The Department for Work and Pensions (DWP) has discretely released dismal Universal Credit statistics on the same day as the latest unemployment figures are announced.
The figures reveal that there were just 31,030 people on Universal Credit by 8th January 2015.
This represents an increase of 17 per cent on the caseload compared to December 2014, but is still far short of the 1million (plus) originally promised by the Work and Pensions Secretary, Iain Duncan Smith MP.
The Jobcentre Plus office with the largest caseload was Oldham with 2,640 Universal Credit claimants, followed by Wigan with 1,930.
Of the people on the caseload in January 2015, 32 per cent were in employment and 68 per cent were not in employment.
47 per cent of the Universal Credit caseload in January 2015 has been on the new benefit for less than three months, this compares to 52 per cent in December 2014, 55 per cent in November 2014 and 60 per cent in October 2014.
There are more males on the Universal Credit caseload than females (70 per cent compared to 30 per cent).
Males aged 20-24 make up 24 per cent of the total Universal Credit caseload.
Universal Credit is replacing the following benefits:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Housing Benefit
63,690 people have made a claim for Universal Credit up to 12th February 2015. The rate at which people are claiming continues to increase as the roll out of Universal Credit continues.
35,620 of the people who have made a claim have, up to 8th January 2015, attended an initial interview, accepted their claimant commitment, and gone on to start Universal Credit.
31,030 people were on the Universal Credit caseload, as at 8th January 2015. Of these, 10,080 (or 32 per cent) were in employment and 20,950 (or 68 per cent) were not in employment.
UK Labour Market, February 2015
- Comparing the estimates for October to December 2014 with those for July to September 2014, employment continued to rise and unemployment continued to fall. These changes maintain the general direction of movement since late 2011/early 2012.
- There were 30.90 million people in work. This was 103,000 more than for July to September 2014 and 608,000 more than for a year earlier.
- The proportion of people aged from 16 to 64 in work (the employment rate), was 73.2%, higher than for July to September 2014 (73.0%) and for a year earlier (72.0%). The employment rate last reached 73.2% in December 2004 to February 2005 and, since comparable records began in 1971, it has never been higher.
- There were 1.86 million unemployed people. This was 97,000 fewer than for July to September 2014 and 486,000 fewer than for a year earlier.
- The unemployment rate was 5.7%, lower than for July to September 2014 (6.0%) and lower than for a year earlier (7.2%). The unemployment rate is the proportion of the economically active population (those in work plus those seeking and available to work) who were unemployed.
- There were 9.05 million people aged from 16 to 64 who were out of work and not seeking or available to work (known as economically inactive). This was 22,000 more than for July to September 2014 and 6,000 more than for a year earlier.
- The proportion of people aged from 16 to 64 who were economically inactive (the inactivity rate) was 22.3%, virtually unchanged compared with July to September 2014 and with a year earlier.
- Comparing October to December 2014 with a year earlier, pay for employees in Great Britain increased by 2.1% including bonuses and by 1.7% excluding bonuses.
Source – Welfare Weekly, 18 Feb 2015
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