Policy experts raised concerns that previous mistakes could be repeated
The Department for Work and Pensions has faced accusations of withholding vital claimant data, resulting in people losing out on financial support. Consumer rights campaigners raised their concerns about the DWP benefits system during discussions with MPs.
One particular worry was over the department's failure to communicate essential claimant information. Fabian Chessell, central government lead at Policy in Practice, addressed the Work and Pensions Committee, emphasising the need for improved "data sharing". His focus centred on low-income individuals transitioning from Universal Credit to Pension Credit. Universal Credit can be claimed until state pension age, presently 66, after which Pension Credit becomes available. Mr Chessell highlighted a "17-week window" prior to qualifying for Pension Credit during which applications can be submitted. Applications for Pension Credit are accepted up to four months before reaching state pension age. The policy specialist explained: "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." In light of this risk, he questioned why the DWP doesn't collaborate more effectively with local authorities, or provide them with assistance, to ensure those nearing state pension age submit their Pension Credit applications early, preventing any break in income. He said: "I think that's a big opportunity." On the same topic of communicating with councils, Mr Chessell highlighted another concerning trend. He said: "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." You may be able to get support through your local council, such as the Household Support Fund. This fund can help cover regular bills through vouchers or other discounts. You will need to check with your local council to see what they support is on offer. Mr Chessell urged the committee to seek assurances from the DWP that this data withholding error would not be repeated. The DWP was asked to respond to the claim that it has not 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." The DWP said it is rolling out a new system in this regard. The spokesperson said: "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." For the latest money saving tips, shopping and consumer news, go to the new Everything Money website.
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