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
A Universal Credit claimant who featured in a government film to promote the reform now says the system is riddled with computer problems and could make people destitute.
In the Department for Work and Pensions (DWP) advert, Daniel Pacey explains how the reform helped him to find work.
But he now says a six-week delay before the first payment and subsequent monthly payments are “a nightmare“.
The DWP said monthly sums replicate the world of work and tackle dependency.
A spokesman said:
“Universal credit is simplifying the benefit system and [makes] the transition into employment smoother.
“Our work coaches discuss budgeting support with all claimants and nearly 80% say they are confident in their ability to manage a monthly budget.”
> Is that 80% of work coaches or claimants ?
Mr Pacey, 24, from Wigan, Greater Manchester, said:
”It might be easy for a government minister to make their wages last a month. But I’d like to see them make £250 last four weeks while looking for work.”
The government has announced that a national roll-out of universal credit is starting in earnest across the country. The aim is for it to be offered in all job centres in England, Scotland and Wales by 2016.
> Whether it works or not, presumably.
Work and Pensions Secretary Iain Duncan Smith told BBC News the new benefit was £600m under budget and had been implemented gradually on advice.
But Mr Pacey, who lives with his father, said his job centre struggled with failing computer systems, adding:
“I hate to think about how I would have coped had I lived on my own. I know I couldn’t have.”
The DWP spokesman added:
“People can apply for advanced benefit payments if they need extra support and we are working with local authorities to make sure people get budgeting and debt advice.
“The IT system adapts smoothly to claims as they become more complex, which we have already seen across the North West.
“Computer problems in offices are separate issues and are resolved quickly but these do not impact the operating system, or have an impact on claims.”
The scheme was initially piloted in Ashton-Under-Lyne nearly two years ago.
Under the old system, payments were bi-weekly, with housing benefit paid directly to landlords.
Under universal credit, claimants are instead paid monthly and are expected to pay their rent themselves.
Housing Associations in Ashton-Under-Lyne say rent arrears and debt are on the rise amongst universal-credit claimants.
The chief executive of the National Housing Federation, David Orr said:
“This scheme isn’t even ready to fully roll out in Ashton-Under-Lyne, where it’s been piloted for two years, let alone the rest of the country.”
The DWP spokesman said:
“In some cases, we can arrange for alternative payment arrangements, including rent being paid direct to landlords.”
The government says it is important for people to learn how to handle their own monthly budgets, as this replicates the world of work.
> Oh for fucks sake – how stupid do they think we are ? Do they think every unemployed person has never worked ? Do they think anyone having to survive on benefits doesn’t already know all about handling budgets ?
But Mr Pacey’s new job in a call centre pays bi-weekly.
He said: “In my experience, most low-paid jobs pay weekly or every other week, not monthly. You can’t make small sums of money last a month.
“It’s not about dependency, it’s about living, being able to get a bus to go to the job centre. The government needs to rethink this.”
The scheme has also been criticised by the National Audit Office as badly managed and failing to deliver on its targets.
It is concerned that a roll-out from pilot areas in north-west England is taking place with fewer resources to spend on staff training and less time for staff to get accustomed to the changes.
About 50,000 people in selected areas have claimed the benefit since it was introduced in April 2013 – far fewer than the government originally said would be getting it by now.
Computer problems have also caused delays and seen ministers write off tens of millions of pounds.
Source – BBC News, 16 Feb 2015
Reposted from the Bolton News
A WHISTLEBLOWER inside one of the government’s pilot centres for universal credit has warned how numerous errors will make a smooth introduction of the new system “highly unlikely”.
Staff at the service centre in Elizabeth House, Bolton town centre, have been involved in supporting the management of universal credit since it was piloted in Ashton-under-Lyne and Wigan last year.
Since then, a member of the Public and Commercial Services (PCS) union, who has asked not to be named, told The Bolton News that employees have been leaving their jobs “in droves” after facing huge pressure to make an unworkable system fit for purpose.
Other issues included glitches with the computer system and inadequate training with staff only able to process a fraction of the claims they could under the old system.
The spokesman said: “The union has had to deal with more personal…
View original post 181 more words
Fraud squad detectives are probing claims jobseekers were conned out of cash in an elaborate ‘Hustle-style’ scam from luxury city centre offices.
Applicants were interviewed by ‘Options 4 Families’ at a rented office in the Manchester One building on Portland Street, but heard nothing from the company after paying £65 for background checks upon offers of employment.
The £18.5k-a-year ‘trainee child counsellor’ jobs were even advertised on the government’s own Universal Jobmatch website – but the Department of Work and Pensions has since removed the adverts and has sent a warning to those who applied.
> Maybe they want to take a look at all those non-jobs that clutter up UJ – leaflet distributors, etc. But I suppose if they did, they’d have virtually nothing left – few respectable advertisers use UJ.
Other candidates are understood to have left their current jobs after being offered positions.
Burnley-based businessman John Sothern, 44, interviewed candidates at the start of January and is understood to have offered at least 12 people roles based in Manchester city centre following two days of interviews.
He is now at the centre of a police investigation – but denies any wrongdoing.
Greater Manchester Police were called to Manchester One by an interviewee on January 8 but Mr Sothern had fled the premises by the time officers arrived.
The M.E.N has spoken to jobseekers who were told they would begin their roles – which would increase to £34k-a-year after a training period – at the start of February but have still not heard from the company six weeks after transferring money.
Lancashire Police confirmed allegations regarding the Manchester-based jobs were passed to them by national agency Action Fraud on January 28.
It is understood a fraud probe into Mr Sothern’s activities is currently examining around 70 alleged offences across the north west.
A Lancashire Police spokeswoman said: “We can confirm officers have received a report in relation to an allegation of fraud. An investigation has been launched and enquiries are on-going in relation to this matter at this time.”
A Department of Work and Pensions spokeswoman said: “The vast majority of those employers offer genuine roles for jobseekers to apply for – however we won’t hesitate to ban anyone who tries to break the rules and post fraudulent jobs. When possible, it can – and has – led to criminal prosecutions.”
Options 4 Families was dissolved as a limited company in 2010.
Matthew Bourton, 24, thought he’d finally ended his two-year search to find work when he was offered a ‘trainee child therapist’ job by Options 4 Families.
He applied through Universal Jobmatch and was interviewed just hours before police were called to the office on January 8.
Matthew, who has been out of work since leaving university, was offered the position the following day. He was then asked to provide a ‘refundable’ payment of £65.60 for a Disclosure and Barring Service background check to be carried out.
Six weeks later, he’s had no contact from the company.
Matthew, of Wigan Road, Leigh, said: “The job itself seemed too good to be true, but I’m so desperate to find work I was ready to believe everything I was being told. John Sothern was very friendly and charming. I gave my details for the bank transfer and that’s the last I’ve heard from them.
“I tried to get in touch with them but the number was a dead line. There was no mention of them on the internet apart from their own website and I came to the realisation that I’d been had. I feel taken advantage of and totally devastated.”
Businessman John Sothern insists job offers with Options 4 Families were genuine and he has done ‘nothing wrong’.
Mr Sothern is aware of a police investigation into the interview process at Manchester One but insists applicants will be given the jobs they were offered with Options 4 Families. He intends to contact candidates ‘within seven to 10 days’.
He said: “We’ve applied for funding with different organisations, including the Big Lottery Fund, and with private investors. As soon as we get that funding through, we’ll be in a position for people to start those jobs. We’ve had to put everything on hold but those people offered jobs will be getting e-mails – the jobs are still open. Background checks are standard industry practice and those people will get their money back.”
Source – Manchester Evening News, 03 Mar 2014