An urgent review of the direct payments system being used to recover debt from people receiving benefits is being called for.
Clare Adamson MSP has called on the Department of Work and Pensions (DWP) to review its processes to ensure accuracy, fairness, and proper safeguarding measures for vulnerable claimants.
Direct Payments from Universal Credit to third parties, such as energy companies, have come under scrutiny due to errors in debt calculation and the failure to address underlying issues effectively.
The MSP for Motherwell and Wishaw raised the matter in the Scottish Parliament of issues being faced by her constituents caused by DWP errors in debt calculation.
The SNP MSP also emphasised that stigmatisation and discrimination over social security is causing vulnerable people to miss out on crucial financial entitlements.
Ms Adamson said: “A number of my Motherwell and Wishaw constituents have been unfairly penalised by opaque and flawed DWP processes and errors in debt calculation.
“Some examples include errors with meter readings and faulty smart meters leading to financial difficulty when Universal Credit payments are deducted to pay energy companies directly.
“There seems to be a basic lack of oversight to ensure that the debts being paid via Universal Credit deductions are accurate.
“People on low and insecure comes cannot afford these mistakes. Financial difficulties cause real problems for physical and mental health. Where is the safeguarding?”
One constituent, who we will identify only as Robert from Wishaw, received a bill from Scottish Power amounting to £6,356, in arrears.
After requesting a meter reading it was discovered that it was faulty, Scottish Power confirmed that Robert had overpaid and should be refunded £4,250.
Prior to the error, he had been paying £78 per month for electricity, but Scottish Power then increased his monthly payment demand to £198 per month which was directly deducted from the claimant’s Universal Credit four-weekly payments of £380.
Despite the correction of the meter reading and Scottish Power’s subsequent refund, apology, and compensation, the DWP continued to take £298 from his Universal Credit payment.
This has placed an enormous financial burden on Robert, as he is already struggling on a limited income. The ongoing deductions are severely impacting his health and wellbeing.
The Motherwell and Wishaw MSP is demanding the UK Government take immediate action to remedy issues such as Robert’s and other constituents who find themselves in a similar position.
She continued: “The Labour Government must urgently review the Direct Payment system because errors and unfair deductions are putting an enormous burden on my Motherwell and Wishaw constituents.
“When the DWP identifies an error, it should take immediate action to ensure vulnerable people are protected.
“The stigmatisation and discrimination of social security must end. People are reluctant to apply for their entitlements and suffer financial hardship as a result. And rising levels of in-work poverty are leaving people with little protection.
“In Scotland, under the SNP, we have built a social security system based upon the principles of fairness, dignity, and respect.“But we only have limited powers in this area and most of the social security system is still reserved to the UK Government.
“We need accuracy, fairness, and proper safeguarding for vulnerable claimants. Social security is a right and a basic safety net.”
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