Page 85 - Reforming Benefits Decision-Making -(updated - August 2021)

e) The DWP makes some claimants go through a ‘problem-solving’ stage
before they can submit a request for mandatory reconsideration. Whilst
the aim of this is well intentioned – to reduce a backlog of mandatory
reconsideration requests - it creates a two-tier system that is not set out in
law and can result in further delays to the appeals process.

3.19 The DWP told us that none of these problems should be happening. However,
this serves to further highlight the issue discussed in Chapter 2 – the
disconnect between policy and practice and demonstrates the need for more
robust monitoring and quality assurance processes.

3.20 For those wishing to dispute a calculation of earnings, which are provided to
DWP by HMRC’s ‘real time information’ (RTI) system, there is a further
stage in the redress process. A change to a claimant’s UC award resulting
from a change of RTI information does not constitute a decision of the
Secretary of State. In order to obtain a decision, which can then be
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challenged by way of mandatory reconsideration and appeal, the claimant
must first dispute the employed earnings figure and request the Secretary of
State to give a decision in relation to the amount of UC payable. As with
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mandatory reconsideration, there are examples of claimants disputes not being
progressed because they are not in the ‘correct’ format. Further, the DWP’s
guidance on RTI disputes suggests that where the earnings are correct no
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dispute should be raised. However, the regulations provide a clear right to a
decision, which is technically required before a mandatory reconsideration
can be requested.

3.21 Further, the additional administrative hurdle of mandatory reconsideration can
cause claimant confusion. Working Party members and consultees told us that
claimants often do not understand that there is a two-stage process to
challenge a decision. We were also told it causes claimant fatigue; claimants

235 s.159D(1)(b)(vi) and (2) Social Security Administration Act 1992; Universal Credit, Personal
Independence Payment, Jobseeker's Allowance and Employment and Support Allowance (Decisions
and Appeals) Regulations 2013/381, reg 41(1).
236 The Universal Credit, Personal Independence Payment, Jobseeker's Allowance and Employment
and Support Allowance (Decisions and Appeals) Regulations 2013/381, reg 41(3).
237 DWP, ‘Real Time Information’ Universal Credit Guidance, (October 2020).

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