Welfare reforms such as the bedroom tax, sanctions and housing benefit cuts are fuelling England’s rapidly worsening homelessness crisis, according to an independent study.
The government’s welfare policies have emerged as the biggest single trigger for homelessness now the economy has recovered, the study says, and they look likely to increase pressure on vulnerable households for at least the next two years.
London has become the centre of homelessness, the study says, as high rents, housing shortages and welfare cuts force poorer people out of the inner city to cheaper neighbourhoods. Those who lose their homes are increasingly rehoused outside the capital.
Jon Sparkes, chief executive of the homelessness charity Crisis, said the report revealed the true scale of homelessness in England. “Rising numbers [are] facing the loss of their home at a time when councils are being forced to cut services. This is a desperate state of affairs.”
Official figures show that homelessness is rising – up by 12,000 in 2013-14 continuing an upward trend since 2009-10 – with rough sleeping also on the increase, and soaring numbers of homeless families in temporary accommodation.
But the study argues that these official figures underplay the scale and complexity of homelessness in England because they do not capture the hundreds of thousands of people in housing crisis who are given informal help by authorities.
Although latest government statistics show 52,000 households were formally recorded as homeless in 2013-14, a total of 280,000 families were given some sort of assistance by authorities because they were at risk of losing their home.
Local authorities are increasingly using informal homelessness relief to keep at-risk families off the streets by providing financial support and debt advice or by mediating with landlords, none of which appears in the headline statistics.
“Taking these actions into account, we see that the number of cases of people facing or at serious risk of homelessness rose sharply last year. Yet this alarming trend has gone largely unnoticed by politicians or the media,” said the study’s lead author, Prof Suzanne Fitzpatrick of Heriot-Watt University.
The Homelessness Monitor 2015, an annual independent audit, is published by Crisis and the Joseph Rowntree Foundation.
The housing minister, Kris Hopkins, said the study’s claims were misleading. Local authorities had a wide range of government-backed options available to help prevent homelessness and keep people off the streets, he said.
“This government has increased spending to prevent homelessness and rough sleeping, making over £500m available to local authorities and the voluntary sector,” he said.
Hopkins added that the government had provided Crisis with nearly £14m in funding to help about 10,000 single homeless people find and sustain a home in the private rented sector.
Julia Unwin, chief executive of the Joseph Rowntree Foundation, said:
“Homelessness can be catastrophic for those of us who experience it. If we are to prevent a deepening crisis, we must look to secure alternatives to home ownership for those who cannot afford to buy: longer-term, secure accommodation at prices that those on the lowest incomes can afford.”
The study finds:
- Housing benefit caps and shortages of social housing has led to homeless families increasingly being placed in accommodation outside their local area, particularly in London. Out-of-area placements rose by 26% in 2013-14, and account for one in five of all placements.
- Welfare reforms such as the bedroom tax contributed to an 18% rise in repossession actions by social landlords in 2013-14, a trend expected to rise as arrears increase and temporary financial support shrinks.
- Housing benefit cuts played a large part in the third of all cases of homelessness last year caused by landlords ending a private rental tenancy, and made it harder for those who lost their home to be rehoused.
The study says millions of people are “hidden homeless”, including families forced by financial circumstances to live with other families in the same house, and “sofa surfers” who sleep on friends’ floors or sofas because they have nowhere to live.
Official estimates of rough sleeper numbers in England in 2013 were 2,414 – up 37% since 2010. But the study’s estimates based on local data suggest that the true figure could be at least four times that.
Source – The Guardian, 04 Feb 2015
Shocking research published today reveals a sharp rise in the number of under 25’s and working people living in poverty in the UK.
The latest poverty and social exclusion report, written by the New Policy Institute (NPI) in partnership with the Joseph Rowntree Foundation (JRF), shows how under 25’s and people in work are now more likely to be living in poverty than pensioners.
There are now around 13 million people living in poverty in the UK, with half of those coming from a working family and 1 in 5 are working age adults without children.
In stark contrast pensioner poverty has fallen to a record low under the coalition, according to the report. The decline in pensioner poverty is attributed to targeted government support aimed at protecting older people from the worst austerity cuts.
A changing labour market and the prevalence of zero-hours contracts, part-time work and low-paid self-employment means that moving into employment is no longer a guaranteed route out of poverty.
According to the report, there are around 1.4 million zero-hours jobs that do not guarantee a minimum number of hours. Over half of these are in retail, admin, accommodation or the food and restaurant sector.
Around two-thirds of unemployed people who moved into work over the last year are paid below the living wage. And only a fifth of people in low-paid jobs have escaped poverty wages completely within 10 years, according to the report.
Incomes are lower on average than they were a decade ago with the very poorest taking the biggest hit. For the lowest paid men, their hourly pay has fallen by a shocking 70p per hour, while women have seen their hourly rate fall by 40p per hour.
The prospects for self-employed people isn’t any better either, because analysis shows they earn 13% less than they did just 5 years ago.
Failure of the welfare system means Jobseeker’s Allowance (JSA) claimants on the government’s controversial Work Programme are more likely to be sanctioned, or have their benefits docked/cut, as they are to find a job through the back-to-work scheme. And 60,000 disabled people are having to wait 6 months or more for their sickness benefit claim to be fully processed.
The report also highlights a ‘welcome’ drop in the number of people classed as unemployed. However, Welfare Weekly recently reported that as many as 500,000 job seekers could be ‘disappearing’ from official unemployment figures, due to cruel and unjust benefit sanctions.
Children in receipt of free school meals fail to attain five ‘good’ GCSE’s, highlighting a lack of social mobility among children from poorer families.
The report also reveals more people living in poverty in private rented housing. There are now as many people living in poverty in the private sector as in social housing, according to the report. Private landlord repossessions are now more common than mortgage repossessions – 17,000 compared to 15,000 in 2013/14. Private landlord repossessions are the most common cause of homelessness in the UK, say JRF.
Julia Unwin, Chief Executive of JRF, said:
“This year’s report shows a real change in UK society over a relatively short period of time. We are concerned that the economic recovery we face will still have so many people living in poverty. It is a risk, waste and cost we cannot afford: we will never reach our full economic potential with so many people struggling to make ends meet.
“A comprehensive strategy is needed to tackle poverty in the UK. It must tackle the root causes of poverty, such as low pay and the high cost of essentials. This research in particular demonstrates that affordable housing has to be part of the answer to tackling poverty: all main political parties need to focus now on providing more decent, affordable homes for people on low incomes.”
Tom MacInnes, Research Director at the NPI, said:
“This report highlights some good news on employment – but earnings and incomes are still lower than five years ago, and most people who moved from unemployment into work can only find a low paid job. Government has focussed its efforts on welfare reform, but tackling poverty needs a wider scope, covering the job market, the costs and security of housing and the quality of services provided to people on low incomes.”
TUC General Secretary Frances O’Grady said:
“This report highlights once again how ordinary working people are being excluded from the recovery and are becoming poorer in real terms.
“Our economy has become very good at creating low-paid, insecure jobs which are trapping more and more families in working poverty.
“The situation looks particularly bleak for young people – many of whom face decades of private renting and diminished career prospects.
“Without more affordable housing and quality employment opportunities, living standards for the many will continue their steep decline.”
A Government spokesman said:
“The truth is, the percentage of people in the UK in relative poverty is at its lowest level since the mid-1980s and the number of households where no-one works is the lowest since records began.
“The Government’s long-term economic plan is working to deliver the fastest growing economy in the G7, putting more people into work than ever before, and reducing the deficit by more than a third.
“The only sustainable way to raise living standards is to keep working through the plan that is building a resilient economy and has enabled us to announce the first real terms increase in the minimum wage since the great recession.”
> By the end of the statement, Government Spokesman’s nose had grown several inches longer…
Source – Welfare Weekly, 24 Nov 2014
By Jenny Howarth
Chancellor George Osborne has delivered his fourth budget. It was clear from his opening gambit – “If you’re a maker, a doer or a saver: this Budget is for you” – that this budget would help the few and not the many. If you were not a ‘hard-worker’, business owner or saver then there would be no point in listening any further.
For Osborne, the budget was an opportunity to say that their long-term economic plan is delivering security for the people of this country. The emphasis was on support for businesses who invest and export, on support for manufacturers, on support for savers or rather making sure “hardworking people keep more of what they earn – and more of what they save” – all aimed towards the central mission: economic security for the people of Britain.
By the end of his 55 minute speech it was very clear that the economic security he spoke of was for the few not the many. He tried to convince people that his budget was for the “makers, doers and savers”, yet it came across as “I’m hoping to gain the over-50 vote”. He promised a budget of “hard truths” which could be implied as “if you think I’m going to help the unemployed, disabled and vulnerable then think again”.
Osborne’s budget was more ‘out of touch with reality’ than ‘hard truths’. He spoke of economic growth, a Britain on the road to recovery, even mentioning the new resilient pound coin to match the resilient economy. However, for thousands of families waking up the morning after the Budget, life is still a struggle. For them the budget was meaningless, doing nothing to improve their desperate situation and here is why.
Julia Unwin, Chief Executive of the Joseph Rowntree Foundation said:
“This is a Budget for the people who already have, not for the people who need to benefit most from the return to growth. It is a lost opportunity for the 13 million people in poverty who need active intervention to tackle the structural barriers that keep them in poverty”. Adding, “People on low incomes are unlikely to see the welcome benefits of growth unless there is targeted help with household and housing costs, with child care and with the nature of jobs and training. The expense and inefficiency of high levels of poverty continue to put a drag on growth”.
A view shared by other charities. William Higham, Save the Children’s director of UK poverty, said:
“The Budget was a missed opportunity to address the needs of families that are struggling to pay their food bill and children whose parents cannot afford to pay for uniforms and school trips”.
It is for these reasons, George Osborne’s fourth budget was a budget for the few. It failed to address the fact that living standards are falling – despite the 2010 Manifesto promising “An economy where…[people’s] standard of living…rises steadily and sustainably”. It failed to help the 350 000 reliant on food banks or the 400 000 disabled people paying bedroom tax. His “resilient pound for a resilient economy” ignores the fact that working people are £1600 worse off.
Osborne may believe that increasing personal tax to £10 500 will help improve living standards but whilst it lifts three million out of taxation, it does nothing for the many families who depend on housing benefit to top up the little wage they get. “The vast majority of this will be deducted from their benefits – giving with one hand while taking with the other”, says Matthew Reed, Chief Executive of The Children’s Society.
Matthew Reed’s comment raises another important point – benefits. Osborne had nothing to say on this except to announce a cap on the welfare budget. This will see Tax credits and housing benefit limited to £119.5bn in a bid to cut the deficit. Critics say that this limit to benefit claims over the next four years will hit disabled people and the low paid without tackling the underlying causes of Britain’s growing social security bill.
Whilst it may appear to be political suicide by Shadow Chancellor Ed Balls saying Labour will vote for the cap, it is not. According to Jonathan Portes, director of the National Institute for Economic and Social Research (NIESR), the cap was simply a “gesture” and served no purpose other than to kick the “problem of spending cuts into the next parliament”.
For Portes it was “meaningless” to put a number on the cap without having policies in place to deliver it or to state how the cuts would be achieved. Adding that the charter would commit MPs to renewing the cap each year. “As Parliament already votes on measures to change social security budgets, this charter will not make much difference”.
It would appear that Osborne’s welfare cap charter is not new but something that already exists. It could be argued that whilst Labour is voting for it, there is plenty scope to amend the limit and bring in policies that would help not hit. Moreover, the question that needs to be asked is would a successive conservative government do that or would they continue with their long-term economic plan that they insist is bringing security to the people of Britain.
For now it would appear they are committed to helping the few, committed to bringing security to the hard-workers, business owners and savers. Alison Garnham, Chief Executive of Child Poverty Action Group, says:
“Today’s Budget tries to lock-in austerity for millions of low-paid families, poor children, carer’s and disabled people. Announcing a cap for social security spending without a plan to address the root causes of low pay, high rents and high childcare costs, simply forces the most vulnerable in society to pay the price for inaction”.
Source – Welfare News Service, 20 March 2014
The UK unemployment rate has fallen to its lowest level since 2009, official figures show.
At 7.4%, this is the lowest rate since the February-to-April period in 2009, the Office for National Statistics (ONS) said.
The number of people out of work fell by 99,000 to 2.39 million in the three months to October, the ONS said.
The number of people claiming Jobseeker’s Allowance in November fell by 36,700 to 1.27 million.
In Northern Ireland the unemployment rate was slightly higher at 7.5%, while Scotland’s figure was 7.1.%. England and Wales matched the national figure of 7.4%.
The North East of England had the highest unemployment rate, at 10.1%, while the lowest rate was 5.6% in the East of England.
The North East also had the highest claimant count rate at 6.1%, compared with the South East, which had the lowest, at 2.3%.
Employment Minister Esther McVey wasn’t slow to grab the credit – “It is really encouraging news that the number of people in jobs has increased by a quarter of a million in the last three months, bringing the total number of people in work to a record-breaking 30 million.
“Together with a big fall in unemployment, this shows that the Government’s long-term economic plan to get people off benefits and into work is proving successful.
“It’s also thanks to British businesses up and down the country who are feeling increasingly confident about taking on workers. This is a great sign that the economy is growing.”
Good of her to give a mention to the businesses employing people – “It’s also thanks to British businesses up and down the country” – you might have thought that it’s entirely thanks to them.
Or would you ? Perhaps, against all probability, there is actually some truth to be found in her statement – “this shows that the Government’s long-term economic plan to get people off benefits and into work is proving successful”.
Now if you were to amend that to – “this shows that the Government’s long-term economic plan to get people off benefits is proving successful” you might be getting closer to the truth.
“Latest figures show Jobseeker’s Allowance claimants who failed to do enough to find work had their benefits payments suspended 580,000 times.” – https://www.gov.uk/government/news/benefit-sanctions-ending-the-something-for-nothing-culture
The government’s propaganda site was quick to trumpet their “success” a few months ago.
Julia Unwin, chief executive of the Joseph Rowntree Foundation, commenting on the above statement:
‘Figures published today show that half a million people face the threat of destitution as their benefits are taken away in a bid to mould behaviour and encourage people to take jobs.
International evidence is that while conditionality, has its uses, it is a blunt and uncertain instrument for driving behaviour. In the US the evidence is that people disappear below the radar altogether, which may recue the claimant count but creates huge risk.
’The threat of destitution is a poorly evidenced high risk way of trying to influence the behaviour of the poorest people in the country.’
Vanishing under the radar – that’s all part of the government’s long-term economic figure-manipulating plan. It’s not about tax payers money being saved – Jobseekers Allowance payments only amount to around 3% of the budget. Almost three times that – around 8% – is paid in benefits to those IN work.
Consider the words of a Job Centre whistleblower – from 2011, and its got worse since…
A whistleblower said staff at his jobcentre were given targets of three people a week to refer for sanctions, where benefits are removed for up to six months. He said it was part of a “culture change” since last summer that had led to competition between advisers, teams and regional offices.
“Suddenly you’re not helping somebody into sustainable employment, which is what you’re employed to do,” he said.
“You’re looking for ways to trick your customers into ‘not looking for work’. You come up with many ways. I’ve seen dyslexic customers given written job searches, and when they don’t produce them – what a surprise – they’re sanctioned. The only target that anyone seems to care about is stopping people’s money.
“‘Saving the public purse’ is the catchphrase that is used in our office … It is drummed home all the time – you’re saving the public purse. Feel good about stopping someone’s money, you’ve just saved your own pocket. Its a joke.”
Unfortunately a not very funny joke, with a punchline that causes real damage.
“We were told suddenly that [finding someone to sanction] once a week wasn’t good enough, we were far behind other offices, and we went to a meeting where they compared us with other offices, and said we now have to do three a week to catch up. Most staff go into work and they’re thinking about it from moment one – who am I going to stop this week?”
“The young often fall into it, because they haven’t been there long enough, they are generally a major target. The uneducated are another major target. I’ve seen people with … seriously low educational standards and it’s easy to exploit them.”
He said staff had different ways to ensure they could stop benefits for a set amount of people.
“So, for example, if you want someone to diversify – they’re an electrician or a plumber, they may not want to go into call centres or something. What you do is keep promoting such and such a job, and you pressure them into taking it off you, the piece of paper. Then in two weeks you look at the system, you ask them if they applied for it … they say no – you stop their money for six months.”
The whistleblower says his office has been told there is no more money for back to work training from April. “From April, we offer no provision … nothing, no training course, nothing. The funding ends at the end of March.
“[Now] your office can shine through one of two targets. You can either shine through getting people into work, but that’s really difficult. Or you can stop their money, and that’s really easy.”
Well, that was 2011. Things have got worse as it becomes ingrained in the DWP culture. One perceptive reader of the above Guardian article wrote at the time :
” At some point Osborne or Cameron will triumphantly brandish figures about how many ‘scroungers’ they cut off from benefits. Remember, this is how they did it.”
Anyone hearing Cameron in the media yesterday might like to consider that.
And its going to get worse yet – consider an article published a few days ago on the Boycott Workfare site –
100,000 people given historic sanctions
In August 2012 it was ruled in the high court that the letters given to claimants mandating them onto workfare schemes of up to 780 unpaid hours did not communicate to people what was required of them on these schemes. This meant all the sanctions that had been awarded through a range of different workfare schemes were unlawful and had to be repaid. The Department of Work and Pensions (DWP) went about appealing this ruling, but in February 2013 the decision was upheld.
After this the DWP rushed through the retrospective Jobseekers (Back to Work) Act, making the unlawful withdrawal of benefits from an estimated 179,000 people now apparently legal – although obviously this Act did not change the fact that people were not fully aware of what was required of them at the time.
This Act was supported by the Labour Party and deprived people who would have suffered significant hardship of a total of £130 million that was unlawfully stolen by the government.
It now turns out that the cruelty of this Act did not stop there. Since the first court case decision in August 2012 they had stopped sanctioning for cases that would be affected by the courts decision, and had started to stockpile these decisions. The introduction of the Jobseekers (Back to Work) Act allowed them to start sanctioning all these stockpiled sanctions. At the time they rushed through the act 63,000 sanctions had been stockpiled, and by the time they started to sanction people in July 2013 this could have reached over 100,000 sanctions.
Over the last 3-6 months people have been notified of these sanctions with letters such as the one shown. As can be seen there can be a year long gap between the alleged event and you being notified of the sanction making it almost impossible to appeal as it is unlikely you have knowledge of what you did on that day (and neither do the work programme providers!).
Not only were all 3 main political parties involved in depriving the poorest people of £130 million that was rightfully theirs, but are now chasing another 100,000 claimants for money through these historic sanctions with little hope of claimants forming a strong case of appeal. All benefit sanctions are wrong, but this retrospective law shows how happy the government are to even sanction illegally – as they’ll just change the law later and sanction people a year down the line.
You wonder that the unemployment rates seem to be falling ? Even though there are apparently no more vacancies than before, still masses of empty shops and factories and the local media continues to report job losses on an almost daily basis ?
Do you wonder why, in Parliament, Labour MPs failed to ask questions about the role of sanctions in the supposed improved figures ?
Or why, on the day the figures were released, the Sunderland Echo – hardly a radical publication – headlined with Bleakest Times For The City’s Homeless ?
Come April 2014 and the introduction of compulsory workfare – allied to all those retrospective sanctions they’re currently harvesting – you can just bet those figures will be tumbling yet again.
Please remember why… someone, somewhere, perhaps even you, will have been sacrificed on the altar of political ambition.
Does that dull the feelgood factor perhaps just a little ?