Policy and Government

CAP has submitted a response to the Department of Work and Pensions (DWP) inquiry about the response to coronavirus. With large numbers of new Universal Credit claims, this inquiry could not be more timely. The Government has acted quickly to strengthen the support available through the social security system. It is especially welcome that the Government has announced a much-needed £20 per week boost for Universal Credit and Tax Credits claimants. Yet, a further 2.83 million people in receipt of Jobseekers Allowance (JSA) or Employment Support Allowance (ESA) have received no extra help. In some cases, the benefit of the Universal Credit and Tax Credits boost will be offset by other welfare policies, such as the benefit cap and Local Housing Allowance (LHA) rates. More is needed to ensure that the added generosity of the managed migration is matched for the increasing numbers entering through natural migration. To read CAP's recommendations, please click below. 

CAP has responded to the Work and Pensions Select Committee call for evidence on the wait for a first Universal Credit payment. Universal Credit is undoubtedly the single biggest welfare reform since the welfare state was introduced. Adapting to a new system, which is digital-by-default and involves the managing of rent payments and a single monthly payment, has been challenging for many. Advance payments are a lifeline that many people are too afraid to use. There is no one simple solution. Instead, we need a range of reforms that will make Universal Credit work for the variety of circumstances that people making a claim find themselves in. Backdating is needed, as well as non-repayable Advances for claimants with deficit budgets. To read more, click below. 

CAP has responded to Ofgem's consultation on Protecting energy customers on prepayment meters (PPM) about the current prepayment meter price cap, which is due to end in winter 2020. CAP is happy that Ofgem is reviewing the cap, but we do not think that it should be merged with the default tariff as planned. Our response has highlighted the challenges faced by CAP clients on low incomes, and how these plans do not offer enough protection. We are particularly concerned about the lack of protection given to customers who continue to accrue standing charges on their PPMs, and have asked Ofgem to consider capping the amount of arrears that can be built up from these.

CAP has repsonded to the Department for Digital, Culture, Media and Sport's consultation on the decriminalisation of TV licence evasion. CAP believes that decriminalising TV licence evasion is the right move, but that careful consideration needs to be given to shaping any alternative model. For many people today a TV licence is essential for social inclusion and it provides an inexpensive form of entertainment when living on a low income. In CAP's opinion a civil debt model would significantly improve the proportionality of TV licensing enforcement and limit additional financial burdens placed on those in financial difficulty. To read more, please click below.

CAP has responded to the FCA's Call for input: Open finance. Open finance has the potential to offer many benefits to both consumers and financial services, including the debt advice industry. That being said, CAP is concerned that for those on low incomes or who have multiple and complex needs may not benefit from all that open finance has to offer. CAP would like to see the FCA work to support all consumers in being able to access open finance, whilst ensuring that regulation protects consumers. To read more, please click below.