Too many questions about welfare changes remain unanswered – Minister

The UK Government’s welfare changes are throwing a question mark over the Welsh Government’s ability to deliver support to some of Wales’ most vulnerable people, Tackling Poverty Minister Huw Lewis warned last Tuesday (21st May).

Speaking to Assembly Members in the Senedd, he set out how Westminster’s plans to replace all benefits with the ‘Universal Credit’ will have a knock-on impact on Welsh Government support such as free school meals.

In Wales the receipt of various welfare benefits is used as a measure when assessing an individual’s entitlement to the Welsh Government’s various systems of assistance and support such as free school meals, the school uniform grant scheme and free NHS dental treatment. These are known as ‘passported’ benefits.

The Minister is highly concerned that the UK Government is not releasing key information to enable the Welsh Government to put new arrangements in place for these ‘passported’ benefits under the Universal Credit system. He made a commitment that the Welsh Government will do all it can to make sure those entitled to assistance continue to receive help despite the changes to welfare.

He also questioned claims that the new benefits system will get more people into work.

Huw Lewis said:

“We are faced with the challenge of introducing new arrangements for our passported benefits such as free school meals which are currently linked to UK benefits that are about to be abolished.

“We are still waiting for critical information and assurances from the UK Government to inform our plans. We will do all that we can, with the information available, to try to ensure the continued delivery of these benefits. But let us be clear, the failure of the UK Government to act effectively on providing the information we need would mean that vulnerable children will not get free school meals, or grants for school uniforms. This is not just an administrative procedure. It could mean unnecessary hardship for our most needy children.

“One of the key planks of the UK Government’s reforms is the introduction of Universal Credit. Whilst the ambition of a simpler system in which work pays is welcome, there are major question marks over whether the new system is indeed simpler. Our research suggests that any positive effects on employment in Wales are likely to be, at best, very modest, and will depend on wider economic conditions. The UK Government has set aside £2 billion for the introduction of this new benefit – a hefty price tag for ‘at best, a modest impact’.

“The Welsh Government is not resourced to compensate for the shortfalls caused by the UK Government’s reforms, but we know that we will need to pick up the pieces.”

The Welsh Government is taking action on a number of fronts to help people with targeted support, including:

• The Digital Inclusion programme to help to mitigate the impact of digital elements of welfare reform.
• £22 million in 2013-2014 to ensure that the 330,000 families who previously received Council Tax Benefit do not lose out.
• We have provided Local Authorities with £2.6 million for the Council Tax Support Transition Grant following the abolition of Council Tax Benefit.
• £3.9 million additional support to pensioners in paying their Council Tax.
• Expanding our Flying Start programme so that 36,000 children and their families will benefit by the end of this Assembly term.
• £75 million is being invested up to March 2015 to support a range of community based projects through Communities First, which is now a Community Focussed Tackling Poverty Programme
• Introducing a Discretionary Assistance Fund following the UK Government’s decision to abolish Crisis Loans and Community Care Grants.
• Making available an additional £750,000 to local authorities to help people affected by the cut in housing benefit for tenants with ‘spare’ bedrooms.

In the summer the Welsh Government will launch a refreshed Tackling Poverty Action Plan.