Secretary of State confirms that there will be no recompense for tax credit claimants who were advised to claim universal credit and lost out

Director General of Work and Health Services adds that 'jobcentres do not offer advice' and that a move to universal credit is 'not voluntary'

The Secretary of State for Work and Pensions Dr Thérèse Coffey has confirmed that there will be no recompense for tax credit claimants who were advised to claim universal credit during the coronavirus (COVID-19) pandemic and who lost out as a result.

In an evidence session this morning before the Work and Pensions Committee - about the Department's response to the coronavirus outbreak - Labour MP Steve McCabe highlighted that Dr Coffey had previously said that she was 'actively looking' at what can be done for tax credit claimants who lost out financially due to applying for universal credit to which they were not entitled, or entitled to a lesser amount. Referring to a letter Dr Coffey had sent to the Committee yesterday evening at 7.30 pm, Mr McCabe questioned what had happened to that promise - 

'I notice in your letter that you are saying that you do not intend to return [claimants] to legacy benefits ... What are you going to do? Are you still looking at how you can do something for these people who have lost out?'

Asserting that the DWP signposts people to an independent calculator, Dr Coffey responded - 

'We did look at it carefully, and and it was a decision that was made that we would not reverse [the situation].'

Pressed by Mr McCabe on the possibility of the DWP instead providing compensation to those who had lost out due to mis-advice, the Director-General of Work and Health Services John Paul Marks insisted - 

'The jobcentres do not offer advice ... about moving to universal credit because a move to universal credit is not something that is voluntary... It is triggered by a life event.'

NB - elsewhere in the evidence session, it was also confirmed that - 

• it is the Secretary of State's view that it is not the responsibility of the DWP to have a statutory safeguarding duty towards vulnerable claimants;
• the Secretary of State is in 'active discussion' with the Treasury in respect of the £20 uplift to universal credit and tax credits which is currently due to end on 5 April 2021;
• the suspension of the minimum income floor in universal credit, which is due to expire on 12 November 2020, is under 'active consideration';
• a new date has not yet been set for the recommencement of the managed migration pilot which was suspended in March 2020; and
• the caseload of work coaches has risen from around 120 to 140-200 (dependant on the jobcentre) during the coronavirus (COVID-19) pandemic but is expected to go back down following the launch of the rapid recruitment plan to employ further work coaches.

The transcript of the evidence session before the Work and Pensions Committee is available from parliament.uk