Letter: Plaid MS forgets the benefit system is not devolved
It seems strange to me that a serving MS doesn't fully understand the devolution settlement in Wales and that his solution cannot be aligned with Scotland.
Wales and Scotland do not have the same devolution settlements, consequently Scotland are able to implement policies which Wales cannot - most importantly the benefit system.
The benefits system is not devolved in Wales. The arrangements in Scotland differ.
Plaid are suggesting paying an additional £10 per week to families who are in receipt of Universal Credit (UC), on the face of it a reasonable solution.
However, UC is a means tested benefit, therefore, the greater the income a claimant receives the less they receive in benefits. The additional £10 that UC families receive in Wales will not result in an extra £10 in their pockets! They may receive some of it whilst other families may lose their benefits altogether.
If Wales pays out £10 extra per working family per week to those in receipt of UC it will result in UK Government paying out less to these families.
Ironically the Welsh Government will be subsidising the DWP.
According to the Welsh Affairs Committee in 2022 (The Benefits System in Wales - Welsh Affairs Committee) there were 232,739 households in receipt of UC in Wales.
This initiative would cost Wales in excess of £121 million per annum plus the additional cost of administration.
Scotland's settlement allows them the freedom to become involved in the benefits system but we do not have that freedom in Wales - perhaps in the future this may happen (but unlikely, I suspect).
In conclusion a laudable remedy but one that has not been very well thought out.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mirror
4 hours ago
- Daily Mirror
DWP minister outlines new measures to stop people fraudulently claiming PIP
The Department for Work and Pensions (DWP) provides benefits to nearly 24 million people across Great Britain, including 3.7 million on Personal Independence Payment (PIP) A Department for Work and Pensions (DWP) minister has vowed to ensure officials fight fraud and error across the benefits system. That includes recovering debts from Personal Independent Payments (PIP). The news came after Conservative MP Sir John Hayes questioned the DWP about what steps it is taking to "tackle people fraudulently claiming PIP". In a written response, DWP Minister Andrew Western detailed new measures being implemented to "prevent fraud entering the system based on the types of cases and trends we have seen". This includes "introducing more rigorous checks for customers changing personal details, including bank accounts". Mr Western stated: " DWP is committed to tackling fraud and error in the benefits system and to the recovery of debts, including those generated by Personal Independent Payments. Working closely with counter fraud experts, the DWP has introduced measures to prevent fraud entering the system based on the types of cases and trends we have seen." These include: The minister added: "DWP is delivering against key counter fraud activity, including investing in counter fraud professionals and building data analytical capabilities. The new Fraud, Error and Debt Bill will bring forward new measures to tackle fraud in the system. "Details on the measures the Government will be legislating will be presented to Parliament in due course." The Department for Work and Pensions (DWP) provides benefits to nearly 24 million people across Great Britain, including 3.7 million on Personal Independence Payment (PIP). The most recent DWP report reveals that £330m was lost to fraud and error in the PIP system last year, a significant increase from £90m in 2023/24. Fraud and error in the welfare system resulted in overpayments costing the taxpayer £9.5bn last year, slightly down from £9.7bn in 2023/24, reports the Daily Record. Fraud Government guidance explains that this relates to claims where all three of the following conditions are met: the claimant can reasonably be expected to be aware of the effect on their entitlement benefit payment stops or reduces as a result of a review of the claim the conditions for receipt of benefit, or the rate of benefit in payment, are not met Claimant error These are instances where overpayments have occurred because claimants have provided inaccurate or incomplete information, or failed to report a change in their circumstances. However, there is no evidence of fraudulent intent on the part of the claimant. Official error This refers to situations where benefits have been incorrectly paid due to a failure to act, a delay, or an incorrect assessment by the Department, a local authority, or HMRC. This occurs without any external contribution, regardless of whether the business unit has processed the information. PIP changes in circumstances There are several changes in circumstances that individuals receiving Personal Independence Payment (PIP) must inform the Department for Work and Pensions (DWP) about, or they risk losing their benefit entitlement and having regular payments paused or stopped. It's important to note that changing your name, GP, healthcare provider or address doesn't require notification to the DWP and won't affect your payments or award - though it's sensible to keep your details up-to-date with the department. However, leaving the UK or planning to leave for more than four weeks - even for a simple holiday - could impact your entitlement. READ MORE: 'My son was sent home from A&E with antibiotics - he died aged five days later' The PIP Handbook currently advises: "This change may affect the claimant's entitlement to PIP. We will need to know the date the claimant is leaving the country, how long they are planning to be out of the country, which country they are going to and why they are going abroad." If you're considering a trip abroad in the near future, it's crucial to inform the DWP promptly with all the necessary details - something to remember when planning your summer holidays this year. How to notify DWP of circumstance changes Give the PIP enquiry line a ring on 0800 121 4433 to report any changes in circumstances - phone lines are open from 9am to 5pm, Monday to Friday.
Daily Mirror
6 hours ago
- Daily Mirror
Ex DWP worker issues 'virtually impossible' State Pension update
There have been claims the State Pension will be means-tested in the future Pensions Minister Torsten Bell has recently confirmed that the State Pension will not be means-tested in the future. This comes after speculation that the benefit could be next on the Labour Government's review list. The New and Basic State Pensions are subject to an annual increase under the Triple Lock system. This increase aligns with the highest of three figures: average annual earnings growth from May to July, Consumer Price Index (CPI) inflation for the year ending in September, or 2.5 per cent. The Deferred State Pensions and additional elements rise in accordance with the CPI inflation rate as of September. Around 55 per cent of social security spending is allocated to pensioners. In the fiscal year 2025/26, the Department for Work and Pensions (DWP) is projected to spend £174.9 billion on benefits for pensioners. This includes the State Pension, which is forecasted to cost £145.6bn in the current financial year, reports the Daily Record. As these costs continue to rise, the topic of means-testing is likely to resurface. However, former DWP employee Sandra Wrench, who has 42 years' experience dealing with benefits including the State Pension, argues that it would be "virtually impossible" to means-test the State Pension due to the differing administrative structures for the New and Basic State Pensions. Speaking to the Daily Record, Mrs Wrench explained: "There are two main barriers that the Uk Government would face if they did go down this path and why it makes it virtually impossible to means-test the State Pension. I worked on the State Pension section at Bedford DWP for 18 years, and when you actually process claims for the State Pension, you have a greater understanding and knowledge of the benefit." Voluntary Contributions paid by way of cash You can plug holes in your National Insurance (NI) record by making cash payments into the State Pension scheme through Voluntary Contributions. Mrs Wrench said: "You are not going to pay cash into a scheme unless you can get your money back. We look at the recent time extension for the payment of Voluntary Contributions from 2006, where the deadline was originally April 5, 2023, but this was extended by the UK Government to April 5, 2025, so they are still actively encouraging the payment of Voluntary Contributions. Would they be doing this if they were going to means-test the State Pension? The answer is no." She continued: "If the State Pension was means-tested, HM Revenue and Customs (HMRC) would have to refund Voluntary Contributions to those members of the public, who had paid them, but were not entitled to the payment of State Pension. "State Pension is based on the NI contributions you pay from age 16 to State Pension age - typically, a period of 50 years - so some people may have paid Voluntary Contributions 20/30 years ago for a period in the future. It is unlikely that HMRC would retain detailed payment details of Voluntary Contributions, both Class 3 and Class 2, paid all those years ago, even though the NI record will confirm that Voluntary contributions have been paid, which count towards qualifying years." The DWP insider emphasised how if the State Pension became means-tested, would HMRC be capable of refunding NI contributions from decades past? Mrs Wrench said: "In a nutshell, the answer is probably no, unless the customer had kept detailed records of all payments made for past years." She added: "I myself paid a substantial sum into the Additional Pension Top Up scheme for those who were State Pension age before April 2016, and this scheme ran between Oct 2015 and April 2017. Due to the higher rate of Basic State Pension for the New State Pension, currently £230.25 a week, this gave those pensioners who were State Pension age before April 2016 with the lower amount of Basic State Pension, currently £176.45 a week, the opportunity of purchasing up to £25 a week additional pension to help bridge this gap." It's crucial to note that the Additional Pension increases annually under the CPI measure of the Triple Lock. Additional Pension (1978-2016) and contracted out employment The Old Basic State Pension scheme comprises three elements: Basic State Pension - paid on the number of qualifying years which you have Additional pension - first known as SERPS (State Earnings Related Pension Scheme) from 1978, then known as the Second State Pension from 2002 to 2016, and it was the additional State Pension scheme you could contract out The Graduated Retirement Pension which existed from 1961-1975 Mrs Wrench clarified that with 'contracted out' employment, your additional pension is disbursed with your occupational pension rather than being paid by the state. She continued: "DWP have admitted and confirmed in writing that they do not know the exact amount your scheme will pay you as a result of contracting out as it will depend on the actual rules of your private scheme. "So DWP would have to estimate the amount of additional pension in pay for State Pension purposes, if that person had been in contracted out employment. So how can you means-test an amount which is estimated?. "DWP have stated that the pension you get from your workplace or personal pension scheme for the periods you were contracted out, should include an amount that, in most cases, will be the equivalent of the Additional State Pension you would have got if you had not been contracted out, and this amount is known as the Contracted-Out-Pension-Equivalent (COPE). "DWP will know how much Additional Pension you would have got if you had not been contracted out, but this figure will be distorted once it is incorporated into an occupational pension scheme, via contracted out employment." Contributory and Non Contributory Benefits Mrs Wrench explained how non contributory benefits are funded by general taxation and do not depend on NI contributions, and are benefits such as Attendance allowance, Carer's Allowance, Child Benefit, Universal Credit and Personal Independence Payment. Contributory benefits are funded by NI contributions and include benefits such as Jobseekers Allowance, Employment and Support Allowance, State Pension and Statutory Sick Pay. Mrs Wrench said: 'You could understand non contributory benefits being means tested, such as Universal Credit, but you would be hard pushed to start means testing contributory benefits, such as State Pension, as the payment of these depend on NI contributions paid by the public, and the public have paid into the scheme. 'With means testing, you are paid the benefit on a temporary basis, and if your circumstances change, the amount of money you are paid could fluctuate. The last thing you want when you reach retirement is fluctuating income, and the anxiety which accompanies this . 'At least with the State Pension, you receive what you are entitled to, know exactly how much money you have coming in a month and know exactly where you stand financially' She added: 'To mention means-testing the State Pension may cause concern for some people, particularly when their State Pension may be their main source of income, but for the reasons mentioned above, it is highly unlikely that the government would be actually able to means-test it.'
Daily Mirror
7 hours ago
- Daily Mirror
DWP crackdown on benefit fraud as woman jailed for wrongly claiming £110,000
The UK Government has issued a stern warning that benefit fraud will be detected and prosecuted to the full extent of the law, following the sentencing of a Manchester woman to 20 months in prison Nearly 24 million people across Great Britain are currently receiving at least one benefit from the Department for Work and Pensions (DWP) with a record-breaking eight million people now claiming Universal Credit. However, the UK Government has delivered a stark warning that benefit fraud will be uncovered and prosecuted to the full extent of the law, following the sentencing of a Manchester woman to 20 months behind bars. The 51 year old woman was found guilty of stealing £110,000 in benefits she wasn't entitled to after failing to inform the DWP of changes to her living circumstances. Meanwhile, the Mirror reports of ' state pensioners could lose DWP payments after 'unfair' £10,000 rule '. The woman admitted guilt to four counts of benefit fraud at Manchester Magistrates Court on August 12, having dishonestly claimed Job Seeker's Allowance; Employment Support Allowance; Housing Benefit; and Council Tax Support between April 2013 and April 2023. The case emerged following an anonymous tip-off, which triggered a joint investigation by the DWP Pensions Regional Investigations team and Manchester City Council, reports the Express. Minister for Transformation, Andrew Western, stated: "Our social security system exists to support the most vulnerable in society and those genuinely in need". He added that they "will continue to take legal action to fight those trying to scam the system" and warned that "if anyone thinks they can get away with it, this case shows that they will be brought to justice". The minister stated: "Joint working between the DWP and local authorities will protect taxpayers' money while ensuring genuine claimants receive the money they are entitled to". Councillor Rabnawaz Akbar, Executive Member for Finances and Resource for Manchester City Council, shared: "We know that in Manchester there are a great number of people who are genuine beneficiaries of the benefit system and put their trust in it to deliver the support they need. For many it has been a lifeline through one of the most difficult economic climates in a generation". Akbar continued: "This case was an example of how the trust inherent in our benefits system was abused for personal gain". The councillor added his thanks to the "officers for their tireless work to detect this fraud, as well as colleagues in the DWP for ensuring a successful prosecution". The prosecution forms part of a wider pattern of successful court cases protecting public funds in recent months. One such example was made in June, where a couple from Port Talbot received suspended jail terms ranging from six months to two years after stealing £48,517 in Universal Credit whilst hiding their capital assets. During the same month, a woman from Swansea was convicted after submitting bogus childcare claims by uploading fake invoices to claim childcare costs she had never actually paid. She received a six-month prison sentence, which was suspended for 18 months, and was ordered to carry out unpaid work. Additionally, a couple from St Helens have each been handed two-year prison sentences after fraudulently claiming over £268,000 through offences, including false Personal Independence Payment (PIP) claims and a Local Authority Direct Payment. This was carried out using fake identities, as well as claiming Employment Support Allowance as a single person despite cohabiting. The Department for Work and Pensions (DWP) has stated that these successful prosecutions come as the UK Government is strengthening its ability to fight fraud and identify genuine errors even sooner, through the Public Authorities (Fraud, Error and Recovery) Bill. This Bill is expected to save taxpayers £1.5 billion over the next five years.
