Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Posts Tagged ‘Debt

As One Britain One Nation Day Approaches Nearly Half Universal Credit Claimants Have Benefits Reduced.

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Strong Britain, Great Nation

One Britain One Nation Day is due to be celebrated in schools on Friday through the singing of a patriotic song.

Almost half of Universal Credit claimants are having their monthly benefits reduced

Mirror.

Almost half of Brits on Universal Credit are not getting the full benefit payment every month because they are paying back debts to the DWP.

Some 45% of all claims in February – 2.2million – had a deduction, meaning the claimant did not get their full entitlement that month.

Many were people who took out an advance from their own future benefits – to bridge the five-week wait for their first UC payment.

Some 49% of all deductions, worth £86million in February alone, were to pay back an advance.

The DWP claim there is nothing wrong with this, because advances mean people are being paid the same amount of benefits over a longer time.

But campaigners say the five-week wait must be scrapped, because many skint Brits have no choice but to borrow against their own future benefits.

Update, now Trending:

Written by Andrew Coates

June 23, 2021 at 1:36 pm

Reports Slams Rising Financial Difficulties for Universal Credit Claimants.

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Peterborough social housing tenants buried in debt by Universal Credit,  investigation reveals | Peterborough Telegraph

This story has appeared in a number of news outlets.

Almost half of Universal Credit claimants ‘behind on bills’ before pandemic struck

Cambridgeshire Live.

Around 46 per cent of people receiving the six-in-one benefit were not up to date with bills by last November, according to analysis by a think tank.

According to a new report by think tank Bright Blue released this week, 46 per cent of Universal Credit claimants were struggling to pay household bills and were still not to up-to-date by November.

As the name suggests this is a Tory think tank, “ the independent think tank for liberal conservatism “a party run by chancers and people who with a less trusted reputation than Trotter Enterprises,

Bright Blue: Almost half of long-term Universal Credit claimants had fallen behind on household bills during the Covid-19 pandemic

The main findings from this analysis are:

  • A significant minority of both existing UC and new UC households reported not being up to date with household bill payments throughout the pandemic. Among existing UC claimants, this rose from 25% in 2018-19 to up to 38% in March 2021, peaking at 46% in November 2020. Similarly, 32% of new UC claimants reported not being up to date with at least some household bills near the start of the pandemic in May 2020, before declining to a low of 17% in March 2021, indicating that new UC claimants were less likely to face this specific financial challenge as the pandemic continued. These compare to just 5% of non-UC respondents in 2018-19, 6% in May 2020 and 4% in March 2021.The difference between existing UC claimants and non-UC respondents reporting not being up to date with at least some household bill payment rose by 14 percentage points between before the pandemic (2018-19) and March 2021.
  • A significant minority of both existing UC and new UC households also reported not being up to date on housing payments, such as rent or mortgage payments, during the pandemic. For existing UC claimants, between 26% reported facing this financial challenge in November 2020, before falling to 18% in March 2021. Similarly, 16% of new UC claimants in May 2020 and 23% in July 2020 report not being up to date with housing payments, falling to 11% in March 2021. In contrast, only 7% of non-UC respondents in 2018-19 reported falling behind on housing payments, with no increase beyond that during the pandemic. 
  • Existing UC claimants were more likely to face a worsening than an improving level of personal debt in the initial part of the pandemic. 30% of existing UC claimants reported increasing the size of their debts compared to 13% decreasing it in July 2020. However, this fell to 12% by March 2021, by which time 21% reported decreasing their debt. Both non-UC respondents and new UC claimants were more likely to be decreasing the size of their debt than increasing it at different points of the pandemic. Aside from this, among all population groups and during all time periods, the majority of people’s debt levels have stayed the same.
  • A significant minority of UC claimants reported finding it ‘quite’ or ‘very’ difficult to manage financially during the pandemic. 34% of existing UC claimants reported this in 2018-19 which declined to 22% in July 2020, before rising back to 34% in November 2020, and falling down to 19% in March 2021. Similarly, 35% of new UC claimants reported this in May 2020, but this largely fell to 18% in July 2020, 19% in November 2020 and 15% in March 2021. Overall, the difference between existing UC claimants and non-UC respondents actually declined by 11 percentage points between 2018-19 and March 2021.
  • Both existing and new UC claimants are much more likely than the rest of the population to think there is a major chance they will have difficulty paying for bills and expenses in the next three months, despite a decline in such fears since the start of the pandemic. There was a decline from 54% to 32% among existing UC claimants worried about their financial future between May 2020 and March 2021 and a decline from 51% to 22% among new UC claimants in the same time period. The difference between the number of existing UC claimants and non-UC respondents reporting this financial anxiety actually declined by 14 percentage points between May 2020 and March 2021 and the difference between new UC claimants and non-UC respondents declined by 21 percentage points in the same period. 
  • Reported life satisfaction of non-UC respondents has remained significantly above that of existing UC claimants throughout the pandemic. The reported gap was biggest between non-UC and new UC claimants at the start of the pandemic in May 2020, with a 30 percentage point difference. The reported gap was biggest between non-UC and existing UC claimants in November 2020, with a 35 percentage point difference. While new UC claimants reported lower life satisfaction than existing UC claimants in May 2020, this reversed by November 2020, before the two largely aligned by March 2021. By the later stage of the pandemic in March 2021, 46% of existing and 48% of new UC claimants reported being satisfied with their life, compared to 67% of the rest of the population.

Anvar Sarygulov, Senior Research Fellow at Bright Blue and analysis author, commented:

“Even with the Government increasing financial support provided through Universal Credit in March 2020, many claimants have continued to face significant financial difficulties as the pandemic progressed. However, the financial situation for existing and new UC claimants has shifted throughout the pandemic, with some evidence for improvement as the pandemic progressed, especially by March 2021.

Fully withdrawing the Universal Credit uplift in September 2021 will put an even greater number of claimants at risk of financial problems at a point when the economic recovery is only gathering pace.” 

Even the hard right Spectator agrees:

Written by Andrew Coates

June 17, 2021 at 3:00 pm

The New Wave of Covid-19 Claimants and the Old Wave of Universal Credit Problems.

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The New Wave of Claimants.

A few days ago this was the news (BBC),

The UK unemployment rate has risen to its highest level for two years, official figures show.

The unemployment rate grew to 4.1% in the three months to July, compared with 3.9% previously.

Young people were particularly hard hit, with those aged 16 to 24 suffering the biggest drop in employment compared with other age groups.

The below sheds some light on who the new claimants are,

Who are the new COVID-19 cohort of benefit claimants?

University of Salford Manchester.

Since March 2020, we have witnessed the fastest increase in the number of people claiming working-age social security benefits in the UK since records began. The incorporation of a new group of benefit claimants into the social security system has presented its own procedural and administrative challenges for the Department for Work and Pensions (DWP). Some commentators have lauded the government’s response to the crisis amidst a surge in new claims. Beyond the sheer volume of claimants, recent developments present a fresh set of priorities for those working in benefit, income and employment support. These priorities stem from the considerable challenges facing the UK labour market with sizeable portions of the economy having to adapt to a ‘new normal’ of altered hours and working practices alongside shifting demand and capacity. Additionally, these priorities stem from a large new group of claimants who face their own unique challenges in accessing adequate social assistance and appropriate employment support during the course of the pandemic.

This is a summary:

The new cohort of COVID-19 benefit claimants are more likely to be:

  • younger: almost half (46%) of new benefit claimants are aged between 18-39 years old, compared to 37% of existing claimants.
  • BAME: 8% of new claimants are from BAME backgrounds compared to 6% of existing claimants. New BAME claimants have been disproportionately impacted by job loss and/or a reduction in their hours.
  • men: 49% of new benefit claimants are male compared to 43% of existing benefit claimants.
  • not experiencing a disability: only 38% of new benefit claimants experience some kind of health condition or disability compared to 67% of existing claimants.
  • from a higher ‘social grade’: more than a quarter (26%) of new claimants are from social grade AB compared to 15% of existing claimants.
  • university graduates: almost a third (32%) of new claimants had a University Diploma or above, compared to 26% of existing claimants. In part this is driven by the younger age profile of new claimants who are more likely to be university graduates. However, this is also evident when focusing exclusively on those aged 18-39. Amongst this age group, 41% of new claimants hold a university diploma or above, compared to 28% of existing claimants.
  • owner occupiers: 29% of new benefit claimants were owner occupiers compared to 25% of existing claimants. In addition, only 13% of new claimants were social renters compared to a 33% of existing claimants.

Anybody looking for stories about Universal Credit on the Net will notice that papers, particularly the right-wing loony bin type, are full of clickbait stuff.

They are trying to appeal to the above people who must be looking around for some way to lessen the impact of being on the dole.

Universal Credit: Are you eligible for SDP payments of over £400 a month? Check now (Express)

Universal Credit claimants could receive an additional payment of £812 – rules explained (Express)

This stuff reminds me of the junk-mail you get in your In-Box from Dogsville USA, “New Benefit for Veterans!”.

Our contributors by contrast noticed this a couple of days back.

The House:

Scrap Universal Credit and replace it with a system that offers a safety net for all

Labour has long been calling for changes to social security to avoid entrenching people into a cycle of poverty they cannot escape. We have been clear that the Government must adopt five urgent social security measures to provide immediate support to people affected by the coronavirus crisis:

  • Convert Universal Credit advances into grants instead of loans, ending the five-week wait.
  • Remove the £16,000 savings limit which disqualifies individuals from accessing Universal Credit.
  • Suspend the benefit cap.
  • Abolish the two-child limit in Universal Credit and Tax Credits.
  • Uprate legacy benefits to match the increase in Universal Credit, providing an immediate increase in Jobseeker’s Allowance and Employment Support Allowance.

In the meantime people are struck with the existing system.

This means that a lot of people, a real lot, are having to adjust to things like this:

1.6 million households hit by £60 cut to benefits in just one month

Welfare Weekly,

Well this chap is helping out:

Our Boss is spreading joy and light in a different way:

I watched Sky Arts yesterday.

It is about as entertaining as being stuck on Orford Ness in mid-winter drizzle.

I was not impressed….

 

Written by Andrew Coates

September 19, 2020 at 9:21 am

“I need Loans for Basics” – Universal Credit in Action.

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Thérèse Coffey Secretary of State for Work and Pensions.

The Eastern Daily Press reports (23rd of February),

‘I need loans for basics’ – number of people claiming Universal Credit nearly doubles

Universal Credit is ‘plunging people into debt’, campaign groups say, as figures show the number of claimants in the east has risen to 214,000.

Just 12 months ago 24,933 people in the region were claiming UC, showing an increase of 178pc year-on-year.

Will Quince, minister for welfare delivery, said this shows the scheme “is helping to support thousands of people across the east of England as they look for work”.

“The number of claimants has doubled, and food banks in the region have also seen twice as many people this year,” said Mark Harrison, chairman of Norfolk Against Universal Credit.

“UC plunges you into debt which you are forced to repay back at an unreasonable rate further compounding the debt.”

Launched in 2016, UC merged six benefits in a rework of the benefits system that sees payments reduced as you earn more.

The scheme was criticised after former chancellor George Osborne made it so those on the scheme and working would pay the government 63p of every £1 earned.

Mr Harrison said: “It’s indicative that we live in a region where wages are below the national average, people can’t live on slave wages.

“People have less to live on, and this has a knock on effect on the NHS and mental health services.”

The Mirror reports, (22nd of February),

Sheila Shepherd has been told by social housing provider Plymouth Community Homes she must pay more than £12,000 towards the renovation of her home in Plymouth

Shrinking value of Universal Credit payments

New figures published by the Department for Work and Pensions (DWP) reveal the shrinking value of social security benefits in the UK, as a leading charity calls for urgent improvements to the widely condemned Universal Credit system.

Figures published today (Tuesday) show that the value of Universal Credit payments have reduced in real-terms since the new benefit was introduced in 2013.

Data shows that the monthly payment for a single person in April 2019 was worth 88% of what it was in April 2013, according to the Retail Price Index (RPI).

In April 2013 the Universal Credit rate was £246.81 for under 25s and £311.55 for those aged 25 or over. By April 2019 the Universal Credit rate was £251.77 for under 25s and £317.82 for those aged 25 or over.

However, when considering RPI, the real value of Universal Credit has dropped since April 2013 from £285.09 for under 25s and from £359.87 for those aged 25.

Lords daily allowance more than monthly Universal Credit payment

The new daily allowance for the “unelected and unaccountable” House of Lords is set to rise to £323. The monthly allowance for a single person over 25 on Universal Credit is £317.82.

Written by Andrew Coates

February 23, 2020 at 10:39 am

Universal Credit: Costs More Than Previous System and makes 60,000 Families Worse off.

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Resolution Foundation research suggests 600,000 families could be worse off

Universal credit, the government’s flagship welfare policy, will be more expensive than the system it replaces, according to a new report.

The rollout of the reformed system, which brings six benefits into one, has been hampered by delays amid widespread concern that the changes could force people into poverty, while there have also been reports that universal credit, which has undergone phased introductions across the UK, has increased reliance on food banks.

In the autumn budget the chancellor, Philip Hammond, announced that an extra £1.7bn would be injected into universal credit, which combined with the projected £3.2bn higher benefit take-up would make it more expensive than the legacy system it replaces, the study states.

The Resolution Foundation says.

This briefing note focuses on the implications of recent changes to Universal Credit (UC) – in particular the £1,000 increase in work allowances announced in Budget 2018 – for the number of winners and losers from the switch to this new benefit system, for UC’s generosity and for its impact on work incentives.

David Finch, Laura Gardiner.

Key findings

  • The Budget 2018 work allowance increase means that the number of working families that gain from the switch to UC increases by 200,000 – from 2.2 million families previously to 2.4 million families now. Among working families with children, the number (1.5 million) expected to be better off under UC now matches the number (1.5 million) expected to be worse off.
  • Relative to the pre-Summer Budget 2015 UC system, the work allowance and taper changes of recent years have restored or improved incentives to enter work at low earnings for renting single parents and the first earner in renting couples with children; and reduced incentives to enter work at low earnings for home-owning parents who are either single or first earners in couples, and non-parents without disabilities.
  • Single parents and second earners in couples with children – both very likely to be women – are most responsive to work incentives. As such, it is a concern that UC continues to incentivise single parents (particularly renters) to reduce working hours below the 16 hours backstop present in the tax credits system. It also still fails to sufficiently incentivise work for second-earner parents.
  • One of UC’s major advantages is that it gets rid of the very highest rates at which benefits are withdrawn in the existing system, which can leave people with less than 10p for each additional £1 earned. However, the fact that taxpayers on UC keep just 25p of each additional £1 earned (even less when paying for childcare costs) means that challenges remain.

Recommendations

  • We suggest boosting single parent work allowances, at a minimum, to the equivalent of 15 hours a week on the wage floor, and introducing a second earner work allowance for those in couples with children.
  • Financial incentives to progress in work should be boosted by gradually lowering the taper rate. In addition, planned progression pilots should test a far more ambitious system of practical support to help low-paid workers progress and secure better-quality roles.

Another day, yet another story:

Universal credit: Rent arrears double for benefit claimants

BBC.

Council tenants on universal credit have on average more than double the rent arrears of those still on housing benefit, a BBC investigation has found.

In Flintshire, north Wales, one of the first counties to test the new payment, the council says rent arrears have gone up by £1m.

One claimant there said a mistake left him with just £29 a month to live on.

But the UK government said it had listened to concerns and universal credit was working well.

The BBC contacted every local authority in the UK that has council homes about their arrears. The results from the 129 councils that responded showed the average amount owed by tenants claiming universal credit across the UK is £662.56. For those still on housing benefit it is £262.50

Flintshire council said this week that tenants on universal credit in the county owe on average four times as much rent as those on the old benefits. At times it has been even higher; in September it was six times as much.

In the 18 months since universal credit was introduced in Flintshire, the council’s rent arrears have increased by £1m, something officials say is largely due to the new benefit.

Ipswich:

Ipswich & District Trades Union Council

No automatic alt text available.

Open meeting on the Universal Credit Crisis with key speaker Mark Page, a regional officer in the PCS with a background in the DWP.

Hosted by Ipswich & District Trades Union Council, all welcome.

Mark Page, Regional Officer PCS  will speak on the UNIVERSAL CREDIT CRISIS.

Every day another horror story about Universal Credit hits the news headlines, how and when will it end?Following debate at Congress, the TUC’s policy is for Universal Credit to be stopped and scrapped. What should replace it?

7.30pm Wed Nov 21st 2018 Unite Office, 13, Arcade St, Ipswich

This meeting is part of the build up to Unite Community’s National Day of Action on Universal Credit on Sat Dec 1st 2018.

Written by Andrew Coates

November 12, 2018 at 11:18 am