Ipswich Unemployed Action.

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Posts Tagged ‘Esther McVey

Esther McVey Defends Universal Credit, Hell or High Water!

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The Right Honourable Esther McVey: My door is always open.

Yesterday in the House of Commons Esther McVey was on rare form.

Bertie Wooster once recommended that when confronted with a misdeed the best response was stout denial.

Readers of Hansard and no doubt those who watch the BBC Parliamentary Channel can see her Ladyship following his sage advice.

Universal Credit. 17 October 2018. Volume 647

 

Labour’s Margaret Greenwood ‘umbly but impertinently  began,

 

That an humble Address be presented to Her Majesty, That she will be graciously pleased to give directions that the following papers be laid before Parliament: any briefing papers or analysis provided to the Secretary of State for Work and Pensions since 8 January 2018 on the impact of the roll-out of universal credit on recipients’ and household income and on benefits debts.

Universal credit, the Government’s flagship social security programme, has been beset by flaws in its design and delivery. It is causing immense hardship for many people wherever it is rolled out. It is hard to believe now, but universal credit was designed to lift people out of poverty and smooth the transition into work to ensure that it always pays. The reality is that universal credit is a vehicle for cuts: cuts in support for families with a disabled child for whom the basic rate of support is half what it is in tax credits; cuts in support for disabled people in work, such as the disabled person who wrote to us saying that they are more than £300 a month worse off since switching from claiming working tax credits; and cuts in support for lone parents bringing up children who will get more than £20 a week less on average, with many losing far more.

..

Let me make some progress.

Overall, 3.2 million families with children could lose around £50 a week. People are worried, but there is no clarity from Government. The Prime Minister told this House that no one would be worse off, yet The Times reported that the Secretary of State told Cabinet colleagues that households could lose up to £200 a month. Being forced to manage on a low income that is then cut still further means tough choices for the families affected. The DWP’s own survey of claimants published in June showed that nearly half of new universal credit claimants are falling behind with bills. Even six months later, four in 10 are still struggling to cope financially.

And so it went. And went – it’s pretty long so I skip.

Her Royal Highness (for it was she, Esther) replied,

Members want to speak in this debate. I know too, Mr Speaker, that you are always anxious to hear Back Benchers speak, as am I, so I will keep my remarks as brief as possible.

I have been forthright with colleagues across the House—and in my speech at Reform earlier this year—about universal credit’s strong merits and the areas that we need to improve. In fact, in my Reform speech, I said that I would improve universal support, and I delivered on that this month. Since becoming Secretary of State, I have changed the system to provide extra support for those with severe disabilities, vulnerable young 18 to 21-year-olds and kinship carers. I am also working with colleagues to identify areas where we can make more improvements.

This is also long so I will just cite a few of her gracious words,

We have taken a mature approach to rolling out universal credit. We have said that we will test, learn, adapt and change as we go forward. That has resulted in a series of improvements, and I will read some of those out. We are providing extra universal support with Citizens Advice, an independent and trusted partner. We have brought in the landlord portal. We have brought in alternative payment arrangements, 100% advances and housing running costs. We have removed waiting days and are providing extra support for kinship carers and those receiving the severe disability premium.

My door is always open. We will make sure we get this benefit right, and Government Back Benchers, who have genuine concerns, want to get it right.

Here is a more readable report:

Tories block Labour bid to reveal government assessment of Universal Credit impact

Politics Home.

After a heated four-hour debate, they voted by 299 to 279 against the release of the documents, which Labour hoped would reveal the detrimental effect of the welfare shake-up which rolls six existing benefits into a single payment.

Labour used an arcane parliamentary procedure known as a humble address – previously used to force the release of the Government’s Brexit impact assessment – to try to compel the publication of analysis of the shake-up on people’s incomes.

Work and Pensions Secretary Esther McVey last week admitted that some people “could be worse off” under the reform, despite Theresa May’s claim that would not be the case.

Ms McVey’s opposite number, Margaret Greenwood, today called for the Government to publish all reports and analysis it has carried out into the effects of Universal Credit since Ms McVey took office in January.

“The social security system should be there for any of us should we need it, yet the Government’s flagship programme has brought real hardship,” she said.

“How did it come to this in the fifth largest economy in the world that we have people facing hunger and destitution?

“It cannot be right, the Government must wake up, it must open its eyes to what’s happening and that is why we are calling on the Government to stop the roll-out of Universal Credit.”

Ms McVey yesterday confirmed that the “migration” of existing welfare claimants to Universal Credit would be delayed until later in 2019.

Meanwhile the BBC reported that the deadline for full implementation could be pushed back by another nine months to December 2023.

Ms McVey today prompted angry shouts from Labour MPs when she opened her comments by saying: “It’s good to be here again for my department to update the House on Universal Credit for the third time this week.”

She later added: “We will continue with Universal Credit. We will continue to roll it out. We will engage with colleagues across the House… my door is always open, but we will make sure we get this benefit right. You know why? Because of the genuine concerns of the people on our backbenches who want to get it right.”

Then there is this:

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Written by Andrew Coates

October 18, 2018 at 10:43 am

Benefits Freeze Adds to Universal Credit Misery.

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More than the usual ‘system error’.

The controversy about Universal Credit continues to develop.

Today the Currant Bun, not the Claimants’ chum,  headlines

Universal Credit revolt by THIRTY Tory MPs as they urge Chancellor to plug £2bn black hole which will leave millions worse off.

At least two dozen have signed a letter to the Treasury highlighting their fears to the Chancellor – urging him that an extra £2billion is needed for the reform.

Around a million people are expected to go onto Universal Credit next year as part of the rollout to everyone over the next five years.

The letter reads: “As it stands 3.2million working families are expected to be worse off, with an average loss of £48 a week.

“Enabling hard working parents to keep more of what they earn and thus encouraging them to take up more work is at the heart of Conservative policy.

“This measure would boost the incomes of 9.6million low income parents and children.”

In July 2015, having promised £12 billion of welfare cuts – reportedly on the assumption that the Liberal Democrats would argue this down – George Osborne announced exactly that. Chief among these cuts was a further working age benefits freeze. So no matter what the rate of inflation was, benefits would not be increased in April 2016, 2017, 2018 or 2019.

One thing that risks being forgotten is the impact of the Benefit Freeze.

Last week (October the 13th) the Resolution Foundation published this.

Despite ‘the end of austerity’, April promises another deep benefit cut

Adam Corlett.

How important this nominal freeze would prove to be couldn’t be known exactly in advance – only predicted – as its real impact depends on inflation. At the time, it was thought that inflation would be below 2 per cent in every year, as the table below shows. At first, the inflation forecast actually proved too high, with very small price rises in 2015 and 2016. This meant that the benefits freeze had only a limited impact in its first two years. But with the Brexit vote and resultant price increases, CPI inflation reached 3 per cent in September 2017. Normally, that September figure would have been used to uprate working-age benefits for the next tax year but, due to the freeze, that didn’t happen. And now inflation for September 2018 is expected to be around 2.7 per cent. Working-age families will again be denied that inflationary benefits increase next April.

Overall, the real cut to many benefits from the four-year freeze is over 6 per cent (and that’s before considering separate or earlier cuts).

….

If we exclude pensioners and working-age non-parents, the impacts become even clearer. The average couple with kids in the bottom half of the income distribution will be £620 poorer in 2019-20 than if inflationary uprating had occurred since 2016-17, and the average poorer single parent will be £760 worse off. The April 2019 freeze alone will mean a £210 hit for an average poorer couple with kids and £260 for poorer single parents.

This chart is depressing to look at.

This, the long-term decline in the value of benefits, is significant.

Corlett’s conclusion is important:

Whether or not the final freeze goes ahead, there is also a tough question for the opposition parties. Labour, the SNP and the Liberal Democrats have all said they would end the freeze. But CPI uprating is already set to return from April 2020. The big question is whether those parties would actually undo the real term cuts that have already happened (i.e. though a real terms increase) if they got the chance, or if that £5 billion, 6 per cent cut will simply be accepted as a fait accompli.

The talk of the town may be of ‘the end of austerity’ and ‘Brexit dividends’, but for low to middle income working-age families – particularly parents – the outlook is quite different. On top of weak pay growth, their outlook includes a further benefits freeze, the transition to Universal Credit with its slashed work allowances, the phasing out of the valuable ‘family element’ and phasing in of a two-child limit. Ending the freeze one year early, with benefits rising just after Brexit day, would help to turn that outlook around.

This is exactly the issue, what exactly would the parties do to repair the damage caused by the benefit freeze?

Written by Andrew Coates

October 15, 2018 at 10:30 am

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

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

The world has turned against Universal Credit.

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

And the Tory papers jumping on the bandwagon.

Not to mention yer actual present day Tory MPs:

The House of Commons,

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

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

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

Guardian.

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

But, there you go….

Then there was this yesterday (Independent):

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

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

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

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

The Independent reports today:

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

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

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

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

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

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

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

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

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

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

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

Secretary of State for Work and Pensions Esther McVey said:

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

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

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

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

But….

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

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

Even the Murdoch press is turning:

As the Mirror says,

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

Written by Andrew Coates

October 12, 2018 at 11:04 am

Local Papers, and *some* nationals , do their Job in Reporting Universal Credit Train crash.

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Talk to the Media!

It is very noticeable that the press, including local papers, has been doing its job in reporting on the Train Crash that is Universal Credit.

Obviously I exclude right-wing comics…..

I just cite a few examples this weekend:

Daisy Wyatt

The ‘I’ – a paper lots of us read.

Low-income families set to lose £200 a month in Universal Credit changeover.

Millions of families are set to lose £200 a month under the new Universal Credit system, it is understood. Work and Pensions Secretary Esther McVey confirmed the figures privately to colleagues as ministers are said to be increasingly concerned about the rollout of the new universal credit system, The Times reported. Ms McVey told cabinet colleagues that half of lone parents and around two thirds of working age couples with children would lose the equivalent of £2,400 a year, according to the newspaper. Labour MP Jess Phillips has since said the monthly figure lost by low-income families was closer to £300 in her constituency in Birmingham Yardley.

Banbury Guardian.

New service to help struggling Universal Credit claimants

A new service to better help people having difficulty claiming Universal Credit in north Oxfordshire and south Northamptonshire will be launched next year by Citizens Advice. Citizens Advice North Oxfordshire and South Northamptonshire has been given a Government grant to build on its benefits support service from April, 2019.

DWP: Universal Credit claimants get help from Citizens Advice as Teesside rollout continues

Teesside Live.

The Citizens Advice Bureau has been drafted in to help those applying for Universal Credit navigate their claim.

The Department for Work and Pensions (DWP) will fund Citizens Advice to provide ‘Universal Support’ from April next year, which hopes to help those on benefits through every step of the process.

The DWP says it will offer people the “comprehensive and practical support they need to get their first payment on time and be ready to manage it when it arrives”.

The Mirror:

Universal Credit’s next stage ‘could spark a huge increase’ in people being forced to rely on food banks

The Trussell Trust have warned issues with benefits are the main reason for referrals to receive emergency food supplies.

I could continue…

Why not keep up the pressure by contacting the press?

Local media obviously feel, and the genuineness of their concern is clear, that this is a top story.

Give ’em a ring, a text or an E-mail…

Written by Andrew Coates

October 7, 2018 at 9:55 am

Trussell Trust fears the next stage of Universal Credit will see Foodbank Use Soar.

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The Trussell Trust has published this Press Release, which should be taken very very seriously indeed.

Not least because many of our contributors are already on Universal Credit and many will also be affected by “managed migration” onto Universal Credit.

Charity warns next stage of Universal Credit could further increase foodbank use.

Anti-poverty charity The Trussell Trust fears the next stage of Universal Credit – which will see three million people moving from tax credits and the old benefits system onto the new system – could lead to a significant increase in foodbank use as new research highlights a major increase in the proportion of foodbank referrals made for people moving onto Universal Credit.

Issues with benefits are the main reason for all Trussell Trust foodbank referrals. Analysis of data from frontline agencies referring to foodbanks across the UK between April 2016 and April 2018 shows that benefit transitions, most likely due to people moving onto Universal Credit, are increasingly accounting for more referrals and are likely driving up need in areas of full Universal Credit rollout. Waiting for the first payment is a key cause, while for many, simply the act of moving over to a new system is causing hardship.

The findings come as the Department for Work and Pensions finalises its plans for the next stage of Universal Credit to take to Parliament later this month. Until now, only people making a new application for benefits in certain areas have been able to apply for Universal Credit. This next stage – ‘managed migration’ – will see the three million people currently receiving tax credits or benefit payments under the old system sent a letter telling them to reapply for these payments under Universal Credit.

The report  (The next stage of Universal Credit. Moving onto the new benefit system and foodbank use) says,

EXECUTIVE SUMMARY

The rollout of Universal Credit to all Jobcentres will soon be complete, and the next stage of Universal Credit will begin. 3 million people currently claiming benefits and tax credits will have to move onto the system. The Trussell Trust is concerned that, given the links between Universal Credit, financial hardship, and foodbank use, this next stage could lead to increased financial need and more demand for foodbanks. The report uses referral data from Trussell Trust foodbank vouchers to examine the impact of Universal Credit on foodbank use, and finds that:

  • When Universal Credit goes live in an area, there is a demonstrable increase in demand in local Trussell Trust foodbanks. On average, 12 months after rollout, foodbanks see a 52% increase in demand, Credit for 3 months or less. This increase cannot be attributed to randomness and exists even after accounting for seasonal and other variations.
  • More detailed foodbank referral data show that benefit transitions, most likely due to people moving onto Universal Credit, are increasingly accounting for more referrals and are
    likely driving up need in areas of full Universal Credit rollout. Waiting for the first payment is a key cause, while for many, simply the act of moving over to a new system is causing hardship.

This poses serious questions for the next stage of Universal Credit, where many people could lose their benefits entirely or find themselves with less income. The Department’s current plans involve sending letters to people informing them their claim will be terminated if they do not apply for Universal Credit within a four week period. Each claimant will then have to wait at least five weeks for their first payment.

Emma Revie, Chief Executive of The Trussell Trust, explains:

“We created our benefits system in this country to free people from poverty, not lock them into it. As we look at the current plans for the next stage of Universal Credit, we’re really worried that our network of foodbanks could see a big increase in people needing help. Leaving three million people to wait at least five weeks for a first payment – especially when we have already decided they need support through our old benefits or tax credits system – is just not good enough. 

“It doesn’t have to be like this. We know the problems people are likely to face as they move over to the new system, so we can learn from them. The Department for Work and Pensions has shown they can act on evidence from the frontline to make a real difference to people who need our benefits system’s vital support. Now is the time for our Government to take responsibility for moving people currently on the old system over, and to ensure no one faces a gap in payments when that moves happens. Universal Credit needs to be ready for anyone who might need its help, and it needs to be ready before the next stage begins.”

The Guardian reports:

Trussell Trust calls for urgent changes to policy of moving 3m people on to new system

Last month the mayor of London, Sadiq Khan, warned that managed migration posed a “significant threat of harm” to vulnerable claimants, and that the rollout should be paused to enable stronger protections to be put in place.

Universal credit, which rolls six working-age benefits into one monthly payment, has been dogged by delays – it is currently six years behind schedule – and has been much criticised over design flaws that leave thousands of claimants in hardship.

Written by Andrew Coates

October 5, 2018 at 9:28 am

Esther McVey screams abuse at “ugly, destructive, Marxist, Militant, socialists” and subcontracts DWP to Citizens’ Advice.

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Pretty constructive Esther Attacks “ugly, destructive, Marxist socialists.”

Tory Esther McVey suggests her own party’s benefit cuts are “fake news” in shameless conference speech,

Reports the Mirror

The Work and Pensions Secretary launched her attack despite cuts being well-documented by experts and her predecessor Iain Duncan Smith.

She told Tory members in Birmingham: “If you were to believe everything you heard from Labour or read on social media you’d think we were somehow letting down the most vulnerable in society – especially disabled people.

“However, those who say we are cutting budgets are peddling fake news.

“So here’s the real news – we have never spent more on those with disabilities and long-term health conditions. We spend over £50billion a year, up £9billion on 2010.”

Ms McVey said she became a Conservative to stand against the “ugly, destructive, Marxist, Militant, socialists of the past”.

Today the Independent reports.

DWP calls in Citizens Advice to aid rollout of universal credit to claimants

The organisation has repeatedly raised alarming concerns over the rollout of universal credit, and last year said its expansion was a ‘disaster waiting to happen’

Citizens Advice Bureau has been called in to aid the highly contentious rollout of the government’s flagship welfare programme, Esther McVey has revealed as she announced a £39m fund for the partnership.

Ms McVey, the work and pensions secretary, said the cash would fund advisers to help claimants get their first payment on time and be ready to manage it when it arrives.

Citizens Advice –  a network of independent charities – has repeatedly raised alarming concerns over the rollout of universal credit, and last year said its expansion was a “disaster waiting to happen” with claimants being pushed into further debt.

Background:

The Archbishop of York, Dr John Sentamu, has publicly condemned the UK Government’s flagship Universal Credit scheme, claiming the widely criticised welfare reform makes falling into debt and hardship “practically inevitable”.

Welfare Weekly.

His comments are the latest in a long-line of criticisms and come only a few weeks after the Archbishop of Canterbury, Justin Welby, slammed the new benefit for leaving the UK’s poorest citizens even more “worse off”.

Writing in the Yorkshire Post, John Sentamu, a long-spoken critic of Tory welfare changes, says: “People have already been struggling with rising living costs and stagnating incomes, but emergency food providers such as the Trussell Trust report that in areas where Universal Credit has been introduced, demand has risen far more steeply than in other areas.

The Archbishop of York: Why a fresh rethink is needed over Universal Credit and its implementation

Yorkshire Post.

 IT is five years now since Universal Credit was launched in an attempt to simplify the UK welfare system. Had everything gone to plan, the system would have been up and running across the country by now. Instead, the policy remains a source of ongoing controversy. As a follower of Jesus Christ, my greatest concern is for how this policy affects the poorest members of our community. In the Bible, we are called to uphold the cause of the poor and the oppressed. It is right that we look at the impact that Universal Credit, in its current form, is having on our poorest neighbours living in poverty.

If those changes can be made, then Universal Credit still has the potential to be a successful, effective policy, and one which makes work pay a Living Wage – and not the present so-called National Living Wage (topped up minimum wage). Our churches will continue to show the love of Jesus in their neighbourhoods. We will continue to run community projects; food banks, holiday clubs, breakfasts for children, debt advice, support for those who are struggling. Our churches are places of welcome where all can find a home. The Government should take immediate steps to support many people who find themselves, through no fault of their own, in desperate circumstances. I urge them to think again.

Written by Andrew Coates

October 1, 2018 at 2:25 pm

Poverty Crisis Worsened by Universal Credit.

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Image result for poverty Social Metrics Commission

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

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

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

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

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

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

This is the real London, not Made In Chelsea.

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

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

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

But then………..

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

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

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

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

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

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

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

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

These are the conclusions of the above report:

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

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

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

 SMC KEY FINDINGS

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

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

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

Joe Anderson Mayor of Liverpool

Huffington Post.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

Written by Andrew Coates

September 18, 2018 at 9:23 am