Tagged: state benefits

Disability Charity Signs Maximus Contract

Following its signing of disability campaigner Sue Marsh earlier this month, Maximus – the company taking over the Work Capability Assessment contract from Atos in March – have now signed up a leading disability charity as well.

Disability Rights UK (DRUK) have announced that they have agreed a contract to deliver training in disability equality to Maximus health professionals.

DRUK has over 300 member organisations, including many national charities, and aims to ‘Break the link between disability and poverty’. Maximus, which is being paid more than double the amount that Atos was being paid to carry out WCA’s seems keen to prevent potential opponents from slipping into poverty by sharing some of its taxpayer funded profits with them.

DRUK are also advertising for people to take part in what looks very much like a promotional campaign for income protection insurance – the sort of thing that Unum provide as an alternative to state support – though there is no suggestion that Unum are involved on this occasion.

Members of the public who have had a serious illness and are trying to return to work are offered the amounts of money and support they would have had if they had been wealthy enough to afford to take out income protection insurance cover. They are filmed as they make the return to work and these films can then be used to encourage people to take out income protection insurance.

Of course, the worse the level of state benefits and state support, the more easily people can be persuaded to take out such insurance, giving insurance companies a vested interest in maintaining the link between disability and poverty.

Source –  Benefits & Work,  28 Jan 2015

http://www.benefitsandwork.co.uk/news/2993-disability-charity-signs-maximus-contract

North East Labour MPs to rebel on welfare cap ?

Several North East MPs will either defy a party whip or not be at the House of Commons when Labour is told to vote in line with the coalition for a new cap on how much can be spent on state benefits.

Ed Miliband has told his MPs to back a Budget plan to cap welfare at £119bn, ending a situation in which benefit spending is increased to match the number of claimants.

While party leader Mr Miliband is keen to avoid looking soft on welfare, across the North East, MPs have called for the party to proudly stand up for low income families.

Easington MP Grahame Morris said he will not be voting for the cap. He told The Journal: “I cannot vote for the welfare cap. By implication it plays to the Tory strategy of divide and rule demonising those on benefits as the undeserving poor.

“It conveniently ignores the fact that two thirds of the welfare budget goes on pensions that people have contributed to during their working lives. Another substantial slice goes on supporting those in work on low wages.

“Once again Labour must differentiate its position from the Tories. It is shameful of the Tories to seek to set the working poor against the disabled. There are better, fairer ways to limit benefit spending for example by limiting the £20bn taxpayer spend on housing benefits which goes to private landlords through the introduction of rent controls.”

Gateshead MP Ian Mearns said he will not be in the Commons for the vote as a result of select committee business, but would not have voted for the cap.

He said: “Inherent in this is a further reduction in real terms of benefits over time. If the economy has another significant downturn this limits the capacity of the state to respond to genuine hardship.

“And let’s not forget that only about 3% of the benefits bill is for jobseekers’ allowance, the biggest single pot is for pensions.”

And Blaydon MP Dave Anderson also hit out at the plan. He said: “The welfare cap is just another piece of the Coalitions jigsaw to make the poor, the weak and the disabled pay for the failures of big business and global capitalism.

“This vote comes in the same week that Lloyds have been exposed as continuing to exploit customers over the disgraceful PPI misselling scandal. It is these rogues and many others like them who should be carrying the can for economic failure and not the most vulnerable in our country.”

It is thought other MPs will not be in Parliament for the vote, avoiding the need to rebel. Some 20 MPs nationally are thought to be ready to vote against the cap.

Labour has said that since much of the cap on spending does not include benefits linked to increased unemployment, it is happy to accept the changes.

The party has hit back at claims that there is little to differentiate its economic policy from the coalition, insisting a future Labour government would “make different choices”.

> It’s what the present Labour opposition is doing right now that really matters. And it doesn’t seem to be doing very much at all, apart from trying to make out it’ll be tougher on the poor than the current bunch.

Does ‘Red Ed’ really think that’s the way to win votes ?  If he does, he’s going to be disapointed.

Labour’s shadow work and pensions secretary, Rachel Reeves, said Labour would support the Government when voting on the welfare cap, but insisted the party would also “take tough decisions” over future spending if in office after the General Election.

Source – Newcastle Journal, March 26 2014

Benefit Cuts To Blame For ‘Huge Increase’ In Council Tax Arrears, Charity Warns

Government cuts to welfare benefits, rising living costs and stagnating wages are to blame for a ‘huge increase in the numbers of people with council tax arrears’, a leading charity has warned.

 

According to figures released today (13 March 2014) by the charity Stepchange, 45,561 people approached the charity for help and advice after falling into arrears with council tax payments in the last year, up 77 percent on the previous years total of 25,000. The average council tax debt was £102, the charity claims.

 

Stepchange says that the figures ‘highlights how the squeeze on household budgets is leaving more people struggling to pay essential living costs’.

 

StepChange Debt Charity chief executive Mike O’Connor said:

 

 

“More and more people are struggling to pay essential household costs. Stagnating incomes, changing work patterns, rising living costs and changes in welfare benefits are a toxic combination. Government, business and charities need to ensure that safety nets and protections are in place to ensure that short-term financial problems do not escalate into problem debt which can blight the lives of individuals, families and whole communities.”

 

The figures come almost a year after the coalition government scrapped council tax benefit as part of widespread welfare reforms and replaced it with a locally administered Council Tax Reduction support scheme.

 

Under the new system, many more low-income families – including some in receipt of state benefits – are now expected to contribute toward their council tax bill, the exact amount of which is decided by their local council authority.

 

Margaret Hodge MP (Labour), Chair of the Public Accounts Committee (PAC), has recently described the change to council tax support as “fundamentally perverse”, after it was revealed that 71 percent of councils were requiring households to make at least a small council tax contribution, regardless of whether they can afford to pay or not.

 

The PAC also found that some households, now expected to contribute toward council tax as a result of government welfare cuts, were losing as much as 93 pence out of every £1 earned, when combined with a cut in housing benefit and increased income tax and national insurance contributions.

 

Margaret Hodge said:

 

“This just goes to show, for some, work simply doesn’t pay under the new scheme. For them, work incentives have actually weakened rather than strengthened – the opposite of what the Government intended.

 

“Some of those 225,000 people stand to lose 97p for every extra £1 earned – a fundamentally perverse result.”

 

Stepchange surveyed 845 helpline clients and found that 50 percent had council tax arrears at some point over the past year, while 19 percent claimed that they had been threatened with bailiff action by their local council.

 

The Charity has also warned that changes to bailiff fees, due to be introduced in April 2014, could see an additional £310 added to a households accumulated council tax arrears every single time a bailiff pays a visit to a person’s home.

Stepchange has urged councils to do more to help people who fall into arrears on their council tax and ‘ensure that vulnerable people do not see their debts inflated through the unnecessary use of bailiffs’

Source – Welfare News Service,  13 March 2014

http://welfarenewsservice.com/benefit-cuts-blame-huge-increase-council-tax-arrears-charity-warns/