The Department for Work and Pensions has come under intense scrutiny following serious allegations regarding its handling of claimant data, with experts warning that systemic failures could leave vulnerable individuals without essential financial support.
Critical Data Sharing Failures Exposed
During a recent session of the Work and Pensions Committee, consumer champions and policy experts raised significant concerns about fundamental flaws within the DWP's benefits system. The central issue revolves around the department's alleged failure to share critical claimant information with local authorities, potentially causing thousands to miss out on vital payments they're entitled to receive.
The Pension Credit Transition Problem
Fabian Chessell, central government lead at Policy in Practice, highlighted a particularly concerning situation affecting low-income individuals transitioning from Universal Credit to Pension Credit. He explained that Universal Credit can be claimed until state pension age, currently 66, after which Pension Credit becomes available to eligible individuals.
"There's a crucial 17-week window before qualifying for Pension Credit during which applications can be submitted," Mr Chessell told the committee. "Claims can be lodged up to four months ahead of reaching state pension age. It is worth doing that or you face a gap while you wait for your Pension Credit."
He emphasised the gravity of this situation, stating: "This is somebody already on a very low income, facing an absolute cash shortfall." Given this precarious financial position, he questioned why the DWP isn't collaborating more effectively with local councils or providing them with adequate support to ensure those approaching state pension age submit their Pension Credit applications early enough to prevent income gaps.
Widespread Data Withholding Allegations
Mr Chessell revealed alarming statistics about data sharing practices, stating: "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."
He traced this problem back to when the DWP took Universal Credit benefits in-house and assumed processing responsibilities from local authorities. "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," he warned.
The policy expert expressed concern that this pattern could repeat itself, stating: "We're facing a risk where DWP may repeat the same mistake and make a large swathe of pensioner households invisible from councils."
Available Support Mechanisms
Despite these systemic issues, support remains available through local councils for those struggling financially. The Household Support Fund represents one such mechanism, offering assistance with regular bill payments through vouchers or discounts. However, individuals must proactively check with their local council to determine what specific support might be available in their area.
DWP's Official Response
Following these serious allegations, the DWP was asked to respond to claims that it hasn't been sharing Universal Credit claimants' data with local authorities. A department spokesperson stated: "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."
The spokesperson acknowledged evolving needs, adding: "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."
Call for Systemic Assurance
Mr Chessell urged the committee to seek formal assurances from the DWP that this data withholding error wouldn't be repeated, particularly as the department assumes more processing responsibilities. The ongoing concerns highlight broader questions about data transparency, inter-departmental cooperation, and the protection of vulnerable individuals during critical benefits transitions.
As the DWP develops its new data sharing system, stakeholders will be watching closely to ensure that vulnerable claimants, particularly those transitioning between benefits systems, receive the support and visibility they need to maintain financial stability during critical life transitions.
