Tagged: In work conditionality

How The Tories Dehumanise Low-Paid Families – Or Should I Say ‘Benefit Units’

Do you ever miss the era when you didn’t know what a benefit sanction was?

That innocent time, before the Department for Work and Pensions renamed a family a “benefit unit”?

One of the great luxuries of no longer having a Conservative-led government would be not having to learn any more about their intricately boring, functionally brutal social security innovations.

Look, I’m no Pollyanna. There are clearly question marks over a possible Labour/SNP coalition: how is it going to work, for a start, now that Labour has explicitly promised not to talk to the SNP? Prime minister’s questions would look like a cocktail party with two exes blanking each other. We’ll know they’re in love, but they’ll be too angry to see it.

And what, exactly, is Ed Miliband’s rent capping idea?

The beginning of a new courage, as he sets his face to the blizzard of the rentier economy?

Or a canny bid for the votes of people who don’t think any politicians are capable of anything?

These are battles for the future, and I would have them 1,000 times rather than watch unfold the nightmare of “in-work conditionality”.

As part of the universal credit pilot, last week saw the beginning of new requirements on the number of hours worked: under these regulations, anyone earning less than the equivalent of 35 hours on the minimum wage would be subject to pressure which could end in a sanction.

The second parent in the “benefit unit” would be required to work a minimum of 16 hours, taking the working week for the family up to 51 hours, before the threat of sanctions would be lifted.

Over the coming year, 15,000 families will be placed on this regime, to varying degrees of stringency: some will just be nudged with a fortnightly phone call, others will have to attend regular interviews which, as we’ve seen with the regular social security picture, comes with the ever-present risk of having your benefits removed and being left with nothing.

Labour’s Baroness Sherlock asked some searching questions in the Lords in January about the ethics of doing a randomised control trial in which one of the groups suffered a real risk to their wellbeing.

Lord Freud waved the problem off, but this is the man, remember, who thinks people use food banks because there is an “infinite demand for a free good”. He probably thinks these families only had children in the first place because they presented no immediate unit cost.

It may sound as though there is no moral dishevelment more profound than deliberately leaving parents without the money to feed their children (the cost of the trial, incidentally, is £15m, which I am prepared to bet real money is more than the scheme will ever save). But there are two other aspects, one cultural and one democratic, to consider.

First, as Lindsay Judge, who conducted research on the pilot for the Child Poverty Action Group (CPAG) to be released on Monday, points out:

“If you focus on hours, you individualise the problem of low pay. It allows employers to take their eye off pay, and it allows the state to take their eye off benefits.”

To be on low wages under this regime is to be at the mercy of many different pressures: employers who think you’re expendable and are less likely to make accommodations for you, whether that means flexibility or extra hours; government agencies who will focus on increasing your hours, regardless of what that does to your family; and an inbuilt discrimination in the fact that people on the minimum wage are expected to work more in the first place (since the “conditionality” element of universal credit is based on family income, not hours worked).

But if you were to take this policy, and the demands it makes of parents, and lay it over other debates – education, where the worthy parent is at the school gates and all over the homework; or health, where good parenting involves a lot of home baking – you can see that to be on the minimum wage is, by steady increments, becoming incompatible with “respectable” parenting. This is even starker for single parents, who are of course often judged as deficient in the first place.

The democratic deficit emerges from the CPAG’s research, in which it asked two groups, one high income and one low income, how much other parents should be expected to work. Judge describes “parents being shocked at the sharpness of the state in other parents’ lives. You come up against these sharp edges all the time when you’re a low-income family and they’re really unpleasant. People who don’t have that interaction with the state are really surprised.”

CPAG found that people tended to approach the issue as parents first and taxpayers second, concluding overwhelmingly that it has to be a question of individual choice; parents must decide for themselves how many hours they work.

“Everyone said, people should be able to make the same choices about work-life balance across the income spectrum. Policies that bear down in a coercive manner are not acceptable – and that response was found in the higher- as well as the lower-income group.”

So many benefit reforms are justified on the basis that the country is sick of a something-for-nothing culture. But when you ask in-depth questions about what other people’s lives should be like, and what kind of dignity a state should respect and uphold, a much more generous, human picture emerges.

The genius of so many of these reforms has been in the naming – “spare-room subsidies” and “work-related activity groups” – they sound like technicalities rather than financial traumas. I don’t know what the in-work conditionality would have to be called for parents to stand together against it: I’d sooner not find out.

Source – The Guardian, 26 Apr 2015

Part-Time Workers Face Benefit Sanctions Under Universal Credit

Work and Pensions Secretary Iain Duncan Smith has confirmed that part-time workers could face benefit sanctions under Universal Credit.

IDS told the Work and Pensions Select Committee that trials were being carried out in parts of the North-West of England, on removing benefits from part-time workers who refuse to take on extra hours.

In work conditionality” within the Universal Credit system could encourage part-time workers and the low-paid to seek additional hours, said Mr Duncan Smith.

However,  Labour MP Debbie Abrahams said people were dying as a result of the having their benefits docked, a claim dismissed by Mr Duncan Smith.

Mr Duncan Smith told Debbie Abrahams that the benefit sanctions regime was “helping people focus” on finding work or additional hours, adding “a job doesn’t stay static at 16 hours – you want it to develop”.

Ms Abrahams asked the Work and Pensions Secretary:

“Can you confirm that there is an intention to introduce in-work conditionality with Universal Credit and, if so, what sanctions could be applied, and under what conditions to the 3.5 million people in work on low pay and in receipt of tax credits?”

Iain Duncan Smith replied:

“That is being investigated, as to whether we can now work to in-work sanctions – in other words, conditionality – so people get an opportunity to move up the hours if they can, and if they don’t wish to do that, we will see whether or not that system of conditionality works. We are trialling that.

Ms Abrahams also accused Duncan Smith of a cover-up after he said no money had been lost during the botched introduction of Universal Credit. The DWP has already been forced to write-off £40 million in failed IT software, with an additional £91 million predicted to be lost over the next few years.

Universal Credit is replacing a number of existing benefits, including Housing benefit and Income Based Jobseeker’s Allowance, and rolling them into one single monthly payment. However, the government’s flagship welfare reform has been beset with delays and costly IT failures.

Up to a million households were originally expected to be in receipt of the new benefit by the end of 2014. But DWP figures show that less than 15,000 households or individuals were on Universal Credit by the end of September – mostly single people. The national rollout is scheduled to be completed by the end of 2018.

Mr Duncan Smith said trials of Universal Credit in the North-West of England had resulted in claimants finding work more quickly or taking on extra hours, leading to “early savings to the Exchequer”.

He added that businesses were more willing to take on people claiming Universal Credit than Jobseeker’s Allowance claimants, because those people could accept additional hours while keeping more of their benefit.

“Normally in a business, a job doesn’t stay static at 16 hours – you want it to develop”, he said.

Businesses know that many people will not work more than 16 hours because they don’t think it is viable for them to do so because of all the withdrawals.

“What we are beginning to experience in areas of the North-West is they can now work to progress that individual and set training programmes around them, so it is worth investing in that individual to develop their own skills and their own productivity.

“In the North-West, many businesses are now asking to have people on Universal Credit to come and take interviews, because they know they can develop them all the way through.”

Sourc e –  Welfare Weekly,  09 Nov 2014

http://www.welfareweekly.com/part-time-workers-face-benefit-sanctions-universal-credit/