Expert fear the mistake could be repeated for other benefits
The DWP has come under fire for allegedly withholding vital information, causing people to lose out on payments. Consumer champions voiced their worries to MPs regarding significant flaws in the DWP benefits system. One are of concern raised was the department’s failure to pass on critical claimant data.
Fabian Chessell, central government lead at Policy in Practice, told the Work and Pensions Committee that improved “data sharing” is needed. He highlighted an issue faced by low-income individuals transitioning from Universal Credit to Pension Credit. Universal Credit can be claimed until state pension age – currently 66 – after which Pension Credit becomes available.
Mr Chessell pointed out there’s a crucial “17-week window” before qualifying for Pension Credit during which applications can be submitted. Claims can be lodged up to four months ahead of reaching state pension age. The policy specialist warned: “It is worth doing that or you face a gap while you wait for your Pension Credit.
“This is somebody already on a very low income, facing an absolute cash shortfall.” Given this perilous situation, he questioned why the DWP isn’t collaborating more effectively with local councils or providing them with adequate support to guarantee those nearing state pension age submit their Pension Credit applications early enough to prevent any income shortfall.
He said: “I think that’s a big opportunity.” Mr Chessell highlighted another alarming trend, stating: “I think there is a big risk with pensioner data. At the last committee, I pointed out that the DWP withholds data on 60 percent of Universal Credit households from councils, meaning that 60 percent of low income residents are invisible to councils, and not getting support.
“That rose at the moment when DWP took Universal Credit benefits in house and took over processing from councils. It looks like that’s the direction of travel on Housing Benefit.
“We’re facing a risk where DWP may repeat the same mistake and make a large swathe of pensioner households invisible from councils.” Support through your council could be available for your specific area, such as through the Household Support Fund.
This fund can assist with your regular bill payments, offering vouchers or other discounts. You’ll need to check with your local council to see what support is on offer.
Mr Chessell urged the committee to seek assurances from the DWP that this data withholding error wouldn’t happen again. The DWP was asked to respond to the claim that it hasn’t shared Universal Credit claimants’ data with local councils.
A DWP spokesperson said: “It is not correct to say that we are withholding 60 percent of Universal Credit customers’ data from Local Authorities. We have been sharing Universal Credit data with local authorities since 2013, in line with what Local Authorities needed at that time and with data protection requirements.
“We recognise that Local Authorities’ needs have evolved, which is why we’re developing a new data sharing system that will give them access to Universal Credit claimant data for all residents in their area.”
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