Universal Credit

Oral Answers to Questions — Work and Pensions – in the House of Commons at 2:30 pm on 28 November 2011.

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Photo of Mark Pawsey Mark Pawsey Conservative, Rugby 2:30, 28 November 2011

What steps his Department is taking to ensure the new system of universal credit accommodates changes in personal circumstances.

Photo of Iain Duncan Smith Iain Duncan Smith The Secretary of State for Work and Pensions

The design of universal credit will largely be about improving people’s personal circumstances. It will take account of such changes. That is the point of using the real-time information system. Essentially, such information will flow automatically, thus stopping what happens at present. All too often, there is too much of a delay in changing people’s circumstances, which can damage their outcomes, as was the case for one of my hon. Friend’s constituents. That should be brought to an end. At last, we will have a system that reflects people’s needs.

Photo of Mark Pawsey Mark Pawsey Conservative, Rugby

The constituent to whom the Secretary of State refers, whose domestic circumstances changed, immediately notified Her Majesty’s Revenue and Customs, but she tells me that it took seven weeks to reassess her claim for working tax credit and child tax credit. During that period, payments were suspended and my constituent was placed in some hardship. Can the Secretary of State reassure the House that under the new system of universal benefit, such delays will not occur?

Photo of Iain Duncan Smith Iain Duncan Smith The Secretary of State for Work and Pensions

May I say on behalf of the Government that such a delay is unacceptable? My hon. Friend knows that I have already written to him about that. The current system, much improved though it is, still leads to great difficulty because of the complexity of the benefit system that we have inherited. Universal credit will change that and at last give constituents such as his a chance to take a job, change their circumstances and get the money they should have got in the first place.

Photo of Amber Rudd Amber Rudd Conservative, Hastings and Rye

Women’s working lives often have much variation in them, as they sometimes take a few years off to have children. What assessment has my right hon. Friend made of the benefits of universal credit in taking account of such changes, specifically for women?

Photo of Iain Duncan Smith Iain Duncan Smith The Secretary of State for Work and Pensions

Universal credit is now widely perceived as being very beneficial to women, particularly to lone parents who struggle a lot. They are in and out of work, and often their hours change. That will be reflected almost immediately in universal credit. I know that many who come out of work temporarily lose some of their housing benefit because it takes so long to reorganise it, and thus are worse off. That should all be brought to an end by universal credit, and it will also improve the support for child care.