Publications

The last year has shown the vital importance of our social security safety net. However, Universal Credit (UC) is unlikely to feature in the Government’s legislative agenda tomorrow. This risks missing lessons from the pandemic. While UC survived the influx of new claimants—in part by easing verification procedures and conditionality—fundamental aspects of its design have continued to put people in hardship. Reform is urgently needed so people have security and support as furlough is withdrawn and the economy reopens.

CAS is calling for:

› A review of UC’s adequacy as an in- and out-of-work benefit, with the £20 a week uplift made permanent

› Restoration of Work Allowances for all people on UC and a review of the Taper Rate

› The continued suspension of the Minimum Income Floor, with permanent changes to how self-employed income is assessed for UC going forward

› The introduction of a non-repayable assessment period payment to replace the current five week wait and Advance Payment system

› The ending of sanctions and unaffordable deductions

› Wider access to offline options for making and maintaining a UC claim and the introduction of implicit consent for CAB and other welfare rights advisers

› A fair, flexible, and safe transition to UC for those on legacy benefits, with an extension of the uplift and freedom to return to legacy benefits if UC entitlement is lower

The Social Security Benefits Up-rating Order 2021 increases social security payments by the rate of CPI inflation (0.5%) from 1st April 2021. CAS welcome any increase to social security payments including Universal Credit (UC). However, current legislation prevents the future of the temporary £20 a week uplift to Universal Credit (UC) from being included in this annual review of benefit rates – at a time when uncertainty around the future of the £20 uplift is growing. Due to the benefits freeze from 2016 to 2019, UC rates remained at 2015/16 levels, meaning that in real terms the value of social security payments have fallen.

If the £20 a week uplift to UC is not made permanent, any inflation-related uprating is negated. People on UC are at risk of a serious shock to their income, including the millions claiming for the first time as a result of the pandemic. To avoid a rise in poverty, greater strains on public services and harming economic recovery, the £20 a week uplift must be maintained.

In this submission CAS sets out two much needed policy actions that must be included in the Budget. The first is to ensure that Universal Credit (UC) is maintained at an adequate level to effectively fulfil its function as a vital safety net and public service. Making the £20 a week increase permanent is the first step to ensuring that UC can meet the needs of the increasing number of people relying on UC. The second is to allow UC to become a better tool for recovery and support more people into work when the economy can open back up, as well as those already in work and claiming UC.

In 2018-19, the Citizens Advice network helped over 270,000 clients in Scotland with almost 750,000 advice issues. With support from the network, clients had financial gains of over £131 million and our self-help website Advice in Scotland received approximately 3.7 million views.

The Citizens Advice network issued 311,714 pieces of advice on benefit issues, the single largest area of advice for the network in 2018-19. Since February this year the network has provided over 85,000 pieces of advice on Universal Credit alone.

CAS produced this data briefing alongside a policy briefing calling for the £20 a week increase to Universal Credit to be made permanent.

Citizens Advice Scotland (CAS) welcomed the opportunity to contribute to the Social Security Committee’s call for evidence on the role of Scottish Social Security in COVID-19 recovery.

Citizens Advice Scotland (CAS) welcome the opportunity to contribute to the Spending Review process and provide our insight and data. Protecting and maximising household incomes and averting mass unemployment are the essential foundations on which the Spending Review in this time of COVID-19 must be built. The Government can do this by committing to the following actions;

• Implementing targeted job protection initiatives to avert unemployment,
• Strengthening the Universal Credit safety net by ensuring level of payments are maintained at least at current levels,
• Making Universal Credit work for those in work.

Citizens Advice Scotland (CAS) welcomes the Bill, which provides an opportunity to make minor amendments to address issues which have been identified since the passage of the Social Security (Scotland) Act 2018, including making provision for the introduction of the Scottish Child Payment. CAS welcomes the amendments brought at Stage 2, which cover a number of further areas which CAS and others identified in evidence at Stage 1.