The benefits of moving: Managing the transition of existing claimants to Universal Credit
This new report from the Resolution Foundation acknowledges that “the long implementation of Universal Credit (UC) has been far from smooth” and notes that “implementation is shortly to enter its next and, arguably most difficult, phase: ‘managed migration’.
The report says that although this brings new risks, it also brings opportunities and makes recommendations which it believes “gives UC the best possible chance of coming to be seen as a positive step forward.”
Disability Rights UK remains sceptical about the DWP migration schedule.
In our response to the Social Security Advisory Committee (SSAC) consultation we stated that the Universal Credit system was unfit for managed migration. It was in such a dire state that no responsible Government would intend migrating claimants to the benefit from July 2019.
In addition, Disability Rights UK, together with other organisations, raised our concerns over the timetable for moving existing disabled claimants to UC in a letter to Esther McVey, Secretary of State for Work and Pensions.
Many of the Resolution Foundation recommendations are to be welcomed but we wonder who is listening in government. The time has come to decide to halt migration plans, take a step back and get it right – and fair.
Resolution Foundation recommendations
- Managed migration should only start when the DWP is entirely satisfied that the system is ready.
- The design of the migration should follow the principle that individuals should not bear the burden of risk to their financial standing due to the migration to UC.
- The claims process for UC should be reviewed to assess the burden of providing evidence.
- Migration should only begin when the DWP has shown service levels meet a standard agreed with external experts - this should be that 90 per cent of new claims are paid in full and on time.
- DWP should prioritise migration of simple cases.
- Transition of existing cases to UC should be tied to existing benefit milestones. For ESA cases, tailored individual support should be provided, with existing entitlements maintained under UC.
- No existing ESA payments should be stopped outside of a standard renewals or re-assessment period unless the DWP has ascertained that the person has made a successful claim for UC or chosen not to do so.
- The DWP should be clear that it intends to take account of entitled but unclaimed legacy benefits in its transitional protection calculation, by way of helping reinforce the take-up advantage associated with the switch to UC.
- DWP should introduce an earnings disregard to account for small and short-term variation in earnings to avoid penalising those with volatile incomes.
- To reduce dependency on transitional protection the government should re-invest in work allowances.