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“Thousands of people will face a miserable Christmas” – UNITE Survey of Universal Credit Claimants.

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The Mirror reports,

Thousands of are facing a “very bleak Christmas” after a new survey found three quarters of people on botched benefits system Universal Credit said they had been left saddled with debt.

Three in five claimants said they had been pushed into struggling with housing costs because of the new welfare system.The survey of over 1,000 Universal Credit claimants was carried out by Unite the Union.

Other respondents raised the fear of eviction, and many reported problems with monthly budgeting on a low income.

The Department for Work and Pensions blasted the study as “completely unscientific” and said some of those questioned might not even be on UC.

Yet the DWP’s own research shows three quarters of those who moved onto UC struggle with bills constantly or “from time to time.”

Here is the UNITE Press Release:

Universal Credit pushing people into debt and housing problems reveals survey

More than three quarters of respondents in a survey of over 1,000 Universal Credit (UC) claimants said they had been put into debt, or pushed further into debt by UC with some forced to use foodbanks to survive as well as borrowing from friends and family. Shockingly 60 per cent of respondents said that they had been pushed into housing cost problems.

Thousands of people will face a miserable Christmas as a result of having to claim UC according to the new survey by Unite the Union published to coincide with a national day of action against UC on 1 December 2018 (see notes to editors).

During six weeks of October and November 1,141 people responded to the survey. The findings make grim reading and identify a number of issues facing a significant number of people claiming the benefit.

Rent arrears were raised by a number of people and the fear of eviction was evident in the responses. Many claimants reported the problems of monthly budgeting on a low income. Disabled people and those who are sick reported a huge drop in income as a result of moving on to UC.

The vast majority (82 per cent) have a negative view of the new benefit and a significant number had problems either claiming the benefit on-line or maintaining their claim through an on-line journal.

Unite is using the evidence collected from the survey to lobby politicians and is calling for a stop to the controversial new UC system.

Unite has called for Universal Credit to be scrapped before more damage is done.

Unite head of Community, Liane Groves said: “Universal Credit is causing misery and suffering as the survey results clearly show. Despite knowing this, the government is still intent on ploughing ahead regardless, while claimants are descending into debt, relying on food banks and getting into rent arrears and in some cases being evicted from their homes.

“Evidence from voluntary and community organisations as well as unions and local authorities seems to be ignored as the government presses on with the implementation of Universal Credit.

“Access to the benefit has been devised for the benefit of administrators not the recipients of Universal Credit. The damage done by forcing people into debt, far from helping people into work, as the government claims, is driving people away from the job market as spiralling debt impacts on people’s mental and physical wellbeing.

“As we head into winter, many claimants cannot afford warm clothing for themselves or their children and don’t have enough money to heat their homes. It will be a very bleak Christmas for thousands of families who are being abandoned by this government.”

“The survey was conducted outside job centres by volunteers and was also completed on-line. Unite will be submitting the raw data from the survey to independent academic researchers with a view to further analysis of the responses.”

 

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Written by Andrew Coates

November 30, 2018 at 11:29 am

1st of December Protests Against Universal Credit.

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Join the national day of action against universal credit

Join the Day of Action!

A few days ago Amber Rudd said this,

Rudd said she was going to specifically examine the impact of Universal Credit on women and single mums, amid concerns the scheme was making hundreds of thousands of single parents worse off – admitting that despite being a “force for good”, it currently has “real problems”.

Amber Rudd recognises ‘real problems’ with Universal Credit

What with ‘other issues’ dominating the news people may forget the constant stream of stories about these “real problems@>

Birmingham Live, today:

Dad-of-three living without heating after Universal Credit stopped in letter blunder

Ian Reynolds, 51, had Universal Credit payments cut after official letters sent to wrong address.

An unemployed dad has been forced to turn to foodbanks after his Universal Credit was stopped because he failed to respond to letters sent to the wrong address – five doors away.

Ian Reynolds, 51, now cannot afford to heat his home in Stafford after his payments were sanctioned without warning because he did not respond to the messages concerning Jobcentre appointments.

The Department for Work and Pension (DWP) made the benefit cut decision in September.

Since then Ian has been living on monthly ‘hardship payments’ of £187 and receiving support from the House of Bread charity.

The BBC today:

Concerns raised as Universal Credit rolls out in Edinburgh

The controversial Universal Credit benefit system is being rolled out across Edinburgh.

Foodbanks say they are preparing for increased demand, as those being moved to the new system can expect a five weeks wait for their first payment.

An estimated 10,500 local council tenants are expected to be moved to Universal Credit by 2023.

The Scottish Conservatives say the new system is widely supported and funds are in place to aid the roll-out.

But the Trussel Trust say they expect this December to be the busiest since foodbank records began.

Bethany Biggar, operations manager at the Edinburgh Food Project, told the BBC Scotland news website that her foodbank, like many support agencies are preparing to deal with an increase in usage.

She said: “Christmas is already a very difficult time of year for most families who are living in poverty, so it’s a double barrelled difficulty.

“In areas where Universal Credit has been rolled out already, the Trussel Trust has seen an overall increase in demand.

This is a good response (Common Space):

The roll-out of the ‘full service’ of the controversial welfare system – which has been condemned by critics as inefficient, punitive and likely to drive those reliant upon it further into debt and poverty – was greeted at Edinburgh’s Leith Jobcentre by anti-UC protestors, including representatives of the Edinburgh Coalition Against Poverty (ECAP), Sisters Uncut and Oficina Precaria.

“We declare we will take direct action against any employer involved in Universal Credit workfare. We declare we will take direct action to defend people sanctioned under Universal Credit. We declare we will take direct action in solidarity with all under attack.” ECAP Declaration of Resistance to Universal Credit

Following today’s protest, which took place despite Storm Diana hitting Edinburgh with severe wind and rain, a spokesperson for ECAP told CommonSpace: “We are encouraged that people came out today in the rain to oppose Universal Credit.

“Universal Credit increases poverty, homelessness and misery. It massively increases the scope and length of sanctions. It attacks the disabled, young people, women, workers, migrants.  Research shows the majority of claimants will be worse off.

“The fact that new claimants have to wait many weeks for their first payment causes huge hardship and plunges many into rent arrears, from which many never recover, losing their homes. It’s all part of the Government’s austerity attack, designed to undermine everyone’s wages and conditions and force people to accept low-paid, insecure jobs.”

“Demonstrators today proclaimed a Declaration of Resistance to Universal Credit, multiple copies of which were fixed to the Leith Jobcentre wall. This read: ‘We declare we will take direct action against any employer involved in Universal Credit workfare. We declare we will take direct action to defend people sanctioned under Universal Credit. We declare we will take direct action in solidarity with all under attack.’

As is this:

Join the #StopUniversalCredit day of action

This Christmas will be cancelled for thousands of families claiming the new benefit Universal Credit. Despite knowing Universal Credit causes serious problems for claimants, Theresa May’s Tory government is pressing ahead and rolling it out to thousands of people who will have to wait weeks to receive any money. Claimants are descending into debt, relying on food banks, getting into rent arrears and in many cases getting evicted from their homes because of in- built problems with Universal Credit.

Take action NOW against Universal Credit

On Saturday 1 December 2018 Unite Community will be staging a national day of action to #StopUniversalCredit to send a message to the Tory government that it can’t be fixed. Join Unite in your area and back the call to #StopUniversalCredit. Check out the events where you are:

Events across the country.

London & Eastern.
  • Norwich City Centre stall/protest outside Tesco (NR2 1JH) from 11:00-13:00 close to the Job Centre
  • Ipswich – Alternate Carol Service on between 13:00-15:00 at The La Tour Cafe at 7, Waterfront, Ipswich (IP4 1FT)
  • Colchester- Carol Singing at 16:00 outside the Town Hall to raise Universal Credit awareness, songbooks provided
  • Woolwich Stall in Woolwich Town Centr DLR Station in Powis St/Woolwich Market (SE18 6AY) from 11:00
  • Brixton tube station from 11:00-13:00
  • Ladbroke Grove – Underground Station, London (W10 6HJ) Carol singing – 14:00
  • Chingford Chingford Mount, London (E4 8LG). 11:00 at Protesting in constituency of Iain Duncan Smith, the architect of Universal Credit misery.
  • Camden Town – outside the tube station at 11:00
  • Wisbech outside the local Job Centre Plus, Wisbech, (PE13 1AN) Friday 7 December 2018
  • Tottenham Job Centre, Carol Singing, Friday 7 December 2018

More information and details of events across the country here:

Join the #StopUniversalCredit day of action

Written by Andrew Coates

November 29, 2018 at 12:10 pm

Government Tries to Solve Housing Benefit (Local Housing Allowance) Universal Credit Disaster.

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Looks Complicated and is…

The latest in a long run of stories about Universal Credit:

Edinburgh families forced to wait five weeks to receive Universal Credit

FAMILIES face being left without cash over Christmas when Universal Credit starts being rolled out in Edinburgh on Wednesday.

Claimants will be forced to wait five weeks before they receive the new benefit, meaning first payments will not be made until January.

The shake-up is expected to mean more people relying on foodbanks and also lead to a rise in rent arrears.

Green councillor Susan Rae said: “The immediate impact is debt because the gap people have to wait for payment will throw people into rent arrears.

What is the background to this problem?

The DWP says,

You could get Housing Benefit to help you pay your rent if you’re on a low income.

Use a benefits calculator to check if you can get Housing Benefit before you apply. You may need to claim Universal Credit instead.

Housing Benefit can pay for part or all of your rent. How much you get depends on your income and circumstances.

You can apply for Housing Benefit whether you’re unemployed or working.

And,

The housing element of Universal Credit

When people are moved onto Universal Credit, the single payment for their household will include a ‘housing element’. This will replace the help they currently get from Housing Benefit.

Universal Credit – including the housing element – is paid monthly in arrears.

Direct payment of rent – what is it and when is it coming in?

If you’re a registered social landlord and you receive your tenants’ rent directly from your local council, this will change under Universal Credit. Instead, tenants will receive their ’housing element’ direct and be responsible for paying it to you themselves.

Before the new system comes in, some tenants who are not yet claiming Universal Credit might be selected to start receiving their Housing Benefit payment direct.

The Department for Work and Pensions has committed to consult with social landlords before deciding whether to move their tenants onto direct payments. They will take into account any information you provide about your tenants’ ability to manage with direct payments.

If your tenant can’t manage their rent payments

A tenant can ask to have their housing payments switched to the landlord for a period of time while they get the support they need to get their money under control.

If a tenant has rent arrears, then, as their landlord, you can ask for the rent payments to be temporarily switched to you.

When Amber Rudd became the latest in a long list of DWP Ministers she said (Sky 23rd of November).

The new work and pensions secretary also said she was going to review the five-week wait time for new claimants to receive their benefits; payment systems for the housing element of Universal Credit; access to cash and the repayment of upfront loans.

She said: “We need to give [claimants] more confidence in the fact that they can access cash immediately.

“You know people are nervous about moving from legacy benefits to Universal Credit because they cannot afford quite often to be without cash for a few days, a week, two weeks, three weeks.

“I have to make sure that they can have confidence in access in earlier.”

It does not take a genius to work out that with money in your hand, when you have little, it is tempting to spend on other things than rent.

But there are other problems:

If you live in a private sector property, it may not cover your full rent as it will take account of where you live and, if you are under age 35, whether you are expected to share accommodation.

If you live in a council or housing association property you will be asked about the number of bedrooms you have to compare with how many you are thought to need, to see if you are under occupying the property.

And there is a cap on the rent anybody can get.

Which seems reasonable but with rents in some cities…

So you can be out of pocket in the first place.

So, this is the Government’s latest attempt to solve some of these multiple problems by patching up relations with the (better) landlords.

Inside Housing today reports:

The Department for Work and Pensions (DWP) will be promoting its Universal Credit landlord portal with a six-week social media campaign, starting today.

The portal allows social landlords to ‘verify’ claimants’ rent, which makes it easier for claimants to set up a claim for the housing elements of the benefit payment swiftly.

It also allows landlords to make a request for tenants to be switched back onto the direct payments arrangement, where the rental payments are paid directly to them rather than to the tenant.

This is the case for legacy housing benefit, but is a key reform introduced by the Universal Credit system.

There are currently 538 registered landlords from the social rented sector using the portal.

Justin Tomlinson, minister for family support, housing and child maintenance, said: “The landlord campaign aims to increase awareness of the ways landlords can support Universal Credit, and receive their payments in time. It’s fantastic we’ve signed up 538 registered landlords from the social rented sector already – the feedback we’ve had so far has been overwhelmingly positive.”

“The campaign is spearheaded by partners in the sector and features real life case studies from landlords who explain in their own words their experience of working with the Department of Work and Pensions to support tenants who are claiming Universal Credit.”

A spokesperson for housing association Riverside said: “The landlord portal allows us to verify tenants’ rent and offer support to them early in the Universal Credit process.”

When social landlords enrol with the landlord portal they are invited to accept ‘Trusted Partner status’, allowing them to apply for alternative payment arrangements such as managed payments.

Written by Andrew Coates

November 26, 2018 at 5:34 pm

UN Poverty Envoy Slams Universal Credit and Sanctions Regime.

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Image result for Jaywick meeting UN rapporteur

UN Rapporteur on Human Rights and Poverty in Jaywick, Essex (Ipswich delegation in Second Row….)

While Esther McVey snuggles up with a wheel-barrow full of her leaving prezzies:

Unicorn Poo

The UN envoy has issued this initial report on his visit to the UK.

UK austerity has inflicted ‘great misery’ on citizens, UN says

Poverty envoy says callous policies driven by political desire for social re-engineering

Guardian.

 ‘I’m scared to eat sometimes’

 Women reveal impact of cuts

 Children tell UN: ‘It’s unfair’

The UK government has inflicted “great misery” on its people with “punitive, mean-spirited, and often callous” austerity policies driven by a political desire to undertake social re-engineering rather than economic necessity, the United Nations poverty envoy has found.

Philip Alston, the UN’s rapporteur on extreme poverty and human rights, ended a two-week fact-finding mission to the UK with a stinging declaration that despite being the world’s fifth largest economy, levels of child poverty are “not just a disgrace, but a social calamity and an economic disaster”.

About 14 million people, a fifth of the population, live in poverty, and 1.5 million are destitute, unable to afford basic essentials, he said, citing figures from the Institute for Fiscal Studies and the Joseph Rowntree Foundation. He highlighted predictions that child poverty could rise by 7% between 2015 and 2022, possibly up to a rate of 40%.

“It is patently unjust and contrary to British values that so many people are living in poverty,” he said, adding that compassion had been abandoned during almost a decade of austerity policies that had been so profound that key elements of the post-war social contract, devised by William Beveridge more than 70 years ago, had been swept away.

Pause.

Although the various media stories just breaking underline the general issue of the poverty the UN envoy found one thing stands out: i the thread running through the report’s initial findings is the central role of Universal Credit in creating poverty and misery. 

Statement on Visit to the United Kingdom, by Professor Philip Alston, United Nations  Special Rapporteur on extreme poverty and human rights London, 16 November 2018

The UK is the world’s fifth largest economy, it contains many areas of immense wealth, its capital is a leading centre of global finance, its entrepreneurs are innovative and agile, and despite the current political turmoil, it has a system of government that rightly remains the envy of much of the world.  It thus seems patently unjust and contrary to British values that so many people are living in poverty. This is obvious to anyone who opens their eyes to see the immense growth in foodbanks and the queues waiting outside them, the people sleeping rough in the streets, the growth of homelessness, the sense of deep despair that leads even the Government to appoint a Minister for suicide prevention and civil society to report in depth on unheard of levels of loneliness and isolation.  And local authorities, especially in England, which perform vital roles in providing a real social safety net have been gutted by a series of government policies.  Libraries have closed in record numbers, community and youth centers have been shrunk and underfunded, public spaces and buildings including parks and recreation centers have been sold off.  While the labour and housing markets provide the crucial backdrop, the focus of this report is on the contribution made by social security and related policies.

 

Key extracts from the report:

14 million people, a fifth of the population, live in poverty. Four million of these are more than 50% below the poverty line,1 and 1.5 million are destitute, unable to afford basic essentials. The widely respected Institute for Fiscal Studies predicts a 7% rise in child poverty between 2015 and 2022, and various sources predict child poverty rates of as high as 40%. For almost one in every two children to be poor in twenty-first century Britain is not just a disgrace, but a social calamity and an economic disaster, all rolled into one.

But the full picture of low-income well-being in the UK cannot be captured by statistics alone. Its manifestations are clear for all to see. The country’s most respected charitable groups, its leading think tanks, its parliamentary committees, independent authorities like the National Audit Office, and many others, have all drawn attention to the dramatic decline in the fortunes of the least well off in this country. But through it all, one actor has stubbornly resisted seeing the situation for what it is.

The Government has remained determinedly in a state of denial. Even while devolved authorities in Scotland and Northern Ireland are frantically trying to devise ways to ‘mitigate’, or in other words counteract, at least the worst features of the  government’s benefits policy, Ministers insisted to me that all is well and running according to plan. Some tweaks to basic policy have reluctantly been made, but there has been a determined resistance to change in response to the many problems which so many people at all levels have brought to my attention.

…..

UNIVERSAL CREDIT.

Universal Credit and the other far-reaching changes to the role of government in supporting people in distress are almost always ‘sold’ as being part of an unavoidable program of fiscal ‘austerity’, needed to save the country from bankruptcy. In fact, however, the reforms have almost certainly cost the country far more than their proponents will admit.

No single programme embodies the combination of the benefits reforms and the promotion of austerity programs more than Universal Credit. Although in its initial conception it represented a potentially major improvement in the system, it is fast falling into Universal Discredit.

Social support should be a route out of poverty, and Universal Credit should be a key part of that process. Consolidating six different benefits into one makes good sense, in principle. But many aspects of the design and rollout of the programme have suggested that the Department for Work and Pensions is more concerned with making economic savings and sending messages about lifestyles than responding to the multiple needs of those living with a disability, job loss, housing insecurity, illness, and the demands of parenting. While some surveys suggest certain claimants do have positive experiences with Universal Credit, an increasing body of research makes clear that there are far too many instances in which Universal Credit is being implemented in ways that negatively impact many claimants’ mental health, finances, and work prospects.

Hardship.

In addition to all of the negative publicity about Universal Credit in the UK media and among politicians of all parties, I have heard countless stories from people who told me of the severe hardships they have suffered under Universal Credit. When asked about these problems, Government ministers were almost entirely dismissive, blaming political opponents for wanting to sabotage their work, or suggesting that the media didn’t really understand the system and that Universal Credit was unfairly blamed for problems rooted in the old legacy system of benefits.

The Universal Credit system is designed with a five week delay between when people successfully file a claim and when they receive benefits. Research suggests that this “waiting period,” which actually often takes up to 12 weeks, pushes many who may already be in crisis into debt, rent arrears, and serious hardship, requiring them to sacrifice food or heat.10 Given the delay, which will only be partially mitigated by a recent concession, it is no surprise that the majority of claimants seek “advance payments,” which in turn must be repaid to DWP in relatively short order.

Additionally, debts to DWP and to third-parties can be deducted from already meager Universal Credit payments at a rate much higher than is the case with the older benefit system. While supposedly deductions are capped at a maximum rate of 40% of the standard allowance portion of the payment (which will change to 30% in a year’s time), the Government told me that in fact additional clawbacks can occur. These so-called “Last Resort Deductions” are for matters such as rent, gas, and electricity arrears, if it is judged to be in the best interest of a claimant or their household..

……..

Sanctions.

One of the key features of Universal Credit involves the imposition of draconian sanctions, even for infringements that seem minor. Endless anecdotal evidence was presented to the Special Rapporteur to illustrate the harsh and arbitrary nature of some of the sanctions, as well as the devastating effects that resulted from being completely shut out of the benefits system for weeks or months at a time. As the system grows older, some penalties will soon be measured in years.

….

As I spoke with local authorities and the voluntary sector about their preparations for the future rollout of Universal Credit, I was struck by how much their mobilization resembled the sort of activity one might expect for an impending natural disaster or health epidemic.

Universal Credit has built a digital barrier that effectively obstructs many individuals’ access to their entitlements. Women, older people, people who do not speak English and the disabled are re likely to be unable to overcome this hurdle.

Artificial Intelligence and Threats to Freedom.

The merging of six legacy benefits into one new Universal Credit system aimed at reaching millions of UK citizens is in fact a major automation project. The collection of data via the online application process and interactions with the online journal provide a clear stepping stone for further automation within DWP.

The new institutions currently being set up by the UK government in the area of big data and AI focus heavily on ethics. While their establishment is certainly a positive development, we should not lose sight of the limits of an ethics frame. Ethical concepts such as fairness are without agreed upon definitions, unlike human rights which are law. Government use of automation, with its potential to severely restrict the rights of individuals, needs to be bound by the rule of law and not just an ethical code.

*****
This is also worth taking notice of,

“The United Kingdom’s impending exit from the European Union poses particular risks for people in poverty, but the government appears to be treating this as an afterthought,” said the UN’s expert on extreme poverty and human rights, Philip Alston, at the end of a 12-day visit to the country.

Independent.  UN condemns UK government’s ‘mean-spirited and callous approach’ to poorest, in damning report

Written by Andrew Coates

November 16, 2018 at 4:16 pm

A Budget for the Top 10% Wealthy, as 3/4 of Welfare Cuts Remain.

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Image result for arthur daley

One Man’s Advice has been Heeded.

Tory Budgets are odd things.

There’s a standard pattern

A Chancellor of the Exchequer stands up and grins like a Cheshire cat, meaning that you can be sure that only fellow tubby cats are going to be happy with the announcements.

In this case the likes of Sir Philip Green(CBI  and British Chamber of Commerce) and the Sir Arthur Daley (President, Federation of Small Businesses) are lapping it up.

Phil Fleming, spokesperson for the Federation of Small Businesses, described it as “a brilliant Budget”.

He said: “It was the most enjoyable Budget speech I have ever listened to in my life.

“He shut up the Opposition, considering what he had to juggle with. It is a brilliant Budget.”

Schools, we are told, are going to get cash for ‘little extras’.

Much needed it is said, for the post-Brexit teaching programme on the reintroduction of farthings, groats, and measurements such as Els, Furlongs, and terms for the reform of local government, Wapentakes and Hides.

Meanwhile…..

On Universal Credit in  the ‘I’ reporter Serina Sandhu reports,

The rollout of Universal Credit is being delayed once more, with a new target date of December 2023 for all claimants to be transferred to the Government’s flagship new benefit. The announcement came as Chancellor Philip Hammond provided an additional £6.6 billion over the next six years to smooth the introduction of UC, which replaces a range of welfare payments. Mr Hammond revealed the Treasury would be giving £1bn over five years to the Department for Work and Pensions to help ease the transition to the controversial benefits system. He also said he was increasing the work allowance – the amount claimants can earn before Universal Credit begins to be withdrawn – by £1,000 a year, at a cost of £1.7bn annually.

Mr Hammond defended the much-blighted system, which has led to some claimants being hundreds of pounds a month worse off than on legacy benefits. Others have fallen into rent arrears caused by delays to their first payment. “The switch to Universal Credit is a long overdue and necessary reform,” he said. “It replaces the broken system left by the last Labour government, a system… that trapped millions on out of work benefits. Universal Credit is here to stay.” Welfare damage Green Party MP Caroline Lucas said: “The announcement doesn’t begin to repair damage caused by yearly welfare payment freezes, welfare reform act [and] austerity. This is no budget for strivers, grafters [and] carers.” Labour said: “[It] is inadequate. The document confirms that the work allowance change only reverses around half of the previous Tory cuts from 2015.”

The Resolution Foundation says,

Squeeze continues for low and middle income families despite Chancellor’s £55bn giveaway Budget

Almost half of Budget 2018 income tax cuts are set to go to the top ten per cent of households

The Chancellor set out a significant easing of austerity in a £55bn giveaway Budget yesterday that set out major increases in public service spending, tax cuts and a reversal of cuts to the generosity of Universal Credit. But the squeeze is set to continue for low and middle income families, the Resolution Foundation said today (Tuesday) in its overnight analysis of the Budget, How To Spend It.

Faced with a total fiscal windfall of £73.8bn from the Office for Budget Responsibility over the forecast period, the Chancellor chose to use 75 per cent of it in a £55bn giveaway Budget. But while yesterday’s Budget represents a significant shift in overall direction of public spending, it does not spell the end of the squeeze – either for unprotected public services, or over ten million working age families in receipt of benefits.

Key findings from How To Spend It include:

The squeeze continues for low and middle income families

  • The analysis shows that over three quarters of the £12bn of welfare cuts announced after the 2015 election remain government policy, despite the welcome £1.7bn boost to Work Allowances in Universal Credit.
  • Half of the welfare cuts that hit family budgets are yet to be rolled out – including a £1.5bn benefit freeze next April that will see a couple with children in the bottom half of the income distribution losing £200.

Better news for the ‘more than just managing’

  • 84 per cent of the income tax cuts announced yesterday will go to the top half of the income distribution next year, rising to 89 per cent by the end of the parliament (2022-23) when almost half (45 per cent) will go to the top ten per cent of households alone.
  • The richest tenth of households are set to gain 14 times as much in cash terms next year from the income tax and benefits giveaways in the Budget as the poorest tenth of households (£410 vs £30).
  • The overall package of tax and benefit changes announced since 2015 will deliver an average gain of £390 for the richest fifth of households in 2023-24, compared to an average loss of £400 for the poorest fifth of households.

Cuts to public services are eased, but not ended

  • Overall day-to-day departmental spending per capita is now set to rise by 4 per cent between this year and 2022-23, rather than fall by 4 per cent as previously planned.
  • However, the promises of extra spending on the NHS, defence and international aid mean that unprotected departments will continue to see cuts in every year from 2020-21. Their per capita real-terms budgets are set to be 3 per cent lower in 2023-24 than 2019-20.
  • If allocated equally this would mean day-to-day spending cuts of 48, 52 and 77 per cent between 2009-10 and 2023-24 for the departments of Justice, Business and Transport respectively.

The economic backdrop to Budget 2018

  • Despite the slight upgrade in the OBR growth forecasts, GDP per capita is set to grow by 4.9 per cent between 2018 and 2023, compared with an IMF forecast of 5.5 per cent across the rest of the G7.
  • Real average earnings are not set to return to their pre-crisis peak until the end of 2024 – representing an unprecedented 17-year pay downturn.

Torsten Bell, Director of the Resolution Foundation, said:

“The Chancellor was able to navigate the near impossible task in his Budget of easing austerity, seeing debt fall and avoiding big tax rises, thanks to a £74bn fiscal windfall. He chose to spend the vast majority of this on the NHS, income tax cuts and a welcome boost to Universal Credit.

“But while yesterday’s Budget represented a seismic shift in the government’s approach to the public finances, it spelt an easing rather than an end to austerity – particularly for low and middle income families.

The Chancellor made a very welcome £1.7bn commitment to Universal Credit, but has left intact three quarters of the benefit cuts announced following the 2015 general election. Meanwhile income tax cuts announced yesterday will overwhelmingly benefit richer households, with almost half of the long term gains going to the top ten per cent of households. On public services the NHS saw a big spending boost ­– but unprotected departments still have further cuts penciled in.

“This Budget was much easier for Philip Hammond than many expected. But there will be tougher choices for Chancellors in the years ahead. Brexit must be delivered smoothly, public spending will remain tight, and forecasts may not always be so rosy.

“Looking further ahead, living standards growth is set to be sluggish and the tax rises to meet pressures in the 2020s from our ageing society will still be needed – as and when there’s a government with the majority to deliver them. Austerity has been eased, but there are still tough times ahead.”

The Mirror gives Labour’s response:

John McDonnell: Philip Hammond gave a broken promise budget, failing to end austerity

By choosing to cut rather than invest, Tories have failed to fix the weaknesses of the economy, says the Shadow Chancellor

Esther McVey Defends Universal Credit, Hell or High Water!

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Image result for esther mcvey parliament

The Right Honourable Esther McVey: My door is always open.

Yesterday in the House of Commons Esther McVey was on rare form.

Bertie Wooster once recommended that when confronted with a misdeed the best response was stout denial.

Readers of Hansard and no doubt those who watch the BBC Parliamentary Channel can see her Ladyship following his sage advice.

Universal Credit. 17 October 2018. Volume 647

 

Labour’s Margaret Greenwood ‘umbly but impertinently  began,

 

That an humble Address be presented to Her Majesty, That she will be graciously pleased to give directions that the following papers be laid before Parliament: any briefing papers or analysis provided to the Secretary of State for Work and Pensions since 8 January 2018 on the impact of the roll-out of universal credit on recipients’ and household income and on benefits debts.

Universal credit, the Government’s flagship social security programme, has been beset by flaws in its design and delivery. It is causing immense hardship for many people wherever it is rolled out. It is hard to believe now, but universal credit was designed to lift people out of poverty and smooth the transition into work to ensure that it always pays. The reality is that universal credit is a vehicle for cuts: cuts in support for families with a disabled child for whom the basic rate of support is half what it is in tax credits; cuts in support for disabled people in work, such as the disabled person who wrote to us saying that they are more than £300 a month worse off since switching from claiming working tax credits; and cuts in support for lone parents bringing up children who will get more than £20 a week less on average, with many losing far more.

..

Let me make some progress.

Overall, 3.2 million families with children could lose around £50 a week. People are worried, but there is no clarity from Government. The Prime Minister told this House that no one would be worse off, yet The Times reported that the Secretary of State told Cabinet colleagues that households could lose up to £200 a month. Being forced to manage on a low income that is then cut still further means tough choices for the families affected. The DWP’s own survey of claimants published in June showed that nearly half of new universal credit claimants are falling behind with bills. Even six months later, four in 10 are still struggling to cope financially.

And so it went. And went – it’s pretty long so I skip.

Her Royal Highness (for it was she, Esther) replied,

Members want to speak in this debate. I know too, Mr Speaker, that you are always anxious to hear Back Benchers speak, as am I, so I will keep my remarks as brief as possible.

I have been forthright with colleagues across the House—and in my speech at Reform earlier this year—about universal credit’s strong merits and the areas that we need to improve. In fact, in my Reform speech, I said that I would improve universal support, and I delivered on that this month. Since becoming Secretary of State, I have changed the system to provide extra support for those with severe disabilities, vulnerable young 18 to 21-year-olds and kinship carers. I am also working with colleagues to identify areas where we can make more improvements.

This is also long so I will just cite a few of her gracious words,

We have taken a mature approach to rolling out universal credit. We have said that we will test, learn, adapt and change as we go forward. That has resulted in a series of improvements, and I will read some of those out. We are providing extra universal support with Citizens Advice, an independent and trusted partner. We have brought in the landlord portal. We have brought in alternative payment arrangements, 100% advances and housing running costs. We have removed waiting days and are providing extra support for kinship carers and those receiving the severe disability premium.

My door is always open. We will make sure we get this benefit right, and Government Back Benchers, who have genuine concerns, want to get it right.

Here is a more readable report:

Tories block Labour bid to reveal government assessment of Universal Credit impact

Politics Home.

After a heated four-hour debate, they voted by 299 to 279 against the release of the documents, which Labour hoped would reveal the detrimental effect of the welfare shake-up which rolls six existing benefits into a single payment.

Labour used an arcane parliamentary procedure known as a humble address – previously used to force the release of the Government’s Brexit impact assessment – to try to compel the publication of analysis of the shake-up on people’s incomes.

Work and Pensions Secretary Esther McVey last week admitted that some people “could be worse off” under the reform, despite Theresa May’s claim that would not be the case.

Ms McVey’s opposite number, Margaret Greenwood, today called for the Government to publish all reports and analysis it has carried out into the effects of Universal Credit since Ms McVey took office in January.

“The social security system should be there for any of us should we need it, yet the Government’s flagship programme has brought real hardship,” she said.

“How did it come to this in the fifth largest economy in the world that we have people facing hunger and destitution?

“It cannot be right, the Government must wake up, it must open its eyes to what’s happening and that is why we are calling on the Government to stop the roll-out of Universal Credit.”

Ms McVey yesterday confirmed that the “migration” of existing welfare claimants to Universal Credit would be delayed until later in 2019.

Meanwhile the BBC reported that the deadline for full implementation could be pushed back by another nine months to December 2023.

Ms McVey today prompted angry shouts from Labour MPs when she opened her comments by saying: “It’s good to be here again for my department to update the House on Universal Credit for the third time this week.”

She later added: “We will continue with Universal Credit. We will continue to roll it out. We will engage with colleagues across the House… my door is always open, but we will make sure we get this benefit right. You know why? Because of the genuine concerns of the people on our backbenches who want to get it right.”

Then there is this:

Written by Andrew Coates

October 18, 2018 at 10:43 am

As Revolt Against Universal Credit Grows Esther McVey Tries to Ban Charity Critics.

with 81 comments

Image result for esther mcvey glamour photo

Esther McVey: Needs Protection for her “standing and reputation”.

The world has turned against Universal Credit.

You know that when Gordon Brown attacked it, saying, “Halt universal credit or face summer of discontent” and and was followed by fomrer Tory PM, John Major rubbishing the hare-brained scheme.

And the Tory papers jumping on the bandwagon.

Not to mention yer actual present day Tory MPs:

The House of Commons,

Tory backbenchers have urged the government to slow down the roll out of universal credit. The new all-in-one benefit, which replaces six existing benefits, is being introduced gradually, but in areas where it has been implemented there have been multiple complaints about people being impoverished by having to wait for money. In an interview on the World at One, Nigel Mills said:

If you have any doubts that we can make it work for these volumes, let’s slow down. Let’s not get this wrong for the sake of sticking to a timetable.

Another Tory backbencher, Johnny Mercer, said UC was “politically undeliverable” in his Devon constituency, and called for a planned increase in income tax thresholds to be scrapped in order to make the benefit more generous. The MPs spoke out as Esther McVey, the work and pensions secretary, said some claimants would be worse off under UC, despite Downing Street saying otherwise. (See 4.59pm and 5.04pm.)

Guardian.

One of the things that stuck in the craw was McVey’s claim that if people lost money under Universal Credit they could always earn the shortfall by working more.

But, there you go….

Then there was this yesterday (Independent):

Some people “could be worse off” when they switch to universal creditEsther McVey has admitted – directly contradicting Theresa May’s pledge to “protect” them.

The work and pensions secretary said “tough decisions’ had been made which would hit claimants – following reports that she told the cabinet their loss could reach £2,400 a year.

The admission comes just one day after the prime minister told the Commons that current claimants “will not see any reduction”, promising: “They will be protected.”

Thin-skinned Esther is not one to take this lightly.

The Independent reports today:

Charities working with Universal Credit claimants required to ‘sign contracts to protect Esther McVey’s reputation’

Charities and companies working with Universal Credit (UC) claimants have reportedly been required to sign clauses pledging not to damage the reputation of Work and Pensions Secretary Esther McVey.

At least 22 organisations – covering contracts worth £1.8 billion – have been required to sign the clauses as part of their involvement with programmes getting the unemployed into work, The Times reported.

Officials at the Department for Work and Pensions (DWP) denied they were “gagging clauses” intended to prevent criticism of ministers or their policies, insisting they were just “standard procedure”.

However a spokesman confirmed that the contracts did include references to ensure both parties “understand how to interact with each other and protect their best interests”.

Eagle-eyed observers will have noticed in recent weeks a string of stories about charities, such as CAB,  being contracted to do the DWP’s work….

As in, “Citizens Advice to provide support to Universal Credit claimants.”

The Department for Work and Pensions (DWP) will fund Citizens Advice to provide Universal Support from April 2019, the government has announced.

The support scheme will help claimants through every step of making a Universal Credit claim. It will offer people the comprehensive and practical support they need to get their first payment on time and be ready to manage it when it arrives.

Universal Support provides advice and assistance to help claimants manage their Universal Credit claim, with a focus on budgeting advice and digital support. Since 2017, Universal Support has been delivered by individual local authorities, funded by grants from DWP.

From April 2019 Citizens Advice (England and Wales) and Citizens Advice Scotland will take on the responsibility for delivering a strengthened Universal Support service, a move which will ensure a consistent and streamlined service for claimants across the country.

Secretary of State for Work and Pensions Esther McVey said:

Since becoming Secretary of State in January, I have listened to the concerns of claimants, constituents, charities, welfare organisations and colleagues and I have made significant changes to the system, like extra support for those with mental health conditions, more support for vulnerable young people and more support for families who look after other family members’ children.

I have always said we will steer a new direction and work with partners to deliver vital services, and get Universal Credit right. The state cannot, and should not work in isolation and must reach out to work with independent, trusted organisations to get the best support to vulnerable people.

This brand new partnership with Citizens Advice will ensure everyone, and in particular the most vulnerable claimants, get the best possible support with their claim that is consistently administered throughout the country.

Citizens Advice are an independent and trusted organisation, who will support people as we continue the successful rollout of Universal Credit.

But….

The signatories to contracts must undertake to “pay the utmost regard to the standing and reputation” of the Work and Pensions Secretary, the newspaper reported, adding that they must “not do anything which may attract adverse publicity” to her, damage her reputation, or harm the public’s confidence in her.

A DWP spokesperson said: “It’s completely untrue to suggest that organisations are banned from criticising Universal Credit. As with all arrangements like this, they include a reference which enables both parties to understand how to interact with each other and protect their best interests.

Even the Murdoch press is turning:

As the Mirror says,

The Times said at least 22 organisations signed the pledge as part of contracts worth £1.8 billion to run projects getting the unemployed into work

Written by Andrew Coates

October 12, 2018 at 11:04 am