Treasury officials have asked the Department for Work and Pensions (DWP) to find even deeper cuts to welfare spending, according to reports.
BBC Newsnight’s Political Editor, Allegra Stratton, has reported that treasury officials have asked Iain Duncan Smith to find £15bn of welfare cuts, rather than the £12bn originally promised in the Tory manifesto.
A treasury source allegedly told Stratton that both child tax credits and working tax credit could be in the firing line for £8bn in cuts.
The botched roll out of Universal Credit is set to continue under the Conservatives, it has been announced today.
Universal Credit is replacing six existing benefits including Working Tax Credit, Child Tax Credits and Housing Benefit, with one single monthly payment.
Described as a “welfare revolution” by Work and Pensions Secretary Iain Duncan Smith, Universal Credit will be made available to new single claimants in Richmond, Kirkwall, Lerwick and Stornoway, from today (11 May 2015).
According to the Department for Work and Pensions, all Jobcentres in the country will be offering Universal Credit to some groups of claimants by spring 2016.
Iain Duncan Smith MP, said:
“Universal Credit is bringing welfare into the 21st Century by restoring fairness to the system and making work pay in a modern labour market.
“We’ve already seen remarkable successes with Universal Credit claimants moving into work faster and staying in work longer.
“As part of our long-term economic plan, today sees the next stage of this welfare revolution with the continual roll out of Universal Credit.”
The new benefit is currently available in one-in-three Jobcentres (260). The government initially targeted the roll out of Universal Credit at the ‘easiest to help’ claimants, such as single people without children. For example, only 96 Jobcentres are currently offering Universal Credit to couples, families and lone parents.
DWP figures show that more than 64,000 people have made a claim. However, this is far short of the one million originally promised by Mr Duncan Smith to be in receipt of Universal Credit by April 2014.
Universal Credit has been dogged with delays and IT problems. DWP officials have already been forced to write off millions of pounds in failed IT software.
HM Treasury officials admitted last year that a potential £633 million could be written off by the time Universal Credit is completely rolled-out across the country and to all groups of claimants.
Children’s charity Gingerbread warned in October 2013 that working single parents will be worse off under Universal Credit. Researchers found that there will be little financial incentive for single parents to increase their hours beyond ‘mini-jobs’.
The charity also found that non-working single parents’ income will be on average lower under universal credit than it is now.
Commenting on the findings, Gingerbread chief executive Fiona Weir said at the time:
“Government claims that universal credit will make work pay, but in fact working single parents will be the biggest losers under the new system.
“The simple fact is that universal credit won’t deliver on its promise to make work pay. Single parents on low wages will be under considerable pressure to extend their hours under universal credit, but our research shows that financially, extra hours often won’t stack up.”
However, the DWP claims that Universal Credit will leave three million families better off and provide a £7 billion boost to the economy.
The department also claims that Fraud and Error will be reduced under Universal Credit, with officials having access to real-time HMRC earnings data.
Universal Credit will enable benefit payments to be calculated more accurately, says the DWP, ‘including topping up claimants earnings when they are on a low income’.
Source – Welfare Weekly, 11 May 2015
The Liberal Democrats have blown the lid on Tory plans to cut £8 billion from the child benefit bill if they are re-elected.
The Liberal Democrat chief secretary to the Treasury, Danny Alexander, made a statement in which he revealed that the plans for the cuts was outlined in a document entitled “Welfare Reforms Quad Summer Reading Pack” by Iain Duncan Smith which was sent to members of Quad (the four most senior cabinet members) in June 2012.
The proposed cuts contained in the document included:
- Limiting support to 2 children in child benefit and child tax credit, so cutting up to £3,500 from a family with three children.
- Removing the higher rate child benefit from the first child, an average cut of over £360 for every family with children.
- Means testing child benefit – cutting £1,750 for a two child middle income family
- Removing child benefit from 16 to…
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According to IDS, figures showing that the number of self-employed workers has jumped by 600,000 is a sign of “entrepreneurial spirit” and proves that his bungled and reckless policies are working. What is really going on is very different and lays the foundation for an unemployment time bomb at the heart of Universal Credit.
Some of the rise in self-employment is almost certainly down to falling living standards. People who have taken early retirement are setting up small businesses in an effort to pay soaring bills, along with so-called mumpreneurs – parents forced out of the workplace due to huge childcare costs and shit wages. The rise of the internet has also allowed some of those who are unemployed to generate a…
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The answer is George Osborne, his parents, and everyone he knows. The same could be said about David Cameron, Nick Clegg, David Miliband and even Nigel Farage. And that is the reason why high earners with whopping savings are now presented as the norm in the UK – and the only people that matter to all of the main political parties.
The reality is that the average weekly wage is just over £500 a week, which doesn’t leave much room for an ISA if that’s all a family has to live on. Around 5 million people are paid below the living wage, and another five million or so live from hand to mouth on meagre benefits. Nearly six and a half million households…
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Campaign launched to give voice to people supported by benefits
The vast majority of people believe benefits are an important safety net for people in need, a new campaign has revealed today.
But one in four people who claim benefits have hidden the fact because they worry what people will think.
More than seventy charities and community groups have joined forces to launch Who Benefits? – a campaign to give a voice to the millions of people supported by benefits at some point in their lives.
Polling carried out for Who Benefits? – brought together by The Children’s Society, Crisis, Gingerbread, Macmillan Cancer Support and Mind – reveals overwhelming public support for the principle that benefits should be there for those who need them. 81% agree that ‘benefits are an important safety net to support people when they need help’, while two-thirds (64%) agree that ‘we all benefit as a society when support from benefits is available for those that need it’.
But despite widespread public support, more than a quarter (27%) of those who currently claim benefits say they have hidden this because of what people will think. This rises to half (47%) of 16-24 year olds who have been supported by benefits. And more than half (51%) of all those who had never been supported by benefits said they would feel embarrassed to claim.
The poll findings come on the back of the recent British Social Attitudes survey which showed a softening of public attitudes towards benefits and unemployment.
Who Benefits? argues that the overwhelming majority of those on benefits really need the support, yet too often their voices are ignored, misrepresented or at worst they are blamed for their situation.
The campaign, which launches today, is asking people to share their stories. Hundreds of people who have been supported by benefits have already shared their stories through the website and through social media with the hashtag #WeAllBenefit.
Laura is one of the hundreds who shared their story. She said: “I’ve needed support from benefits because, as a mother of four, daily life can be a real struggle. Before we received support I was forced to borrow from family and friends. I’m a full-time mum, and my husband has been working as a full-time mechanic for six years.”
“Receiving support from Child Tax Credits is not a lifestyle choice for me – it’s a necessity. It helps me to put food on the table for my family, buy clothes and school uniforms for my children and prevent the gas and electricity from being cut off. Without this support I don’t know how we would survive.”
Who Benefits? asks politicians of all parties to do more to understand the lives of people who have been supported by benefits, as well as focus on the real reasons that people are struggling, like low wages, the high cost of living and the housing crisis.
Matthew Reed, Chief Executive of The Children’s Society, said: “Life is full of ups and downs, it can be unpredictable. But no one should go hungry because they lose their job or go into debt because they are on such a low wage. And it is reassuring to see that the public support this view.
“At a time when families up and down the country are feeling the squeeze, it is important – now more than ever – that society supports those in need. The overwhelming majority of people who get benefits really need them; whether they are working, looking for work or unable to work.”
Leslie Morphy, Chief Executive of Crisis, said: “At Crisis we see every day how support from benefits lifts people out of homelessness, or prevents them from ending up on the streets in the first place. With this support we see people moving into work and on to a better life. Yet all too often the realities of people’s lives and situations are just ignored. That’s why we want people to get involved with Who Benefits? – to ensure real voices are heard.”
Fiona Weir, Chief Executive of Gingerbread, said: “None of us know what is around the corner for our family, which is why it can come as a huge blow to someone who’s already having a tough time to be labelled or stereotyped. It is great to see that the vast majority of the British public are behind giving support to those who need it, and we hope that our campaign will encourage more people to come forward to share their stories of how benefits have supported them.”
Paul Farmer, Chief Executive of Mind, said: “Support from benefits makes a huge difference to the lives of many people with mental health problems, allowing people to stay well and retain their independence; or help with the additional costs that come from having a disability.
“Lots of individuals with mental health problems face stigma and discrimination, as their condition is less visible than a physical disability. These new statistics suggest those who claim benefits experience double the stigma.”