The DWP faces criticism over data sharing gaps affecting low-income claimants
The DWP has faced criticism for supposedly keeping back essential information, resulting in people missing out on payments. Consumer advocates expressed their concerns to MPs about serious weaknesses within the DWP benefits system, particularly the department’s failure to share crucial claimant information.
Fabian Chessell, who leads central government work at Policy in Practice, told the Work and Pensions Committee that better “data sharing” is essential. He drew attention to a problem affecting those on low incomes who are moving from Universal Credit to Pension Credit.
Universal Credit remains available until state pension age – presently 66 – at which point Pension Credit takes over. Mr Chessell explained there’s a vital “17-week window” before becoming eligible for Pension Credit when applications can be made. Claims may be submitted up to four months before reaching state pension age.
The policy expert cautioned: “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.”
Considering this precarious circumstance, he questioned why the DWP isn’t working more closely with local authorities or giving them support to ensure those approaching state pension age lodge their Pension Credit applications promptly enough to avoid any shortfall, reports the Mirror. He explained: “I think that’s a big opportunity.”
Mr Chessell also drew attention to another worrying development, saying: “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.”
Local authorities may provide assistance specific to your area, potentially through initiatives like the Household Support Fund. Such schemes can help with routine expenses, providing vouchers or alternative forms of financial relief. Residents should contact their local council to discover what provisions are available.
Mr Chessell called on the committee to obtain guarantees from the DWP that such data-sharing failures would not recur. The DWP has been approached for comment regarding allegations that Universal Credit claimants’ information has not been shared with local authorities.
A DWP spokesperson clarified: “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.
“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.”