Universal Credit helpline charges will be scrapped, David Gauke announces

The Universal Credit helpline will be made free and charges of up to 55p a minute for calls are to be scrapped, David Gauke has announced.

The Work and Pensions Secretary said the line would be switched to a freephone number over the next month and that all Department for Work and Pensions helplines would be free of charge by the end of the year.

The announcement at the House of Commons Work and Pensions Committee came as Mr Gauke braced himself for a tough vote in the Commons on a Labour demand for the roll-out of the flagship welfare reform to be paused.

Amid reports that up to 25 Tory MPs could be willing to rebel over criticism that people are waiting six weeks for any money and getting into debt, Labour has secured a full day debate today to demand a rethink on the reform.

Mr Gauke told the committee that the 0345 number for the UC hotline was charged at local rate and was included as a free call in many landline and mobile phone packages.

The number was not a premium-rate number and DWP made no money from it, he said.

But he added: "Given the recent attention and concern that this could place a burden on claimants, I have decided that this will change to a freephone number over the next month.

"It has been DWP's longstanding position to operate local line charges for benefit inquiry lines, but having reviewed this matter more widely I will be extending freephone numbers to all DWP phone lines by the end of the year."

His announcement was welcomed by Conservative MP Heidi Allen - a member of the cross-party committee and a leading critic of the 55p charge - as "really, really great news".

Mr Gauke reiterated that a system of advance payments was already in place to ensure that those in need of help when moving onto Universal Credit are supported.

One of the rebels’ main concerns is over the six week period claimants can have to wait to receive their Universal Credit payment.

Mr Gauke suggested it could be reduced, telling MPs that there are “choices available to us”, for example reducing the period from six weeks to five weeks, but changes would come with cost implications.

He said: “"That's an area where we could make a change, but there are a number of priorities for public money.”

Mr Gauke told MPs that 96 per cent of claimants received their full Universal Credit payment within 10 weeks when they switched but the “vast majority” were paid within six weeks.

He also confirmed that a pause of sorts would take place in January but that had always been scheduled as part of the Government’s desire to “test and learn”.

Mr Gauke said: “There will be a fire break but that has been in the plan.”

Debbie Abrahams, Labour’s shadow work and pensions secretary, said: “The Conservatives have finally listened to Labour and scrapped the premium phone helpline for claimants, now they need to listen to the calls of charities and councils and back Labour's motion today to immediately pause and fix the roll out of Universal Credit, before more people are pushed into rent arrears, poverty and homelessness.”