Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Universal Credit – Benefits to Loans

with 19 comments

Word has reached Ipswich Unemployed Action from The Void that Iain Duncan Smith plans to convert 40% of benefit claims into loans as a result from increasing draconian benefit sanctions. Benefit Claimants will be divided into The Deserving Poor and The Undeserving Poor – most of this will be delegated to the private sector to decide within their remit who should be able to claim benefits and who should be forced into a hardship payment loan of up to £6000 or more.

The Deserving Poor

If you are deemed worthy of benefits – perhaps newly unemployed from redundancy or never had a benefit claim before; you will still have to meet an almost endless (and continuously growing) list of conditions, but you will be able to claim benefits.

The Undeserving Poor

If you are deemed to be, lets say “undeserving” of benefits at the DWP or private providers’ (such as on the Work Programme) discretion, by not meeting the list of conditions, then you will be sanctioned up to 3 years. Hardship payments will be replaced with loans – we assume they will be interest free, but we await details – thus converting welfare into loans.

The likelihood of rolling sanctions is rife – 3 year sanctions (paid as a loan) and  recouped in the following 3 years from benefits to pay the outstanding debt.

Some readers might be thinking “6 years?! Who is going to be unemployed that long?” – financial hardship wont force someone into securing work, it alienates people from society, and if it doesn’t kill someone through suicide, its certainly not going to get someone a job.

Welfare to Loans

Ipswich Unemployed Action believes up to 40% of claimants might be subject to these (repayable, obviously) loans at some stage. These will be targeted on long-term (6 months+) unemployed persons especially, but new claimants wont be immune.

We feel that any higher percentage couldn’t be sustained as this is unlawful.

Its probable that longer term the loans could be delegated to Tory banking chums in the latter years of the next parliamentary term if the Tories win the next General Election.

Hardship Payments Welfare Reform

This news reached us from The Void, originally by refuted. Both are heavyweights in championing welfare rights.

19 Responses

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  1. Tory Party advises or did they (tongue In cheek), MPs on how to avoid the minimum wage




    February 14, 2014 at 12:16 pm

  2. There is an argument that the Tories would like to end the benefit system altogther.

    “Cutting benefits is a moral mission like ending slavery, Iain Duncan Smith claims in vow to end Britain’s welfare ‘ghettos’.”


    Andrew Coates

    February 14, 2014 at 4:24 pm

    • I think converting benefits into loans is one of the stepping stones to achieving the goal of demolishing the welfare state.

      Universal Jobmatch

      February 14, 2014 at 4:28 pm

      • And managing to ‘earn’ a pretty penny from people’s misery: after making money out of crime (prisons, security guards, Probation service) they would like to pocket even more cash out of the poor.

        Andrew Coates

        February 14, 2014 at 4:49 pm

    • Hi Andrew, The Tories do indeed want to end the benefits system. They also want to end the NHS Service. Something must break soon where people say enough is enough and therefore positive action must be taken against this horrible sad and pathetic Government.

      Steven Garner

      February 15, 2014 at 7:30 am

  3. it’s all unlawful. they can’t be allowed to impose punishment on a whole group of people based on economic status and disability, and on the shit economy they the government fucked up in the first place. Anyway many religions forbid loans so get round that one! european court of human rights. if anyone has a tractor would they please drive it over ids and send photo to prove task completed?

    something survived...

    February 15, 2014 at 4:16 am

  4. I have not committed a crime why should i be punished. lots of jobs on the Universal job match website are deemed to be fake.This Government, the Department of work and pensions as well as Jobcentre plus are a disgrace. This Government has got my back-up and therefore people do not co-operate in this situation. People resent this Government, The Department of work and pensions and Jobcentre plus. I don’t believe that people should have to job search on Saturday and Sunday. It is apparent that this Government is CORRUPT.

    Steven Garner

    February 15, 2014 at 7:23 am

  5. It is time people got together and created a voice. This CORRUPT government must go. If your not rich then you will be treated like shit. Oh! yes that is what is happening with this moron David Cameron. This man hates the poor. The poor get poorer and the rich get richer. This Cowboy Government must not get in power again. They are already killing the poor by sanctioning their benefits for nothing and therefore people starve to death. Yes, this is the mentality of this Government. CORRUPTION CORRUPTION CORRUPTION

    Steven Garner

    February 15, 2014 at 7:38 am

  6. Fuck the Tory Bastards i hope you all die in hell.

    Steven Garner

    February 15, 2014 at 7:41 am

  7. Siberian Salt Mines

    Forced Labour

    Stalin’s Arctic Railway Project


    HS2? Yes, have a read at this:


    And if you’re still wondering where the opposition will come from, just ponder this little excerpt from a book by leading dissident Milovan Djila about Communist Yugoslavia:

    [Djila] “attacked the Communist party for becoming a new, exploitative class, which in its way was worse than the old bourgeoisie.” Full Article here:



    February 15, 2014 at 9:22 am

  8. ‘A disgrace’: Britain’s Catholic leader Vincent Nichols attacks Coalition’s welfare reforms.

    Cardinal-designate Vincent Nichols, the Archbishop of Westminster, said the Government had decimated even the most “basic safety net” for those threatened by poverty.


    Obi Wan Kenobi

    February 15, 2014 at 11:02 am

    • Yes, there is always the Catholic church to help the poor, the vulnerable…

      Universal Jobmatch

      February 15, 2014 at 11:19 am

      • Yes, there is always the Catholic church to help the poor, the vulnerable…

        Yes the catholic church are loaded – however I do agree with the ‘Bishes’ comments. Anything to show up this government on welfare.

        Obi Wan Kenobi

        February 15, 2014 at 11:31 am


        Pope Francis

        March 19, 2014 at 9:25 am

  9. Simon Cowell’s company criticised for advertising for unpaid interns.

    Syco employee posts ad on Facebook for ‘keen as mustard new interns’ to be paid expenses only.


    Obi Wan Kenobi

    February 15, 2014 at 11:13 am

    • Fair play. Life is full of making compromises, there is no reason why Syco etc. could not pay someone minimum wage but unlike stacking shelves, litter picking or working in an office doing basic admin tasks, (making many assumptions here) anyone who is that interested in making it in the music industry, fashion, journalism etc. should do their best to get their foot in the door.

      Assuming the expenses-only arrangement is what I think it will be like, someone taking on the internship will offset the lack-of-earnings in future years if they have the talent and put in the effort.

      So although its disgusting that Syco like many companies are avoiding paying minimum wage; there is your run-of-the-mill businesses trying to save a few quid and then there are the desirable companies to work for that you have to compromise. Its not big business exploiting the poor, conscripted at threat of benefit sanctions… there is no victimisation behind it, someone can choose whether or not to take up the opportunity.

      Its not guaranteed of course, but sometimes the like-for-like <£20k loss of earnings is a way to buy yourself into the industry. it shouldn't be this way but it is. People have done similar with all the big blue chip companies for many decades; and assuming you choose the right one, they might carry you for 20 years or so into the future. Otherwise its difficult to break into the sectors.

      You hear all the time how unemployed people shouldn't be picky and work for any job even zero hour or retrain for another line of work whilst that job you stolen from someone else had to retrain to get into the line of work you originally wanted to do because of your experience and qualifications… uni students shouldn't expect that they can walk out of uni and land a moderately high earning job when they have absolutely no experience. I can see it from the students point of view; but its always been that way… the options are obvious.. 1) sit back wait for a well paid job in your chosen field and build up unemployment gap in the meanwhile or 2) get out there, build up some experience using your newly got qualifications, eradicate unemployment gap opportunities, with a view of stepping into a good starting salary and build your way up… (finance permitting of course)

      Universal Jobmatch

      February 15, 2014 at 11:42 am

  10. Turkish MPs brawl in parliament.

    Opposition MP taken to hospital.


    This is what we want to see in the House of Commons.

    Obi Wan Kenobi

    February 15, 2014 at 12:08 pm

  11. Nice post, now a days this long term loans unemployed are going so much popular. it takes less time. we also provide this service.


    March 19, 2014 at 6:58 am

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