Ipswich Unemployed Action.

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Archive for the ‘Welfare Reform’ Category

Universal Credit is Wonderful: Official!

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Gauke:  “I welcomed Universal Credit Full Service to my local Jobcentre yesterday.”

Ipswich Unemployed Action is sometimes accused of peddling negative stories  on Universal Credit.

Articles these:

Britain’s poor and vulnerable ‘living in fear’ of Universal Credit rollout

Single mum with Bipolar Disorder says she’s constantly “living in fear” of the next DWP letter posted through her letterbox – and she isn’t alone.

A Conservative MP wept in the House of Commons after hearing of the desperate situations of people affected by government welfare reforms. Heidi Allen’s voice cracked and she was visibly emotional following the speech by Labour’s Frank Field, chairman of the Work and Pensions Select Committee.

Misleading tales such as this:

True stories of human suffering can change MPs’ hearts. I’ve seen it happen  

False information from fringe publications.

DWP staff are volunteering to stuff foodbank Christmas hampers because they’re ‘unhappy’ with Universal Credit, MP reveals (Mirror).

Tories could be FORCED to publish reviews of Universal Credit they’ve kept secret for nearly two years  (Mirror)

Calamitous roll out of Universal Credit is being secretly delayed in Theresa May’s backyard  Mirror

Or this,

So we are happy to offer a platform for the Alternative View (with permission from comrade Dave S) from young David Gauke, (National Amalgamated Union for Grinding the Faces of the Poor Operatives and Allied Trades).

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Once Again, Labour Are Spreading Fake News About Universal Credit

Labour are once again putting out fake news about Universal Credit, this time alleging that the slowed rollout of Full Service is somehow skipping over prominent Government MPs’ constituencies. Towards the end of a week in which Labour have been passionately pushing out falsehoods – in Parliament, on social media and to the constituents.

What complete rubbish.

DWP have slowed the pace of rollout for Universal Credit so we can implement the improvements announced during the Budget. This is £1.5billion worth of help to ensure that anyone coming onto UC who needs it can get interest-free cash right away and paid back over a year, so that people can get their benefits sooner and so that people can get an extra two weeks of housing benefits.

I’d have thought that Labour would welcome these changes and welcome the slowed pace of rollout given their campaign to stop the rollout all together. But, instead we see Labour ignore the facts. To not only withhold valuable information from people, but then to mislead them into thinking there is no help available while they transition onto Universal Credit is a serious dereliction of duty.

The truth is that Universal Credit is a better benefit and we are now improving it

On Tuesday, we had over three hours of debate on Universal Credit. I asked the Shadow Secretary of State for Work and Pensions, Debbie Abrahams, to apologise to the House and to the public for Labour’s scaremongering about Universal Credit, and urged the Opposition to stop misleading people – not because I can’t take political fire, but because these falsehoods are causing real harm. Just last week a Labour leaning newspaper published a story about a family who feared they had to cancel Christmas only to learn that actually, they didn’t have to worry. They had seen the scare stories.

The truth is that Universal Credit is a better benefit and we are now improving it. That is slowing the pace of the rollout of the Full Service. 80% of all Jobcentres without Universal Credit Full Service will face some level of delay in getting it. Jobcentres are not arranged by constituency and some serve several constituencies. Of those Jobcentres who will have a delay in getting Full Service, half are in Conservative held seats and half are in Labour held or other seats.

So, who will see a delay in getting Universal Credit to their Job Centres? Not me, I welcomed Universal Credit Full Service to my local Jobcentre yesterday.

David Gauke is the work and pensions secretary and Conservative MP for South West Hertfordshire

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Written by Andrew Coates

December 9, 2017 at 11:12 am

Government to Cut Universal Credit Wait to…..5 Weeks!

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I Week off the Wait, to meet Universal Credit Crisis.

Our best mate and Mentor, Tutor and Guide,  Google informs us of this,

Government preparing to trim wait for new benefit after Tory backbenchers raised concerns about impact on constituents.

The government is preparing to confirm that it will cut the six-week waiting time for universal credit, caving in to Conservative backbench rebels.

After being promised concessions by ministers, a group of Tory MPs concerned about the impact of the delay on their constituents were persuaded not to vote against the government in a Labour-led debate on universal credit last month.

The six-week wait was the central concern of the group, which includes Heidi Allen and Johnny Mercer, and the government is expected to reduce it, most likely by eliminating the seven-day mandatory waiting time at the start of any new claim.

The move comes as MPs prepare to vote on a cross-party motion to cut the wait for a first payment from 42 days to a month. The backbench business debate in the House of Commons on Thursday will focus on the recommendations of the recent work and pensions committee inquiry report on universal credit.

The committee chair, Frank Field, warned that a government defeat would send a clear message to ministers that the long wait had to go: “Universal credit’s design and implementation have been beset with difficulties that knock claimants into hunger, debt and homelessness, but the most glaring of these in the first instance is the six-week wait for payment.

“I doubt many households in this country could get by for six weeks, and for many, much longer, with no income, never mind those striving close to the breadline. The baked-in wait for payment is cruel and unrealistic and government has not been able to offer any proper justification for it.”

But wait, hark, what is this we hear?

The massive concession turns out to be a lonely 5 week wait.

Government backs down on Universal Credit wait.

Sky News understands the concession will be made in the coming days as Theresa May tries to see off a Tory rebellion.

The Government is to cut the controversial six-week wait for Universal Credit payments in the comings days in a bid to see off a Conservative rebellion.

A Government source familiar with the plans told Sky News there would be “some movement [on the wait time] in the early part of next week” after intensive behind-the-scenes discussions with a group of up to two dozen rebel MPs.

The source said ministers were working on plans to cut the wait to five weeks or less in a significant concession to backbench MPs.

And Work and Pensions Secretary David Gauke is also said to be looking to do more on advance payments for claimants as the roll-out of Universal Credit is expanded from five to 50 job centres a month.

Universal Credit combines six benefits into one single benefit and is designed to simplify the welfare system and to “make work pay”.

It was the flagship welfare reform of David Cameron’s coalition government, but has been plagued with delays since its inception and by criticism over its design.

One flaw is the six-week wait time which has been criticised across the political divide amid concerns it is pushing claimants into arrears on rent and council tax, and forcing some to use food banks.

The 5 week wait and “more” to get people into debt with advance payments is miserable, miserable, penny-pinching, Scrooge’s idea of a Christmas present.

As Julia Rampen says in the New Statesman says,

The government is set to cut the six week initial waiting time for Universal Credit, Sky News reports. If this retreat on welfare is true, it’s welcome. The expectation that people forced to rely on this country’s meagre safety net would somehow have the cash to tide themselves over for six weeks was always fantasy.

As increasingly panicked reports from the areas where the new “streamlined” benefit is being rolled out attest, six weeks is a long time when you have no money in your pocket, and rent and bills to pay. Claimants can get an advance payment, but this can easily turn into yet another debt to pay. Evictions are mounting, and stories from frontline workers are harrowing – such as the one from a foodbank manager, who met a young boy picking through the bins while his mother waited for her first Universal Credit payment.

All the same, there is not much to celebrate. Commuting the waiting time from six weeks to five, as the report suggests will happen, still means a very long wait for access to food or heating, or the resources to pay your rent and other bills. It suggests that Universal Credit will still be structured around a monthly payment, and allocated based on monthly income – even though Resolution Foundation research found the majority of claimants had previously been paid weekly or fortnightly, and many in-work recipients have different hours from month to month. Nor does there seem to be any movement on the fact that Universal Credit is paid to only one member of the household – a structure ripe for abuse. And then there’s the whole question of whether the benefit designed to “make work pay” is actually penalising workers, since any increases in payment under the new system are minimal.

Most worryingly, though, a climbdown on the waiting period does nothing to address the cause of much Universal Credit misery – the glitches. As an anonymous Universal Credit manager wrote for the New Statesman, benefits case managers are overwhelmed, with 300 cases on the go at once. A rigid, automised priority list means that many claims with fall through the cracks. With Jobcentres closing, claimants are set to be even more reliant on communicating with these overworked staff through online messaging or crowded phonelines.

CAN YOU CREDIT IT?

 

Brits spend £6.5million ringing Universal Credit helpline between April and September

 

Shocking figures reveal there were 4.2million calls to the helpline over the five months with an average landline fee of up to 12p

Pile it on against the bastards!

More from Sky just now,

The Prime Minister has been warned thousands of families are being put through the “trauma” of fearing eviction over Christmas due to flagship benefit changes.

Labour leader Jeremy Corbyn tackled Theresa May over the roll-out of Universal Credit, as he revealed a letting agency’s warning to tenants that they could be asked to leave their properties.

In a letter from Lincolnshire-based GAP Property, tenants are told the company cannot sustain arrears “at the potential levels Universal Credit could create” when the new benefits system is introduced in the area next month.

Highlighting a six-week wait claimants will face for their first benefit payments under Universal Credit, the agency adds: “IF YOU DO NOT PAY YOUR RENT WE WILL HAVE NO OPTION BUT TO LEAVE AND RECOVER LOSSES FROM YOUR GUARANTOR”.

GAP Property insists to tenants the letter is “not intended to cause you alarm, rather to inform you of the problems that could very well occur during the roll-out of Universal Credit”.

Challenging Mrs May over the letter at Prime Minister’s Questions on Wednesday, Mr Corbyn asked: “Will the Prime Minister pause Universal Credit so it can be fixed or does she think it is right to put thousands of families through Christmas in the trauma of knowing they’re about to be evicted because they’re in rent arrears because of Universal Credit?”

In response, Mrs May acknowledged concerns about people managing their budgets to pay rent during the Universal Credit roll-out, but added: “What we see is after four months the number of people on Universal Credit in arrears has fallen by a third.”

The Labour leader told the Prime Minister he suspects “it’s not the only letting agency that’s sending out that kind of letter” and highlighted increased food bank usage and child poverty fears as he demanded the Government pause the roll-out of Universal Credit.

Mrs May countered the new benefits system “is ensuring that we are seeing more people in work and able to keep what they earn”.

And,

Shadow work and pensions secretary Debbie Abrahams repeated Labour’s demand for a pause to Universal Credit while “these issues are fixed”.

She said: “The Government is reportedly planning to reduce the six week wait for Universal Credit payments.

“I hope they have now listened to Labour’s repeated calls to significantly reduce the waiting time, which has driven many into debt, arrears and evictions.

“Much more needs to be done.

“The Government must confirm that alternative payment arrangements will be offered to all recipients, including fortnightly payments, and bring forward plans to restore the principle that work always pays under the programme.”

Before I forget (and after seeing the rise in Food Prices today): End the Benefits Freeze!

Written by Andrew Coates

November 15, 2017 at 4:19 pm

Universal Credit and Elaine Morrall who “Died Cold and Alone”.

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Mum-of-four dies cold and alone after missing Universal Credit meeting

Elaine “Died Cold and Alone”. “How many people have got to die before this government realises they are killing vulnerable people?’

 

This story makes everything else look small.

A mum-of-four died cold and alone after her benefits were cut because she was too ill to attend a Universal Credit meeting. Elaine Morrall was found dead in her home wearing a coat and scarf, her family claimed. Metro.

The 38-year-old had her benefits stopped because she failed to attend a meeting about Universal Credit while she was in a hospital intensive care unit, they said.

Elaine, who suffered from an eating disorder and mental health problems, was found dead earlier this month in Runcorn, Cheshire. Her family claims she wouldn’t put her heating on until her kids got home from school because of the cost. Her grieving mother Linda Morrall blamed the Department of Work and Pensions for her untimely death.

In an open letter on Facebook, she wrote: ‘How many people have got to die before this government realises they are killing vulnerable people?’ ‘My daughter lived in Boston ave. She died on the afternoon of 2 November 2017 at home on her own. She was 38yrs. ‘In the cold with her coat & scarf on. Because she wouldn’t put her heating on until her kids came home from school. Why?? Because she couldn’t afford it. ‘Because she was severely depressed. Suffered from eating disorder & many other problems for many years. ‘Mainly due to authoritarians of 1 form or another. I can give you details. Was in & out of hospital in recent months in intensive care. ‘But was deemed not ill enough for ESA. Had her benefits stopped numerous times, which in turn stopped her housing benefit. ‘No income but expected to be able to pay full rent. Was told being in intensive care was not sufficient reason for failing to attend a universal credit interview. ‘I went to the job centre to inform them that she couldn’t attend. But benefits stopped again. ‘Uncaring housing taking her to court. She’s due to go to court on monday. Is being dead now enough reason. Is that what’s had to happen to prove she was ill?? ‘How many people have got to die before this government realises they are killing vulnerable people?? ‘What are you and your fellow councillors going to do to protect your constituents??’

Background to the growing crisis.

Demand for Suffolk and Essex food banks continues to grow.

Ipswich Star. 7th of November. 

Changes in the benefit system and the rising cost of living are among the issues driving a surge in demand on Suffolk and Essex food banks, it has been claimed.

Ipswich charity Families in Need (FIND) has given out around 3,400 food parcels so far in 2017, and founder Maureen Reynel said more people were using the service every year.

Food bank bosses say the roll out of Universal Credit, which is replacing most means-tested benefits, is leaving local people struggling because new applicants have to wait around six weeks after a successful assessment to receive the cash.

Mrs Reynel said: “It means people are waiting for money, even though it’s back dated they have to eat in the meantime so any change in benefits, doesn’t matter what label they put on it, has an adverse affect on people using those benefit systems.

“It’s just a mess really. We just have to keep trying to plug a gaping hole to see these people through until something else good happens for them.”

Demand on FIND is “non-stop”, Mrs Reynel said, with the number of food parcels handed out hitting double figures most days.

The same evening there was a report on the effect of Universal Credit on people, driving them into utter poverty, on the BBC Look East.

Trussell Trust foodbanks report record surge in demand amid Universal Credit rollout

The statistics lay bare the link between the welfare reform and rising need for emergency handouts.

The controversial rollout of the Tories’ flagship welfare reform has triggered a 30% surge in hungry families, shock figures reveal today.

Foodbanks handed out 586,907 emergency rations between the start of April and end of September – a 13% rise on the same period last year, according to the Trussell Trust.

With each parcel having enough food for three meals a day for three days, volunteers handed out the equivalent of almost 5.3 million meals.

And foodbanks in areas where Universal Credit has been rolled out for six months or more have seen an average 30% spike in the first six months after its launch compared to a year before.

Charity leaders fear the crisis will deepen in the run-up to Christmas when the number of foodbanks in areas of full Universal Credit service will triple, and when demand for food traditionally rises.

Trussell Trust chief executive Mark Ward said: “We’re seeing soaring demand at foodbanks across the UK.

Written by Andrew Coates

November 8, 2017 at 4:28 pm

John Major Joins in Chorus Against Universal Credit.

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Major to the Rescue!

Back in the old days we all used to laugh at John Major.

Rory Bremner did a great impersonation.

There was also his affair with Edwina Currie, (BBC)

Former Prime Minister John Major has admitted he had a four-year affair with the former Conservative minister Edwina Currie.

Mr Major described it as the most shameful event of his life, but said his wife Norma had long known of the relationship and had forgiven him.

Mrs Currie made the disclosure in her diaries, which are being serialised in the Times newspaper.

The affair began in 1984 when Mrs Currie was a backbencher and Mr Major a whip in Margaret Thatcher’s government.

Mrs Currie – who later became a health minister – said the affair ended in early 1988 after his swift promotion to the Cabinet as chief secretary to the Treasury.

What the wags of the Internet could make of that today is …a happy thought.

Now Major is an elder statesman.

With Boris and Rees Mogg around – preceded stage right by Iain Duncan Smith, not to mention David Gauke – you could feel a big nostalgic for those days.

Major obviously has more than a grain of sense left.

John Major calls for Tory review of ‘unfair’ universal credit

reports the Guardian.

Former PM says party needs to ‘show its heart again’ or it risks opening door to ’return of a nightmare’.

Sir John Major has called for an urgent change of tone from the Conservative government, including a review of universal credit, which he described as “operationally messy, socially unfair and unforgiving”.

The former prime minister said his party needed to “show its heart again, which is all too often concealed by its financial prudence”, if it hoped to fight off a Labour resurgence in the next general election.

“We are not living in normal times and must challenge innate Conservative caution,” he said.

However, he suggested the implementation of the policy, which has led some claimants to turn to foodbanks as they wait up to six weeks for payments, required a rethink.

To rub this in we learn the following today,

More than 25 Tory MPs  prepared to rebel over Universal Credit roll-out

More than 25 Tory MPs are now prepared to rebel over the Government’s flagship welfare reforms amid mounting calls for a “pause” in the roll-out of Universal Credit.

David Gauke, the Work and Pensions Secretary, last week tried to broker a truce with MPs by insisting that a system of advance payments was already in place to help those struggling when they change systems.

Despite the move, Sir John Major, the former Tory Prime Minister, described the system on Sunday as “operationally messy, socially unfair and unforgiving”.

The Guardian outlines the mammoth task before the government.

Universal credit: why is it a problem and can the system be fixed?

What are the design flaws?

There are manifold problems, but the political focus centres on the minimum 42-day wait for a first payment endured by new claimants when they move to universal credit (in practice this is often up to 60 days). For many low-income claimants, who lack savings, this in effect leaves them without cash for six weeks. The well-documented consequences for claimants of this are rent arrears (leading in some cases to eviction), hunger (food banks in universal credit areas report striking increases in referrals), use of expensive credit, and mental distress.

What have ministers proposed to do about the six-week wait?

The work and pensions secretary, David Gauke, recognised the widely held concerns about the long payment wait (including 12 of his own party’s backbenchers) in his speech to the Tory party conference on Monday. He said he was overhauling the system of advance payments available to claimants to enable them to access cash up front to see them through the six-week waiting period. Payments would be available within five days, and in extreme cases within hours.

Will this solve the problem?

The payments are loans that must be repaid. Claimants can only get an advance for a proportion of the amount they are owed as a first payment, and must repay it within six months. Normally, claimants must prove to officials that an advance is needed to pay bills, afford food or prevent illness. Official figures show about half of new universal credit claimants apply for an advance payment. Ministers say this is good news as it shows they are getting help. Critics say the high demand proves the wait is too onerous for too many people.

What other options do ministers have?

Charities and landlords could reduce the long wait marginally by cutting the seven-day “waiting period” introduced in 2013 (an arbitrary period during which new claimants are prevented from lodging a claim after being made redundant). They could introduce more flexible repayment terms for advance loans. And they could speed up the payment process (currently slower than the supposedly cumbersome “legacy” benefits they replace).

So it is all about ironing out a few technical glitches?

Not quite. Multibillion-pound cuts to work allowances imposed by the former chancellor George Osborne mean universal credit is far less generous than originally envisaged. According to the Resolution Foundation thinktank, about 2.5m low-income working households will be more than £1,000 a year worse off when they move on to universal credit. Reversing those cuts requires a political decision, not a technical fix.

What is the future for universal credit?

Gauke confirmed today that the current rollout will continue to the planned timetable (which will see, in theory, universal credit extended to about 7 million people by 2022). However, the problems of universal credit are unlikely to go away, and it has some powerful critics, including the Treasury, which has always opposed the project. It would be possible to cancel the project, or overhaul it substantially. However, some argue the billions pumped into universal credit – and the huge amount of political capital and credibility invested in it – mean it is too big to fail.

For those who’ve lost the will to live after this lot, Rory Bremner is still a laugh!

Written by Andrew Coates

October 9, 2017 at 10:22 am

David Gauke Keeps on Boosting Universal Credit as Misery extended to Northern Ireland.

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Gauke, a rare picture of him in Ipswich, Boost, Boost, Boost!

David Gauke, the man at present responsible for the train wreck that is Universal Credit, is a happy kind of chap.

He does not let even the carping of the Eastbourne MP (a place our spies tell us is not the Red Heartland one might assume, although it appears the man in the video below is a member of something called the Liberal Democrats), saying this,

Eastbourne’s MP has called Universal Credit a ‘train wreck’ and has said Christmas will be ‘bitterly hard’ for the town’s families unless it is paused. Stephen Lloyd, the Work and Pensions spokesperson for the Liberal Democrats, criticised the policy in a speech at the party’s conference yesterday.

A defiant Gaucky spends his days  boosting the success of the Tories’ madcap plans 24/7.   “The work and pensions secretary has signalled that the government will press ahead with controversial welfare changes, insisting the system of universal credit is “making work pay and transforming lives”.

Yet, in the rare moments he finds time to relax, he, or his minions tweet, addressing the masses on important occasions like this one.

Or sticking to his job at this event,

 

But there is a method in the Gauke.

We learnt today that Northern Ireland is his latest target.

Universal Credit will be introduced on a phased basis in Northern Ireland from next week. Replacing six existing benefits with one, Universal Credit is for people aged 18 to State Pension age. It aims to remove many of the barriers to work which exist in the current welfare system. It will be introduced gradually across Northern Ireland, starting on Wednesday, September 27 until September 2018. New claimants from the Limavady area will be the first to receive Universal Credit. People already claiming the existing benefits will not be affected until 2019, unless their entitlement changes.

Now I am just guessing on this one, but the potential for people getting into rent arrears in Northern Ireland, and the risk of rows about this turning nasty, very nasty, looks pretty big from the outside. Not to mention those wandering around without money for the infamous 6 week waiting period.

 

Written by Andrew Coates

September 21, 2017 at 3:28 pm

When will Universal Credit Fall off a Cliff?

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Warning: Universal Credit Ahead!

Sometimes you wonder when or where  it will all end.

Or Collapse, as the image above suggests.

Ken already notes on the comments that people are racking up debts because of Universal Credit,

Newcastle tenants on Universal Credit rack up £1.1 million in rent arrears

Housing managers say a new benefits system is leading people into debt and forcing some to use food banks.

Ken adds this to boot,

An automated system is leeching cash away from essentials like clothes and food to cover costs elsewhere

StepChange Debt Charity said the use of direct deductions from people’s benefits, by utility companies, housing providers, councils and others, to cover arrears payments is making it harder for families to pay for essentials forcing many to use credit to keep on top of bills.

http://www.mirror.co.uk/money/third-party-deductions-dwp-policy-11164892

That’s just a a sample of our contributors’ news from the media, their own experience and comments.

Is the Government worried?

Do they take account of the stream of criticism that’s levelled at the madcap scheme that’s causing widespread misery?

They and the DWP are in denial.

The Ghost of Iain Duncan Smith, in a rage at the fate of his love child,  speaks through one of his minions,

THIS BLOG IS A DISGRACE!! IT EXISTS ONLY TO DISCOVER LOOPHOLES IN DWP RULES AND REGULATIONS, AND TO FIND WAYS AND MEANS FOR SHYSTERS TO AVOID DWP JUSTICE. ITS OWNER – ANDREW COATES – WHO LIKES TO PRETEND HE DOESN’T KNOW WHAT IS HAPPENING ON HIS OWN BLOG AND ALL THE OTHERS WHO SOUGHT TO BRING ABOUT THIS PERVERSE DECISION WHICH ALLOWED A GUILTY MAN TO EVADE DWP JUSTICE SHOULD BE PROSECUTED FOR CONSPIRACY TO PERVERT THE COURSE OF JUSTICE AND CONSPIRACY TO DEFEAT THE ENDS OF JUSTICE. FUMING!

This is the news today, from the Independent,

Universal Credit delays leave claimants to ‘drop off a cliff’ in rent arrears, hear MPs

It comes after Citizens Advice warned the accelerated roll-out of the new regime was a ‘disaster waiting to happen’.

Claimants “drop off a cliff” and “remain in freefall” in rent arrears due to delays in receiving payments under the new Universal Credit regime, MPs have heard.

It comes as the Government plans to accelerate the delayed roll-out of Universal Credit – devised by the former welfare chief Iain Duncan Smith – to 50 new areas in the autumn despite warnings that it is a “disaster waiting to happen”.

Speaking to MPs on the Commons Work and Pensions Select Committee in Westminster, council leaders, food banks and charities from across the country raised concerns about the system which intends to merge six existing benefits into one single monthly payment from claimants.

One councillor from the London council of Southwark – where Universal Credit is already up and running – said an additional £1.3m of rent arrears was attributable to the new regime since its introduction by the council two years ago.

Southwark Councillor Fiona Colley told the committee, chaired by the former Labour minister Frank Field, that the roll-out had a range of impacts on the council and its residents due to typical 12-13 weeks to administer the first payment.

“The most significant for us that I want to tell you about is how it has impacted rent arrears and on payment of rent,” she said. “That has very much dominated our experience.

“What we are particularly concerned about is the speed at which rent arrears are increasing after people claim Universal Credit. We see them drop off a cliff once the claim goes in and remain in free-fall for about three months thereafter until people start getting into payment.”

Pressed on whether the system had got any better in the two years the council had been administering Universal Credit, she replied: “I don’t think so.”

“We’re looking to make this work – we can’t afford for it not to.”

Not to mention this:

Universal Credit roll-out a ‘ticking timebomb’, say private landlords

Welfare Weekly.

The Government’s flagship Universal Credit (UC) system is pushing a growing number of private sector tenants into rent arrears, with the number falling behind on payments rising by 10% over the last year.

A survey of almost 3,000 landlords by the Residential Landlords Association (RLA), who represent landlords in the private sector across England and Wales, found that 38% of tenants in receipt of UC experienced rent arrears in the last year – up from 27% in February 2016.

The average amount of rent arrears owed by private tenants to their landlords is now £1,150, with the RLA blaming the long wait before UC claimants receive their first payment.

Then there was this:  Homelessness rise ‘likely to have been driven by welfare reforms’

The number of homeless families in the UK has risen by more than 60% and is “likely to have been driven” by the government’s welfare reforms, the public spending watchdog has said.

Homelessness of all kinds has increased “significantly” over the last six years, said the National Audit Office.

It accused the government of having a “light touch approach” to tackling the problem.

The government said it was investing £550m by 2020 to address the issue.

There has been a 60% rise in households living in temporary accommodation – which includes 120,540 children – since 2010/11, the NAO said.

A snapshot overnight count last autumn found there were 4,134 rough sleepers – an increase of 134% since the Conservatives came into government, it added.

A report by the watchdog found rents in England have risen at the same time as households have seen a cut to some benefits.

Homelessness cost more than £1bn a year to deal with, it said.

Reforms to the local housing allowance are “likely to have contributed” to making it more expensive for claimants to rent privately and “are an element of the increase in homelessness,” the report added.

Homelessness rise

England, 2010-2017

134% rise in rough sleepers

60% rise in households living in temporary accommodation

  • 77,000 families in temporary accommodation, March 2017, including…
  • 120,000 children
  • £1.15bn council spending on homelessness 2015-16

Welfare reforms announced by the government in 2015 included a four-year freeze to housing benefit – which was implemented in April 2016.

Auditor General Sir Amyas Morse said the Department for Work and Pensions had failed to evaluate the impact of the benefit changes on homelessness.

“It is difficult to understand why the department persisted with its light touch approach in the face of such a visibly growing problem.

“Its recent performance in reducing homelessness therefore cannot be considered value for money.”

The ending of private sector tenancies – rather than a change in personal circumstances – has become the main cause of homelessness in England, with numbers tripling since 2010/11, said the NAO.

Its analysis found private sector rents in England have gone up by three times as much as wages since 2010 – apart from in the north and East Midlands.

While in London, costs have risen by 24% – eight times the average wage increase.

I saw people sleeping in doorways in Ipswich last night.

Not at all unusual.

Anywhere.

Update: still somebody’s happy:

Written by Andrew Coates

September 14, 2017 at 11:14 am

​Inquiry into Universal Credit – or Yet Another Inquiry…

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Even Owls Can be Flummoxed…

Earlier this year we had this:

Universal Credit rollout: inquiry re-launched

21 February 2017

Following compelling evidence of the problems in the rollout of Universal Credit in its recent follow ups the Committee has re-launched its inquiry and is now accepting written submissions.

Followed by,

Due to the general election on 8 June 2017 the Committee has now closed this inquiry. Following the dissolution of Parliament on 3 May 2017, all Select Committees cease to exist until after the general election. If an inquiry on this subject is held in the future, the Committee may refer to the evidence already gathered as part of this inquiry.

Then, post General Election,  this:

The National Audit Office is engaged in ‘work in progress’ in producing yet more reports on Universal Credit.

The Department is due to increase the pace of roll-out from October 2017, so that full service will be available to new claimants in all jobcentres by September 2018. The Department then plans to transfer existing claimants to Universal Credit by March 2022.

In this study we will examine whether the Department is on course to deliver Universal Credit in accordance with its plans. We will also assess whether there are early signs that Universal Credit is delivering its objectives, and what impact it is having both on claimants and on local stakeholder

In this study we will examine whether the Department is on course to deliver Universal Credit in accordance with its plans. We will also assess whether there are early signs that Universal Credit is delivering its objectives, and what impact it is having both on claimants and on local stakeholders.

After a mountain of complaints about Universal Credit,, which take up a big part of this Blog and others, we had Gaucke’s response a few weeks ago,

The work and pensions secretary has signalled that the government will press ahead with controversial welfare changes, insisting the system of universal credit is “making work pay and transforming lives”.

Responding to a letter signed by 30 Labour MPs and the Green co-leader Caroline Lucas, expressing concerns about UC and calling for its implementation to be paused, David Gauke underlined his commitment to the policy.

“Getting UC right is a priority for me,” he said. “UC is revolutionising the welfare system by making work pay and transforming lives. Those on UC are moving into work significantly faster and working longer than under the old system. Only through this balanced approach can we as a country provide effective and holistic support for families and individuals to enter the world of work while ensuring fairness for the taxpayer.”

He added this touching note,

he does acknowledge the concerns of claimants struggling to navigate the new system, saying: “I know change of any kind can be difficult, especially for families struggling to get by.”

Since then, silence from the chap who shows such concern for families “struggling to get by”.

But lo!

Now we learn of this:

Inquiry into Universal Credit follows landlords’ criticism

Simple Landlords.The National Audit Office is launching an inquiry into the effectiveness of Universal Credit after a leading landlord body criticised the system.The probe will assess whether the Department of Work and Pensions (DWP) is on course to deliver Universal Credit, in accordance with its plans.

It will also determine whether there are early signs that Universal Credit is delivering its objectives, and what impact it is having both on claimants and on local stakeholders.

The Residential Landlords Association (RLA)  has criticised the controversial system, which ‘bundles’ individual benefits into a single monthly payment, as it makes it tougher for landlords to rent to people who are on low incomes, because they lack the confidence that they will receive the rent.

Richard Jones, the Residential Landlords Association’s (RLA) policy director, said: “We strongly believe that the Government’s whole approach is flawed and although the objective of helping tenants manage their financial affairs is in isolation a laudable one, the Government has wholly failed to appreciate the consequences of this.”

When Universal Credit was initially unveiled, the Residential Landlords Association (RLA) predicted the changes would be “a much higher level of arrears, an unwillingness of landlords to house benefit claimants, increased unwillingness by banks to lend for this kind of property, much higher levels of evictions and much greater homelessness.”

Sue Sims, a Birmingham based landlord, is one of those who thinks she’ll have to stop renting to tenants on benefits – because the numbers simply don’t add up anymore. At a Simple Landlords Insurance event, landlords discussed the challenges ahead. Sue explained: “It’s already been proved that the arrears rates in the areas which have universal credit have gone up hugely. You need the security that you’re going to get your rent paid on time, otherwise you can’t pay your mortgage. As a result, I won’t even consider housing benefit tenants in my properties any longer.”

Indeed, recent research published by Residential Landlords Association (RLA) research lab PEARL shows that out of 2,974 landlords, 38 per cent reported that they have experienced Universal Credit tenants going into rent arrears in the past twelve months and were owed an average £1,600 in rent arrears. And Sue is not alone in her reluctance to rent to Universal Credit – another survey of more than 1,000 landlords in found that 91.6 per cent of landlords said the introduction of universal credit would make them less likely to rent to those on benefits.

Our Newshounds will have to track this one down but I find no evidence anywhere else –  though who could doubt the seriousness of the Landlords and their associations? –  of this inquiry.

 

Written by Andrew Coates

September 7, 2017 at 4:13 pm