Iain Duncan Smith demands cut in wait for benefits payouts

The architect of the Tories’ flagship benefit reforms has demanded wholesale changes to prevent claimants waiting so long to get their first handout.

Iain Duncan Smith, the former Work and Pensions Secretary, told ITV News that the waiting time for access to the first Universal Credit payment should be cut.

He blamed George Osborne, the former Chancellor, for making people wait six weeks before getting the first payment.

Mr Duncan Smith said two of the weeks were not ‘wholly necessary’ – saying a four week delay was what he had envisaged.

Iain Duncan Smith has demanded wholesale changes to prevent claimants waiting so long to gain access to their first Universal Credit payment

The intervention came on the day that Commons speaker John Bercow announced an emergency debate on the controversial reforms.

He has set aside three hours this afternoon after Tory MPs joined with Labour to demand ministers come to Parliament to explain themselves.

The fact that Mr Duncan Smith – a former Conservative leader – has spoken out will pile further pressure on Philip Hammond to make changes to the UC regime in next month’s Budget.

Ministers have been warned that reports of hardship caused to many tenants by the 42-day wait risks turning the flagship welfare policy into a ‘new poll tax’.

Just last week, Theresa May caved in to demands from Jeremy Corbyn and abolished call charges to the UC helpline.

The Labour leader had highlighted the issue in at Prime Minister’s Questions, saying it was a scandal that some claimants were being charged up to 55p a minute.

Mr Duncan Smith blamed George Osborne, the former Chancellor, for making people wait six weeks before getting the first payment

Mr Duncan Smith blamed George Osborne, the former Chancellor, for making people wait six weeks before getting the first payment

One think tank, the Smith Institute, has estimated that on average, UC claimants are £150 in rental arrears because of the delay to payments.

Yesterday, Mr Duncan Smith said the six-week waiting period was unnecessary, saying that one of Mr Osborne’s ministers in the Treasury forced it on his department when he was in office.

‘The idea of the extra days was not something which I or my colleagues came up with,’ he said.

‘It was a Treasury matter at the time and I think it’s certainly worth them reviewing that to see whether or not they can get rid of the waiting days – they’re not wholly necessary.’

Other Tory backbenchers have also demanded Mr Hammond review the UC regime.

Hammond’s tax rise ultimatum 

Philip Hammond has warned the Cabinet there will be no extra spending in the Budget next month unless they agree to tax rises to pay for it.

Tory MPs fear a backlash from voters if the Chancellor uses the speech to launch a raid on older voters.

But Mr Hammond has told colleagues if they are going to spend more they need to raise money, arguing there is ‘not a box of money in the Treasury waiting to be spent’.

Looming rows over the Budget, which will take place on November 22, come as Mr Hammond’s position is looking increasingly precarious as he lacks the unanimous backing of the Tory backbenches over claims he is too gloomy and has been dragging his feet over Brexit.

Earlier this month Steven McPartland, MP for Stevenage, called for the ‘taper rate’ to be changed to make it worth people’s while to take on work rather than staying on benefits.

He said that the current rules meant that hard-working people were effectively being penalised by high tax rates if they took on a job.

And last night a study by two Labour councils in south London piled further pressure on the government.

Southwark and Croydon councils, both used as guinea pigs for the new regime, claimed UC pushing poor tenants deeper into rent arrears and forcing more to attend food banks.

They said that without rapid changes the new system could have a devastating effect across the country as it is rolled out over the next few months.

They said arrears could reach ‘many hundreds of millions of pounds’ and that tenants could face severe hardship.

One food bank reported an increase in referrals of 97 per cent, their report found. 

 

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