George Osborne has refused to categorically rule out rolling child benefit into Universal Credit (UC) to help contribute towards Conservative plans to save £12 billion from the welfare budget.
The Chancellor was asked repeatedly to rule it out and did not, but said that if the Tories had wanted to include child benefit in the new welfare system, they would have done so when it was created.
The independent Institute for Fiscal Studies (IFS) has said that scrapping child benefit and increasing UC for eligible families could save £4.8 billion a year.
But such a measure would mean that 4.3 million families who receive child benefit at the moment but would not be entitled to UC in the future would lose more than £1,000 a year, the IFS said.
At a Westminster briefing, Mr Osborne was asked to rule out rolling child benefit into UC.
The Chancellor replied:
“If you judge us on our approach in this parliament and if we wanted to put child benefit into Universal Credit, we would have done it when we set up Universal Credit.
“We have got a track record, we have got a plan that’s based on clear principles about making work pay and sharpening work incentives…”
Asked again to rule it out, Mr Osborne replied:
“I’ve just given you an answer. If we wanted to do it we would have done it when we created Universal Credit.”
Asked again, Mr Osborne said:
“I’ve given a very clear answer and you have to be a contortionist to think I’m not giving a pretty clear answer to that.”
The Conservatives’ plans for the next parliament involve saving £30 billion to contribute to deficit reduction, with £12 billion set to be cut from the welfare budget.
But the party has faced criticism from the IFS and Labour for failing to set out how it would achieve the majority – around £10 billion – of those welfare cuts.
The Chancellor said:
“If you look at our track record, the £21 billion we’ve saved in this parliament, you can look at principles we will apply to future such savings.
“We want to go on creating a welfare system which rewards work and the aspirations of families and protect the most vulnerable.”
Universal Credit is the coalition Government’s flagship welfare reform and simplifies the system by rolling a string of benefits and tax credits into one payment.
It is being rolled out in stages after being hit by delays and IT problems but will eventually take in jobseeker’s allowance, income-related employment and support allowance, income support, child tax credit, working tax credit and housing benefit.
Shadow chief secretary to the Treasury Chris Leslie said Mr Osborne had put middle income families in the firing line.
The Labour frontbencher said:
“The Tories won’t admit where their £12 billion of welfare cuts will come from, but after this press conference it’s now clear middle income families are in the firing line.
“George Osborne repeatedly refused to rule out rolling child benefit into universal credit. This would mean 4.3 million families losing over £1,000 a year, according to the independent Institute for Fiscal Studies.”
Treasury Minister Priti Patel said rolling child benefit into UC was not Conservative policy.
She told BBC News:
“We’re very clear as well, we have made it clear and we’ve said that we need to find £12 billion of welfare savings but it’s not our policy, that suggestion, and that there are other ways in which we can find those savings.”
But Ms Patel would not be drawn on whether the Tories will pay child benefit only for the first two or three children.
Asked if it was a possibility, she said:
“I’m not going to come here and start talking the ins and outs of the spending review because that will all be for the next government.”
Liberal Democrat leader Nick Clegg said he was not surprised by Mr Osborne’s failure to rule out the move as he insisted the change would not feature in his own party’s manifesto.
Speaking in Newtown, Mid Wales, he said:
“It’s no surprise to me that the Conservatives are considering pretty dramatic changes like taking child benefit away from lots of families because they have committed to taking £12 billion away from some of the most vulnerable families in this country.
> And we’ve been helping them for the last five years…
“They have committed to taking the equivalent of £1,500 away from eight million of the poorest families in this country to balance the books; they are not asking the very wealthy, those with the broadest shoulders, to make a single contribution through the tax system in balancing the books.
“Even if they did what is now being floated by George Osborne, they would still have £8 billion or £9 billion to fund. Who are they going to affect next, those with disabilities?
“Which other vulnerable groups will be affected by this unfair plan from the Conservatives?”
Asked whether the Lib Dems would rule out the move, Mr Clegg said:
“Child benefit rolled into the Universal Credit will not be in our manifesto because we are not planning the very, very extensive reductions in support given to the most vulnerable in our society that the Conservatives are.”
> But if anyone’s interested we’ll sell our souls again. Cheaply.
Pressed on whether it would be a measure he would block in coalition as a red line issue, Mr Clegg said:
“There’s no way the Liberal Democrats would ever endorse, of course not, in government or in opposition an approach which takes £1,500 away from eight million of the most vulnerable families in Britain.”
Source – Northern Echo, o7 Apr 2015
A Universal Credit claimant who featured in a government film to promote the reform now says the system is riddled with computer problems and could make people destitute.
In the Department for Work and Pensions (DWP) advert, Daniel Pacey explains how the reform helped him to find work.
But he now says a six-week delay before the first payment and subsequent monthly payments are “a nightmare“.
The DWP said monthly sums replicate the world of work and tackle dependency.
A spokesman said:
“Universal credit is simplifying the benefit system and [makes] the transition into employment smoother.
“Our work coaches discuss budgeting support with all claimants and nearly 80% say they are confident in their ability to manage a monthly budget.”
> Is that 80% of work coaches or claimants ?
Mr Pacey, 24, from Wigan, Greater Manchester, said:
”It might be easy for a government minister to make their wages last a month. But I’d like to see them make £250 last four weeks while looking for work.”
The government has announced that a national roll-out of universal credit is starting in earnest across the country. The aim is for it to be offered in all job centres in England, Scotland and Wales by 2016.
> Whether it works or not, presumably.
Work and Pensions Secretary Iain Duncan Smith told BBC News the new benefit was £600m under budget and had been implemented gradually on advice.
But Mr Pacey, who lives with his father, said his job centre struggled with failing computer systems, adding:
“I hate to think about how I would have coped had I lived on my own. I know I couldn’t have.”
The DWP spokesman added:
“People can apply for advanced benefit payments if they need extra support and we are working with local authorities to make sure people get budgeting and debt advice.
“The IT system adapts smoothly to claims as they become more complex, which we have already seen across the North West.
“Computer problems in offices are separate issues and are resolved quickly but these do not impact the operating system, or have an impact on claims.”
The scheme was initially piloted in Ashton-Under-Lyne nearly two years ago.
Under the old system, payments were bi-weekly, with housing benefit paid directly to landlords.
Under universal credit, claimants are instead paid monthly and are expected to pay their rent themselves.
Housing Associations in Ashton-Under-Lyne say rent arrears and debt are on the rise amongst universal-credit claimants.
The chief executive of the National Housing Federation, David Orr said:
“This scheme isn’t even ready to fully roll out in Ashton-Under-Lyne, where it’s been piloted for two years, let alone the rest of the country.”
The DWP spokesman said:
“In some cases, we can arrange for alternative payment arrangements, including rent being paid direct to landlords.”
The government says it is important for people to learn how to handle their own monthly budgets, as this replicates the world of work.
> Oh for fucks sake – how stupid do they think we are ? Do they think every unemployed person has never worked ? Do they think anyone having to survive on benefits doesn’t already know all about handling budgets ?
But Mr Pacey’s new job in a call centre pays bi-weekly.
He said: “In my experience, most low-paid jobs pay weekly or every other week, not monthly. You can’t make small sums of money last a month.
“It’s not about dependency, it’s about living, being able to get a bus to go to the job centre. The government needs to rethink this.”
The scheme has also been criticised by the National Audit Office as badly managed and failing to deliver on its targets.
It is concerned that a roll-out from pilot areas in north-west England is taking place with fewer resources to spend on staff training and less time for staff to get accustomed to the changes.
About 50,000 people in selected areas have claimed the benefit since it was introduced in April 2013 – far fewer than the government originally said would be getting it by now.
Computer problems have also caused delays and seen ministers write off tens of millions of pounds.
Source – BBC News, 16 Feb 2015
The High Court has ruled emergency laws underpinning a government back-to-work scheme are “incompatible” with the European Convention on Human Rights.
The ruling stems from a case brought by Cait Reilly in 2012, who said being forced to work for free at a Poundland store breached her human rights.
The government brought in new rules in 2013 allowing unpaid work schemes to continue pending further legal appeals.
Ministers said they were “disappointed” by the ruling and would appeal.
But lawyers for Miss Reilly claimed the government owed about £130m to people who had fallen foul of the retrospective legislation and ministers should admit they made a mistake.
The 24-year old graduate challenged the legality of an unpaid work placement she undertook in 2011, part of the government’s “mandatory work activity” programme.
She said that she was told that if she did not agree to take part in the scheme, which she said involved stacking shelves, she would lose her Jobseeker’s Allowance.
The government was forced to pass emergency legislation amending the scheme last year after Court of Appeal ruled that the regulations underpinning it did not comply with existing laws giving the Department for Work and Pensions the power to introduce the programme
The legislation was designed to reinforce the rules to make it clear that claimants must do all they can to find work in order to claim benefits and to ensure the government did not have to repay money to claimants who had not complied with the conditions of their benefit claim.
But Mrs Justice Lang, sitting at the High Court in London, ruled on Friday that the retrospective legislation interfered with the “right to a fair trial” under Article Six of the Convention on Human Rights.
The Department for Work and Pensions said it was “disappointed” by the ruling – which it said applied to a minority of claimants – and would launch an appeal.
“We disagree with the judgment on the legislation and are disappointed,” a spokeswoman said.
“It was discussed, voted on and passed by Parliament. While this applies to only a minority of past cases and does not affect the day to day business of our Jobcentres, we think this is an important point and will appeal.”
She said the legislation remained “in force” and the government would not be compensating anyone who had been docked benefits pending the outcome of its appeal.
But Paul Heron, a solicitor for Public Interest Lawyers, said it was a “massively significant” ruling and the DWP’s decision to appeal against it would be a further blow to the “upwards of 3,000 cases sitting in the tribunal system waiting for this judgement“.
He claimed people were owed anything from four weeks benefit, about £250, to several thousand pounds and were having to mostly represent themselves at tribunals.
He told BBC News it was “about time the DWP just held their hands up, admit they made an error, and pay people the money they were entitled to at the time. That is what a responsible government would do.”
The back-to-work schemes have been condemned by critics as “slave labour” because they involve work without pay but are seen by supporters as a good way of getting the unemployed back into the world of work.
The Supreme Court upheld the Court of Appeal’s ruling on the regulations last year although the judges also rejected claims that the schemes were “exploitative” and amounted to “forced labour“.
Ministers said that the most recent legal judgement had upheld this view.
“We’re pleased the Court recognised that if claimants do not play by the rules and meet their conditions to do all they can to look for work and get a job, we can stop their benefits,” the spokeswoman added.
Poundland, one of several employers which took part in the scheme, withdrew from it in 2012.
Source – BBC News, 04 July 2014
There will be hour upon hour of coverage on TV and in the press today and tomorrow about George Osborne’s budget, with Labour picking holes and the Tories and LibDems fighting for the ‘credit’ for the supposed recovery.
I’ve already listened to more than I can stomach of Osborne, Ken Clarke and others claiming that their ‘hard work’ and, of course, ‘tough choices’ (we’re all in it together, after all) have resulted in the supposed economic recovery, the fall in ‘worklessness’ (their attempted fudge after the UK Statistics Authority rapped their knuckles for claiming unemployment has fallen massively when in reality it’s dropped hardly at all or risen slightly, depending when you measure from) etc.
But the government’s own OBR (Office for Budget Responsibility) laid bare the truth in a single phrase. Speaking to journalists a few moments ago, and covered by BBC News (who so far have failed to…
View original post 177 more words
Latest figures from the Department for Work and Pensions (DWP) claim that nearly a million people who applied for Employment and Support Allowance (ESA) have been found fit for work.
The figures released this week by the DWP claim that a third (32%) of new claimants for ESA were assessed as being fit to work and capable of employment between October 2008 and March 2013 – totaling 980,400 people. In addition, the figures also show that more than a million others withdrew their claims for ESA before being assessed for eligibility through a Work Capability Assessment (WCA). This can be because of individuals recovering and either returning to work, or claiming a benefit more appropriate to their situation.
The claim has come under criticism from Disability Campaigners. A Disability Rights UK (DRUK) spokesman, speaking to BBC News, said “They are finding people fit for work when they aren’t and they are not even giving them the support they need to get a job. It is a disgrace”.
Indeed many of those passed as ‘fit for work’ will not, in fact, be capable of entering the workplace in any meaningful sense due to physical or mental health problems.
However, Mike Penning, Minister of State for Disabled People disagrees, saying “As part of the Government’s long-term economic plan, it is only fair that we look at whether people can do some kind of work with the right support – rather than just writing them off on long-term sickness benefits, as has happened in the past. With the right support, many people with an illness, health condition or disability can still fulfil their aspiration to get or stay in work, allowing them to provide for themselves and their family.”
A second report from the DWP, also released this week, appears to support what Mike Penning says, as it shows that the number of successful appeals against being found “fit for work” has also fallen sharply. This would suggest that the WCA and the way it is conducted by ATOS Healthcare – both of which have come under heavy criticism – are gradually becoming fairer to disabled people. A DWP spokesman said there has been “significant improvements” to the WCA, which has become “fairer and more accurate”, supports this. Adding, “If it is more fair and accurate and people are moving onto the right groups then of course we would welcome that.”
His comments, will not ‘sit well’ with the many families who have lost loved ones following being found ‘fit to work’. Earlier this week, Welfare News Service, reported on how DWP statistics published 9th July 2012 show that in total, between January 2011 and November 2011 10,600 claimants died within 6 weeks of being declared fit for work by Atos.
Indeed, it would appear that this is something they wish to hide as they have refused Freedom of Information Requests for subsequent years – 2012 and 2013 – claiming it would be “vexatious”. Furthermore, his comments will bring little comfort to the Holt family. This week, The Mirror reported on how bipolar patient Sheila Holt, 47, was sectioned in December after being taken off Income Support.
Days later she had a heart attack and fell into a coma. Despite this, benefit assessors are still sending letters, with ATOS asking why she is not working.
Her dad Kenneth said: “It’s just not right what they have done. It sent my daughter hypermanic” adding “She hadn’t had a job for 26 years. Anyone who knew her would tell you she couldn’t do a job.”
Simon Danczuk, Labour MP for Rochdale, Littleborough and Milnrow said:
“I am in favour of welfare reform but trying to bulldoze through changes in a reckless and insensitive way is not the right way to go about it. This Government is causing a huge amount of damage and I have no doubt that Sheila’s story is being repeated in towns and cities up and down the country. She has a complex disability caused by severe trauma in her childhood and you cannot aggressively push vulnerable people, like Sheila, back into work because it can have, as we’ve seen, very serious health consequences.”
Consequences, which Secretary of State for Work and Pensions, Iain Duncan Smith, appears to ignore. In a speech, described by DRUK as “more of the same old, same old”, he speaks of “a twilight world where life is dependent on what is given to you, rather than what you are able to create”, and pointed to the “falling numbers claiming the main out-of-work benefits”.
However, in the figures released by DWP, the opposite is true – at least for disabled people. In the first DWP report “early estimates” suggest that upto August 2013 there were 2,430,000 people claiming ESA and old-style incapacity benefit. Moreover, in November 2013 the figure had increased by 35000 to 2,465,000. However it is unclear if this trend will continue.
The second DWP report shows a continuing fall in numbers of claimants found ‘fit to work’ following a WCA. The figures range from a high of 65 per cent for those whose claims began in 2009 to 39 per cent for those whose claims started in the first quarter of 2013. In addition to this 39 per cent were placed in the support group and 23 per cent in the work-related activity group. The figures also show that there has been a significant drop in successful appeals against being found fit for work. Dropping from 41 per cent, for claims starting in early 2009, to 23 per cent for claims begun in the third quarter of 2012. The changes are suggested in the report, as being possibly caused by improvements made to the WCA by the coalition government in the wake of the independent reviews carried out by Professor Malcolm Harrington.
It would appear that the figures released by the DWP do not show people “languishing on welfare” as claimed by Iain Duncan Smith, nor do they appear to paint a picture of a social security system that he claims has become “distorted” under the previous Labour government and was too often an “entrapment – as it has been for a million people left on incapacity benefits for a decade or more”.
However, whilst the DWP still refuses to release figures showing how many have died within 6 weeks of being found ‘fit to work’ and stories, such as Shiela Holt, now in a coma after being found ‘fit to work’ are still being reported, maybe it is not “unnecessary fear” Labour is creating as Iain Duncan Smith says, as he mounts a renewed attack on Labour adding that the Conservatives will put further welfare changes at the heart of their 2015 election manifesto.
Source – Welfare News Service, 25 Jan 2014