Universal Credit & ESA WRAG migration

Reading through the debate on the new Welfare Reform and Work Bill, I was alarmed by comments made by Debbie Abrahams.  In column 205 she says:

“Again, the Government have been more than a little disingenuous when they suggest that the reduction in social security support applies only to new ESA WRAG claimants from 2017. From this April, 492,180 people currently on ESA WRAG will start to migrate across to universal credit, which, as many people know, combines a number of benefits, including ESA, into one amalgamated benefit.

Clause 14 removes the limited capability for work component for the work element of universal credit. That means that everyone currently on ESA WRAG will ultimately be transferred on to universal credit and will also have their support cut by £29.05 a week, or £1,500 a year.”

My understanding was that there would be Transitional Protection for existing claimants.  No one contradicted Debbie Abrahams, yet this is such an important point. 

Did she just make a mistake or is this something to be concerned about?

I’m not sure Ruth - I think transitional protection applies to anyone who is on ESA at the time of change and also those who are migrated over to UC from ESA - so if someone is on ESA with the WRAC and is moved over (without having to submit a UC claim) they will have protection.

But for anyone who is already on UC or falls to make a claim for UC I don’t think there is any protection.

Clause 13 of the Bill (removal of WRAC) provides for transitional protection for those on ESA when the change comes in as it says at 13(4) -

The Secretary of State may by regulations make such transitional or transitory provision or savings as the Secretary of State considers necessary or expedient in connection with the coming into force of subsections (1) to (3) [removal of WRAC from contESA and irESA]

However, clause 14 of the Bill (removal of LCW element) only says -

In section 12(2) of the Welfare Reform Act 2012 (universal credit: particular needs or circumstances), omit paragraph (a).

no mention of transitional protection at all - so it would seem that once that part of the Act is commenced the LCW element goes in universal credit for all claimants whether or not they already have the LCW element included in their assessment.

So I guess it would be good to stay on ESA until after April 2017 so that you benefit from transitional protection through the migration process.

What do others think?

It is possible that the reason the bill makes no reference to transitional protection for existing UC claimants with the LCW element Is that the power to create regulations to protect existing claimants already exists in the Welfare Reform Act 2012.

Whether the Government will choose to use those powers is another matter.

I think this is also covered by Clause 34: clause/section 14 is one of the sections that will come into force by way of a commencement order under Clause 34(6) and Clause 34(8) provides for transitional protection to be written into the commencement order.

So are we saying that Debbie Abrahams made a mistake?  I do hope so.

Not so much a mistake as a worst-case assumption: if s14 were to commence across the board for everyone on the same date then yes, existing UC claimants and any future ESA migration cases would instantly be clobbered.  We will just have to wait and see if the commencement order phases it in somehow.

That’s assuming it survives “ping-pong” but the House of Commons was fairly emphatic in its response earlier this week so I assume the Lords will have to back down in the end.