Government must restore billions to Universal Credit, say Lib Dems

Following the announcement of the delay in the rollout of Universal Credit real concerns remain about the lack of engagement with local government and local partners about the next phase of implementation.

The Government needs to use this delay to work closely with the Local Government Association, Councils and stakeholders so that we can provide the best for vulnerable claimants and ensure no-one loses out on transitional protection. This is also vital to integrate benefits with work on housing, employment, health and financial inclusion so that our welfare system provides a genuine safety net and supports social mobility.

Any extra money must also be used to ensure that people are better off on Universal Credit, and to fund councils properly for the vital support they provide. This includes restoring funding to councils for local welfare assistance so that they can provide the local safety net to help those struggling to cope with welfare reforms, including the rollout of Universal Credit.

The delay to Universal Credit means Councils will remain responsible for delivering Housing Benefit to a significant majority of claimants while only receiving around half of what it costs to pay for this work. With Councils facing a funding gap that will reach almost £8 billion by 2025, they cannot be left to prop up further delays to the Universal Credit rollout without being properly funded.

Liberal Democrat Work and Pensions spokesperson Stephen Lloyd MP said:

"Universal Credit might be a good idea in principle, but the Conservatives' botched implementation of it is causing unnecessary misery for millions.

"The leaked plans to reform Universal Credit will never solve the problem. They are only tinkering at the edges. Nothing short of restoring the billions the Tories cut from Universal Credit's Work Allowance will be acceptable.

"Liberal Democrats demand better. That is why I have urged Ministers to restore Universal Credit's Work Allowance to its original levels, so that work really does pay for those on low incomes. Without it the new benefit scheme will continue to lurch from crisis to crisis."