White Paper on Universal Credit

Written Evidence Submitted by BENX Benefit Review Group

Re: BenX Benefit Review Group response to DWP Select Committee Inquiry regarding Universal Credit White Paper.

1. This letter is a response in respect of the above, from the BenX Benefit Review Group. Thank you for the opportunity to respond. For information, I enclose a copy of BenX’s Terms of Reference.

2. Please note that BenX is comprised of a number of local authorities, so this response comprises a range of views.

3. Summary: Whilst supporting the need for welfare reform to make the system more straight forward for customers to navigate, and for practitioners to administer, BenX has serious concerns about the inclusion of Housing Benefit within Universal Credit. Housing Benefit is inextricably linked with local housing policy – such as homelessness and housing strategy issues, and central administration would lose vitally important links with other local authority departments (e.g. housing, homelessness), local landlords and other housing providers (e.g. housing associations). BenX also has major concerns regarding internet being the main method of application.

4. Localisation already has a range of advantages, including providing tailored services to local communities, using local knowledge and intelligence to inform administration, investigation and enforcement. This enables strict forms of scrutiny and accountability directly and immediately answerable to stakeholders. Local councils have an extensive and established network, successfully providing rented accommodation, especially to people with low incomes. The principles of local level accountability and responsiveness work well. It is at a local level that collective actions are taken to make more housing available and affordable, to attract employment as well as to co-ordinate the various local and national agencies in supporting the local community.

5. Local authorities may be the best place to deliver more benefits / single benefit. They have a proven record of performance improvements, reducing costs, being responsive to local needs, links into other local strategies (e.g. housing), already collect most information needed to assess other benefits, links with other departments (e.g. Council Tax, Local Authority housing), more autonomy than centralised agencies . Addressing and dealing with many social, financial and community issues that changes to welfare and housing reform will present demand the personal touch that is only available via local authorities.

6. Having a key element to the localism agenda, welfare benefits and especially Housing Benefits centrally administered and centrally controlled removes the cohesive element of the localism package and may therefore not reduce costs, not be more efficient, nor be an effective means of delivering welfare support to the most needy within our society at times of great uncertainty.

7. The principles of self-service via the internet are a major concern, and BenX believes that self-service will increase fraud – whereas face-to-face contact would reduce fraud.

8. Online services should be encouraged, but it needs to be recognised that not everyone uses such services and the needs of vulnerable persons should be considered. Data shows that 27% of households still have no internet connection at their home and some six million people aged over 65 have never used the web, so introducing measures to provide services online may be out of step with consumers, who in order to gain general web access, are going to have to spend at least £1,000 for a PC and printer, as well as sign up for a monthly broadband charge.

9. Therefore, it would perhaps become more difficult than it is currently to apply for welfare benefits and, as a consequence, many in need would be excluded from the system due to their inability to gain access to suitable online facilities or their ability to understand a system that may be removed and remote from their individual circumstances and needs.

10. Some other questions that BenX feels need to be answered, are:

11. What will happen to recovery of existing overpayments at the time of a claim transferring to Universal Credit?

12. Will people in supported accommodation will be subject to the same application process?

13. Will claimants still be able to claim underlying entitlement for earlier periods, once they move on to Universal Credit?

14. Will the Government draft regulations requiring software houses to continue providing HB Software until a reasonable period after the last claims have transferred to Universal Credit?

15. Would TUPE regulations apply to any LA staff as a result of these changes?

16. I hope this BenX Benefit Review Group’s response is useful, but please do not hesitate in contacting our group if you would like to discuss any of this letter further.

December 2010