Welfare Reform Bill

My Lords, Clause 97 provides that in the case of a benefit awarded jointly, such as universal credit, it can be paid to whichever person in a household they themselves nominate, or for all or part of it to be paid to either person regardless of their nomination. Amendment 102A seeks to ensure that the child and childcare elements of universal credit are paid to the responsible carer within a household. Amendment 102ZA also seeks to ensure that the child and childcare elements of universal credit are paid to the responsible carer and that the housing element is paid to the partner responsible for housing costs. Under universal credit, couples living in the same household will make a joint claim for the benefit payment. It is not correct to think of, as has been said, a man claiming for the household. In couples, both will be claimants, which is an important change under universal credit. We have outlined our intention to make universal credit a single payment to a household. This decision will ensure that the household can see clearly the effect of their decisions about work on total household income and ensure that claimants can take responsibility for budgeting. Households budget and organise their finances in different ways, so we want to enable couples to decide between them where their payment should go. It is not for the Government to dictate how a family arranges its finances. We recognise, however, that there may be cases which require alternative arrangements and the Government intend to retain powers to split payments to couples as a safeguard. We are still considering the circumstances in which we would split payments and further details will be included in regulations. Examples of when the power is used could include where there is proven abuse of the money by one partner or where children are deemed to be at risk. On the point made by the noble Baronesses, Lady Hayter and Lady Howe, on domestic violence, where there is abuse or children at risk we will have the power to split payments and we are talking to stakeholders about how this should work in practice. Let me try to be clear: when it becomes apparent that one partner is not managing money properly, we have the ability to switch the money entirely to the other partner, which is the appropriate safeguard. The Government will also have the power to pay the housing element of universal credit direct to the landlord in exceptional cases. We are currently considering with stakeholders the specific circumstances in which this power could be exercised and again will set out further detail in regulations. Sitting suspended for a Division in the House.