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
George Osborne has refused to categorically rule out rolling child benefit into Universal Credit (UC) to help contribute towards Conservative plans to save £12 billion from the welfare budget.
The Chancellor was asked repeatedly to rule it out and did not, but said that if the Tories had wanted to include child benefit in the new welfare system, they would have done so when it was created.
The independent Institute for Fiscal Studies (IFS) has said that scrapping child benefit and increasing UC for eligible families could save £4.8 billion a year.
But such a measure would mean that 4.3 million families who receive child benefit at the moment but would not be entitled to UC in the future would lose more than £1,000 a year, the IFS said.
At a Westminster briefing, Mr Osborne was asked to rule out rolling child benefit into UC.
The Chancellor replied:
“If you judge us on our approach in this parliament and if we wanted to put child benefit into Universal Credit, we would have done it when we set up Universal Credit.
“We have got a track record, we have got a plan that’s based on clear principles about making work pay and sharpening work incentives…”
Asked again to rule it out, Mr Osborne replied:
“I’ve just given you an answer. If we wanted to do it we would have done it when we created Universal Credit.”
Asked again, Mr Osborne said:
“I’ve given a very clear answer and you have to be a contortionist to think I’m not giving a pretty clear answer to that.”
The Conservatives’ plans for the next parliament involve saving £30 billion to contribute to deficit reduction, with £12 billion set to be cut from the welfare budget.
But the party has faced criticism from the IFS and Labour for failing to set out how it would achieve the majority – around £10 billion – of those welfare cuts.
The Chancellor said:
“If you look at our track record, the £21 billion we’ve saved in this parliament, you can look at principles we will apply to future such savings.
“We want to go on creating a welfare system which rewards work and the aspirations of families and protect the most vulnerable.”
Universal Credit is the coalition Government’s flagship welfare reform and simplifies the system by rolling a string of benefits and tax credits into one payment.
It is being rolled out in stages after being hit by delays and IT problems but will eventually take in jobseeker’s allowance, income-related employment and support allowance, income support, child tax credit, working tax credit and housing benefit.
Shadow chief secretary to the Treasury Chris Leslie said Mr Osborne had put middle income families in the firing line.
The Labour frontbencher said:
“The Tories won’t admit where their £12 billion of welfare cuts will come from, but after this press conference it’s now clear middle income families are in the firing line.
“George Osborne repeatedly refused to rule out rolling child benefit into universal credit. This would mean 4.3 million families losing over £1,000 a year, according to the independent Institute for Fiscal Studies.”
Treasury Minister Priti Patel said rolling child benefit into UC was not Conservative policy.
She told BBC News:
“We’re very clear as well, we have made it clear and we’ve said that we need to find £12 billion of welfare savings but it’s not our policy, that suggestion, and that there are other ways in which we can find those savings.”
But Ms Patel would not be drawn on whether the Tories will pay child benefit only for the first two or three children.
Asked if it was a possibility, she said:
“I’m not going to come here and start talking the ins and outs of the spending review because that will all be for the next government.”
Liberal Democrat leader Nick Clegg said he was not surprised by Mr Osborne’s failure to rule out the move as he insisted the change would not feature in his own party’s manifesto.
Speaking in Newtown, Mid Wales, he said:
“It’s no surprise to me that the Conservatives are considering pretty dramatic changes like taking child benefit away from lots of families because they have committed to taking £12 billion away from some of the most vulnerable families in this country.
> And we’ve been helping them for the last five years…
“They have committed to taking the equivalent of £1,500 away from eight million of the poorest families in this country to balance the books; they are not asking the very wealthy, those with the broadest shoulders, to make a single contribution through the tax system in balancing the books.
“Even if they did what is now being floated by George Osborne, they would still have £8 billion or £9 billion to fund. Who are they going to affect next, those with disabilities?
“Which other vulnerable groups will be affected by this unfair plan from the Conservatives?”
Asked whether the Lib Dems would rule out the move, Mr Clegg said:
“Child benefit rolled into the Universal Credit will not be in our manifesto because we are not planning the very, very extensive reductions in support given to the most vulnerable in our society that the Conservatives are.”
> But if anyone’s interested we’ll sell our souls again. Cheaply.
Pressed on whether it would be a measure he would block in coalition as a red line issue, Mr Clegg said:
“There’s no way the Liberal Democrats would ever endorse, of course not, in government or in opposition an approach which takes £1,500 away from eight million of the most vulnerable families in Britain.”
Source – Northern Echo, o7 Apr 2015
Sick and disabled claimants are experiencing severe distress and some are even close to suicide due to botched disability benefit reform, an insider has revealed.
Personal Independence Payments (PIP) are replacing Disability Living Allowance (DLA) for Britain’s sick and disabled, but the assessment process which should take no longer than 26 weeks is sometimes taking twice as long.
The two companies are set to make £540 million from the new benefit in the next five years. Atos will receive the larger share of around £400 million, despite heavy criticism and a poor record in delivering ‘fit for work’ tests for Employment and Support Allowance (ESA), while Capita will make roughly £140 million.
PIP can be claimed by sick and disabled people regardless of their employment status.
Under the new disability benefit PIP, claimants are required to attend face-to-face assessments to determine their eligibility and the level of benefit they will receive. The whistleblower claims that mismanagement, IT problems and staff shortages are to blame for a backlog of 145,000 cases.
While waiting to be assessed for PIP, many sick and disabled people are often left penniless and unable to pay their rent, because their DLA has been stopped, the whistleblower said.
Speaking to the Daily Mirror, the whistleblower said:
“I’ve had people on the phone crying their eyes out and saying they are going to commit suicide.
“On one occasion I had to call an ambulance because they said they had stopped taking their medication. Some people have been going for months and months without money.”
“We’ve started getting calls from people saying their DLA will run out in a month’s time and they’ve not even got an appointment for an assessment.
“Others have been left with nothing because their DLA has been stopped. People have lost their home because they can’t pay their rent.”
She continued: “It’s a shambles. Day in, day out there are people ringing up to say, ‘Why is my appointment cancelled?’ I’ve seen appointments cancelled time and time again.”
According to the whistleblower, Capita call centre staff have been given instructions on what excuses to use when claimants ask why their PIP assessment has been delayed or cancelled. “I am having to lie on a daily basis about why things are taking so long”, she said.
Minister for Disabled People, Mark Harper told the Daily Mirror: “By the autumn, we anticipate that no one will be waiting for an assessment for longer than 26 weeks.”
Capita said they would be hiring more staff to help reduce the backlog.
Source – Welfare News Service, 03 Aug 2014