Local Welfare Assistance Schemes
I agree that Local Welfare Assistance Schemes should help claimants in urgent need following an emergency or unforeseen event and who have no other source of help.
A Department for Work and Pension (DWP) 2014 review found that local authorities delivered support more effectively than the previous provision and that councils are best placed to decide how to target flexible help to support local welfare needs. While the DWP has no plans to change these arrangements, there are other welfare measures in place to help those who experience hardship.
For example, advances equal to 100 per cent of a claimants’ provisional UC award are available from the start of a claim. These are typically paid within 72 hours, ensuring households get vital support quickly.
Other measures include reducing the maximum rate at which deductions can be made from a UC award, with the period over which these recoveries are made being extended from 12 to 24 months in October 2021. Additionally, there has been a £1,000 increase in work allowances which has provided a £630 boost for households with children and for people with disabilities. UC claimants may also be able to access the Flexible Support Fund, which is a discretionary fund that provides non-repayable support to claimants in financial need to move into work. I am pleased that the DWP has also announced a £150 million investment in the Flexible Support Fund.
I will continue to follow this issue closely and support improvements when necessary.
Universal Credit Uplift
I am encouraged that a package of temporary measures worth around £9.3 billion has been introduced this year to help those facing financial disruption as a result of the pandemic, including by increasing Universal Credit (UC) and Working Tax Credit (WTC). The Coronavirus Job Retention Scheme has kept over 9 million people in their jobs, whilst mortgage holidays and an eviction moratorium have helped to keep people in their homes. I know my colleagues in the Department for Work and Pensions (DWP) are also committed to supporting people by helping them get back into work.
The Government’s approach has been to target support at those facing the greatest financial disruption, and it is important to remember that new claimants will generally be receiving UC. However, in addition to the extra support provided through UC and WTC, the annual benefit uprating of 1.7 per cent has been applied across all benefits. Legacy benefit claimants may also have benefited from wider support measures, such as the job retention scheme and eviction moratorium mentioned above.
You may be aware that the Local Housing Allowance (LHA) has already been increased to the 30th percentile of local market rents for UC and Housing Benefit claimants. This means that 30 per cent of properties in each broad market area across England, Scotland and Wales are now within the LHA rate. This increase will benefit over 1 million households who will see an average increase of £600 this year. To support renters needing additional help, £180 million funding has been provided for Discretionary Housing Payments, for local authorities in England and Wales, to distribute.
I am aware that discussions about how best to support people going forward are ongoing across government, and welcome decisions such as the extension of the furlough scheme. I will, however, pass the concerns you have raised with me on to ministers as they consider future policy.
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