Tagged: contractors

Extended Benefit Sanctions Push Up Numbers Seeking Advice On Paying Bills

This article was written by Patrick Wintour, political editor, for theguardian.com on Monday 14th April 2014

There has been a 60% spike in the number of people seeking advice about paying bills as a result of increases in the length of benefit sanctions, according to the Citizens Advice Bureau (CAB).

 It came as the Department for Work and Pensions (DWP) published a new survey showing that women make up four in five people losing money from the £500-a-week benefit cap. Almost all have dependent children and 83% have three or more.

A year after the limits were introduced, Ipsos Mori research found a third of people affected have been forced to cut back on essential items. Around 25% have looked for a job after being hit by the cap, while 45% plan to do so in future. The survey looked at 1,000 people out of more than 38,600 households that have been caught by the new rules.

The government extended the period Jobseeker’s Allowance (JSA) is withheld from one week to four weeks last October. There have been repeated reports that JSA claimants feel they have suddenly lost benefit on the basis of arbitrary decisions for which they have been given no warning or little explanation.

An independent review of the sanctions regime commissioned by DWP is yet to be published, but the latest CAB figures suggest there is an urgency to the issue that ministers have yet to grasp. Polls suggest the DWP would feel under little pressure to soften any aspect of the welfare regime.

The CAB – which is a free advice service – said that since the sanctions regime was toughened, it has helped clients with over 15,000 JSA sanction problems. The increase in the numbers seeking help is disproportionate to the increase in the number of sanctions being applied by the DWP.

Under the previous one-week sanction claimants could cope, the CAB said, but a four-week withdrawal of access to benefit led people into desperate measures including approaching loan sharks.

Publishing its research, the CAB said: “People are struggling to pay their bills, rent and put food on the table. Many clients are forced to turn to food banks and even payday loan companies. With all this on their plate people are distracted from looking for a job, so they’re less likely to get into work.”

The CAB said: “From October to December last year one in four Citizens Advice clients with a JSA sanction problem had dependent children, one in four identified as being disabled or suffering from a long-term health condition, one in six also had a debt problem, and one in 10 had issues with rent arrears or threat or reality of homelessness.”

The chief executive of CAB, Gillian Guy, said: “The minimum four-week sanction is setting people up to fail and creating a barrier which can stop them from looking for work. Four weeks is a long time to go without money to get by and people are struggling to make ends meet.

“The success rate of sanction appeals reveals a culture of ‘sanction first and ask questions later’. This is not only ineffective and a huge waste of money but also has a devastating effect on thousands of people’s lives.

“People need a system that can take into account their situation, set suitable work search requirements and, where necessary, apply sanctions at a level that won’t limit their chances of employment.

“To date, work programme contractors have been responsible for twice as many sanctions on the people referred to them as they have successfully helped people find work. Combined with CAB’s latest figures this paints the strongest picture yet that the system is not working as it should.”

CAB pointed out that under universal credit – the new benefit integrating many existing benefits including JSA – Jobcentre staff are to be given greater flexibility in deciding the length of benefits. The CAB asked how it was possible to give staff flexibility for the incoming benefit system, but not for the current one.

Case study

Ian is a 43-year-old single father of two (aged nine and 12) living in Hastings. He has been on long-term sick leave for depression but, following a work capability assessment by Atos, was told he did not have enough points and was moved onto JSA.

Ian was put on to the work programme, though due to a staff mix-up by Pertemps he has not been receiving support to find work. He has been filling in his work-search forms and giving them to the Jobcentre. Then last Thursday Ian was told he had been given a four-week sanction for not giving enough work-search detail. He was told there were six cleaning jobs for which he could have applied, but he said that they were early morning jobs that did not fit with his responsibilities to his children.

He was given no notice or warning that he was doing anything inadequate about his work search. The money – £72 a week – just didn’t appear.

“I’ve been left high and dry. I filled in the work-search form as usual, but this time they’ve said it’s not enough. Thursday/Friday I was at rock bottom, I was in a total state. I was just thinking, where am I going to get money from?

“I had a water bill due on Friday, but the direct debit bounced as no money had gone in. I’m worried about my rent, as I don’t know if my housing benefit will come in now I’ve been sanctioned. Then at 5pm on Friday I got a hardship payment through so I can look after my kids. The crux of the issue is that they should give you some warning or notice that they are going to deduct some money. Otherwise the only two options at the end of the day are to borrow money or commit a crime.”

He adds that he took out a £100 emergency loan that will require repayment of £160. Ian is appealing his sanction, as he has a letter from Pertemps stating he has not been getting the support he should have due to an administrative mix-up.

Source – Welfare News Service  14 April 2014

http://welfarenewsservice.com/extended-benefit-sanctions-push-up-numbers-seeking-advice-on-paying-bills/

Work Programme Creates Just 48,000 Long-Term Jobs In Three Years

This article was written by Kevin Rawlinson, for The Guardian on Friday 21st March 2014 19.29 UTC

Just 48,000 people have found long-term jobs under the government’s flagship work programme during its near three-year life, official figures have revealed.

 

The statistic calls into question the efficacy of a system the government has insisted would help millions back into work

 

The 48,000 figure – revealed in data published by the Department for Work and Pensions – refers to the number of people who have found jobs through the scheme and stayed in them long enough to merit the maximum bonus paid to contractors for their remaining in employment.

 

 

But figures released by the department in November last year showed that in the year to October 2013, unemployed people were sanctioned for “misconduct” 242,973 times.

 

The sanctions imposed in the 12 months after the DWP overhaul of the system in October 2012 were for “failure to participate in a scheme for assisting person to obtain employment without good reason”.

 

According to the Citizens Advice Bureau, sanctions usually involve jobseekers allowance payments being stopped for periods of between four weeks and three years. It added that, in some cases, the payments can be reduced instead.

 

Under the work programme, the DWP pays its contractors “job outcome payments” when claimants find work. It then pays greater bonuses – called “sustainment payments” – the longer the claimant stays in a job, up to a maximum figure.

 

The department’s data showed that the maximum available sustainment payment has been made nearly 48,000 times since the work programme was launched in June 2011. That represents only 3.2% of the 1.5 million people the DWP said have been referred to the work programme in total.

 

Its report said: “A proportion of these achieved this within 104 weeks of referral and left the scheme, with the others remaining in employment after the 104-week point.”

 

It added that, in all, 352,000 claimants have completed their 104 weeks on the programme, but remained on benefits at the end and went back to their jobcentres. The DWP pointed to figures showing that it paid nearly 252,000 job outcome payments to reward contractors who helped move claimants into jobs overall – albeit for shorter periods.

 

“Ministers have very serious questions to answer about this scheme, not least why there have been five times more sanctions applied than jobs found for people,” said the general secretary of the Public and Commercial Services union, Mark Serwotka.

> Perhaps he should  be telling us why his members in Jobcentres are also dishing out sanctions like they were going out of fashion ?

 

He added: “The privatised work programme has been an unmitigated failure and has actually hampered the chances of people finding work, not helped.”

 

A DWP spokesman said: “More than a quarter of a million jobseekers have escaped long-term unemployment and found lasting work – normally at least six months – through the work programme. That’s a quarter of a million people whose lives have been transformed.”

> A job lasting 6 months will transform your life ? I’ve done them – they don’t.

 

Employment Minister Esther McVey added: “As the economy continues to grow, the work programme is successfully helping people to turn their lives around so they can look after themselves and their families.”

Source – Welfare News Service, 22  March 2014

http://welfarenewsservice.com/work-programme-creates-just-48000-long-term-jobs-in-three-years/