Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Posts Tagged ‘David Gauke

Universal Credit is Working – DWP.

with 66 comments

Image result for universal credit cartoon david Gauke

Look Upon My Works Ye Mighty, and Tremble!

Latest on the sorry saga of Universal Credit.

Full extent of Universal Credit pain in East Lothian is revealed in shocking new reports.

East Lothian Courier,

THE full impact of Universal Credit in East Lothian has been laid bare in two new reports.

A survey carried out by East Lothian Council’s revenues and welfare support service shows the significant level of negative impact that Universal Credit (UC) is having on county recipients.

While new research carried out by the Citizens Advice Bureau in Musselburgh and Haddington has highlighted how the scheme is having a severe impact on residents.

A total of 209 people responded to the council’s survey, which showed only one quarter managed financially while waiting for their first payment.

Waiting time for that first payment was about six to eight weeks for 82 per cent of respondents, with a further 18 per cent having to hold on for longer than that.

Councillor Norman Hampshire, East Lothian Council deputy leader, said: “This research provides a shocking insight into the impact of Universal Credit on people in East Lothian. It shows that UC affects many people with ill health and disability and that almost half of all claimants need to be referred for money or debt advice.

“East Lothian Council continues to work with its partners to mitigate the impact of Universal Credit on local people and at the same time continue to campaign for improvements and changes with the Scottish and Westminster Governments.”

The survey also found that 53 per cent of respondents required a loan from their families to tide them over; 28 per cent had to get benefit advance; 10 per cent had to apply to the Scottish Welfare Fund and 14 per cent went to the foodbank.

Then there’s this:

Anyone who’s ever worked with the benefit system knows that the principle of amalgamating our overly bureaucratic social security system (where Housing Benefit is administered by your local council, tax credits by HMRC and Job Seekers Allowance by the DWP) is a good thing. Universal Credit – where benefits are combined – therefore sounds like a great idea.

But at Gingerbread, we’re seeing first-hand, through the calls to our helpline and our research, that Universal Credit is too ‘universal’ in practice. It is ignoring the needs of single parents bringing up children on their own. In the last few months I have travelled across England to interview single parents about their experience of Universal Credit and the impact it is having on them and their children.

According to the most recent DWP statistics, there are currently over 65,000 single parents receiving Universal Credit. This system is simply not ready to take on the complexity of their situations.

….

And this from the Guardian.

‘In a year, not one payment correct’: a council tenant on the misery of universal credit

The government has been warned by councils, charities and now even its own backbenchers that universal credit is a social policy disaster. But how does it feel to be on the receiving end of this controversial benefits overhaul?

In the video, visually impaired council tenant Jo King, who lives on Newcastle’s Newbiggin Hall Estate, talks about dealing with delays and miscalculations ever since she was moved on to universal credit over a year ago. She explains how she has twice been left without any benefits at all. In order to survive, she was forced to stop paying her carer and request emergency food parcels.

Let’s not forget this, if you have a problem: Phone them!

Contact Universal Credit

  1. It’s easiest to use your online journal.
  2. Or, you can call 0345 600 4272 Monday to Friday, 8am to 6pm (closed on bank holidays).

Cost of calls

Calls to 03 numbers may be included in your contract. If not, calls cost up to 45p a minute from mobiles and up to 12p a minute from landlines. If you’re unsure, check with your provider.

If that’s too pricey adapt and update this top-tip from the reputable advisers of Viz.

Image result for Viz Top tip save money phone calls

If you have connection problems try this:

Image result for Viz Top tip save money phone calls

Meanwhile the Chronicle has the scoop of the year.

All of the above is Fake News!

A further Hat-tip to those douty chaps and chapettes in the DWP!

Universal Credit is working and, despite calls for the controversial policy to be put on hold, it’s roll out is to continue.

That’s according to the Department for Work and Pensions in response to questions we put to it as increasing criticism of it leading 12 Conservative MPs to call for it to be put on hold.

The Tory flagship reform of the benefits system, rolling together six benefits (including unemployment benefit, tax credits and housing benefit) into one, online-only system, has been piloted in Newcastle .

However, due to late payments it has seen recipients needing to take out loans to feed themselves and also caused rent arrears.

Here is the DWP’s response to our questions in full.

1. Universal Credit has been characterised in many quarters as a failure so far. Do you think that’s fair?

A DWP spokesman said: “Universal Credit lies at the heart of our commitment to help people improve their lives and raise their incomes. It provides additional, tailored support to help people move into work and stop claiming benefits altogether.

“And it’s working. With Universal Credit, people are moving into work faster and staying in work longer than under the old system.

“Universal Credit is already in every Jobcentre for single claimants, and we are rolling it out to a wider range of people in a safe and controlled way.”

2. The biggest issue is the delay in the first payment which is often six weeks while 10 and 12 week delays are not uncommon. What is being done about this?

The DWP spokesperson said that if someone cannot wait for a first payment because they are in financial need, we want to make sure they can claim an advance payment as quickly as possible. Once we know they are entitled to an advance it is paid within three working days. If someone is in urgent need a payment can be made on the same day.

3. And what about problems of late payments in general?

The DWP spokesperson said its latest research shows that around 80% of all new claims were paid in full and on time. In June 2017, 92% of all claimants received their full payment on time and the trend is improving.

The DWP said that when new claims are not paid on time, it is estimated that two-thirds have an outstanding verification issue, such as providing bank statements, evidence of childcare costs, or proof of rent. Other times it’s because a claimant has not signed their claimant commitment.

4. In Newcastle it has been reported that 80% of council tenants on Universal Credit are in arrears? Do you accept that figure. If not, what is your figure?

The DWP said it could not speak about specific centres.

However the spokesperson said Universal Credit gives people control over their finances, and paying their own rent is an important part of this – just like someone in work would do.

5. There were calls among even a number of Conservative MPs for the roll out to be delayed. Why is the roll out going ahead anyway?

The DWP spokesperson said this was a political question which it couldn’t address and referred us to the speech at the Conservative party conference in Manchester.

At it Work and Pensions Secretary David Gauke said he recognised concerns over prolonged waiting periods. He said people in hardship will now be able to have their payments ‘fast tracked’ – meaning they’d get a payment within five days – or on the same day in emergency cases.

But he said the system’s roll-out would go ahead as planned, despite calls for a delay until all issues – including problems with the Universal Credit helpline are addressed.

Advertisements

Written by Andrew Coates

October 6, 2017 at 10:37 am

Universal Credit Introduction to Continue as Gaucke Eyes Chancellor’s Jobs.

with 163 comments

Image result for david gauke caricature

From Springboard of  Universal Credit to Chancellor of the Exchequer?

Yesterday:

David Gauke Reveals He Wants To Be Chancellor Of The Exchequer

The Huffington Post continues:

But Tory cabinet minister plays down idea he could become prime minister.

It was expected that he is as deaf as doorpost to all the misery he’s left in his wake, so no surprise to see this:

Today:

Universal credit rollout will go ahead despite Tory MPs’ call for delay

Reports  the Guardian.

Work and pensions secretary David Gauke confirms introduction of controversial benefit will continue as planned.

The government is to press ahead with its rollout of universal credit, the work and pensions secretary has confirmed, despite a last-minute appeal from Tory backbenchers for a delay.

More than a dozen Conservative MPs had raised concerns with David Gauke’s department that claimants were being forced to use food banks because of the mandatory six-week wait to receive money.

On Monday, the MP who led the plea, Heidi Allen, appealed directly to Theresa May to intervene.

But in his speech to the Conservative party conference in Manchester, Gauke praised the controversial system, which is being gradually introduced around the country.

“Universal credit is working,” he said. “So I can confirm that the rollout will continue, and to the planned timetable.

“We’re not going to rush things; it is more important to get this right than to do this quickly, and this won’t be completed until 2022. But across the country, we will continue to transform our welfare system to further support those who aspire to work.”

Gauke said the government would be “refreshing the guidance” to staff at the Department for Work and Pensions (DWP) over the possibility of giving advance payments to claimants in difficulty.

“Claimants who want an advance payment will not have to wait six weeks, they will receive this advance within five working days,” Gauke said. “And if someone is in immediate need, then we fast-track the payment, meaning they will receive it on the same day.”

Debbie Abrahams, the shadow work and pensions secretary, condemned the confirmation of the rollout, saying Gauke “should immediately end the misery caused by the six-week wait for payment of universal credit”.

Charities and campaign groups also expressed concern. Child Poverty Action Group said it welcomed the government being more proactive on advance payments, but its chief executive, Alison Garnham, said: “Given the serious and wide-ranging concerns about nearly every aspect of universal credit, we had hoped for more on how the government plans to address the funding, policy design and administrative problems plaguing universal credit before it is rolled out to families.”

Meanwhile: Theresa May asked about woman who has 4p to her name due to Universal Credit.

Department for Work and Pensions data shows that 42 per cent of families in arrears under Universal Credit said it was due to the waiting time to receive payment, support being delayed or stopped, or administrative errors in the system.

From the Independent.

 

Written by Andrew Coates

October 2, 2017 at 3:18 pm

Speaking out on Universal Credit Disaster.

with 115 comments

Image result for universal credit

 

Well we did, finally find one Labour politician speaking about Universal Credit this week.

Newcastle was chosen for an experiment with Universal Credit and it was a disaster

Chronicle. 

Leader of Newcastle City Council says the rest of the country will be in for a shock when Universal Credit is rolled out

And he said the rest of the country would be “in for a shock” when Universal Credit is rolled out across the rest of the country.

Speaking at an event during Labour’s annual conference in Brighton, council leader Nick Forbes said most people on Universal Credit in Newcastle were behind on their rent payments.

And in some cases this put them at risk of becoming homeless.

Universal Credit is a new benefit created by the Government to replace a range of existing payments including housing benefit.

It has been introduced gradually, with some places moving onto the new system before others.

Mr Forbes, who is also leader of the Labour group in the Local Government Association, said: “We are the first whole city to be a pilot area for the rollout of Universal Credit.

“And if Universal Credit is rolled out in the same way as it’s affected my city, the country is in for a hell of a shock.

“Because we’ve found that the vast majority of people on Universal Credit in Newcastle are in rent arrears.

“And if the are in rent areas in the social rented sector then we can deal with that, because we can work with them and provide them with support.

“But if they are in rent arears of sometimes 16 to 18 weeks in the private rented sector, that is causing havoc with homelessness and making sure that people feel secure in their own homes.”

Your Homes Newcastle, which manages homes on behalf of Newcastle City Council, told an inquiry by MPs that it was helping struggling claimants to try to prevent them becoming homeless.

Donna Gallagher, Universal Credit Implementation Manager at Your Homes Newcastle, highlighted the difficulties as she gave evidence to the Commons Work and Pensions Committee at a hearing in Westminster.

She said: “In terms of rent arrears, we’ve got over £1.1m additional rent arrears as a result of the cohort, which is just shy of 3,000 that we know about, that is claiming Universal Credit full service.”

Newcastle City Council said delays in sending the first payment to claimants was “frequently referred to as a fundamental problem with Universal Credit”.

In a written submission to the inquiry, the council said: “We think that Universal Credit can place some vulnerable residents at risk of destitution and homelessness.”

Just out….Eastern Daily Press (Principally Norfolk).

The EDP says… Universal Credit must be fixed before roll-out continues

Universal Credit has led to people falling into debt as they wait weeks for their first payments. 

It is right for the government to slowly roll out dramatic changes such as universal credit.

But when problems with it are exposed in that gradual introduction the government must stop and listen.

The criticisms of this benefit change are not coming from one political party but from a range of MPs, tenants, landlords and charities.

Those affected by the reform are best placed to say whether it is working – not a civil servant in Whitehall.

It is unusual for Citizens Advice to take such a strong position on government welfare changes as it does in today’s article.

We have seen evidence from Great Yarmouth, where it was introduced last spring, that universal credit in its current form is causing huge problems.

People in need of benefits can not wait a minimum of six weeks for payment. Asking them to wait that length of time causes added misery for those already in a desperate situation.

Universal credit should be there to help them, not plunge them into rent arrears.

It is also very worrying that landlords are refusing to take tenants on universal credit. This again adds to the problems faced by those who have just lost jobs.

Before it is introduced anywhere else delays around paying it must be fixed.

When problems with a system have been exposed, it is irresponsible of the government to continue regardless.

End the Benefit Freeze!

Written by Andrew Coates

September 28, 2017 at 2:54 pm

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

with 84 comments

Image result for david gauke

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

Pressure Grows on Universal Credit Rollout.

with 137 comments

Image result for universal credit cartoon

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

Today,Birmingham Mail.

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

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

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

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

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

But will Ministers listen?

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

Sunday:  The Observer view on the rollout of universal credit

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

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

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

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

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

….

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

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

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

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

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

But, as people here have pointed out…

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

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

Written by Andrew Coates

September 18, 2017 at 10:34 am

Millions Face Income Cut with Welfare Reform.

with 121 comments

Tories Welfare ‘Reform’. 

I thought a lot about this yesterday.

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

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

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

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

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

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

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

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

Guardian.

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

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

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

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

….

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

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

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

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

This is the Report:

The Cumulative Impact of Welfare Reform: A National Picture

Extracts,

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

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

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

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

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

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

Guardian

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

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

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

End the Benefit Freeze!

Written by Andrew Coates

September 11, 2017 at 10:36 am

​Inquiry into Universal Credit – or Yet Another Inquiry…

with 93 comments

Related image

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