Ipswich Unemployed Action.

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Archive for the ‘Esther McVey’ Category

Trussell Trust Takes on DWP Universal Credit Propaganda and Calls for Grants to Replace ‘Loans’.

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Trussell Trust.

 

This Wednesday, MPs will debate Universal Credit and debt – we want to make sure as many MPs as possible turn up and speak out.

Everyone who applies for Universal Credit has to wait at least five weeks for a full payment – some are left waiting longer. This is leaving many people without enough money to cover the basics, forcing them to food banks.

While you wait, you can apply for an ‘advance payment’ – a loan from the Government to see you through that five week period. But once your Universal Credit payments start, you pay that loan back automatically through deductions from your monthly payments.

This puts people between a rock and a hard place: hardship now or hardship later?

Ending the five week wait should be the Government’s first priority to help create a future without food banks.

Background:

Universal Credit advance payments should be ‘scrapped and replaced by grants’

Mirror.

New figures show these so-called ‘bridging loans’ – which come with fixed repayment plans – are only causing more debt. It’s time to scrap them

Government loans designed to tide people over until their first Universal Credit payments reach them are causing more harm than good, a new report has suggested.

Charities StepChange and the Trussell Trust said advance payments to help ‘people get by’ are only fuelling more hardship because of the repayment thresholds.

A new report detailing the front-line impact of the five-week wait said advance payments are not a solution for many households already at risk.

In many cases it said these payments should simply be written off as grants instead.

The Trussell Trust – which manages a network of 420 foodbanks across the UK – said the biggest reason for referrals last year was benefit payments failing to cover the cost of living.

It said going five weeks or more with no income can lead to debt and rent arrears, with those faced with “additional inescapable costs”, such as disabled people and families with children, the most likely to fall into the poverty bracket.

“Repayments don’t take into account people’s ability to afford them,” the report said.

“It’s vital that this is done in an affordable way.”

In the private sector, all loans must come with an affordability – and repayment – assessment.

However, Universal Credit advance payments are different. Deduction levels are fixed by the DWP and these can be hard to challenge, even if you fall into financial hardship while repaying.

“In some cases, you can have your repayment levels renegotiated, but this is rare,” the report added. “By that point, you’re likely already to be in financial difficulty, and may be in arrears on other bills.”

The DWP can deduct up to 40% of your Universal Credit allowance to repay debts. This will fall to 30% in October this year.

And the impact is worrying. StepChange said after three months, 44% of Universal Credit claimants are still struggling to pay their bills.

 

 

 

 

 

Meanwhile as our Newshawks have already noticed:

 

 

Written by Andrew Coates

June 5, 2019 at 12:08 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

Esther McVey: Whip Round for Leaving Present.

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Memorial Plaque.

 

Esther McVey: Who is the former work and pensions secretary and why has she resigned over Brexit?

Esther McVey has resigned from Theresa May‘s government, saying the prime minister’s Brexit deal “does not honour the result of the referendum”.

The ex-work and pensions secretary called the draft withdrawal agreement a threat to the integrity of the UK and said she believed it would “bind the hands” of the current and future governments in trade negotiations.

“We wouldn’t be taking back control, we would be handing over control to the EU and even to a third country for arbitration,” she added in the second cabinet resignation letter to land on Ms May’s desk on Thursday morning, after Dominic Raab’s.

Her website describes her as a businesswoman and broadcaster; she is a former presenter of GMTV. “She has written several careers books for girls and boys which have been turned into plays by the National Youth Theatre and have been performed around the country as well as in London’s West End,” her biography adds.

In Ipswich we are already having a whip-round for her leaving present

Suggestions welcome.

Leaving Card from Silly Prints

Written by Andrew Coates

November 15, 2018 at 12:05 pm

Universal Credit: Costs More Than Previous System and makes 60,000 Families Worse off.

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Resolution Foundation research suggests 600,000 families could be worse off

Universal credit, the government’s flagship welfare policy, will be more expensive than the system it replaces, according to a new report.

The rollout of the reformed system, which brings six benefits into one, has been hampered by delays amid widespread concern that the changes could force people into poverty, while there have also been reports that universal credit, which has undergone phased introductions across the UK, has increased reliance on food banks.

In the autumn budget the chancellor, Philip Hammond, announced that an extra £1.7bn would be injected into universal credit, which combined with the projected £3.2bn higher benefit take-up would make it more expensive than the legacy system it replaces, the study states.

The Resolution Foundation says.

This briefing note focuses on the implications of recent changes to Universal Credit (UC) – in particular the £1,000 increase in work allowances announced in Budget 2018 – for the number of winners and losers from the switch to this new benefit system, for UC’s generosity and for its impact on work incentives.

David Finch, Laura Gardiner.

Key findings

  • The Budget 2018 work allowance increase means that the number of working families that gain from the switch to UC increases by 200,000 – from 2.2 million families previously to 2.4 million families now. Among working families with children, the number (1.5 million) expected to be better off under UC now matches the number (1.5 million) expected to be worse off.
  • Relative to the pre-Summer Budget 2015 UC system, the work allowance and taper changes of recent years have restored or improved incentives to enter work at low earnings for renting single parents and the first earner in renting couples with children; and reduced incentives to enter work at low earnings for home-owning parents who are either single or first earners in couples, and non-parents without disabilities.
  • Single parents and second earners in couples with children – both very likely to be women – are most responsive to work incentives. As such, it is a concern that UC continues to incentivise single parents (particularly renters) to reduce working hours below the 16 hours backstop present in the tax credits system. It also still fails to sufficiently incentivise work for second-earner parents.
  • One of UC’s major advantages is that it gets rid of the very highest rates at which benefits are withdrawn in the existing system, which can leave people with less than 10p for each additional £1 earned. However, the fact that taxpayers on UC keep just 25p of each additional £1 earned (even less when paying for childcare costs) means that challenges remain.

Recommendations

  • We suggest boosting single parent work allowances, at a minimum, to the equivalent of 15 hours a week on the wage floor, and introducing a second earner work allowance for those in couples with children.
  • Financial incentives to progress in work should be boosted by gradually lowering the taper rate. In addition, planned progression pilots should test a far more ambitious system of practical support to help low-paid workers progress and secure better-quality roles.

Another day, yet another story:

Universal credit: Rent arrears double for benefit claimants

BBC.

Council tenants on universal credit have on average more than double the rent arrears of those still on housing benefit, a BBC investigation has found.

In Flintshire, north Wales, one of the first counties to test the new payment, the council says rent arrears have gone up by £1m.

One claimant there said a mistake left him with just £29 a month to live on.

But the UK government said it had listened to concerns and universal credit was working well.

The BBC contacted every local authority in the UK that has council homes about their arrears. The results from the 129 councils that responded showed the average amount owed by tenants claiming universal credit across the UK is £662.56. For those still on housing benefit it is £262.50

Flintshire council said this week that tenants on universal credit in the county owe on average four times as much rent as those on the old benefits. At times it has been even higher; in September it was six times as much.

In the 18 months since universal credit was introduced in Flintshire, the council’s rent arrears have increased by £1m, something officials say is largely due to the new benefit.

Ipswich:

Ipswich & District Trades Union Council

No automatic alt text available.

Open meeting on the Universal Credit Crisis with key speaker Mark Page, a regional officer in the PCS with a background in the DWP.

Hosted by Ipswich & District Trades Union Council, all welcome.

Mark Page, Regional Officer PCS  will speak on the UNIVERSAL CREDIT CRISIS.

Every day another horror story about Universal Credit hits the news headlines, how and when will it end?Following debate at Congress, the TUC’s policy is for Universal Credit to be stopped and scrapped. What should replace it?

7.30pm Wed Nov 21st 2018 Unite Office, 13, Arcade St, Ipswich

This meeting is part of the build up to Unite Community’s National Day of Action on Universal Credit on Sat Dec 1st 2018.

Written by Andrew Coates

November 12, 2018 at 11:18 am

Bad Week for Esther McVey as she makes more ” false and misleading claims” about Universal Credit.

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“Praise from across the charity sector” for Universal Credit.

Esther had a happy start to her week.

Look at these larks!

Her ladyship went on to announce this:

“The package included a £1.7 billion injection into working allowances, which will allegedly support 2.4 million working families. McVey quoted various charities that have supported the potential system, including the Child Poverty Action Group who were quoted as saying “The work allowance increase is unequivocally good news for families receiving Universal Credit.” McVey also quoted the Joseph Roundtree Foundation, stating that “This extra investment will help make Universal Credit a tool for tackling poverty.”

But every silver lining has a cloud (the eagle-eyed may notice that the original list of charities that supported her has been edited….)

 

Esther McVey makes claim about charity – and incredible twitter thread immediately shows her up

Her best friends in the Liverpool Echo continued.

Work and Pensions Secretary Esther McVey made a claim about a charity in Parliament – only for the organisation to ‘set the record straight’ with an incredible twitter thread.

Ms McVey – from Liverpool – is coming under increasing pressure over the controversial Universal Credit benefits roll-out – which is being blamed by many for pushing more people into poverty.

The government says it is making changes to its flagship benefit system in a bid to halt the damaging effects on people.

It says claimants will not have to wait as long for their money and debt repayments will be reduced.

And in Parliament, Ms McVey reeled off the names of a number of charities that she claimed had welcomed those changes and which agreed that the Department of Work and Pensions was ‘now listening to claimants.’

One of these was mental health charity Mind – and based on its stinging response on twitter, it looks like those at the charity don’t quite agree.

The Mind twitter account stated: “Yesterday the Secretary of State for Work and Pensions @EstherMcVey1 mentioned us in a list of organisations who had recognised and welcomed changes to #UniversalCredit. We thought it was important to set the record straight.”

It then launched into a powerful thread, which showed the wide-ranging criticisms and warnings it has made about Universal Credit – including since the latest changes were announced.

A comment from Mind’s Director of External Relations Sophie Corlett – from when Universal Credit was announced – said: “We are hugely concerned about the ramifications of these proposals, which leave open the real possibility that many people with mental health problems could see their benefits stopped entirely while they struggle with the process of applying Universal Credit.”

 

Esther McVey under fire from charities over misleading Universal Credit claims

Work and Pensions chief brazenly told MPs that changes to Universal Credit “had received praise from across the charity sector”.

The charity Gingerbread, who support single parents, said on Twitter: “We want to be clear – we support changes to the system that benefit single parents, but this statement does not paint the full picture.

“We are not complacent and are clear these changes do not do enough to make the system work for single parents.”

McVey has become infamous for repeatedly making false and misleading claims in and outside of Parliament.

In July 2018 she was forced to apologise to MPs for misleading Parliament about the contents of a National Audit Office report.

McVey admitted: “Whilst speaking in Parliament, in answer to questions on the National Audit Office report into Universal Credit, I mistakenly said that the NAO had asked for the rollout of Universal Credit to continue at a faster rate and to be speeded up.

“In fact the NAO did not say that Mr Speaker, and I want to apologise to you and the House for inadvertently misleading you.

“What I had meant to say was that the NAO had said that there was ‘no practical alternative to continuing with Universal Credit’.

In the meantime:

“UN envoy meets Newcastle users to gauge scale of hardship and hunger “I’m scared to eat sometimes in case we run out of food… Universal credit has punched us in the face”

Written by Andrew Coates

November 8, 2018 at 4:15 pm