Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Archive for the ‘Housing Benefit’ Category

Tory U-Turn on Universal Credit?

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Conservatives ‘planning Budget U-turn’ over rollout of Universal Credit regime

The Independent says,

It was reported that Chancellor Philip Hammond is set to make an announcement at the autumn Budget – scheduled for 22 November.

Ministers are reportedly preparing for a major U-turn on the rollout of Universal Credit in the Budget by reducing the controversial six-week wait to four for the first payment to claimants.

It comes after weeks of sustained pressure on Downing Street from Conservative backbenchers, the Labour party and charities warning the Government’s flagship welfare programme – due to be accelerated this month – is pushing recipients into poverty, arrears and a reliance on food banks.

The main anxiety among MPs and charities focuses on the six-week wait claimants are forced to endure before receiving their first payment under the new regime after transferring from the legacy benefits system.

Meanwhile :

Call for Merseyside to have new powers to stop Universal Credit “misery”

A new system could mean struggling families are not left waiting for four weeks for payments

 

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Written by Andrew Coates

October 30, 2017 at 3:41 pm

The Labour Conference: When will the Party offer an Alternative to failed Universal Credit scheme?

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Is Labour Ready to Mend this?

Anybody hoping for a serious debate on the major issue facing millions of people faced with Universal Credit will be looking to the Labour Party.

Well, while John McDonnell talks about plans to ” cap credit card interest payments” there are no signs of one at the Labour Conference.

Yesterday Nick Cohen wrote,

Universal credit is a shambles because the poor are ignored 

Poverty is a disease that silences its victims. It is impossible to imagine a government or institution designing a programme to combat racism without listening to members of ethnic minorities or a new road without consulting the home and business owners it would disturb. The poor, however, never have a say. Society infantilises them. It deems them no more worthy of an opinion on the welfare state that rules and increasingly wrecks their lives than it deems schoolchildren worthy of an opinion on the national curriculum.

We will see the doleful consequences as universal credit rolls out from being a niche benefit forced on a few hundred thousand claimants in pilot projects to the essential living allowance for eight million people. In theory, it’s a lovely idea. Even now, critics always begin by saying: “Of course, everyone agrees the benefit system must be simplified but…” Or: “Iain Duncan Smith had noble aims but…” It is as if the mere presence of good intentions is enough to dilute objections; as if, not only conservative commentators but liberals and leftists have never heard of the road to hell – and what paves it.

It is hard not to disagree with comrade Cohen’s conclusion:

The argument about poverty has become an argument between the left and right wings of the middle class. Universal credit is the malign result of the failure to listen to working-class voices or develop the imaginative sympathy to understand the constraints on their lives. In no other area of public policy would we accept it, but with the poor we nod it through without a blush of shame.

Bang on time the Guardian today follows the story up today, Priya Thethi, Universal credit is a social policy disaster in the making

Universal credit is the biggest change to our welfare system in 40 years. By the time it has been fully rolled out in 2022 it will potentially affect 8 million people across the UK. The rollout so far has been controversial, and fraught with difficulties. Social housing organisations, in which only around 2.6% of tenants (pdf) are currently claiming universal credit, have been hit particularly hard by the speed and scale of the change.

In August 2017 the Department of Work and Pensions (DWP) released a guide for landlords, in a bid to to explain what the changes will mean and how they can support their tenants. Unfortunately, it made little to no mention of how to deal with the slew of administrative issues, faults and delays, which have already caused hardship for so many claimants.

Take note Labour Party!

Last week the BBC showed a documentary about the Manchester Police: The Detectives, Murder on the Streets.

There’s another, sadder story: a tale of two cities within one. Two Britains, even. Within sight of – but unnoticed from – smart downtown offices and yuppy flats, in a homeless camp under a railway arch, a man is murdered. An anonymous charred body, until he is identified from fingerprints from the one hand that remains unburned. Then he becomes someone, 23-year-old Daniel Smith, with friends and family who loved him and will miss him. “They are never going to get over it,” says Supt Chadwick, who now has a duty to make sure whoever killed Danny is brought to justice.

Viewers of the programme will know that vital CCTV evidence was lacking because the cameras were trained on the said offices and flats.

Something like that seems to be happening with Universal Credit.

For all the furore rightly stirred up by MPs and the media, key sections of the public have turned their backs.

End the Benefit Freeze. 

Written by Andrew Coates

September 25, 2017 at 9:59 am

Pressure Grows on Universal Credit Rollout.

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You Don’t have to be Mad to Work in this Team, but it Helps. 

Today,Birmingham Mail.

Universal Credit seemed like a good idea but will the Government admit it’s not working out?

A new benefits system has left people behind with their rent or dependent on food banks – and taxpayers are footing the bill.

West Midland MPs have urged the Government to delay plans to introduce Universal Credit to parts of Birmingham in November and December, saying it’s not what people need at Christmas.

A letter to the Department for Work and Pensions was signed by Jack Dromey (Lab Birmingham Erdington), Jess Phillips (Lab Birmingham Yardley), Khalid Mahmood (Lab Birmingham Perry Barr), Richard Burden (Lab Birmingham Northfield) and Roger Godsiff (Lab Birmingham Selly Oak).

A delay wouldn’t mean the new benefit was scrapped. It would mean taking things slowly until the problems are ironed out.

But will Ministers listen?

Liberal Democrat work and pensions spokesman to call for next month’s rollout to be cancelled until overhaul takes place

Sunday:  The Observer view on the rollout of universal credit

‘We will govern in the interests of ordinary working families”, pledged the latest Conservative manifesto, a line that will ring increasingly hollow in the next few years. By 2022, millions of families will find themselves thousands of pounds a year worse off: not as a result of sluggish wage growth or the rising cost of essentials, rather, as a direct result of this government’s decisions to cut financial support for low-income working parents while it delivers expensive tax cuts for more affluent families.

…universal credit has morphed from an ambitious attempt to improve the benefits system into a cruel instrument that loads the burden of austerity on families who can least afford it. As a result of Osborne’s cuts, universal credit is significantly meaner than the system it is replacing.

Combined with other welfare cuts, it will leave low-income families with children up to £3,400 a year worse off by 2020. The Resolution Foundation has warned that the unprecedented scale of these welfare cuts means they are on course to forge the biggest increase in inequality in a generation. At the same time, Conservative chancellors will have instigated more than £80bn of tax cuts a year by 2021, including £22bn of income tax cuts, four-fifths of which benefit the richest half of families, and more than £13bn in corporation tax cuts.

The cuts to universal credit make a mockery of the policy’s original objective to improve work incentives. More people will face worse, rather than better, incentives to increase their earnings. For example, a second earner in a couple who earns £5,000 a year will only see their family’s income go up by less than £2,000 – before allowing for childcare costs.

Beyond the cuts, flaws in the design of universal credit are imposing serious hardship on families, pushing them into debt spirals. Unlike the current system, new claimants have to wait at least six weeks to receive their first payment after losing a job. Many have no way of filling this gap in income. A Citizens Advice survey found that three in five have to borrow money while waiting for this first payment. The government’s own figures show two in five renters on universal credit are in rent arrears eight weeks after their initial claim.

….

Universal credit also does nothing to address the key weaknesses in the labour market. Thanks in large part to the success of the welfare-to-work initiatives of the last two decades, worklessness is no longer the problem it used to be – Britain now enjoys record employment rates. But low pay is a huge problem: more than one in five workers in the UK is low paid, one of the worst rates in the OECD.

Low pay underpins the record levels of in-work poverty we are seeing: getting a job is far from a guaranteed route out of poverty. However, rather than provide support to people to progress in the workplace, universal credit introduces a system of sanctions for those deemed not to be taking enough action to increase their hours, putting significant discretion in the hands of jobcentre advisers as to how and when such sanctions are applied.

Given the problems already rife in the sanctions system – people having benefits docked for missing appointments for reasons completely out of their control, such as public transport delays – it is not difficult to envisage this manifesting itself in a terrible catch-22, where people not only can’t get more work from their employer but face a double whammy of having their benefits docked as a result.

The rollout of universal credit must be put on hold while these fundamental flaws are addressed. According to the Resolution Foundation, it would cost just £6bn a year to reverse the cuts to the universal credit system, a fraction of what the government has spent on unnecessary tax cuts for the more affluent.

If not, universal credit will come to be a symbol of the callous, cruel Conservatism that, far from being limited to the party’s fringes, has defined the way it has run Britain since 2010. It is a political creed that thinks nothing of driving more parents towards debt, pushing child poverty up to record levels and forcing more people to live on the street. Make no mistake: this Tory party is as nasty as ever.

But, as people here have pointed out…

DWP Secretary considering whether to ‘push the button’ on accelerating Universal Credit regime, says Tory MP

The Independent understands that while David Gauke is hopeful to push ahead he is listening to concerns raised over the new system.

Written by Andrew Coates

September 18, 2017 at 10:34 am

Millions Face Income Cut with Welfare Reform.

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Tories Welfare ‘Reform’. 

I thought a lot about this yesterday.

First of all, let’s not forget that the Benefits Freeze means we are no longer able to keep up with every rising prices in the shops, utility charges and higher Community Charge.

Next, the report highlights the fact that many people on Local Housing Benefit,  are no longer getting their rents fully paid.

FInally you can guess the DWP’s response without even reading the article.

The Department for Work and Pensions said: “This report assumes that people won’t make any attempt to change and to improve their lives. But our welfare reforms incentivise work and, for the first time, universal credit helps working people progress and earn more, so they can eventually stop claiming benefits altogether.

“Under universal credit people are finding a job faster and staying in it longer than under the old system, and since the benefit cap was introduced, 34,000 households have moved off the cap and into work.”

In other words, ‘improve your lives” by getting out of the claws of the DWP and its so-called Universal Credit.

As Gauke would say, “I have made myself perfectly clear.”

Two million UK families face £50-a-week cut in income

Guardian.

Households with children make up more than 80% of those set to lose out as pressure grows for end to austerity

In a bleak assessment of the plight of the poorest families in Britain, the study commissioned by the Local Government Association found that more than 84% of those set to lose £50 a week or more are households with children, either lone parents or couples. Almost two-thirds of them are working households, despite claims from ministers that they wish to create a welfare system that encourages work.

The analysis, by the Policy in Practice consultancy, also undermines claims from ministers that moves to cut taxes and increase the wages of the poorest are compensating them for years of austerity and the rising cost of living.

While some of the seven million low-income households in Britain will be better off by 2020, the group as a whole faces an average loss of £40.62 a week by 2020 compared with the end of last year, once benefit and tax changes, wages, housing costs and inflation are all taken into account.

….

The study finds that the introduction of the government’s flagship policy of universal credit, which combines a series of benefits into a single payment, will lead to an average income loss of £11.18 per week. It coincides with new warnings from Citizens Advice that the rollout of the system should be halted, amid claims that some of those already receiving it have found themselves in serious debt.

With charities and councils warning of rising homelessness, increasing housing costs are identified as a main cause of falling income. More than 2 million low-paid private renters face an average real-terms loss of £38.49 a week by 2020.

For low-income private renters with three or more children, the average income loss that they face by 2020 in real terms is £67.21 a week. This compares with £30.67 for private renters without children.

The authors also say rents are rising faster in some areas than others, with housing benefit not rising to match it. The study found rents are set to rise by 20.7% in the south-west by 2020, but by just 3.5% in the north-east. The report warns that there is now a looming “affordability crisis” because cuts to housing benefit, known as local housing allowance (LHA) for private renters, mean it is no longer linked to real rents, pushing people into poverty or even homelessness.

This is the Report:

The Cumulative Impact of Welfare Reform: A National Picture

Extracts,

The combined effects of the major reforms implemented before 2017, namely the underoccupation charge (NOTE by Ipswich Unemployment Action, the Bedroom Tax) , the localisation of CTRS, the LHA shortfall and both benefit caps, result in an average nominal income loss of just over £23 per week for each working-age household.

The transition to Universal Credit will lead to a further average income loss of £11.18 per week.

This is largely due to cuts in work allowances which will hit households, often with children and previously in receipt of tax credits, particularly hard. The introduction of the National Living Wage and increases to the personal tax allowance will generate almost £3.2 billion for working, low-income households, reducing the average nominal income loss by 2020 to £7.62 per week.

However, these mitigating measures will only benefit 2.5 million of the 7.1 million affected working-age households, half of whom are not affected by welfare reform to begin with. Critically, the continued impact of reforms implemented before 2017 will increase the cumulative loss from welfare reform to an average of £40.62 per week by 2020. This is a consequence of expected inflation and private rent growth, combined with the freezing of benefits rates for working-age people through to 2020 and means that many households see
falls in real income. Private renters will be particularly hit because the link between the Local Housing Allowance rate and market prices has been broken.

The growing disconnect between rents and LHA rates means that the gap between housing support and housing costs will increase disproportionately for private sector renters. Nominally, private renters will be £2.75 per week better off by 2020, as they are more likely to be in work and so benefit from the increase in the National Living Wage and Personal Tax Allowance. However, once expected inflation and private rent growth is factored in, private renters will face average real terms losses of £38.49 per week, with higher losses for larger families.

Squeeze on living standards is down to welfare cuts, not the fall in the pound

Guardian

..for millions of low- and middle-income Britons, living standards looked under threat even when Brexit was nothing more than a twinkle in Boris Johnson’s eye. The key moment came when, fresh from the Conservatives’ 2015 general election victory, the chancellor George Osborne delivered a budget that promised to “reward work and back aspiration”.

True to his word, he presented some very good news by introducing the national living wage – a sizeable and welcome supplement to the minimum wage for employees aged 25 and over. But the good news was eclipsed by the bad. The estimated £4bn boost from the national living wage was dwarfed by savings of £14bn from cuts to working-age welfare. What’s more, the welfare cuts are concentrated among poorer households. In the coming years, Britain faces the prospect of the first significant rise in inequality in three decades.

There is plenty to add: as people have already noted they’ve found the cash for the Police and the Prison Officers.

End the Benefit Freeze!

Written by Andrew Coates

September 11, 2017 at 10:36 am

Rent Arrears Swell with Universal Credit.

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Universal Credit: More and More Demands…

One of the ideas behind government welfare ‘reforms’ is to make people more “responsible”.

We now have to pay a percentage of our Council Tax, because that makes us “responsible”, or to put it more simply, it is thought to make us consider how Councils allocate money. In this case a right-wing idea, that poor people voting over public spending is a bad idea because we will use our power to tax our betters, is behind this. As ‘taxpayers’ ourselves we will think twice about forking out for the elderly, and public services more widely and, they hope, vote Tory to keep Council Budgets in order. Bad councils, that is Labour ones, will suffer electoral reverses if they do not follow the penny pinching and contracting out ways of the Conservative crooks who still run many councils.

The fact that this scheme costs money to collect, that poor people fall into arrears, and that not a single penny has gone to compensate benefit claimants for what is in reality a hefty cut in our income, is ignored.

Universal Credit operates with another kind of enforced “responsibility”.

People pay their rent themselves, rather than having it deducted and sent to the properties’ owners.

Common sense would have told the designers of this system that far from ‘teaching people how to budget’ it would be the occasion for many to fall into arrears.

And so it has come to pass…..

Almost 90 per cent of tenants in receipt of Universal Credit are in rent arrears Daily Record.

South Lanarkshire Council confirmed this week that 633, 87 per cent, of UC tenants owe £525,000.

Almost 90 per cent of council tenants in receipt of the controversial Universal Credit (UC) benefit are in rent arrears totalling £525,000.

South Lanarkshire Council confirmed this week that 633, 87 per cent, of UC tenants are struggling to pay for housing.

The local authority said it was doing everything possible to assist people to repay the debt and avoid losing their home, as Gerard Killen MP called on the government to halt the full roll out of the benefit.

Currently offered to a limited number of people, UC replaces six of the main means tested benefits including housing benefit and sees claimants receive all of their benefits in one single payment monthly in arrears.

It means tenants are, for the first time, responsible for paying their rent as opposed to their housing benefit being paid direct to their landlord.

The Residential Landlords Association quickly got a whiff of this and has set the following up,

In July Councils were already flagging up their concern.

Councils losing £6.7m in Universal Credit arrears

The saga of Universal credit looks far from over.

 

Written by Andrew Coates

August 18, 2017 at 3:11 pm

Homeless Levels to Double.

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The camp set up on Ipswich Waterfront by a group of rough sleepers. Pictures taken by Gregg Brown in January 2017.

Rough Sleeper Camp in Ipswich (January 2017). 

Enigma is the latest of our contributors to point out that this is a growing issue.

The Mirror.

Twice as many people are sleeping rough in Tory Britain as we thought, alarming new study reveals

Analysis by Heriot-Watt University found 9,100 people are currently sleeping on the streets across Britain – the previous estimate was 4,100

 

In January this was published,  Rough sleeping rockets across Suffolk: “It’s a sign that a lot of people are struggling”

 

Welfare Weekly reports,

The number of people forced into homelessness is expected to more than double to half a million by 2041 unless the government takes immediate action, a homelessness charity has warned.

Analysis by Heriot-Watt University for Crisis has found that the number of homeless people in Britain will reach 575,000, up from 236,000 in 2016. The number of people sleeping rough will more than quadruple from 9,100 in 2016 to 40,100 over the same period, the research found.

The forecast, released to mark the 50th anniversary of Crisis, comes as the number of homeless households has jumped by a third in the past five years. The majority of those affected are “sofa surfers”, with 68,300 people sleeping on other people’s couches.

The biggest rise will be for those placed by a council in unsuitable accommodation, such as bed and breakfasts, with the total expected to rise from 19,300 to 117,500.

Crisis has urged the government to build more affordable housing and launch a concerted effort to tackle rough sleeping.

Jon Sparkes, chief executive of Crisis, said: “With the right support at the right time, it doesn’t need to be inevitable … Together we can find the answers and make sure those in power listen to them.”

Jess Phillips, Labour MP for Birmingham Yardley, said that homelessness had become the bulk of her workload. “The government needs to wake up … The system is broken. Without more social housing, a flood of good temporary accommodation and investment in homelessness support the problem will get worse.”

This will help increase the numbers of homeless as well:

The Tory government has quietly axed a free benefit claimed by 124,000 people – here’s how it could hit you.   Mirror. 

The government will be transferring existing claimants onto the new loan system from 5 April 2018.

There will be a transition period where some people can continue claiming SMI as a free benefit for a while.

But this is simply to stop people falling through the cracks if there are “delays” to moving them onto the new scheme.

Outsourcing giant Serco is taking responsibility for telling people about the new system in the coming months through letters and a phone call.

….

A spokesman for welfare rights charity Turn2us added: “Support for Mortgage Interest has been an important source of help for those with a mortgage who have had an income shock.

“It has helped many stay in their homes.

“The increase in the waiting period to 39 weeks has already affected that.

“Now, turning Support for Mortgage Interest from a benefit into a loan adds to the pressure on homeowners who are already struggling.”

Can I take the time to flag up this article by one of the best activists in Britain, 

The first sentence is relevant to the above, “Outsourcing giant Serco”

Outsourcing is killing local democracy in Britain. Here’s how we can stop that

Residents at Grenfell Tower describe how, as the local council outsourced contracts to private companies to work on their estate, essential elements of local democracy became unavailable to them. Their voices weren’t heard, information they requested wasn’t granted, outcomes they were promised did not transpire, complaints they made were not answered. The outcome at Grenfell was unique in its scale but the background is a common enough story. Wherever regeneration of social housing has been outsourced to private developers, responsiveness, transparency, oversight and scrutiny – key elements of healthy democracy – are lessened for those most directly affected.

Outsourcing of public services began in the 1980s, a central feature of the drive to roll back what neoliberalism casts as a bureaucratic, inefficient state. Its proponents claimed the involvement of private providers would increase cost-savings and efficiency, and improve responsiveness to the “consumers” of public services. Thirty years later, the value of these contracts is enormous – more than £120bn worth of government business was awarded to private companies between 2011 and 2016, and their number is increasing rapidly. At least 30% of all public outsourcing contracts are with local authorities.

 

In Ipswich the Labour Borough Council does not outsource. – sadly this is not the case for many Labour authorities.

 

Cuts mean it’s hard to deal with problems like homelessness.

But the gang of Tories from the backwoods and chocolate box villages who run Suffolk County Council have hived off everything they possibly can and helped make things that but worse.

Result?

Read Pilgrim’s article.

Written by Andrew Coates

August 11, 2017 at 12:21 pm

News From the Welfare Front, from Boycott Workfare to Universal Credit.

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Boycott Workfare, the admirable campaign group against government schemes for unpaid work for the out-of-work, has resurfaced with a chapter in a book published by Pluto Press.

A new book chapter using testimonies compiled by Boycott Workfare exposes the violent impact of forced labour.

When we talk about what’s wrong with workfare, we often mention the horrifying material impact on people’s lives of the benefit sanctions that underwrite it. The political impact of unwaged work is also important – the way it attacks workplace rights and destroys our freedom. And workfare is psychologically violent and humiliating: it is coerced labour that’s supposed to build skills and motivation but obviously does nothing apart from offer free work to businesses and charities.

Now, in a freely available chapter of The Violence of Austerity, just published by Pluto Press, the accounts of 97 people who were on workfare schemes between 2011 and 2015 show how workfare is not only ruthlessly exploitative, but can also mean being forced into dangerous work in which health and safety laws are violated as a matter of routine. As the authors write:

If being employed in workfare schemes can be read as a forced and therefore violent process in itself, it should also be read as a process that contains the potential for a different type of violence: the violence that confronts workers when they are told to stand in the cold, to lift heavy loads that they physically cannot lift, or to endure other forms of physical and psychological degradation.

‘The violence of workfare’ documents 64 concrete allegations of breaches of health and safety legislation, at 43 workfare exploiters across the UK – in charities, social enterprises, maintenance companies and discount stores, as well as in environmental, agricultural and recycling projects. The first-hand accounts that the chapter is based on were all submitted to Boycott Workfare via the name and shame section of this website. These ‘employers’ benefited from 1,139 weeks of forced labour from the 97 people whose testimonies are included. That’s almost 22 years of coerced, unpaid labour.

These testimonies make clear how people have been forced to carry out hard labour or heavy lifting, despite existing medical conditions which make this work agony. The testimonies reveal how people have been denied access to protective equipment, and how people have been exposed to dust, chemicals and other hazards. In some cases, these accounts document how organisations have refused workfare conscripts access to food or water, and denied them even short breaks.

At the same time, the testimonies collected together in this chapter provide evidence of workfare exploiters threatening to ‘sack’ people who don’t work fast enough, or try to complain or try to gather evidence of the conditions they are being forced to operate in. People on workfare face being sanctioned if they are unwilling to work in unsafe conditions or if they take any kind of action to draw attention to these conditions.

And some workfare exploiters, it is made clear, are more than willing to exploit the fear that the sanctions regime generates to try and force people to accept dangerous working conditions. That same fear is used to ensure as much management control over workfare conscripts as possible. ‘The fear of sanction can intensify and generate yet more unreasonable demands from employers,’ the authors write. ‘Workfare, as a form of forced labour, effectively permits employers to breach health and safety laws with impunity’. Dangerous working conditions are an effect of unfree labour, compelled by the threat of sanctions.

But we can fight.

We are all entitled to the same basic health and safety protections in workplaces, and in the next few weeks, Boycott Workfare is aiming to bring out a ‘know your health and safety rights leaflet’ that can be used to provide information on these rights, and how to challenge dangerous conditions. And we must continue to name and shame exploiters, and expose the conditions in which they force people to work. Public pressure works, and now that workfare exploiters can no longer hide behind anonymity, we can consign workfare to history.

‘The violence of workfare’, by Jon Burnett and David Whyte, is available for free here. You can read more about the chapter, and the rest of the book, in this article from Disability News Service.

Background:

Boycott Workfare is a UK-wide campaign to end forced unpaid work for people who receive social security.

We are a grassroots campaign, formed in 2010 by people with experience of workfare and those concerned about its impact.

We expose the companies and organisations profiting from workfare and we take action against them. We encourage organisations to pledge to boycott workfare. We inform people of their rights at the jobcentre and we provide information to support claimants challenging workfare and sanctions.

Boycott Workfare is not a front for any political party, or affiliated with any political party. Anyone who shares our aims is welcome to get involved. Email us: info@boycottworkfare.org, or follow us on Facebook and Twitter.

Unfortunately, Boycott Workfare do not currently have the capacity to take on casework. We recommend that claimants contact local organisations for one-to-one advice and support.

Meanwhile on the Universal Credit front….

Public Finance.

Council housing managers have urged the government to halt the rolling introduction of Universal Credit, which they said is causing “considerable hardship” to tenants.

The National Federation of ALMOs (NFA) and the Association of Retained Council Housing (ARCH) also called on ministers to scrap the seven-day waiting period for new claims.

They said that almost four years on from the initial introduction of Universal Credit “our research shows that delays in the assessment process, poor communications between DWP and landlords, and the seven-day wait period continue to cause significant problems to both landlords and their tenants”.

Rent arrears among Universal Credit claimants remained “stubbornly high” at 73% – equivalent to £6.68m – and 40% of households had accumulated arrears as a consequence of claiming.

Meanwhile, households faced mounting debts, as the average arrears for Universal Credit claimants had increased from £611.73 in March 2016 to £772.21 a year later.

NFA managing director Eamon McGoldrick said: “We are strongly urging government/DWP to halt the roll out of UC and ‘pause for thought’ until the system works properly for both claimants and landlords.”

The NFA and ARCH said their members generally supported the principles of Universal Credit and had launched initiatives to support tenants into work.

But they warned: “It is clear that support provided to tenants by landlords alone is not sufficient to resolve the problems being experienced and is not scalable as the roll out accelerates across the country and many more families and children become a part of the Universal Credit system.”

ARCH chief executive John Bibby said: “If the level of intensive support needed to vulnerable tenants is to be sustained during the planned rollout additional resources are essential.”

He also called for provision of a transition fund to enable landlords to support vulnerable tenants.

The DWP defines Universal Credit as support for people on low incomes or out of work, intended to ensure they are better off in work than on benefits.

It replaces: income-based Jobseeker’s Allowance; income-related employment and support allowance; income support; working tax credit; child tax credit; housing benefit.

Written by Andrew Coates

July 27, 2017 at 3:02 pm