed basic income pilot. HMRC has similarly advised about … Read more
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30 Conclusion
Fourth Report - The Benefits Syste…
In the interests of the young people considering taking part in the Welsh Government’s Basic...
In the interests of the young people considering taking part in the Welsh Government’s Basic Income pilot, the DWP and the Welsh Government should work together to conduct an impact assessment on the benefits received and the amount of taxes … Read more
Government Response
The Department for Work and Pensions has advised the Welsh Government how Universal Credit would be affected by payments under the proposed basic income pilot. HMRC has similarly advised about … Read more
Wales Office
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31 Conclusion Not Addressed
Fourth Report - The Benefits Syste…
The evidence collected during the inquiry showed that attitudes to the idea of devolving welfare...
The evidence collected during the inquiry showed that attitudes to the idea of devolving welfare vary significantly. Some were concerned about the financial implications and many felt that they did not have enough information. However, during the course of the … Read more
Government Response
The government restates its position that it has no intention to devolve social security to the Welsh Government and notes the advantages of the current system without addressing the conclusion about varying attitudes.
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32 Recommendation Rejected
Fourth Report - The Benefits Syste…
It is important to make the distinction between devolving the administration of certain welfare benefits...
It is important to make the distinction between devolving the administration of certain welfare benefits and the wholescale devolution of welfare and we recommend that, as a first step, the UK-Welsh Government Inter-ministerial Advisory Board on Social Security should undertake … Read more
Government Response
The government rejects the recommendation to assess devolving administration of benefits to Wales, stating it has no intention to devolve social security to the Welsh Government.
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33 Recommendation Rejected
Fourth Report - The Benefits Syste…
In the event of the Welsh Government submitting formal proposals to the UK Government, the...
In the event of the Welsh Government submitting formal proposals to the UK Government, the DWP should provide us with an update in 12 months regarding the nature and progress of its discussions with the Welsh Government. (Paragraph 162) The … Read more
Government Response
The government rejects the premise of the recommendation, reiterating it has no intention to devolve social security to the Welsh Government.
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Government Response AI assessment · 23 of 15 classified
Accepted 8
Acknowledged 3
Deferred 3
Not Addressed 4
Rejected 5
Total 15 recs + 18 conclusions
Correspondence 1 letter
7 Sep 2022 To committee Letter from the Minister for Welfare Delivery, Department for Work and Pensions, relating to the Government's response to the Committee’s Fourth Report of Session 2021– 22: The Benefits System in Wales, 25 August 2022
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