Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Posts Tagged ‘Food Banks

Food Banks and Universal Credit. Go together like an ‘orse and carriage.

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In the last five years, food bank use in our network has increased by 73% (Trussell Trust).

To go to a Food Bank is not easy.

Last night on Channel Four the news carried a report on the food poverty that is driving people there.

Charity handed out 1.6m foodbank parcels in one year – rise of 20 per cent

A leading food bank charity says the number of three-day supplies it’s given out in the last five years has “soared” by 73 per cent.

According to figures released by the Trussell Trust, in the last year 1.6 million emergency food bank parcels were handed out – that’s a 19% increase on the year before. Of those, more than half a million went to children.

Our Social Affairs Editor Jackie Long has been to meet some of the young people who understand food poverty first hand, and are now determined to do something to tackle it.

The Guardian reported on the same day.

‘I’m at rock bottom’: food bank offers respite from universal credit

The food bank in St Simon’s church hall, in a quiet residential street off Shepherd’s Bush Green in west London is buzzing with activity. It’s open for three hours, offering a brief window of help and respite for scores of local people who have fallen on hard times.

Livia, 44, is a self-employed fitness trainer making her first visit to a food bank, accompanied by her daughter. Work is supposed to be the path out of poverty, but universal credit is stressing her out, an “absolute nightmare”, and causing her to run up rent arrears. “I put on a brave face but I’m at rock bottom.”

As with many self-employed claimants, the vagaries of universal credit have proved demoralising for Livia. Although her business is new – and she had to have time off after a family bereavement – she is required to meet demanding monthly income targets and, if she does not make them, universal credit will not make up the difference.

And this:

The Trussell Trust site can be accessed here:

 

Meanwhile Amber Rudd is still happy:

 

 

Written by Andrew Coates

April 26, 2019 at 10:10 am

Fourth Anniversary of the Benefit Freeze Plunges More and More People into Deep Poverty.

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Image result for benefits freeze

George Osborne Introduced Benefit Freeze (2015 Budget).

The 2015 Budget introduced a four-year freeze on most working-age benefits and tax credits. This meant that in 2016 and onwards their value remained as it had been in 2015 rather than rising with inflation.

Everybody knows the Benefits Freeze its biting.

On this issue the Government is not split between those who’d like to make Britain a US-style free-market economy, allied with Trump, and with a minimal post-Brexit Welfare state, and those who want to a decent standard of living for all, including those on benefits.

The free-market chancers in the Hard Brexit camp may be the worst in the long term, but each side at the moment is keep the disaster that is Universal Credit, and the linked Benefit Freeze going.

Just how mad and detached from reality they are can be seen from – potential leadership candidate, and present DWP Minister Amber Rudd’s recent tweet:

It’s good to know that the Currant Bun has gone back to the Tory fold, and has dropped its grating efforts to be the Universal Credit claimants best mate.

Perhaps they’ll run this “story”,

Cheery old Woolfy!

The cockles of your heart warmed you can turn to this:

Families likely to be ‘pulled into poverty’ by benefits freeze continuing for another year

The freeze – introduced in 2016 by the then chancellor George Osborne – entered into its fourth year on Monday.

Florence Snead continues in todays ‘I’

More families are likely to be “pulled into poverty” because of the benefits freeze continuing for another year, it has been claimed.

The decision to continue with the cap on working-age benefits and tax credits is “unjustifiable” and will leave families living in poverty on average £560 worse off over the next year, according to a charity.

The Joseph Rowntree Foundation (JRF) said this was equivalent to three months of food shopping for an average low-income family.

In the midst of huge political and economic uncertainty, families who have already seen their support eroded know that the coming year will be hard to get through,” said the JRF chief executive, Campbell Robb.

“It’s not right that more parents will face impossible situations – trying to decide which essential bills to pay and what they can cut back on to make it through each week.

“Keeping benefits and tax credits frozen is unjustifiable: 4.1 million children are locked in poverty, nearly three-quarters of whom are in a working household.”

The organisation said ending the freeze would help working families to stay afloat.

“As the Government approaches its spending review, it needs to look at how best to protect people from harm who are otherwise left without an anchor in uncertain times,” Mr Robb added.

The JRF was among nine charities which wrote to the Chancellor, Philip Hammond, in February urging him to end the freeze this year.

It said continuing the freeze until April 2020 would result in 200,000 more people being locked into poverty.

Nigel Grey MP MP wrote on Monday on Politics Home:

Today marks the beginning of the fourth year of the benefit freeze. Like many of the UK government’s failures – the Windrush Scandal, the shambolic implementation and rollout of Universal Credit, the appalling neglect child refugees – if Brexit wasn’t happening, the disastrous impact of the benefit freeze would be plastered across the front-pages on an almost daily basis.

The benefit freeze was introduced by the Welfare Reform and Work Act in 2016, and freezes most working-age benefits at the same value as in 2015/16. In practice, what this means is that while Consumer Price Index (CPI) increased by 6.5% since the freeze was brought in, the benefits that many working-age people rely on have not increased at all.

This Tory government has implemented a massive real-terms cut to people’s income, and it’s having a catastrophic impact on people’s lives. The Joseph Rowntree Foundation have said the benefit freeze will have affected more than 27 million people across the UK and will have pushed 400,000 people into poverty by 2020.

On top of this, with Brexit pushing up inflation, the benefit freeze will cut another £4.4 billion this year – nearly a billion more than intended out of the pockets of those least able to bear it.

Moral outrage

The freeze includes benefits for children, as well as support for disabled people looking for work. Targeting austerity at disadvantaged children and disabled people is nothing short of a moral outrage and this Tory government should hang their heads in shame.

Theresa May and her government have taken almost no action to boost support for people who rely on social security. In one year, the benefit freeze cut will more than wipe out the total investment in the Work Allowance boost up to 2022 that was announced in the 2018 Budget.

Advance payments of Universal Credit which are meant to help people during the five week wait are, in fact, just loans that have to be paid back to DWP. And the two-child cap on Child Tax Credit is taking thousands away from families with more than two children.

A tragedy and a farce

Moreover, the revolving office-door of the Secretary of State for the Department of Work and Pensions (DWP) is both a tragedy and a farce. The idea that the Department chiefly responsible for the wellbeing of poor, elderly and vulnerable people is being used as a platform from which Tory MPs can hop, skip or jump depending on which way the political wind blows is indicative of the contempt the UK government has for the disadvantaged and the marginalised.

The benefit freeze represents one of the biggest cuts to social security we have seen in recent times, yet Labour didn’t even bother to mention it in their last manifesto and the current DWP Secretary has shown nothing but apathy towards evidence of its terrible impact.

The cuts imposed by the UK government have and will further entrench poverty across the UK.

This is a political choice, not a necessity. One of the quickest ways this Government could put money back into people’s pockets would be to lift the freeze immediately and up-rate benefits with inflation.

 

Neil Gray is SNP MP for Airdrie and Shotts and the SNP Work and Pensions spokesperson.

Written by Andrew Coates

April 9, 2019 at 3:38 pm

End the Benefit Freeze, “predicted to increase poverty more than any other policy”.

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Image result for benefits freeze

I imagine many of us have the same routine.

Look in B&M for cheap food offers (tins of tomatoes to start with), and walk around to all the other places where stuff is good value – Aldi, Lidl, near the top of the list.

Every time – and I’m not talking about Bills, this is everyday, you notice that prices are slowly, but surely, going up.

Unlike benefits.

The Benefit Freeze started, believe it or not, in 2014.

The horror began where so many do – at Conservative party conference. In September 2014, then Chancellor George Osborne announced to the audience in Birmingham that benefits for people of working age would be frozen for two years.

New Statesman.

In the last few days there’s been a number of stories about this injustice.

Welfare Weekly,

Tory benefit freeze ‘predicted to increase poverty more than any other policy’

Chancellor Philip Hammond urged to end the freeze to working-age benefits a year earlier than originally planned.

It has been predicted that prolonging the four-year freeze to working-age benefits will “increase poverty more than any other policy” introduced by the Tory Government since 2015.

The Work and Pensions Select Committee (WPSC), a cross-party group of MPs, has received evidence showing that a family of four receiving Universal Credit will be over £800 a year worse off by 2020, when the controversial freeze is set to end, “even if both parents are working full-time on the National Living Wage”.

And analysis of figures from the House of Commons Library shows that affected households will have incomes between £888 and £1,845 lower in 2019-20, in real-terms, than they would have had if the freeze wasn’t in place.

Evidence compiled by the WPSC found that ending the benefit freeze – for all frozen benefits other than child benefit – a year earlier than originally intended would lift 200,000 people out of poverty.

“Households have seen significant actual cuts to their real income because of the various caps and freezes since 2010: a single earner couple with two children’s income will fall by 0.7% in real terms, and an out-of-work lone parent with one child by 6.7% in real terms, between 2010/11 and 2019/20.”

Witnesses told the Committee that that the main issue driving poverty and destitution “is that working-age benefits are paid at far too low a level now and have been for a number of years”.

They added: “Obviously, that has been exacerbated by the benefit freeze, so they are losing value year on year.”

The UK’s largest food bank network Trussell Trust says the only way to alleviate poverty and ease demand on food banks is to “ensure incomes, from both work and benefits, can meet people’s living costs”.

The charity recommended that the benefits freeze be lifted and benefits uprated in line with inflation, “in particular, Child Tax Credits and the Child Element of Universal Credit should be uprated in line with inflation to reflect the additional, inescapable costs upon families.”

The demand for an end to the freeze came from the Work and Pensions Committee,

Benefit freeze “predicted to increase poverty more than any other policy”: Committee to question Amber Rudd on benefit levels “driving destitution and poverty” – ahead of Spring Statement next week, Committee makes costed case to end freeze year early.

During March the Committee is taking evidence on the effects of the – effective – cut in people’s living standards.

Ahead of the evidence hearing the Committee has written to Amber Rudd saying “the current freeze was originally designed to save £3bn… the Treasury would still make in-year savings of £2.5bn in 2019/20, even if the freeze was ended a year early. This, combined with the most recent monthly public borrowing figures showing a budget surplus of £14.9bn in January 2019—£5.6bn more than the surplus in January 2018, and the largest January budget surplus on record   – lead the Committee to encourage the Secretary of State to “urge the Chancellor of the Exchequer to consider ending the benefit freeze a year early”.

This call fell on deaf ears:

The Mirror.

Benefit freeze from April APPROVED by MPs – costing families up to £1,800 a year

It means millions of people’s benefits will be frozen for the fourth year in a row – while MPs’ pay rises 2.7% to almost £80,000

MPs tonight approved another year of the cruel benefit freeze – meaning it is now costing some families £1,800 a year.

Millions of working-age people’s benefits will now be frozen for the fourth year in a row from April.

Amber Rudd in the meantime is dancing with unicorns.

https://twitter.com/AmberRuddHR/status/1102946279783624704

Written by Andrew Coates

March 6, 2019 at 11:08 am

Universal Credit Creates “looming Eviction Crisis.

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For many people Citizen’s Advice is the first port of call when they have problems with benefits, starting with Universal Credit.

Here is what’s happening with our Citizen’s Advice Service in Suffolk.

The East Anglian Daily Times reports:

On Thursday, February 14, the final vote on 2019/20 budget proposals will take place at Suffolk County Council’s full council meeting, where divisive cuts to the £368,000 Citizens Advice grant over two years has been put forward by the Conservative administration.

But the opposition Labour group, which has already called for a reversal of the cuts, has now tabled an amendment to ringfence £2,500 from each councillor’s locality budget – an £8,000 pot each councillor has to spend on projects and improvements in their ward – for Citizens Advice.

With 75 elected councillors, the proposal would secure £187,500 for Citizens Advice’s core funding.

It means that the £184,000 Citizens Advice is set to lose in 2019/20 is covered, while further ways to cover funding will be explored for 2020/21. Sarah Adams, Labour group leader, said the planned cuts were “a dangerous act of self-harm that will pile even more pressure on the council’s beleaguered public services”.

Here is the CAB’s latest statement on Universal Credit.

Citizens Advice reveals half of claimants seeking benefits assistance risk being evicted

Citizens Advice has called for a root and branch overhaul of universal credit, after revealing that half of all claimants who came to it for help managing the new benefit were at risk of being evicted owing to rent arrears and hardship.

Relatively minor changes to the way the benefit operates, announced by ministers in the 2017 budget after coming under intense pressure from campaigners, have “only made a dent in the problem rather than fixed it”, the charity said.

The minimum five-week wait for a first benefit payment left nearly half of claimants it advised unable to pay household bills, or forced them to go without essentials such as food or heating, it said, while 54% had to borrow cash from family and friends to stay afloat.

“Half the people we help with universal credit are still struggling to keep a roof over their heads while they wait for their first payment,” said Gillian Guy, the chief executive of Citizens Advice.

Here is the CAB Press Release:

People claiming Universal Credit are still struggling to pay for the roof over their heads, despite the wait for their first payment being reduced from 6 weeks to 5, new Citizens Advice data shows.

1 in 2 people the charity helped were in rent arrears or fell behind on their mortgage payments, the same number as when the wait for the first payment was longer.

Citizens Advice also found 60% of people it helped are taking out advances while they wait for payment.

The research also found that, following changes by Government in 2017, fewer people are falling behind on their bills or going without essentials during the wait period. Payment timeliness has improved – now 1 in 6 people are not paid in full and on time, while previously it was 1 in 4.

The report, Managing Money on Universal Credit, released today, reveals new analysis based on the 190,000 people Citizens Advice has helped with Universal Credit.

Among the people the charity helps with debt and Universal Credit:

  • Debt problems are more common for the people we help with Universal Credit than those claiming benefits under the previous system, with 24% of the people we helped with Universal Credit also seeking debt advice.

  • Nearly one in two (47%) have no money left after essential living costs (such as food, housing and transport) to pay creditors, or are spending more than they take in.

  • More than 4 in 5 (82%) hold priority debt such as council tax, rent arrears or mortgage payments, and energy debts.

Citizens Advice is calling on the government to make Universal Credit far more flexible to fit around people’s lives and to make sure people have enough money to live on.

It also wants Alternative Payment Arrangements to be more widely available, allowing for rent to be paid direct to a landlord, more frequent payments, and a payment to go to both members of a couple.

Just 3% of claimants currently receive more frequent payments, while just 20 households in the UK receive split payments to different family members.

Four in 10 of the people helped by Citizens Advice are aware of managed payments to landlords, while just 1 in 6 know payments can be made more frequently.

Gillian Guy, Chief Executive of Citizens Advice, said:

“Half the people we help with a Universal Credit claim are still struggling to keep a roof over their heads while they wait for their first payment.

“Changes to the waiting period for first payment have improved things for many people, but our evidence shows they don’t go far enough.

“Universal Credit must continue to be reformed so it works for all claimants and leaves people with enough money to live on.”

I watched this last night:

Life on Benefits: Universal Credit?

Brexit might be dominating the headlines – but arguably one of the biggest changes to the welfare state in a generation is the roll out of Universal Credit – which could affect over eight million people across the UK.

Tonight, Richard Bacon explores the impact of Universal Credit and meets some of those receiving the benefit.

CRITICISM

Universal Credit was announced in 2010 by Tory politician Ian Duncan Smith as a way to combine many benefits and incentivise people into work, but critics are furious that it’s bringing hardship to many families.

Everywhere you look there are issues with the system. It’s not working for the disabled, it’s not working for families, it’s not working for lone parents, it’s not working for those in jobs and it’s not working for the self employed.

– TESSA GREGORY, A SOLICITOR WITH LEIGH DAY

The Trussell Trust are a nationwide network of food banks and say the use of food banks have increased by 52% in areas where Universal Credit has been introduced.

Fair enough as it went, but it could have been an hour long instead of 30 minutes.

Amber Rudd, Secretary of State for Work and Pensions: Universal Credit and Food Banks, a Photo Novel.

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On 16 November 2018, Rudd was appointed Work and Pensions Secretary by Prime Minister Theresa May, and succeeded Esther McVey in steering and leading the Department for Work and Pensions.

She has “promised to fix Universal Credit and make it ‘better’.”

It’s a busy job fixing things.

Here are some of her Tory colleagues doing their bit for the poor.

Four near identical tweets from Tories going to donate to foodbanks

 

Bless!

Or not…..

Update: Tory Ross Thompson’s latest good works:

 

Written by Andrew Coates

December 4, 2018 at 1:06 pm

DWP a “fortress” in “denial” about Universal Credit Failures.

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Universal Credit has again  has hit the headlines.

Our newshounds are already scanning the media as this is written…

 

This Morning:

DWP has ‘fortress mentality’ on universal credit, MPs say

 Guardian.

Parliamentary committee says department is unresponsive to difficulties people are facing.

The committee said McVey’s department has repeatedly been unresponsive to on-the-ground evidence about the practical problems with universal credit, and what it called the “unacceptable hardship” faced by many.

The department’s systemic culture of denial and defensiveness in the face of any adverse evidence presented by others is a significant risk to the programme,” the MPs said, citing the DWP’s response to an earlier critical report by the National Audit Office (NAO).

Here is the source of the article:

 Universal credit: delivery causing unacceptable hardship.

Public Accounts Committee 

The introduction of Universal Credit is causing unacceptable hardship and difficulties for many of the claimants it was designed to help. However, while the Department is responsive to feedback on its digital systems from staff, it has persistently dismissed evidence that Universal Credit is causing hardship for claimants and additional burdens for local organisations, and refuses to measure what it does not want to see. In 2013 this Committee raised concerns about the Department’s culture of reporting good news and denying problems that emerge. In further reports in 2015 and 2016 the Committee warned about the Department’s continued lack of transparency. It is hugely regrettable that the Department has not heeded these warnings. Instead of listening to organisations on the frontline supporting claimants, the Department has continued with its fortress mentality and as a result is failing claimants who struggle to adapt to the way Universal Credit works.

The recent announcement by the Secretary of State of a further delay and a “slow and measured” approach to the rollout is not a solution on its own and the Secretary of State has admitted that some claimants will be worse off under Universal Credit. If the current problems are not addressed and the funding needed is not forthcoming the hardship is likely to continue. It needs to work with third party organisations to help shape the new programme in light of the real life experiences of recipients.

More:

Report findings

The report concludes that:

  • DWP’s dismissive attitude to real-world experience is failing claimants
  • Recent announcement of delayed roll-out is not a solution
  • Department must work with third-party organisations to shape programme

The introduction of Universal Credit is causing unacceptable hardship and difficulties for many of the claimants it was designed to help.

However, while the Department is responsive to feedback on its digital systems from staff, it has persistently dismissed evidence that Universal Credit is causing hardship for claimants and additional burdens for local organisations, and refuses to measure what it does not want to see.

In 2013 this Committee raised concerns about the Department’s culture of reporting good news and denying problems that emerge. In further reports in 2015 and 2016 the Committee warned about the Department’s continued lack of transparency.

“Slow and measured” is not a solution

It is hugely regrettable that the Department has not heeded these warnings. Instead of listening to organisations on the frontline supporting claimants, the Department has continued with its fortress mentality and as a result is failing claimants who struggle to adapt to the way Universal Credit works.

The recent announcement by the SoS of a further delay and a “slow and measured” approach to the rollout is not a solution on its own and the SoS has admitted that some claimants will be worse off under UC.

If the current problems are not addressed and the funding needed is not forthcoming the hardship is likely to continue. The Department needs to work with third party organisations to help shape the new programme in light of the real life experiences of recipients.

Chair’s comment

Comment from Public Accounts Committee Chair Meg Millier MP

“This report provides further damning evidence of a culture of indifference at DWP – a Department disturbingly adrift from the real-world problems of the people it is there to support.

Its apparent determination to turn a deaf ear to the concerns of claimants, frontline organisations and Parliament is of real concern. The culture needs to change.

A Department in denial cannot learn from its mistakes and take the action necessary to address the desperate hardship suffered by many Universal Credit claimants.

DWP’s dismissive attitude points to a troubling pattern of behaviour in the Department – something highlighted by our recent report on errors in Employment and Support Allowance.

The Department’s painfully slow approach to correcting underpayments, years after it accepted responsibility, indicated weaknesses at the highest levels of management.

As a priority the Department must demonstrate a tangible shift in the way it listens and responds to feedback and evidence.

Meanwhile, the Government’s recent announcement of changes to the roll-out of Universal Credit offers no guarantee that the problems facing claimants will be resolved.

We will be watching Monday’s Budget carefully and, in its formal response to this report, expect Government to take meaningful action on our recommendations.”

Lo and Behold!

9.55 am this Morning (Guardian )

Alok Sharma insists jobcentre staff and claimants are happy with benefits overhaul.

Speaking on BBC Radio 4’s Today programme, Sharma insisted the message he was getting from jobcentre staff and claimants was that they were much happier with universal credit.

However, he refused to be drawn when it was put to him that a report by a charity that runs a network of more than 400 food banks had found they were four times as busy in areas where the full universal credit service had been in place for 12 months or more. The Trussell Trust recorded an average 52% increase in the number of three-day emergency food packages distributed.

Prompted to answer three times, Sharma said another report by MPs had suggested there were “very many reasons” why people used food banks and they could not be attributed to just one factor.

Sharma, who rejected claims that his boss, Esther McVey, had been ducking out of media appearances, and said he was responsible for the government’s increasingly beleaguered benefits policy, claimed it was working because “cliff edges” that had previously disincentivised people from working had been removed.

He said he had been visiting jobcentres, most recently in Harlow in Essex, adding: “There are absolutely brilliant people in DWP working as work coaches and they tell me that for the first time in their lives they are doing what they came in to do, which is to provide that one-to-one support which wasn’t available under the legacy system, and that’s a message I get from claimants when I talk to them.”

Yet Quin notes,

The DWP’s own survey found 40% of people were experiencing financial difficulties eight or nine months into their claim, and McVey, the work and pensions secretary, recently admitted the rollout would leave “some people worse off”.

The Mirror adds,

Universal Credit: Thousands face having no payments this Christmas – how to make sure you’re not hit

The new benefit Universal Credit is rolling out to millions, and many could find themselves caught in a gap over Christmas. Here’s how to avoid being caught out.

Universal Credit is rolling out to about 100,000 people a month, leaving a trail of rent debt and food banks in its wake.

The six-in-one benefit is meant to make welfare easier and fairer, but it’s been bundled up with cuts that MPs warn cause “unacceptable hardship”.

The Department for Work and Pensions (DWP) has been blasted for being “in denial” about the problems by Parliament’s public spending watchdog.

Meanwhile Christmas is fast approaching – and thousands of families face the risk of a financial gap over the holiday season.

That’s because there is a standard five-week wait for your first payment when you start claiming Universal Credit.

The paper offers this suggestion:

But there is a way to avoid being high and dry, and not everyone is affected.

So how do you know if you’re hit, and what action should you take? Here’s a guide.

See also this important article by Kitty S Jones.

Former Universal Credit staff reveal call targets and ‘deflection scripts’

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

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Image result for the next stage of universal credit trussell trust new report

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