Treated like guinea pigs
MINISTER’S ADMISSION OVER PILOT PROJECT ON TYNESIDE
A MINISTER has said universal credit claimants in Newcastle have “fallen into a pit” after the city was chosen to test out the benefit.
The startling admission came from Baroness Williams of Trafford, who made the comments as she represented the Government in the House of Lords.
Baroness Williams is a former leader of Trafford Council and is now a Conservative member of the House of Lords. She served as a local government minister before becoming an equalities minister.
Newcastle was chosen to be the first city where universal credit, which replaces a range of older payments, was introduced in full. A range of problems were identified, including concern that late payments were driving people into debt.
The impact on claimants was highlighted by the Bishop of Newcastle, the Right Rev Christine Hardman, who is also a member of the House of Lords. She said the benefit had led to “terrible things” and the people of the city had been used as “guinea pigs”.
The bishop said: “Newcastle was one of the pilot areas for universal credit. It also has one of the largest food banks in the United Kingdom.
“I have warmly welcomed the changes to universal credit that have ameliorated some of the terrible things that happened in the beginning. However, is anything being done to help those people who were the guinea pigs, who were plunged into poverty and have not managed to come out of it?”
Baroness Trafford gave the official response on behalf of the Government. She said: “We are working with areas such as Newcastle that have food banks. We are also working with the food banks more closely to better support those people who, as she says, might initially have fallen into that pit, perhaps, of the ever-increasing sets of problems that arose from that initial problem with universal credit.” Changes were made to Universal Credit after the initial roll-out led to an increase in food bank use and rent arrears. These included cutting the waiting time for payments from six weeks to five weeks.
Figures published in July showed there were 72,000 people in the North East claiming universal credit, with another 175,000 people in the region claiming older benefits.
While Labour MPs have criticised universal credit, the problems with the benefit system have also been documented by cross-party House of Commons committees and the National Audit Office, the independent watchdog for public spending.
A report by the Commons Work and Pensions Committee warned that many claimants moved to the new system suddenly found their benefits have been cut, with an average loss of around £3,000 a year, and those affected included households with a disabled adult or child.
NHS Providers, the body that represents NHS trusts, has warned that universal credit is pushing up demand for mental health services. And a United Nations inquiry into poverty in Newcastle found the benefit system contributed to people’s dependence on charities.