‘Incompetence’ claim after Rudd loses benefit challenge

THE CHAIRMAN of the House of Commons Work and Pensions Select Committee accused the Government of “appalling incompetence” after four working single mothers won a High Court challenge over Universal Credit.

Two judges in London announced yesterday that the women – who said they were struggling financially because of the way the benefit system operates – had succeeded in a judicial review action against the Work and Pensions Secretary Amber Rudd.

The women argued that a “fundamental problem” with the benefits scheme means their monthly payments vary “enormously” and they end up out of pocket.

Labour MP Frank Field said: “The court has laid bare yet another example of appalling incompetence that was built into the design and delivery of Universal Credit, where common sense seems to be in short supply. Sadly, as always, it has been families on low incomes who have been grossly let down by these failings.”

Lord Justice Singh and Mr Justice Lewis gave their ruling following a hearing in November when they were told the women were struggling to manage their household budgets and some had fallen into debt or had to rely on food banks. Lawyers for Danielle Johnson, Claire Woods, Erin Barrett and Katie Stewart said the problem is likely to affect “tens of thousands of people” claiming Universal Credit, which was introduced to replace means-tested benefits including income support and housing benefit.

They said the problem arises when claimants are paid by employers on a date which “clashes” with their assessment period for Universal Credit. For example, if a claimant is paid early because of a weekend, the system counts them as having been paid twice in one month and they receive a “vastly reduced” Universal Credit payment.

A Department for Work and Pensions spokesman said: “We are carefully considering the court’s judgment.”

Last year, The Yorkshire Post ran a week-long series about the benefit’s effects in the region.

CHANGES TO the benefit system that will see more money go directly to women who are the “main carer” in a family will be introduced later this year, Amber Rudd said.

The Work and Pensions Secretary said she had listened to arguments from advocacy groups that the system of “one payment per household” penalised women.

Charities have argued that often this means a whole family’s benefit payments go to the man’s account and often women – including victims of domestic violence – have little or no access to it.

Ms Rudd said that “women can never be truly free until they have economic independence” and highlighted recent efforts to achieve this aim.