Unequal impact? Coronavirus and BAME people Contents

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4Reviewing Universal Credit

It is really tough to access universal credit.212

89.The coronavirus pandemic has had a destabilising economic impact on some people. More people are turning to the Universal Credit (UC) system to access necessary support. In this chapter, we will examine some of the challenges faced by BAME people when applying for UC. We will then consider recommendations for addressing these challenges.

Universal Credit and the coronavirus pandemic

90.In 2013, the Government began to roll out the UC system, which replaced six legacy benefits and tax credits for working-age households.213 The UC system is administered by the Department for Work and Pensions (DWP).214 UC was introduced to simplify and streamline the benefits system, and at the same time, improve work incentives; tackle poverty among low income families; and reduce the scope for error and fraud.215 A rationale behind establishing the UC system was that it would mimic work and receiving a salary.216 As such, UC claimants receive a monthly payment.217 Applications for UC are made online and most applicants attend an in-person interview at a Jobcentre Plus; if someone is applying on the grounds of a health condition or disability then they also need to complete a work capability assessment.218 During the initial coronavirus lockdown period, some of these application requirements were lifted, for example, the in-person interview. Since July, these requirements have been reinstated.219

91.The increase in the number of applications for UC during the pandemic was unprecedented. On 9 June 2020, it was reported that some 3.1 million individuals, in 2.5 million households had applied for UC between 1 March and 2 June 2020.220 To put this in perspective, in March 2020, three million people were on UC; by July 2020 this had risen to 5.6 million people.221

Digital connectivity

92.UC is a digital service in which individuals make their applications and manage their accounts online. A key barrier to applying for UC is digital connectivity. This can be due to a lack of financial resources which would otherwise enable access to the internet, digital equipment, and in some cases, mobile phone credit. Dr Haque told us that for BAME people:

Access is a very big issue. […] there is this real assumption that everybody has a laptop or a computer. Lots of people have access to the internet but they tend to just do it all on their smartphones. Trying to apply for universal credit on your smartphone is not an easy thing to do. That also requires knowledge, confidence about the system and understanding the system.222

There is currently no UC mobile phone application. Migrant Voice, an migrant-led organisation based in London, told us that “many people do not have funds for internet or equipment to access online information and activities”.223 BAME user-groups have had to step-in to address the gap in digital connectivity. Rosie Lewis, Deputy Director, Angelou Centre, a Newcastle based organisation that provides services for BAME women and girls who are survivors of violence, told us that “we have had to find a way to deal with the digital inequity the women have faced”.224

93.Issues around digital connectivity extend to the online applications system by which an individual applies to UC. Research published, in 2019, in the British Medical Journal, Impact of Universal Credit in North East: a qualitative study of claimants and support staff, found that “Universal Credit claimants have described the digital claims process as complicated, disorienting, impersonal and demeaning”.225 In 2016, the Social Security Advisory Committee, an impartial statutory body that advises the government on social security issues, identified that “there will be a significant minority of claimants who will continue to need assisted digital provision, and these claimants are likely to be drawn more from certain groups (possibly including some with on-going vulnerability) than from the overall population”.226 This indicates that those most affected by the digital nature of UC are from vulnerable groups, which is often age related.

94.In June 2018, the then Government published the findings of its research into claimants’ experiences of UC: Universal Credit Full-Service Survey. This report set out the proportion of claimants who struggled with the digital approach: of the 98% of claimants who made their application online, 30% of those who had registered a claim online found this difficult; 43% of claimants said they needed more support registering their claim for UC and 31% said they need more ongoing support with using their UC digital account.227 This information relates to the experience of those applying for UC digitally for the first-time, but an individual’s account is also maintained online. In July this year, the House of Lords’ Economic Committee pointed out that:

Most people do not struggle with a predominantly digital service, but a significant minority do. The need to provide digital support does not end at the first claim. Claimants are expected to manage their Universal Credit accounts and work journals online for the duration of their claim. It is essential that trusted organisations are funded to guide people through the process.228

95.A report from the Race Equality Foundation published in 2016, Universal Credit and impact on black and minority ethnic communities, found that “higher levels of digital exclusion will mean that a disproportionate number of black and minority ethnic claimants will find it harder to apply for UC and be more likely to be sanctioned for failure to meet claimant commitments”.229 Dr Nagpaul told us that there needs to be “much more real provision: for everyone to be able to be digitally connected, to prepare for any future pandemic or, for that matter, if there is a second wave”.230 On 18 September, the Prime Minister said the UK was “now seeing a second wave” of coronavirus cases.231 On 31 October, the Prime Minister announced a reintroduction of a strict lockdown, from 5 November until 2 December.232

Language barriers

96.The Race Equality Foundation report, Universal Credit and impact on black and minority ethnic communities, found that often, for BAME people there is a double barrier; digital exclusion is coupled with a limited proficiency of English. The report explained that:

For people who experience language barriers, the barriers exist whether the application is for one or multiple benefits. Furthermore, only online applications are accepted for UC; this digital exclusion disadvantages people who experience language barriers and lack IT skills as it not only hinders the application process but also enforces lack of knowledge of how the welfare systems work.233

This is highlighted in the evidence provided by Toynbee Hall, who told us that:

During the crisis, it would not be unusual for a Toynbee Hall advisor to spend several hours supporting a client over the phone who has English as a second language, limited data on their smartphone, and no laptop, and who has a visual or hearing impairment, to go through the complicated process of applying for Universal Credit. Not every person with English as a second language and/or additional support needs will have had a resource like Toynbee Hall to facilitate this support during the crisis.234

Toynbee Hall suggested that:

the Department for Digital, Culture, Media and Sport commission participatory research with people who have been excluded from support during the crisis because of a combination of language and digital exclusion. The research should seek to understand how to design data packages that make data and hardware affordable to people living on low incomes, and how to increase digital skills for people with English as a second language.235

97.In July 2020, the National Audit Office (NAO) published a report which identified the issues caused for applicants to UC who have limited proficiency in English. The report found that

Claimants with limited English-language proficiency appeared to find it harder to complete their claim form accurately or understand what was required of them. Issues in these cases included claimants making incorrect declarations or submitting the wrong evidence, or not taking required actions promptly. We also found that some were not able to successfully dispute errors on their claim. For context, in one piece of research conducted by a cohort of local Citizens Advice offices in the North of England on barriers faced by claimants accessing their Help to Claim service, around one in five claimants identified reading or writing in English as a barrier to accessing Universal Credit.236

98.From October 2018, the DWP launched the ‘Help to Claim’ service in collaboration with Citizens Advice. The service aimed to provide individuals with “enhanced, free, confidential and impartial” support to help them make a claim.237 This includes English-language support. In 2019–20, the Department made available grant funding of up to £39 million to the charities Citizens Advice and Citizens Advice Scotland to deliver this service. DWP data indicated that between 1 April 2019 and 22 October 2019, 130,853 people accessed the service.238

Ethnicity data

99.Since the introduction of the UC system, there have been concerns over the lack of diversity data collected from applicants and claimants.239 These concerns have been exacerbated during the coronavirus pandemic; it is a challenge to understand which groups are seeking additional support during the pandemic in the form of UC. It is likely that BAME people are more likely to apply for UC, because they typically have lower household incomes and/or work in lower paid jobs and are more likely to be in poverty.240 The lack of diversity data, however, has made it difficult to assess whether this is the case, and to determine the number of BAME people who are applying for UC. This was highlighted by the Runnymede Trust, who said that ethnicity data around Universal Credit was not being collected or reported in a disaggregated way.241

100.The NAO report, Universal Credit: Getting to first payment, found that the DWP “lacks a complete picture of who is accessing this support and how it affects outcomes, including payment timeliness”. The NAO also found that the Department’s data on claimants’ diversity characteristics are incomplete. For example, it does not have sufficient data on areas such as claimants’ ethnicity to carry out meaningful analysis on whether particular groups are more likely to be paid late.242 The NAO, alongside other organisations that support claimants, recommended that the DWP should develop a better data-based understanding of the numbers of vulnerable claimants and use this to support the needs of people who continue to struggle with making a claim for Universal Credit.243

101.The DWP publishes updated data on claims quarterly.244 Data on the ethnicity and religion of applicants and claimants is not available.245 In the background information and methodology that accompanies this data, the Department clarifies that diversity data for UC is collected through an equality survey, which is optional, so it is not always completed, and when it is completed an individual may opt for the ‘prefer not to say’ option.246 The methodology clarifies that:

for reporting on and interpreting non-mandatory self-declared diversity fields, the minimum threshold is a completion rate of 70%, as advised by the European Human Rights Commission (and endorsed by the Cabinet Office Race Disparity Unit). The proportion of UC claimants voluntarily declaring their ethnicity is below this threshold at roughly 50%, which implies that levels of ethnicity representation among UC claimants cannot be meaningfully estimated. The same is true for the other protected characteristics captured in the equality survey.247

102.We asked the Minister for Equalities about her Department’s duty to collect data. She told us that “Universal credit is a really good example where we cannot actually tell what is going on because many people do not complete that data”.248

103.There are known barriers to applying to Universal Credit. These have been thrown into sharp focus by the pandemic. Given that the country has now exited two national lockdowns and continues to be subject to covid-19 restrictions, it is critical that the Government ensures that those who need Universal Credit can access it. The Government should immediately address issues with digital connectivity particularly given the continuing uncertainty over the level of covid-19 restrictions, which means a significant minority could become further isolated from vital support. The Government should develop a Universal Credit mobile application so that people can access the service on their phones.

104.The Government does not know enough about how Universal Credit is operating for different groups. The Government does not know, for example, how many BAME claimants there are and if they are negatively affected by the Universal Credit application system. We recommend that the Government should make the equality survey that is a part of the Universal Credit application mandatory for applicants and claimants so that the ethnicity data of applicants and claimants can be improved.

105.We further recommend that the Department for Work and Pensions reviews and publishes a report on the barriers to accessing the Universal Credit application system by January 2023. The Department should use the diversity data to assess how BAME people are accessing the Universal Credit system, and it should specifically consider the barriers caused by a limited English proficiency to ensure that Universal Credit is accessible for BAME communities.