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Erith and Thamesmead MP Abena Oppong-Asare ‘shocked’ at treatment of Universal Credit claimants during Coronavirus crisis

Universal Credit claimants are being denied deferrals on loan repayments to the DWP forcing them into financial difficulties during Covid-19.

In response to criticism of the five week wait claimants face for their first Universal Credit payment the DWP offers loans to help claimants during the wait, these are repaid monthly through deductions in the payment. Abena Oppong-Asare MP has criticised the DWP for continuing these deductions from payments whilst others are being offered three month loan freezes and mortgage holidays due to Covid-19.

One resident who emailed Ms Oppong-Asare for help said:

“Like many other people on Universal Credit I accepted a loan offered to me at the outset of my claim because of the several weeks delay that occurs processing claims. However, loans are subject to immediate repayment and deductions of £110.59 per month have been taken.”

The Government has recently extended the loan repayment period from 12 months to 18 months offering a slight decrease in monthly deductions. Claimants can also request a three month deferral of loan repayments to the DWP due to hardship reasons just one time.

The resident that contacted Ms Oppong-Asare said: “I requested a 3 month deferral last year because I had fallen into rent arrears as a result of the delay processing my Universal Credit claim. At that time no one would have been aware of a future worldwide Coronavirus pandemic.”

The DWP is unable to respond to specific requests for hardship reasons such as a second loan repayment deferral due to restrictions in Government policy.

Ms Oppong-Asare said:

“I am truly shocked at the treatment of my constituent during this unprecedented time. The DWP are deducting £176.68 every month from this person’s payment due to loan deductions and bedroom tax. The country is under huge pressure and the Government should be doing all it can to relieve the financial strain people will face at this time.
Families will be facing higher utility bill payments, higher grocery bills and less work opportunities during the UK lockdown through no fault of their own. The least the Government can do is freeze loan repayments and bedroom tax to ease the burden on those already facing financial difficulties.”

In October 2019, there were 2.6 million universal credit claimants, just over a third of whom were in work. Since March 16th when the Government advised that people should work from home and practice social distancing where possible, the DWP have received over 950,000 applications for Universal Credit.

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MP tackles Covid-19 casework

Labour MP for Erith and Thamesmead, Abena Oppong-Asare, updates local people on her work to address their concerns about Covid-19.

 

March saw the takeover of our lives, news and parliamentary business with Covid-19. This led to lockdown by the government and myself and my office are working from our respective homes. My team and I have been working hard to support constituents of Erith and Thamesmead at this difficult time.

Getting people home

This was a big issue this month. I have had numerous queries from constituents stranded overseas, from cruise ships in the Caribbean to holidays in New Zealand, India, Sierra Leone, Nigeria and elderly people in Cyprus. Many of them I have been successful in assisting, and they have either returned home or are en-route. I have had to use many different methods, from simple conversations with travel agents to smooth the cogs, to asking questions in the Chamber and writing to the Foreign and Commonwealth Office.

Supporting the self-employed

Whilst the budget saw many welcome financial measures (from a government that once insisted on harsh austerity!), it soon became apparent this was not nearly enough. The Chancellor and PM rolled out further support for the employed, which will be a great help for many. However, we have so many self-employed people in our constituency who will not be supported. Therefore, I have written to the Chancellor on this issue, to implore him to take further action with regards to the self-employed.

Religious rights

In the government’s emergency Covid-19 legislation there was a potential issue regarding religious burial rights: that these could be removed and enforced cremations placed in place. However, my colleague Naz Shah MP wrote an amendment to the legislation to allow religious burials to take place; I was one of the first signatures to this. Luckily, the government took note and actually tabled their own amendment, which allowed the opposition to focus on other important matters rather than forcing this to go to a vote.

Panic buying and stock piling

I have written to the Business Secretary calling for concrete measures to limit panic buying & stockpiling. Trade unions, major supermarkets, and the Food and Drink Federation must be central to any decision to improve conditions for emergency workers and keep the shelves stocked. Naturally, this is also an area of focus for the Shadow Defra team, and I am fully engaged on this issue. You can watch this space for further action on this in the coming days and weeks.

Scrutinising the Covid-19 Bill

The opposition made the sensible decision not to have all MPs attending these parliamentary sessions. Instead we passed our concerns onto the front bench, who put those to the government on our behalf. My particular concerns relate to the mental health powers, as well as the way that the care bill has been repealed and the impacts this may have on some of our most vulnerable residents.

If you have any questions or concerns during this difficult time, please don’t hesitate to get in touch and my team and I will do what we can to support you.