Ipswich Unemployed Action.

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Archive for the ‘Welfare State’ Category

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

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Image result for esther mcvey glamour photo

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

The world has turned against Universal Credit.

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

And the Tory papers jumping on the bandwagon.

Not to mention yer actual present day Tory MPs:

The House of Commons,

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

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

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

Guardian.

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

But, there you go….

Then there was this yesterday (Independent):

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

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

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

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

The Independent reports today:

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

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

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

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

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

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

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

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

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

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

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

Secretary of State for Work and Pensions Esther McVey said:

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

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

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

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

But….

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

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

Even the Murdoch press is turning:

As the Mirror says,

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

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Written by Andrew Coates

October 12, 2018 at 11:04 am

Gordon Brown Joins Charge Against Universal Credit: Warns of coming “Summer of Discontent”.

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Sign the Petition from Our Friends from the Mirror!

It’s obvious that Universal Credit is going the way of the Poll Tax.

People you would not expect to talk about these things are angry about it at the drop of  a hat.

The local CAB is jammed with the number of cases they have to help.

MPs, including Ipswich’s, are besieged by those in dire straits because of the system.

I would hazard a guess, just a little guess, and say that the DWP is well aware of the train crash that is Universal Credit.

Now after John McDonnell called on Sunday for getting rid of the system Gordon Brown is set to make this speech.

Halt universal credit or face summer of discontent, Gordon Brown tells PM

Guardian – Larry Elliott

Britain is on course for a summer of discontent and poll tax-style chaos unless Theresa May scraps plans for a full national rollout of universal credit next year, the former prime minister Gordon Brown is to say.

In a ferocious attack on the government’s flagship welfare reform, Brown predicts that a complex application process alongside Treasury spending cuts will plunge a million more children into poverty and increase reliance on food banks.

The former Labour leader, who sought to tackle poverty through the introduction of tax credits in the early 2000s, will say on Wednesday that the government’s amendments are cruel and that a U-turn is needed before more suffering is caused.

Even this Blog, which does not mince its words, is shaken by Brown’s next statement,

Speaking in Edinburgh, Brown will say: “Surely the greatest burning injustice of all is children having to go to school ill-clad and hungry. It is the poverty of the innocent – of children too young to know they are not to blame. But the Conservative government lit the torch of this burning injustice and they continue to fan the flames with their £3bn of cuts. A return to poll tax-style chaos in a summer of discontent lies ahead.”

Writing in the Mirror Gordon Brown explains:

Universal Credit is cruel far beyond austerity – and it’s becoming Theresa May’s Poll Tax, says Gordon Brown

It is now time to abandon the national roll out of the disastrous benefit-cutting Universal Credit .

Call a halt to this experiment – cruel and vindictive far beyond austerity – that is pushing child poverty among millions of hard-working British families to record levels.

From next July when three million more families begin to be herded on to Universal Credit, our country will face the kind of chaos we have not seen since the days of the hated Poll Tax.

With the convulsions of Brexit in March and the Universal Credit four months later we face a summer of division and despair.

From July each family on tax credits today will have to submit a wholly new form for Universal Credit – a policy Ministers have been warned will risk a breakdown in the system.

Instead the Government should order a review into what is going wrong – and give emergency help to those families now in despair because of benefit cuts.

With child poverty rising inexorably from three million in 2015 to four million now and to more than five million by 2022, October 29 should bring a Budget for children.

And to halt the rising epidemic, Child Benefit should be raised and child tax credits should be improved – as the one way, alongside a decent living wage, that we can get low-paid families out of poverty.

Today’s poverty explodes the myth that children are in poverty because their parents are work-shy and indolent.

Two thirds of the children in poverty have a parent in work – but earning too little to lift them out of poverty. In fact, nearly half – 42% – of households are in poverty where there is one breadwinner only in work and no other adult working.

The majority of the rest who are in poverty have disability in the family.

Savage Cuts are pushing them on to the breadline.

And after freezing Child Benefit and children’s tax credits for years Universal Credit is taking £3-billion out of the social security budget as it is introduced. Almost 3.2-million working families will, according to the Resolution Foundation, stand to lose an average of £48 a week.

Read the full article.

This stands out:

So I am calling today for the Government to abandon the 2019 national roll out of Universal Credit and end this harsh, harmful and hated experiment.

We need an urgent review on the lines suggested by the Child Poverty Action Group to be instigated and we must hear the voices of those who know what it’s like to have help cut short I join individuals and organisations who have called for a rethink including The Archbishop of Canterbury, The Church of Scotland, The Mayor of London, Disabled Against The Cuts, The Mayor of Liverpool, Mind, The Trussell Trust, Unison, Unite and Citizens Advice Bureau as well as the Child Poverty Action Group and most disabled charities.

The review should look closely at three options: redesign Universal Credit to make it fit for purpose; axing it in favour of reverting to the old system if UC is unfixable; or introduce a brand new system altogether.

The Mirror has launched a petition:

Universal Credit is harsher on people both in and out of work, and some families could end up £200 a month worse off.

The Mirror are demanding a halt to the expansion of UC and for a review to take place. We say there are three options:

  • Redesign UC to be fit for purpose
  • Axe it in favour of the old system if UC is unfixable
  • Introduce a brand new system

Sign our petition to stop the rollout of Universal Credit across Britain and to replace it with a fairer system.

You can sign through here.

Written by Andrew Coates

October 10, 2018 at 10:42 am

Hold the Front Page! McDonnell says, “Universal Credit Has to Go!”

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Image result for UNiversal credit mcdonnell

LIVE: Labour likely to scrap Universal Credit – McDonnell

The shadow chancellor tells Sky’s Sophy Ridge the government’s benefit systems is past being fixed, in a change of policy.

Huff Post:

Universal Credit ‘Has Got To Go’, Says Labour’s John McDonnell

 Rachel Wearmouth

“I think most people now are coming to the conclusion it has got to be scrapped.”

Shadow Chancellor John McDonnell has said Universal Credit “has got to go” in the strongest signal yet that Labour would scrap the government’s flagship benefit scheme.

Speaking on Sky News, McDonnell said: “I think most people now are coming to the conclusion it has got to be scrapped.”

Labour has previously called for Universal Credit to be paused and reformed.

But McDonnell said the government’s attempts to shake-up the benefit “haven’t worked” and Universal Credit “is not the safety net that people expect when they need support.

“I think we’re moving to a position now where it’s not sustainable, it will have to go,” he said.

It comes amid reports that Work and Pensions Secretary Esther McVey has privately warned that families could lose £200 a month.

According to The Times, McVey told fellow cabinet members that the rollouts could result in millions of families losing out on the equivalent of £2,400 a year.

It is thought that half of single parents and two out of three working-age couples will be affected by the new system.

McDonnell said the system was “in shambles”.

“These are some of the poorest families in our communities and it’s just not acceptable,” he said. “We are moving toward the conclusion now that you can’t save the thing. It has got to go.”

Asked what Labour would replace Universal Credit with, McDonnell called for a cross-party debate and said it would consult widely.

Brought in by the former Work and Pensions Secretary Iain Duncan Smith, Universal Credit was designed to simplify the benefits system, but the benefit has been associated with a huge rise in the use of foodbanks.

McVey, on Monday, unveiled plans for a £39 million partnership with charity Citizens Advice to support applicants in getting their first payments on time.

Research by the Child Poverty Action Group in August warned that Universal Credit claimants in employment were facing cuts of more than £250 a month as a result of pay day coinciding with assessment periods.

Written by Andrew Coates

October 7, 2018 at 10:45 am

Poverty Crisis Worsened by Universal Credit.

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Image result for poverty Social Metrics Commission

” total number of people living in poverty is 14.2 million.”

Poverty, anybody could see with their own eyes, is growing.

I was struck, visiting my old homeland, Haringey, by this recently.

It was not so much that seeing the homeless people on the streets was a surprise – we have plenty in Ipswich. Though I must admit that, coming out of Wood Green Tube station, the sight of a geezer with a sleeping bag sprawled out in front of the ‘Spoons on Spouters’ Corner was unexpected.

It was that walking from there to Turnpike Lane most people looked, well, not well off.

Same pound shops, charity shops, though a Mall looked a bit more prosperous than ours.

This is the real London, not Made In Chelsea.

Bounds Green, where I grew up, is (wrote the Guardian in 2013 and it’s still true), is “ordinary north London, like wot even Muswell Hill used to be: an endangered species these days.”, was another destination on this tour.

On a  round circuit from the Tube to my old gaff (a short 15 minutes)  I came across at least 10 off-licences and newsagents/food stores selling cheap booze.

Encouraging to see that people still appreciate white cider and 9% lager, no “shops selling single-estate, organic, truffle-dusted flat whites”.

But then………..

This report, then, does not come out of the blue.

More than two million Brits at risk of falling into poverty, report warns

The UK Government has been urged to take action at the Budget in order to tackle Britain’s growing poverty crisis, in response to the publication of a new report which shows that 2.5million people are at risk of falling into poverty.

The Social Metrics Commission has published a new framework for measuring poverty in the UK, which takes into account a wider range of interplaying factors which cause people to fall into poverty – including material resources, the cost of disability, and the cost of childcare.

Sam Royston, director of policy and research at The Children’s Society, said: “While we would welcome these changes to how poverty is measured being included in official statistics, concrete action is needed to tackle the shameful scale of poverty among our children, with all the damage it can do to their wellbeing, education and life chances.”

The Commission found that more than one in ten (12.1%) of the total UK population (7.7million people) live in persistent poverty. While a further 2.5million people in the UK are less than 10% above the poverty line – meaning relatively small changes in their circumstances could see them fall below it.

Philippa Stroud, the commission’s chair, said: “We want to put poverty at the heart of government policymaking and ensure that the decisions that are made are genuinely made with the long term interests of those in poverty in mind.”

The UK Government abolished child poverty targets under the Welfare Reform and Work Act 2016 – a moved condemned by the SNP who have reintroduced them in Scotland and have called for their reintroduction across the UK.

These are the conclusions of the above report:

The SMC report, available here,  reveals numerous key findings and challenges. The total number of people living in poverty is 14.2 million with the composition of poverty moving towards a better identification of children (4.5 million) and working-age adults (8.4 million). The good news is the shift away from pensioner poverty with far fewer pensioners living in poverty following a significant reduction of poverty amongst pension age couples, over the last 15 years.

The report reveals that people with a disability are much more likely to be living in poverty than previously thought, with around half of the 14.2 million people in poverty living in families with a disabled person.

The report also reveals the persistence and depth of UK poverty. More than one in ten (12.1%) of the total UK population are in poverty now and have been in poverty for at least two of the previous three years. A further 2.5 million people live less than 10% above the poverty line and are close to falling below it with relatively small changes to their circumstances; and around 2.7 million people live less than 10% below it.

 SMC KEY FINDINGS

  1. 2 million people in the UK population live in poverty: 8.4 million working-age adults; 4.5 million children; and 1.4 million pension age adults.
  2. Over half of those in poverty (58.2%) also live in persistent poverty. This means that more than one in ten (7.7 million) of the total UK population are in poverty now and have been in poverty for at least two of the previous three years. Persistent poverty is highest in families more than 10% below the poverty line, in workless families and families where someone is disabled.
  3. People with a disability are much more likely to be living in poverty. Nearly half of the 14.2 million people in poverty live in families with a disabled person (6.9 million people equal to 48.3% of those in poverty). The SMC metric recognises the inescapable costs of disability, accounting for them alongside the value of disability benefits, to reflect the lived experience of living with a disability.
  4. Far fewer pensioners are living in poverty than previously thought, with a significant fall in pensioner poverty over the last 15 years. Poverty rates amongst pension-age adults have nearly halved since 2001, and have fallen to one in ten, a drop from 17% of the total population in poverty in 2001 to 11% in 2017. There are, however some pensioner groups still experiencing high levels of poverty. For example, the poverty rate for pensioners who do not own their own home is 34.2%.

You can only note that all this is about to get a lot lot worse:

The Universal Credit Rollout Will Cause Liverpool Untold Harm – The Government Must Pause And Rethink. 

Joe Anderson Mayor of Liverpool

Huffington Post.

In a city described by the Joseph Rowntree Trust as having the second worst affected in the country when it comes to ‘destitution,’ Liverpool needs Universal Credit like a hole in the head.

Nevertheless, from this week, the remaining parts of my city not already covered by UC will start being migrated across to the new benefit.

The dread I feel is because we know what happens next.

Already, we can see a spike in hardship and a rise in council tax arrears from those who have already transitioned to UC. Not to mention the snaking queues at foodbanks and the families struggling with things like school uniform costs.

Around 55,000 Liverpool households will eventually see their claim move to Universal Credit. So far, we estimate that up to 2,800 people in Liverpool are affected by changes in work allowances in Universal Credit, resulting in a loss of income to families of between £40 and £200 each month.

The Council’s various discretionary schemes, set up to protect people in hardship, made 13,700 awards last year at a cost of just under £2.7million. 71% of all Discretionary Housing Payments made in Liverpool are to help people who have been hit by the ‘under occupation penalty’ – or as we know it, the bedroom tax.

It’s so frustrating because as a council, we have one of the best records in the country when it comes to maintaining discretionary benefits for the poorest and most vulnerable in our city. We are left picking up the pieces from failed central government changes.

Despite losing two-thirds of our government funding since 2010 (£444million), we have stretched our finances as far as we can in order to preserve basic human dignity, but also because it makes sense to address problems upstream before they swim downstream and cost even more to fix.

This is often down to the scandalous time lag between applying for Universal Credit and receiving a first payment. This is often as long as twelve weeks, with the National Audit Office recently reporting that four in ten applicants had experienced financial difficulties while transitioning across to UC, while one in five were not paid on time.

So my message to ministers is simple: pause this roll-out and listen to those of us on the frontline. It’s possible to reform Universal Credit to keep the original intention of simplifying the benefits system without deliberately causing misery for tens of thousands of people in my city and millions more across the country.

Drop the ideology for a start. There is no good reason to make desperate people wait for their benefits, simply because eight years ago Iain Duncan-Smith wanted to teach them budgeting skills. Pay up straightaway and take that terrible burden off the backs of some of the poorest people in our society.

Unnecessary delay simply throws vulnerably families into the clutches of payday lenders and loan sharks. This is a simple concession that Esther McVey could make that would transform the lives of millions of people for the better and show that the Department for Work and Pensions is listening to evidence about the ill-effects of UC.

I would also urge her to work with councils rather than ignoring us. Along with the voluntary sector, we are working to pick up the pieces of botched welfare changes. But give us the tools to do it. Provide ring-fenced funding so councils can create a local welfare scheme to address acute hardship.

But it’s also about practical steps, like understanding the system simply isn’t flexible enough for people on zero hours contracts and have no guarantees about their work situation from week to week. Also, the DWP could dramatically reduce the waiting time for connection to the DWP advice and information lines.

Before people in Liverpool are exposed to these poorly-conceived and badly implemented changes, I am asking Esther McVey to pause and #RethinkUC.

 

Written by Andrew Coates

September 18, 2018 at 9:23 am

All-digital Universal Credit system Creates Problems as DWP Goes Technology Tonto.

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Image result for universal credit GDS Verify online identity system problems

Problems with the all-digital Universal Credit system were flagged up in January by Computer Weekly,

Thousands of Universal Credit claimants unable to use Gov.uk Verify to apply for benefit

Government research shows that barely one-third of benefits claimants can successfully apply for new Universal Credit digital service using flagship online identity system.

In March the same journal said,

Universal Credit project warned over Gov.uk Verify performance in 2015

Government project management experts warned as long ago as 2015 that a problem with GDS’s Verify online identity system could undermine the Universal Credit business plan.

In June Computer Weekly reported,

The Government Digital Service (GDS) has lost responsibility for digital identity policy, with the Department for Digital, Culture, Media and Sport (DCMS) taking over.

There are still problems for users as the comments here indicate all too well.

Neil says:

You have to reclaim Universal Credit digitally, online. So basically you have to create a Universal Credit account with a user name, password, and and answers to a couple of security question (one of which is asked when you try to log on). You will be asked how you want your notifications to be sent to you, email or phone, and will have to confirm you email address (by clicking a link of an email the DWP sends you) or using a code sent to you phone as a text message. After that you have to go through the usual routine about rent, savings etc. That bit of it is quite simple really. You then have to telephone a call centre to make an appointment to go back to the Jobcentre to produce evidence to corroborate your identity, although if you’re lucky you might do all of this with one visit. If all goes well you will then get a message sent to you telling you that you’ve been transferred and are fully on the full digital service.

But,

It is a bit but what got me is having to take in documents to prove my identity again! I’ve been visiting the Jobcentre and claiming Universal Credit for months, had already proven my identity before, and then had to do it again when switching from the live system to the digital system. That’s proper nuts. But then most things are a bit mental when it comes to UC.

 

It’s not just Verification: the DWP is going Technology Tonto!

The ‘I’ reports, Serina Sandhu Friday September 14th

A Universal Credit claimant has alleged that his local Jobcentre ordered him to purchase a smartphone for his job search because his basic model was not good enough.

Arthur Chappell, who is unemployed, argued that his existing phone allowed him to answer calls and receive texts from employers and that he had a tablet with WiFi access to show the Jobcentre he was actively seeking work.

However an adviser told him he needed to own a smartphone by the end of September in time for his next session. The 56-year-old called the request “offensive… on many levels”.

With people starving and [dying of] suicide over the Universal Credit changes, forcing us to use credit-hungry phones is really beyond the pale,” he told i.

Basic phone is ‘good enough’

On 6 September, Mr Chappell attended his monthly meeting at the Friargate Jobcentre but was instead informed that he would be signed on to the Universal Credit “full service,” following the system’s roll-out in Preston. He was told he would need to bring his iPhone to the next briefing on 27 September.

Jobcentre offers to pay for phone

In a statement given to i, a Department for Work and Pensions spokesman said: “There is no requirement for Universal Credit (UC) claimants to own a mobile phone, nor is a mobile phone required for a UC claim. Computers and free WiFi are available in all Jobcentres to enable claimants to maintain their accounts.”

However Mr Chappell claims he was told in no uncertain terms that he needed a smartphone. When he raised that he could not afford one, the adviser told him they would pay £40 towards the device and specifically directed him to the Argos website.

One model can be found for £34.99. “He said they pay for the phone but not for the top-ups,” said Mr Chappell, who fears a smartphone will need topping up more frequently. “It’s obviously [going to cost] more than what my current arrangement is because I think they actually want me to have internet access on it as well which will obviously strain the budget a lot more than the unit I’m using now.”

The next passage is fair comment,

Mr Chappell said it felt as though the adviser wanted him to be able to search for a job round-the-clock with a smartphone.

“The official reply [from the DWP] seems to be about what they expect claimants to bring to the Universal Credit registration meeting while my adviser’s demand is going beyond the registration to a device he expects me to have on me 24/7.”

“It has been a standing rule that we should spend 35 hours a week job-seeking, though finding that many jobs in your skills range is extremely difficult. Having us contactable 24/7 by iPhone exceeds [this] boundary.

“Sleep, shower, being in a cinema, eating lunch, all go out the window if that all important call comes through. It is extremely intrusive and invasive. This isn’t remotely about improving our job searching. It’s about policing every move we make.

And,

Mr Chappell said he considered the adviser’s request “highly bogus”.

He also admitted it had initially caused him concern. “I might get sanctioned and that will cause me big problems. It’s only now they’re making this transition [to full Universal Credit] that I feel threatened by it all.”

He worried about how the public would perceive Universal Credit claimants with smartphones. “It is also likely to make more people look on the unemployed as scroungers. ‘Ooh, look at them walking round with the best [smartphones].’ That we didn’t pay for them and in some cases don’t want them is beside the point. We will get stigmatised.”

Having a smartphone paid for seemed unnecessary when some claimants, including himself at times, could not afford the basics and used food banks, he added.

Mr Chappell, who hopes to be working again by mid-November and is due to have his book on pub signs published in April, said he was managing at the moment but having to fork out for more credit for a new phone could mean he had to use food banks again. He said he would be sending a letter of complaint to the DWP and would hold off purchasing the phone until he heard back.

Written by Andrew Coates

September 15, 2018 at 11:02 am

Labour Needs Policies to Replace Universal Credit to Rebuild the Welfare State.

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Image result for mark Serwotka speech

“We need to see a Corbyn government commit to overturn decades of attacks on and ridicule of benefits claimants and return to the founding principles of a properly-resourced welfare state”  PCS General Secretary Mark Serwotka.

A number of our commentators have been, rightly, dissatisfied with the lack of a strong Labour voice, above all, Labour Party Policy, on welfare issues.

These range from silence on the benefit freeze (which needs to be ended), to an alternative to the Universal Credit car-crash.

There remains talk about a pause to implementing Universal Credit (a 2017 petition – a bit late now).

The acting Shadow Secretary for Work and Pensions, Margaret Greenwood, seems to have said little since just before the long summer holidays, apart from continuing to criticise government policies (“Delays in payments of Universal Credit are sending victims back to abusive partners – Margaret Greenwood.” August the 1st).

Basic Income aside what are Labour policies, from funding to changing the whole miserable punitive structure of the benefit system?

What are Labour’s plans to fix Universal Credit?

No straightforward ideas seem available.

Although there is this:  John McDonnell attacks Tory disability cuts and vows to address suicides linked to welfare reforms.  Kitty S Jones

This suggested Contemporary Motion for the coming Labour Conference  (from the Clarion site) suggests some starting points:

SUPPORTING THOSE IN NEED: REBUILD THE WELFARE STATE

We note
• the 8 August ONS figures showing that improvement in life expectancy has virtually stopped.
• the 6 August Child Poverty Action Group report on how Universal Credit’s flaws are leading to low-income families arbitrarily losing as much as £258 a month!
• the July Resolution Foundation figures showing the poorest third’s incomes fell last year, even before inflation.

The situation is shameful. We must reverse the drive, accelerating since 2010, to make welfare less and less about supporting those in need and more and more stingy, punitive and coercive.

Neither Universal Credit nor the existing framework (JSA, ESA, etc) are good. We must redesign benefits in close consultation with recipients, workers and their organisations.

This must be part of a wider anti-poverty program, with a goal that by the end of our first term foodbanks disappear.

We commit to
1. Ending the benefit freeze; uprating with inflation or earnings, whichever is higher.
2. Reversing all cuts/reductions; increasing benefits to afford a comfortable, not minimum, income.
3. Entitlement conditions that are straightforward, inclusive and available to all, including migrants (scrap ‘No recourse to public funds’).
4. Paying benefits for all children and dependents.
5. Abolishing all sanctions.
6. Scrapping Work Capability and similar assessments.
7. Relevant health issues being addressed using medical professionals with appropriate knowledge of individuals’ conditions and impairments.
8. Delivery by paid public servants via networks accessible to everyone, including provision of face-to-face support for all who need it. Reversing DWP cuts and privatisation.

Whether this gets onto the agenda or not there are people calling for some serious policies.

‘Labour must return to the founding principles of the welfare state’, says union boss

Welfare Weekly reports (12th of September),

Labour must commit to over-turning years of cuts to social security benefits and end the stigmatisation of benefit claimants seen under Tony Blair and the current Tory Government, PCS General Secretary Mark Serwotka said at a TUC Congress fringe meeting on Tuesday.

Mark told the meeting held in Manchester that the current benefits system in “broken” and “causing much difficulty for people claiming benefits”, whilst adding the Tory Government is seeking to cause divisions between “people in work, those who work in DWP and those in receipt of benefits”.

He added that a future Corbyn-led Labour Government must “return to the founding principles of the welfare state that it is for all people and provide dignity for all people at all stages of their lives”.

Mark also said the rollout of Universal Credit needs to he halted because the new system is in chaos and there aren’t enough DWP staff to deliver it.

“We need to stop a system that is causing so much difficulty for people claiming benefits,” he said. “The benefits system is broken, under-resourced, inadequate and understaffed.”

He added: “The starting point of the debate on welfare needs to be the founding principles of the welfare state that it is for all people and provide dignity for all people at all stages of their lives.

Mark continued: “We had a system that wasn’t perfect but gave people money when they needed it. Almost exclusively people claim benefits because of a crisis out of their control.£

Mark said that ‘New Labour’ took stigmatisation of welfare claimants to new levels and there was a lot of work to do to put that right. He said we need to see some radical welfare polices from a future Labour government that gives everyone a welfare system that we can all be proud of.

£34bn has been cut from the welfare budget since 2012, with a further £12bn of cuts planned before 2022.

“More money is needed as we have some of the lowest rates of benefits in Western Europe,” said Mark.

PCS DWP Group assistant secretary Steve Swainton said: “Universal Credit has been understaffed and underfunded at every stage. Our members are doing everything they can do to mitigate the worst of the system but we need a radical redesign.”

Colin Hampton, co-ordinator of the Derbyshire Unemployed Workers’ Centres (DUWC), told the meeting: “If we can spend money on bombing people we can spend money on putting people into work.

“The benefits issue is fundamental to the trade union movement. What happens to people on benefits affects what happens to people in the workplace and wider society.”

“We need to restore dignity and respect to people in and out of work”, he added.

The PCS site carries further details, including this:

Written by Andrew Coates

September 12, 2018 at 10:46 am

Crunch Time for Failing Universal Credit Scheme.

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Please Verify £3 Billion Extra Funding.

Theresa May has been told that she must inject nearly £3 billion into controversial benefit reforms as the policy reaches its most delicate stage in parliament.

MPs will be asked this autumn to approve the extension of universal credit payments to 2.1 million less well-off families who at present claim income-linked benefits. These include about one million families in which parents work in low-paid jobs. This group of people who are “just about managing” have previously been identified by the prime minister as her political priority.

The Times.

Government faces crunch decisions this Autumn as Universal Credit enters its ‘most difficult phase’.

The Resolution Foundation says,

The government must get the final phase of Universal Credit (UC) right this Autumn if it’s to reboot the reputation of its flagship welfare reform programme and support millions of low income families, according to a new report published today by the Resolution Foundation.

The benefits of moving focuses on the final, and in many ways most difficult, phase of UC, which involves moving 2.1 million families currently claiming benefits (such as tax credits and Employment Support Allowance) onto the new system. This includes around a million ‘just about managing’ families who are in work.

The details of the crucial final phase are due to be decided upon in parliament this Autumn and rolled out from July 2019 onwards. This ‘managed migration’ is the most difficult phase yet for UC because it involves people that have not chosen to apply for the new benefit.

The report notes that the principle of Universal Credit has consistently enjoyed cross-party support on the basis of two key advantages – improved financial incentives and higher-take up for the simplified benefit.

However, the first advantage has been undermined by cuts in Summer Budget 2015 that reduced the generosity of the scheme. The small print of UC’s design also means that the financial incentives for single parents and second earners to enter and progress in work are weak.

The Foundation says that upholding the second key advantage of UC – encouraging higher take-up – should therefore be a top priority for government as it seeks parliamentary approval for the legal rules that will govern the upcoming managed migration this Autumn. It argues that the potential gains from higher take-up are significant, with the OBR estimating that 700,000 families could gain around £2.9bn in total.

The benefits of moving says that a smooth final phase of the rollout, which prevents cash losses and encourages more families to claim their full benefit entitlement, could help to reboot the reputation of UC. However, it warns that further design flaws – which need to be resolved this Autumn – risk further undermining the roll-out and could put people off claiming UC altogether.

The Foundation’s recommendations to make a success of the most difficult phase of UC include:

  • Speeding up UC payments. The government should show that 90 per cent of new claims to UC are paid on time and in full before it rolls out the managed migration process. In February 2018, 83 per cent of claims were paid in full and on time, with little improvement since June 2017.
  • Reducing financial risks. The government should ensure that the state, rather than individuals, bears any financial risk that may arise from teething problems in the managed migration phase. No existing claim should be closed until a new UC claim is in place, so that people don’t lose support altogether.
  • Boosting financial incentives. The government should introduce an earnings disregard for those being forced to move onto UC to prevent claimants with volatile earnings (such as self-employed workers or those on zero-hours contracts), or who have a short-term boost in pay, from losing out financially from the transition. More broadly, the government should improve incentives by increasing single parent work allowances and introducing one for second earners.

David Finch, Senior Economic Analyst at the Resolution Foundation, said:

“Universal Credit enjoyed almost universal support when it was first announced. But its reputation has been undermined in recent years by significant cuts and payment delays that have left too many claimants in difficult financial straits.

“But despite these problems, the rollout of Universal Credit is still going ahead and is in fact about to enter its most difficult phase as two million families already claiming benefits start to be moved onto the new system – including one million just about managing families.

“Get this final phase of the rollout right and it could help to reboot Universal Credit’s reputation, but get things wrong and UC’s reputation risks taking another battering, and worryingly some families could be put off claiming UC altogether.”

 

Calls for further delays to fix flaws before million working families move on to benefit

Failure to manage the critical next phase of universal credit, during which about a million low-income working families will be moved on to the benefit, could sink the controversial welfare programme altogether, experts have warned.

The Resolution Foundation says ministers should consider further delays to the rollout of the benefit so that design flaws can be fixed and further safeguards put in place to protect claimants from risks of financial hardship.

There is concern that universal credit could prove politically explosive for ministers when the large cohort of “just-about-managing” working families in receipt of tax credits are subjected to its well-documented problems with payment delays.

More than 2 million households – including about a million working families, as well as 750,000 disabled and ill claimants unable to work – will be transferred to universal credit under so-called “managed migration” over three years from next July.

Meanwhile:

‘Debt, tears and suicidal thoughts’: This is the reality of universal credit in Cardiff

Carer Vivien Soloman, 60, from Tremorfa, has been told she cannot receive anything as her partner’s pension counts towards the maximum household income they’re entitled to under Universal Credit.

Despite being signed off work after breaking her wrist in April last year and suffering from stress, she is now without any income.In six years time, when she turns 66, she will be entitled to receive her own state pension yet under Universal Credit she is not entitled to any benefits.

Vivien recently received a letter from her housing association telling her she is nearly £1,000 in arrears and faces being forced out of her home after 24 years.She and her partner have seen their council tax bills jumped up by over double – rocketing to over £90 a month when she used to pay £24 a month.

That’s on top of a maxed out overdraft of £2,000, with bank charges of £35 a month, paying her sister £30 a month for credit card debt and still paying for her father’s funeral after he died in April.With no savings, she can’t afford to pay it back, and it’s making her have suicidal thoughts.Vivien, whose partner is a retired painter and decorator, feels trapped.

Written by Andrew Coates

September 8, 2018 at 11:45 am