Rudd told to go extra mile to help people on Universal Credit
AMBER Rudd has been urged to take further steps to help people on Universal Credit after unveiling reforms of a system she said was not as effective or compassionate as she wanted.
Charities, church and union leaders spoke out after the Work and Pensions Secretary said a plan to move three million people on to the single benefit payment would be delayed until 2020.
Rudd also said a plan to apply a two-child benefit cap retrospectively to new UC claimants would be axed in a move that will help 15,000 families.
She said it was not “reasonable” to impose the two-child cap – intended to force claimants to make decisions on whether they can afford a third child in the same way as those in work – on families who already have more than two offspring.
Rudd also signalled an end was in sight for the benefit freeze introduced by former chancellor George Osborne in 2016, saying “it should come to an end” in 2020.
However, she admitted she had yet to discuss extra funding with Chancellor Philip Hammond.
Other changes will make the system more “individual”, tailoring it to claimants’ needs by making payments more regular or paying rent money direct to landlords.
Shelter chief executive Polly Neate said the benefit freeze had been causing “real hardship”, including affecting people’s ability to pay their rent. She added: “We hope the Government are now waking up to the challenges faced by tens of thousands of households, who cannot wait until 2020 for the freeze to be lifted.
“They need action now to avoid homelessness.”
Save The Children’s Steven McIntosh said the announcements were “a step in the right direction”, but added: “Families are forced to pay sky-high childcare fees before waiting weeks to BY DAVID WILCOCK be paid back. This risks plunging families into debt or keeping parents out of work.
“The Secretary of State acknowledged this is a huge issue but the proposed solution – short-term support and flexibility over deadlines when parents start work – tinkers around the edges of a problem that needs addressed head on.”
The two-child cap limits support for families through tax credits, housing benefit and UC to the first two offspring.
Subsequent children, except in special cases, are not entitled to the “child element”, which is £2780 a year.
Rudd used her first major welfare speech to try to allay fears about the roll-out of UC. The minister told an audience at a Jobcentre in Kennington, south London, it was “not right” that the two-child limit was being made retrospective from February.
She added: “All children born before that date will continue to be supported by UC. And that will help approximately 15,000 families a year.”
Rudd’s move came as the Commons work and pensions committee branded plans to retrospectively extend the cap to kids born before it was brought in “cruel”.
The committee expressed fears about the impact of such a move on the levels of child poverty.
Rudd earlier told BBC Radio 4’s Today programme she remained committed to the completion of the “migration” of claimants of six old benefits on to UC by 2023.
She said: “This is a really ambitious project. It’s going to impact on eight million people’s lives.
“Maybe things that were proposed weren’t effective or weren’t compassionate in the way I want them to be. So I’m going to be perfectly bold about making those changes where I need to.”
SHELTER BOSS POLLY NEATE