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 North East has some of the highest levels of poverty in the country and is bucking the trend of falls elsewhere, new figures show.
Nearly a quarter of adults and a third of children in the region are classed as living in poverty, according to new Government statistics on household incomes. The region had also seen two successive falls in average household income in recent years, the figures show, though the number of pensioners in poverty has fallen and is now the lowest level in the UK.
The Government hailed national statistics which showed that the number of people in relative poverty has fallen by 100,000 over the past year to 9.7m.
But charities working to alleviate child poverty said the fact that 100,000 children in the region were living in poverty was “unacceptable”.
Matthew Reed, chief executive of The Children’s Society, said: “The Government’s claim that it is protecting the most vulnerable families from falling behind is not borne out by these figures, which show that an unacceptable number of children are still living in poverty in the North East. We know that children who grow up in poverty are more likely to suffer poor health and struggle at school.
“It needs to do much more to help those who are struggling against the brutal effects of welfare cuts, stagnant wages and rising food and fuel prices if it is to stop the continuing crisis of child poverty.”
The Gingerbread campaign group said the statistics showed a steep rise in child poverty for single parent households where the parent works full-time, climbing from 17% of households where the single parent works full-time in poverty in 2011-12 to 22% in 2012-13.
Almost one in four children whose single mother or father works full-time is now growing up poor, while nearly one in three with a single parent working part-time is in poverty, said the group.
Gingerbread chief executive Fiona Weir said: “It is deeply concerning that while the economy is on the up, hundreds of thousands of families remain trapped into poverty. For far too many single parent families, work offers no real promise of escape from hardship, as today’s figures show a rise in working poverty where a single mum or dad is working full-time.”
Prime Minister David Cameron’s official spokesman said: “Child poverty remains at its lowest level since the 1980s. It has fallen by 300,000 since 2009/10.
“Does the Government want to continue to do more in this area? Of course. Absolutely at the heart of improving prosperity across the country and for all is the importance of sticking to the long-term economic plan, because at the heart of dealing with poverty is work.”
The spokesman added: “In terms of wider poverty, the target established under the previous Government is one of relative income, and that stands at its lowest level since 1982.”
Source – Newcastle Journal, 01 July 2014
Single parents with children under the age of five face the threat of ‘punitive’ benefit sanctions, due to the introduction of tough new rules and over-stretched jobcentre’s, the charity Gingerbread has warned.
Jobcentre staff have been given new powers to remove benefits from single parents with young children in receipt of Income Support, otherwise known as sanctioning, should they fail to adhere to strict new requirements which may include attending more jobcentre appointments, participation in training programmes or work experience placements, depending on the age of their child(ren).
Gingerbread say the new rules ‘focus too heavily on sanctions’ in what the charity has described as a ‘tick box exercise’, rather than providing single parents with tailored support which would enable them ‘to get work ready’.
Failure to comply could result in single-parents having their Income Support payments cut by 20 per cent a week for an ‘indefinite period’. Sanctions will be lifted if and when those parents comply to the requirements imposed upon them or are able to prove their benefits should not have been cut in the first place.
Gingerbread claim that they are already hearing from single parents with children as young as six months who have wrongfully had their benefits sanctioned after being told they must begin looking for work.
The charity has drawn attention to the number of Jobseeker’s Allowance (JSA) claimants who have wrongfully been hit with benefit sanctions and are having those decisions overturned following appeal (nearly four in 10 or 38%). Gingerbread has expressed concerns that 423,000 single-parents in receipt of Income Support could be subjected to the same fate.
Gingerbread chief executive Fiona Weir said:
“Many single parents do want to work before their child reaches school age, some decide that’s not right for their family, and others have little choice financially. Whenever parents decide they’re ready to go to work, they should get support that helps them do just that; but we’re concerned that the new rules will become little more than a tick box exercise with punitive sanctions attached.
“We know that single parents are already often wrongly sanctioned and, based on the calls our helpline is already getting, we fear that this situation will only get worse as these new rules are introduced.”
Gingerbread have called on the coalition government to ensure that jobcentre staff fully understand the new rules to reduce the probability of single-parents wrongfully having their benefits slashed. They are also urging the government to consider investing in ‘voluntary tailored support and training for single parents’.
The Work and Pensions Select Committee has recently recommended that an independent review be carried out in order to determine whether some benefit claimants are having their payments docked inappropriately.
Referring to the use of benefit sanctions against JSA claimants, chair of the Work and Pensions Select Committee Dame Anne Begg said:
“The number of JSA Sanctions are at a 12 month high, and probably the highest ever on record. Yet, we don’t even know if these Sanctions are working. There have been many examples of people being sanctioned and not knowing why. If the aim of a sanction is to change peoples’ behaviour then people need to know why their benefits have been stopped otherwise it is just a punitive punishment which is trying and save money.”
Source – Welfare News Service 29 April 2014