Universal credit: More than half of people denied benefit have cases overturned on appeal, figures show

Exclusive: Hundreds of vulnerable people left out of pocket for months due to incorrect refusals, with true number of wrong decisions likely to be far higher

More than half of people denied universal credit were found to be entitled to it when their cases were investigated, prompting fresh demands for the national rollout of the new system to be halted.

Fresh analysis of figures shows 55 per cent of people who took the government to court over decisions to deny them financial support under the new system had their cases overturned.

Campaigners warn that incorrect refusals by caseworkers are leaving vulnerable people out of pocket for months, and said the true number of wrong decisions was likely to be far higher as many claimants didn’t have the means to challenge decisions.

Government data shows that in the three months from April to June, there were 988 appeals against universal credit decisions, of which 543 were successful. Overall in 2017/18, 1,522 appeals out of a total of 3,337 led to decisions being overturned.

The figures will fuel concern over the government’s flagship reform, which has come under fire in recent months after it emerged people with disabilities and other vulnerabilities have been driven to severe hardship and anxiety after it docked their support.

Introduced in 2013 with the intention of bringing “fairness and simplicity” to Britain’s social security system, universal credit rolls six major working-age benefits, including jobseeker’s allowance, tax credit and – crucially – housing benefit, into one payment.

Nimrod Ben-Cnaan, head of policy and profile at Law Centres Network, said the high success rate on benefits appeals was “deeply worrying” and that the figures exposed a system was “getting too many decisions wrong first time”.

He continued: “It means people who are already at a disadvantage, which is why they are awarded benefits, are being short-changed and not getting the support they need to get by.

“Four in five benefits appeals are about ESA or PIP – sickness or disability benefits – where the benefits are likely to be their only source of income. Even if they get justice at the end of it, they are out of pocket for months until their appeal is heard and decided. In the interim many rely on food banks or other charitable support, and must choose between vital needs like heating or eating."

Mr Ben-Cnaan added that obstacles to challenging bad benefits decisions mean that official figures were just an indication, rather than showing the full scale of the problem.

“Not everyone who should appeal does so. You go through Mandatory Reconsideration first, and only after it can you appeal to the benefits tribunal. Many people are daunted by the prospect and need legal assistance to prepare their case," he said.

"Legal aid for benefit appeals is almost entirely gone, and what legal assistance remains is patchily funded, leading to a post code lottery and to advice ‘deserts’ in parts of the country. People are effectively denied justice."

Citizens Advice, which has recently been contracted by the Department for Work and Pensions (DWP) to support the rollout of the new benefit, has seen 3,929 individual clients on issues with universal credit appeals in the past 12 months.

Responding to the appeal success rate, James Taylor, head of policy, public affairs and campaigns at disability equality charity Scope, said: “The appeal success rate is cause for concern – and a clear indication that the assessment process is in need of reform.

“Disabled people regularly tell us about difficulties they face getting support from our welfare system. Many are forced to appeal decisions and face unnecessary financial hardship as a result.

“It’s vital that the fundamental flaws in the current assessment process are fixed. This is critical as universal credit rolls out across the country.”

Matthew Geer, campaign manager at Turn2us, which helps people in financial hardship to access charitable grants and support services, said: “When appeals are being won at such an alarmingly high rate it is clear that there is something wrong with the system.

“Appeals are expensive, they take up a considerable amount of government resources and they have detrimental effects on the physical and emotional wellbeing of claimants.

“The benefit decision-making process is clearly becoming increasingly unfit for purpose. We would welcome any reforms to improve this.”

A DWP spokesperson said: “We are committed to ensuring that people most in need get the support they are entitled to. Decisions on who is eligible for universal credit are made taking into account all the information provided by the claimant, including supporting evidence from their GP or medical specialist.

“All claimants have the right to a mandatory reconsideration of any decision, and can further appeal to an independent tribunal, with the opportunity to present additional evidence to support their claim.

“In the majority of successful appeals, new evidence is provided about the claimant’s circumstances.”