Ipswich Unemployed Action.

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Archive for the ‘Welfare State’ Category

Tory Election News You Probably Will Not Hear.

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Image result for Tories and welfare Theresa May

Always Looking for New Targets to Reach.

Callous Tory government targeting the most vulnerable in society’.

Welfare Weekly. 20th of April

Conservatives accused of “targeting the most vulnerable in society” with “callous” cuts to Employment and Support Allowance.

Labour MP John Cruddas has accused the Tory government of “targeting the most vulnerable in society” with draconian welfare cuts, which he claims will have a big impact on his poorest Dagenham and Rainham constituents.

The “callous” Conservatives are cutting £30 a week in Employment and Support Allowance (ESA) payments for up to 500,000 sick and disabled people, reducing the amount they receive from £102.15 to just £73.10 – the same amount as Jobseeker’s Allowance (JSA) – despite those affected having been declared “unfit for work” following an assessment.

Bereaved families attend widowed parents’ allowance protest

Westminster demonstration takes place after change in rules dramatically reduces amount paid out after a death.

Widowed parents have attended a protest outside parliament after ministers pressed ahead with cuts that will leave some bereaved families more than £50,000 worse off.

One of the attendees said the decision, which came into place earlier this month, was equivalent to “punishing those who are living out most families’ worst nightmares”.

Scotland: Scottish Housing News.

Women ‘hardest hit’ by UK welfare cuts, says minister

Women are being unfairly impacted by recent UK government cuts to benefits and welfare eligibility, according to equalities secretary Angela Constance.

An estimated 20% of women’s income comes from benefits and child tax credits, compared to 10% of men’s. Meanwhile, of all in-work families receiving child tax credits, 87% of recipients were women. For in-work single parents, 94% of recipients were female.

By 2020-21 it is estimated around 50,000 Scottish households will be affected by the changes to child tax credits, which will be capped at two children. This means anyone with two children or more will no longer receive tax credits at the birth of their next child or subsequent children, unless an exception applies. The policy also affects those making a new Universal Credit claim.

In addition, new families will lose £545 a year from the removal of the ‘family element’ – an additional payment that applies to the birth of a first child.

Ms Constance said: “The latest welfare cuts are having a hugely damaging and disproportionate impact on women. It is, frankly, an appalling assault on the incomes of ordinary people already struggling to make ends meet.

“It is all the more concerning because in many households women are the primary, or even sole, carers of children – a massive step backwards for equality in our society.

“As usual we are seeing an alarming lack of understanding from the UK government about the impact of their ideologically-driven policies. This is most evident in the extremely ill-thought through ‘rape clause’, where – shockingly – women have to provide evidence they’ve been raped to access benefits.

“The UK government’s callous policies make our own efforts to eradicate child poverty even harder. We are spending some £100 million a year on welfare mitigation to protect the vulnerable and those on low incomes, which we would rather be investing in anti-poverty measures. The reality is we are tackling deep seated issues of inequality with one hand tied behind our back.

“These welfare cuts were also introduced at the same time the UK government reduced taxes for the most well off south of the border. In contrast, our approach to social security will be based on dignity and respect and listening to people’s views – that’s why we are recruiting 2,000 people to shape the new system through our Experience Panels.”

And just to cheer everybody up: from the Belfast Telegraph about our old friend, Universal Credit.

No Stormont deal could see welfare reform with hard edge

Without a deal to bring back devolution, the Assembly will be unable to bring in mitigation schemes to cushion the impact of the upheaval for vulnerable families and individuals.

Universal Credit, which replaces a number of major benefits, is to be rolled out across the province in just over four months.

If the Assembly is not restored in that time, Secretary of State James Brokenshire will be required to take unilateral action, that could bring the Government in for criticism from other parts of the UK if the mitigation measures are included.

Just over 18 months ago the DUP and Sinn Fein handed back responsibility for welfare to Westminster, after more than three years of deadlock over benefit reforms.

The result was the Northern Ireland Welfare Reform Act, which means the power to trigger Universal Credit changes is in place.

Around 300,000 households will be impacted, with official estimates that 126,000 will be worse off by an average of almost £40 a week.

A further 114,000 are expected to be an average of £29 better off a week, with 72,000 remaining unchanged.

The changes are to be phased in gradually across Northern Ireland staring with Limavady in September – if the current timetable can be adhered to – followed by Ballymoney, Magherafelt and Coleraine.

The full roll-out of the programme will take a year, finishing off with Cookstown, Ballynahinch and Newcastle by September of next year.

Universal Credit replaces a series of existing benefits including Jobseeker’s Allowance (JSA), Employment and Support Allowance (ESA), Income Support, Child Tax Credit and Working Tax Credit.

The Department for Communities, which is working with the Department for Work and Pensions in London following the handover of responsibilities, confirmed yesterday the Assembly had been expected to deal with legislation to extend mitigation payments central to the reforms here.

“Mitigation schemes are already in place for legacy benefits for example JSA and ESA. Further legislation will be required to extend these mitigation payments to Universal Credit,” a statement said.

“This legislation will be dealt with by the NI Assembly. If there was no return to devolved government then such legislation would be considered in line with whatever arrangements were put in place to deal with this and all other pending NI legislation.”

Writing in the Belfast Telegraph this month, benefits expert Professor Eileen Evason said more can be achieved through parties working together.

“What we have, limited as it is, is far in advance of what has been secured by other devolved governments and demonstrates what can be achieved through devolution when people work together,” she said.

Prof Evason, who chaired a Stormont working group charged with mitigating the impact of the reforms within the financial framework, added: “I am also very aware of the high level of social need that continues to scar so many households and communities and is most evident in the growing reliance on food banks.

“I have no doubt those working with the most vulnerable in our society are anxious to move forward, but here, as is the case on so many issues, it is difficult to see how progress can be made without resolution of the current political impasse.”

Belfast Telegraph

Written by Andrew Coates

April 21, 2017 at 12:13 pm

Calls to End Benefit Freeze.

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Image result for benefit freeze damian green

Furtive Looking Damian Green Under Pressure.

Chancellor Philip Hammond facing calls from own party to review four-year benefit freeze

reports the Independent.

This excellently researched report (which readers of the ‘I’ will have noted yesterday) is very welcome:

Exclusive: It comes after The Independent revealed earlier this month the Government had underestimated the severity of its four-year freeze on working-age benefits, with the cap now set to hit claimants by almost 50 per cent more than official estimates.

Chancellor Philip Hammond is facing calls from within his own party to review the four-year freeze on working-age benefits to alleviate the pressures on those with the lowest incomes in Britain.

It comes after The Independent revealed earlier this month the Government had grossly underestimated the severity of its four-year freeze on working-age benefits, with the cap now set to hit claimants by almost 50 per cent more than official estimates.

An analysis by the House of Commons Library showed that, due to rising inflation, the measure introduced last year is now expected to reduce support for those on low incomes by £13bn over the next four years, compared with the Government’s own forecast of £9bn.

Heidi Allen, a Conservative MP on the Work and Pensions Select Committee, told The Independent the Chancellor needed to look again at the policy.

“I see it principally because of Brexit that economically things were going to get turbulent, and that’s why we pushed so hard to get some money pumped back into universal credit, which as you’ll know we got a modest improvement on the taper rate – a couple of per cent,” she said.

“I remember saying it at the time: ‘We’re not through this yet’. If inflation picks up, people are going to be in trouble and that’s where we are.”

Asked whether she thought Mr Hammond should review the policy, Ms Allen replied: “I do.”

Ms Allen said the Chancellor has to look seriously at injecting money back either into the work allowances or the taper rates in universal credit in line with where inflation is heading. One possible solution would be redirecting the finances put into the raising of the tax threshold, she added.

“Otherwise while the raising of the tax threshold was great, it’s a bit of a headline because it affects absolutely everybody,” she said.

“It’s a pretty crude and blunt instrument in terms of having a positive impact on incomes because it doesn’t focus in on those who really need it.

We observe that inflation in the prices of basics is pretty visible, visit the supermarket for a start…

This is worth noting,

Debbie Abrahams, the shadow Work and Pensions Secretary, said the four-year freeze in social security payments, coupled with the increase in inflation, will “feel like a cut to families who are already struggling”.

“Millions of people who rely on tax credits, universal credit, employment and support allowance and other forms of social security will see their living standards fall even further. Many more children and disabled people will face poverty,” she added.

Ms Abrahams also said Jeremy Corbyn’s party would reverse the cuts to in-work support that “will see 2.5 million families worse off by an average of £2,100 a year”.

A Government spokesperson said: “By cutting taxes for millions of people, giving the lowest earners a pay rise with the National Living Wage, doubling free childcare for nearly 400,000 parents and freezing fuel duty, we are helping people who need it most.”

Written by Andrew Coates

April 18, 2017 at 10:00 am

From Benefit Cap to Universal Credit: Theresa May Spreads Misery.

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Image result for benefit cap campaign against

Last Night the BBC showed this programme:  BemThousands on 50p-a-week housing benefit, Panorama finds.

More than 7,500 households have lost their housing benefit and instead receive a nominal 50p a week because of the welfare cap, the BBC has found.

A Panorama survey of hundreds of councils shows at least 67,600 homes in England, Scotland and Wales have lost some money due to the policy.

The cap is £23,000 in London and £20,000 in the rest of the country.

The nominal amount is paid so that those households can claim access to an emergency fund if they need to.

They have to be in receipt of some housing benefit in order to be eligible to apply for discretionary housing payments, a special government fund set up for those particularly affected by the cap.

The cap is part of the government’s drive to get unemployed people back into employment by cutting out-of-work benefits.

The amount of money above the limit is taken from either housing benefit or Universal Credit.

The Mirror, a paper which has consistently stood up for us lot, reports on this,

Tories’ benefit cap leaves thousands of families left with just 50p a week for rent

People have been made homeless and separated from their children as a result of the new welfare rules, according to a BBC Panorama probe

And in a further story,

Unemployed mother-of-four receives just 50p A WEEK to cover rent after Tory housing benefit cap changes

Desperate Kim Carmichael was threatened with eviction at the start of the year and says her life has altered dramatically as a result of the government’s adjustments

They used to get £500 a week in benefits to look after their four children but their payments were cut by £120 in November under the changes.

They say their rent used to be covered by housing benefit but that has since been cut to the minimum amount.

Steve said: “Now it’s only 50p a week – so that’s £2 a month, which they may as well keep. It costs more to send a letter out.”

The family was threatened with eviction at the end of January because of their rent arrears.

They then got a payment from a special government fund set up to help those who have been affected by the cap.

But this payment also ran out at the end of March and they will now have to apply for more money. If they don’t get it, they could lose their home.

The government says the benefit cap tries to level up “the playing field between families who are in work and who are reliant on benefits.”

The misery the government is inflicting specifically through Universal Credit is spread wider.

Serious stories are appearing in the better regional papers.

This is from the Chronicle, Newcastle.

How much money do people claiming Universal Credit benefits actually get?

We look at how people live on the benefit, which has now been rolled out across Newcastle

Last week, we reported on Newcastle City Council’s fears over the impact of a new benefits system on some vulnerable people in the city.

The city is one of the first in the country where the Universal Credit system has been rolled out in full — but what does that actually mean for the people who rely on it?

The whole article is worth reading, but the concluding bit stands out,

According to DWP figures, in Newcastle there were just over 5,000 people claiming Universal Credit as of February 9.

Of these, the majority, around 2,717 were looking for work.

But 1,484 claimants were working.

On top of that, 488 people had no requirement to look for work, while a handful more were classed as “preparing for work” or “planning for work”.

But it’s not quite that simple

According to Donna, some people may be struggling to claim everything they’re entitled to.

One of the big problems is for those who’ve been used to claiming housing benefit, which goes directly to their landlords, and now have to pay themselves out of their monthly claim.

They may not have the right documents to show what they’re paying in rent – someone who signed a tenancy agreement ten years ago is unlikely to be paying the same amount now, for example.

Donna said: “Some people are putting themselves in financial hardship because they don’t know what they can claim. If you’re unsure, talk to your landlord.

On top of that, one of the major issues some claimants face is the up to six week wait before payments start – for people who’ve lost work and don’t have an alternative source of cash, this wait could prove a very difficult time, with people claiming food parcels or even racking up debts to tide them over.

Written by Andrew Coates

April 6, 2017 at 11:38 am

Tax Giveaway to Wealthy as Benefit changes ‘could push 200,000 children into poverty’.

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Image result for giveaway tax changes help rich osborne

Osborne’s Help the Rich Punish the Poor Policies Set to Get Worse.

Two stories, two worlds.

Sunday, the Observer.

Wealthy get 80% of rewards from tax and welfare changes introduced by George Osborne that begin to come into effect this week.

The richest will reap 80% of the rewards from the tax and benefit changes that start to come into effect this week, while the poorest will become worse off, according to detailed analysis by the Resolution Foundation.

The independent thinktank’s research shows that the effect of £2bn of income tax cuts and more than £1bn of welfare cuts will add up to a huge transfer of wealth from low- and middle-income households to richer ones.

The reforms, set in train by former chancellor George Osborne, run directly contrary to the political mantra of Theresa May, who has said she wants to govern in the interests of everyone and “not just the privileged few”.

The changes include raising the personal tax allowance from £11,000 to £11,500; lifting the threshold for higher-rate tax from £43,000 to £45,000; freezing all working-age benefits; removing the family element (£545) from tax credits and universal credit for new claims or births; and applying a two-child limit to new claims or births in the tax credit system.

David Finch, senior economic analyst at the Resolution Foundation, said: “The overall package amounts to a £1bn net giveaway from the public purse. But the skewed nature of this generosity means that better-off households will receive four-fifths of the gains, while the poorest third of households will be worse off overall.”

Finch said that reductions in the generosity of universal credit, which will have the effect of reducing work incentives, would affect relatively few families this year. But as millions more move on to the new system, the effects on the living standards of those on low incomes would become much clearer.

Today, from the BBC,

Benefit changes ‘could push 200,000 children into poverty’

Changes to benefit rules coming into force this week could push 200,000 more children into poverty, say campaigners.

From Thursday, payments for some benefits will be limited to the first two children in a family.

The Child Poverty Action Group and Institute for Public Policy Research say some families will be almost £3,000 a year worse off under the new rules.

Ministers say they are determined to tackle the root causes of disadvantage and make work pay.

The changes affect families who claim tax credits and Universal Credit – which is in the process of being rolled out and is due to replace tax credits completely by 2022.

The new rules mean that children born after Thursday 6 April into families where there are already two or more children will no longer be counted in benefit payments to their parents, under either tax credits or Universal Credit.

And from autumn 2018, families making new claims under Universal Credit will only receive payments for their first two children even if they were born before Thursday.

However, children already receiving Universal Credit or tax credit payments will not lose them for as long as their family’s existing claim continues.

And Child Benefit, which is separate, will be unaffected.

The latest official figures show that 872,000 families with more than two children were claiming tax credits in 2014-15.

And a similar number of families are likely to lose out under the changes, the researchers suggest.

In 2014-15, two thirds (65%) were working families and 68% had no more than three children, say the researchers.

Based on those figures, the researchers calculate that once the new policy is fully implemented an additional 100,000 adults and 200,000 children could face poverty.

 

Written by Andrew Coates

April 3, 2017 at 10:51 am

Job Centre Closures: Lobby Today.

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Image result for jobcentre closures

The PCS Union announces.

Ahead of PCS’ lobby of parliament on Tuesday (28 March) opposing DWP office closures, MPs, the Mayor of London Sadiq Khan and others have been highlighting the negative impact that these closures will have on staff, users and the local community. Find out how you can join the lobby.

PCS has arranged the speaker meeting and lobby as part of our campaign to oppose office closures to over 100 DWP offices, including 74 jobcentres, representing more than 10% of the total. This will lead to at least 750 job losses. DWP plans to replace staff they make redundant with new staff, at further cost to the taxpayer.

The lobby will start with a speaker meeting in parliament at 1pm followed by a lobby from 2-4 pm in committee room 10, Houses of Parliament (St Stephen’s Gate Entrance) Westminster, London, SW1A 0AA.

And: 

PCS general secretary Mark Serwotka has said of the plans: “Jobcentres provide a lifeline for unemployed people and forcing them to travel further is not only unfair, it undermines support to get them back to work.”

Staff will face job losses, and in some cases, unreasonable travel journeys to and from work. Those with caring responsibilities, childcare commitments and access requirements will be particularly disadvantaged. Staff losses are coming at a time when Universal Credit is being rolled out, hampered by delays, IT failures and backlogs. DWP could redeploy staff to Universal Credit where resources are needed.

In Glasgow 50% of DWP offices are targeted for closure in an area where unemployment is higher than the national average.

Staff in Bishop Auckland, one of the offices targeted for closure, also contribute more than £100,000 a year to local businesses.

In Llanelli, £500,000 could be lost annually to local traders if the closure of the benefits office goes ahead.

We share many of the concerns raised by Mayor of London, Sadiq Khan, who is “extremely concerned” by the plans and manner of consultation. The mayor has raised concerns with the minister for employment, Damian Hinds, including the impact of the closures, the lack of adequate time for consultation, the increased travel time and costs for users, the impact on disabled people, BAME communities and young people from low income families. The mayor states that “plans to close job centres…will hit the disadvantaged hardest”.

“Now, more than ever, the government should be focusing its efforts on creating new jobs and helping those most in need of support to access employment,” he said.

The government has not consulted claimants who use these job centres on the closure plans. Many are in areas of high unemployment and social deprivation. Disability claimants, staff/users with caring responsibilities and vulnerable users must be given due regard in terms of the equality impact assessment and the disadvantage that they will face if offices close or are relocated. Having to travel further as a result of these proposals also means some users are unfairly out of pocket and run the risk of being sanctioned for lateness. Equality impact assessments have not been carried out to assess the disadvantaged groups that will be hit by this campaign.

What you can do

Concerns have been raised by MPs in parliament and your local MP can also play a powerful role in this campaign; they need to hear from you to raise awareness and about the impact that this will have in the local community.  If you have never been to a lobby of parliament before, PCS will be on hand to support you on the day.

Make your voice heard – contact your MP now and arrange a meeting for 28 March.

Background Mirror:, 26th of January.

Reckless” plans to slash millions from the welfare department’s bill by shutting Jobcentres across the country have been revealed.

The Department for Work and Pensions today announced it wants to merge staff and facilities from 78 smaller Jobcentre Plus offices into larger ones.

It wants to move another 50 into council or other similar offices to create “one-stop shops”, and shut 27 back offices.

The DWP insisted the move – carried out to slash its bills by £180m a year – would employ “under-used” buildings more efficiently.

Written by Andrew Coates

March 28, 2017 at 11:52 am

Universal Credit Brings Hardship – Work and Pensions Committee.

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Related image

Damian Green DWP Minister (who?): Still on Holiday.

I, like many of us, am in two minds about posting this: Frank Field is pretty dodgy, and Pretty Dodgy is Frank Field.

But here goes.

This story follows this:

MPs launch investigation into ‘punishing’ Universal Credit rollout

Follows inquiry last year which congratulated Government on ‘revolutionary innovation’ Independent 23rd February.

DWP in denial about Universal Credit hardship, says Work and Pensions Committee.

From Welfare Weekly 16th of March.

Work and Pensions Committee Chair, Frank Field MP, says the DWP have their “head in the sand” about hardship caused by Universal Credit.

The Work and Pensions Committee has accused the government of having their “head in the sand” about problems with the roll-out of Universal Credit, which is replacing a number of existing benefits with one single monthly payment.

The committee says it has heard “compelling evidence” about “serious knock-on effects” caused by the roll-out of Universal Credit around the country, including rising rent arrears and problems resulting from “a built-in six-week delay” between someone applying for the new benefit and receiving th

Recent research warned the government’s flagship Universal Credit scheme is causing significant anxiety and leaving many claimants reliant on the generosity of food banks to get by.

A study commissioned by Community Housing Cymru (CHC) found that rent arrears among Welsh Universal Credit claimants was more than three-times higher than the UK average – £450 compared to £131.

Commenting on the research, Frank Field MP, chair of the Work and Pensions Committee said: “Huge delays in people receiving payments from universal credit have resulted in claimants falling into debt and rent arrears, caused health problems and led to many having to rely on food banks.”

He added: “It is bad enough that UC has a built-in six-week wait between someone applying and receiving their first payment, but we have heard that many have to wait much longer than this.

“The adverse impact on claimants, local authorities, landlords and charities is entirely disproportionate to the small numbers currently claiming UC, yet Lord Freud has told us he thinks it will take decades to optimise the system.

“We have therefore felt compelled to investigate UC yet again. We will examine what its impact is on claimants and those local bodies which deal with them, and what government needs to do to ease the pressure on those worst affected.”

Former Welfare Minister Lord Freud told the Committee in an evidence session that Universal Credit might take “decades to optimise”.

But despite mounting evidence that UC is causing severe hardship for many people, the Department for Work and Pensions (DWP) continues to claim that rent arrears associated with UC will be short-lived and should not present an insurmountable obstacle to landlords.

Frank Field said: “Despite a growing body of evidence about the very real hardship the rollout of Universal Credit is creating for some, often the most vulnerable, claimants – and the struggles it is creating for local authorities trying to fulfil their responsibilities – it is flabbergasting that the Government continues to keep its head in the sand.

“There is no urgency in the Government’s attempts to solve, for example, the incompatibility between Universal Credit and a council’s duties to those in emergency temporary accommodation.

“This is affecting some of society’s most vulnerable people, at a point of crisis, yet the Government appears unwilling to take the action it could to solve this and simply remove these people from the Universal Credit system.”

The Report cited above:

Tenants given a platform to voice their opinions on the impact of Universal Credit

The first-ever Welsh research report into the impact of Universal Credit (UC) from the tenants’ perspective will be launched in Cardiff today (Thursday, 9th March).

Community Housing Cymru (CHC), the membership body for Welsh housing associations, commissioned Cardiff Metropolitan University to carry out the research with Welsh social housing tenants as part of its Welfare Defence Programme.

Cardiff Metropolitan University worked with tenants by enabling them to design the research question and undertake the research themselves, using focus groups made up of their peers.The independent research, funded by the Oak Foundation, explores tenants’ experiences of UC, barriers to engaging with their landlord and solutions to overcome these barriers.

The report found that:

  • There can be 4-8 week delays in payments, causing significant anxiety and forcing several people to access food banks to get by.
  • Tenants often rely on their peers for support and information. A huge barrier for some tenants engaging with their landlord and the DWP was due to confidence ,literacy issues and the personal cost of contacting these organisations.
  •  Generic rent arrears letters were not seen as effective.
  • Participants wanted more communication between their landlord and the DWP as they had no way of knowing if rent increase charges had been taken into account as part of their new UC payment.

The UK average for rent arrears is £131. However, this more than trebles in Wales to £450 under UC which emphasises the importance of this piece of research.

Stuart Ropke, Chief Executive of Community Housing Cymru, welcomed the report’s findings. He said: “This report is the first of its kind about the impact of Universal Credit (UC) from tenants’ perspectives, uniquely undertaken by tenants themselves. CHC’s members are actively working to mitigate the impact of UC and, while it’s heartening to read the praise for support staff from tenants, there is a lot we can learn from this research.”

Stuart added: “UC has created a vacuum between tenants and landlords. Under the current system, many landlords do not know if their tenants are on UC and are therefore having to pay their rent themselves. They are often only alerted to the fact that they are on UC when they fall into arrears.

Paul Langley, Head of Business Development for CHC’s Your Benefits are Changing project added:‘We currently do not have automatic access to information about which tenants are on UC and we are working with the DWP on a solution to improve this. The landlord portal, once rolled out, will improve data sharing to enable a personalised approach which is essential to ensure that we support tenants moving on to UC.”

Amanda Protheroe, one of the report’s authors said: “Our hope is that this report reflects the experiences of tenants who are dealing with the issues around Universal Credit. Tenants were clear about issues and barriers to their communicating with both the DWP and their landlords but were most keen to discuss solutions. The overarching message was around the quality of relationships tenants had with these organisations with kindness being mentioned as something the tenants really valued.”

You can read the report here.

Written by Andrew Coates

March 17, 2017 at 2:23 pm

Budget’s Expected Impact on Welfare.

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Image result for budget box

 

Budget 2017 for benefits: what welfare changes is Philip Hammond planning? Everything we know so far about the Chancellor’s plans for the benefits system. ANOOSH CHAKELIAN New Statesman.

This timely article outline some very bad news:

The Chancellor Philip Hammond will announce changes to welfare when he delivers his Budget. What do we know?

How has Theresa May’s government approached welfare so far?

Outside No 10 on 13 July 2016, Theresa May put equality at the heart of her first statement as Prime Minister. She claimed that she would put herself, “squarely at the service of ordinary working-class people”. She dedicated her speech to those who, “can just about manage but you worry about the cost of living and getting your kids into a good school”, telling the nation: “If you’re just managing, I want to address you directly.”

This meant that progressives looked to the first Autumn Statement from her Chancellor Philip Hammond last year to see if she would turn her rhetoric into action.

There wasn’t much, however, for the “just about managing” (nicknamed “Jams”) when the new government announced its first plan for Britain’s finances. The Chancellor eased the planned cuts to Universal Credit slightly, by slowing the pace at which your benefits are reduced the higher above the allowance you earn. He said the welfare cap would remain, but promised there would be no more welfare cuts this parliament.

A four-year freeze on tax credits and benefits such as Jobseeker’s Allowance and income support has been in place since April 2016 last year, and £12bn worth of cuts to the welfare budget were planned for this parliament in the 2015 Tory manifesto pledge. The government wants to stick to making these savings. A £3bn-a-year reduction in the work allowance – the amount benefit claimants can earn before their benefits start being withdrawn – has only really been reduced by about £700m by Hammond.

Hammond inherited harsh welfare policies from George Osborne’s regime, whose austerity programme hit low-income households the hardest – cutting working-age benefits to add to the burden of wage stagnation and rising living costs. He’s not done much so far to ease this pain.

So what are they planning for the Budget?

We can’t expect a huge amount of easing up on benefit freezes in the coming Budget. Here’s what we’re likely to see:

Jobseeker’s Allowance freeze

This is an Osborne legacy, but the unemployment benefit will continue to be frozen at £57.90 a week for under-25s, and £73.10 for those who are 25 and older. Since April 2013, this went up 1 per cent a year. The freeze was announced in the 2015 budget, and came into force last year. Remember, the rate of inflation is increasing, so this could be a big squeeze in the next year.

(Note: This is beginning to really bite.)

No automatic entitlement to housing benefit

The government recently announced its plan to remove the entitlement to housing benefit for some 18-21 year olds. Centrepoint warns that this could lead to 9,000 young people being unable to access accommodation and at risk of homelessness. The Guardian suggests Hammond might u-turn on this.

(Note: Mean-spirited is the least of it. Expect more rough sleepers everywhere)

Child benefit freeze

Another continued freeze, at the existing rate of £20.70 a week for the first child and £13.70 for ensuing children. Again, inflation going up means this will feel increasingly tighter. Another part of the Osborne plan.

(Note: the plan to hit ordinary people.)

Child tax credit limited to two children

If you want to claim child tax credits for children born on or after 6 April 2017, you can only do so for two children. If you already claim them, your claims won’t be affected. You also won’t receive what’s known as the “family element” (around £40.40 a month) if your children are born after that date. This is another Osborne policy, announced in 2015 to start this year.

Universal Credit freeze

Universal Credit rates will be frozen for 2017-18. The Osborne plan was the cut the work allowance by £3bn each year – a plan Hammond slightly softened by reducing the taper rate in the Autumn Statement.

(Note: another kick in the face for the less well off, in work.)

So that’s a huge squeeze on living standards for May’s beloved “ordinary, working-class people” then?

As we already notice in our bills and shopping, this will hit us hard.

Hard up working families face a “double whammy” of benefits freezes and rising inflation to the tune of billions of pounds, a new study has warned. 

Analysis from thinktank the Resolution Foundation found that a total of £3.6bn will be taken from the worst off households by 2020 thanks to the freeze in tax credit and working age benefits.

Their calculations suggest a single earner family with two children could lose £680 a year once inflation is factored in.

The Foundation’s director, Torsten Bell, warned the Office for Budget Responsibility could revise up its inflation forecast to 2.6% for both this year and 2018.

That would see real pay falling by the end of this year as prices start to outstrip only modest wage growth.

“The effect of a renewed pay squeeze would be broadly felt across the population,” Mr Bell told the Guardian.

“But in many ways the worst affected group might be those ‘ordinary working families’ on lower incomes who will face a double whammy of lower pay growth and benefit cuts.”

 

Written by Andrew Coates

March 7, 2017 at 11:11 am