The DWP has provided a hint as to why Universal Credit claimants face so many barriers
The Department for Work and Pensions (DWP) has issued an official response after it was called on by Martin Lewis to fix an issue affecting Universal Credit claimants’ bank accounts. In a letter to DWP boss Pat McFadden, which was sent on Friday, December 12, the MoneySavingExpert founder claimed millions of Universal Credit claimants could be prevented from accessing accounts and deals.
Martin also sent a copy of the letter today (December 15) to UK Finance and the Building Societies Association, and the Current Account Switch Service (CASS), which helps to run bank switches. He alleged that 8.3 million people claiming the benefit “may effectively be excluded from switching bank accounts” and are unable to take advantage of incentives and deals associated with such switches.
While noting there was a ‘range of issues’, he highlighted that a key one was the obligation for many claimants to attend in-person appointments at their Jobcentre. He claimed this added more ‘hassle, cost’ and a ‘possible loss of income’ while being an ‘inefficient use of Jobcentre resources.’
DWP claims of protecting Universal Credit claimants
In response to the letter, a DWP spokesperson said: “We thank MSE for their letter and will respond. DWP are committed to ensuring people receive the support they’re entitled to, while creating a welfare system that is fair to the taxpayer.
“Personal information such as bank details must be treated securely to ensure payments reach the right person and they are protected from exploitation or impersonation.”
Martin’s MoneySavingExpert also provided further background to the DWP over the bank switching issue that appears to be affecting Universal Credit claimants. On its website, this highlighted that “true inclusion” should factor in a person’s ability to choose and switch whatever financial product they want with relative ease.
Perverting the ‘ease of process’
Martin’s letter also highlighted that the ‘bueaucratic process of UC appears to ‘pervert the ease of the process’ by adding barriers that make switching bank accounts ‘not worth the time’ for Universal Credit claimants. Typically, the Current Account Switch Service allows Brits to switch over their bank accounts free of charge and claims to have already helped more than 12 million prople successfully switch accounts.
Martin also suggested a number of actions that the government could take in order to allow those on Universal Credit to switch between banks. This included remote verification processes, more flexible appointment times, and access to digital banks that would see verifications not have to rely on physical cards.
The full letter sent to Mr McFadden can be read on the MSE website here.
