Fourth Report - The Benefits System in Wales

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.

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.

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.

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.

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.

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.

The DWP will seek to make it clearer for claimants that Universal Credit does not count money in their account used for business purposes towards their capital.

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.

The UK Government rejects the recommendation for an urgent review of various benefit policies, stating they have constructive engagement channels with the Welsh Government already.

The UK Government rejects reintroducing the £20 uplift and extending it to legacy benefits, citing its temporary nature during the pandemic and providing over £37bn in support for the cost of living.

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.

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.

The government states that this recommendation, urging it to keep further changes to Universal Credit under review, is a matter for the Welsh Government.

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.

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.

The UK Government will not devolve social security to the Welsh Government, citing the advantages of the current system and the varied attitudes to the idea.

The UK Government rejects the need for a bilateral intergovernmental body for the UK and Welsh governments to engage on welfare policy, stating they already have constructive engagement channels.

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.

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.

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.

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.

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.

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.

The government redirects this recommendation to the Welsh Government.

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.

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.

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.

The government stated that the DWP and HMRC have provided technical advice to the Welsh Government regarding the interaction of Universal Credit and taxation with the proposed basic income pilot for care-leavers, but did not address the committee's broader point about enhanced support for this group from the UK government.

The Department for Work and Pensions and HMRC have advised the Welsh Government how Universal Credit and taxation would be affected by payments under the proposed basic income pilot.

The government states DWP and HMRC have advised the Welsh Government on the impact of basic income pilot payments on Universal Credit and taxation, but does not explicitly commit to jointly conducting the requested impact assessment.

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.

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.

The government rejects the premise of the recommendation, reiterating it has no intention to devolve social security to the Welsh Government.