Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Posts Tagged ‘Housing Benefit

Government Tries to Solve Housing Benefit (Local Housing Allowance) Universal Credit Disaster.

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Looks Complicated and is…

The latest in a long run of stories about Universal Credit:

Edinburgh families forced to wait five weeks to receive Universal Credit

FAMILIES face being left without cash over Christmas when Universal Credit starts being rolled out in Edinburgh on Wednesday.

Claimants will be forced to wait five weeks before they receive the new benefit, meaning first payments will not be made until January.

The shake-up is expected to mean more people relying on foodbanks and also lead to a rise in rent arrears.

Green councillor Susan Rae said: “The immediate impact is debt because the gap people have to wait for payment will throw people into rent arrears.

What is the background to this problem?

The DWP says,

You could get Housing Benefit to help you pay your rent if you’re on a low income.

Use a benefits calculator to check if you can get Housing Benefit before you apply. You may need to claim Universal Credit instead.

Housing Benefit can pay for part or all of your rent. How much you get depends on your income and circumstances.

You can apply for Housing Benefit whether you’re unemployed or working.

And,

The housing element of Universal Credit

When people are moved onto Universal Credit, the single payment for their household will include a ‘housing element’. This will replace the help they currently get from Housing Benefit.

Universal Credit – including the housing element – is paid monthly in arrears.

Direct payment of rent – what is it and when is it coming in?

If you’re a registered social landlord and you receive your tenants’ rent directly from your local council, this will change under Universal Credit. Instead, tenants will receive their ’housing element’ direct and be responsible for paying it to you themselves.

Before the new system comes in, some tenants who are not yet claiming Universal Credit might be selected to start receiving their Housing Benefit payment direct.

The Department for Work and Pensions has committed to consult with social landlords before deciding whether to move their tenants onto direct payments. They will take into account any information you provide about your tenants’ ability to manage with direct payments.

If your tenant can’t manage their rent payments

A tenant can ask to have their housing payments switched to the landlord for a period of time while they get the support they need to get their money under control.

If a tenant has rent arrears, then, as their landlord, you can ask for the rent payments to be temporarily switched to you.

When Amber Rudd became the latest in a long list of DWP Ministers she said (Sky 23rd of November).

The new work and pensions secretary also said she was going to review the five-week wait time for new claimants to receive their benefits; payment systems for the housing element of Universal Credit; access to cash and the repayment of upfront loans.

She said: “We need to give [claimants] more confidence in the fact that they can access cash immediately.

“You know people are nervous about moving from legacy benefits to Universal Credit because they cannot afford quite often to be without cash for a few days, a week, two weeks, three weeks.

“I have to make sure that they can have confidence in access in earlier.”

It does not take a genius to work out that with money in your hand, when you have little, it is tempting to spend on other things than rent.

But there are other problems:

If you live in a private sector property, it may not cover your full rent as it will take account of where you live and, if you are under age 35, whether you are expected to share accommodation.

If you live in a council or housing association property you will be asked about the number of bedrooms you have to compare with how many you are thought to need, to see if you are under occupying the property.

And there is a cap on the rent anybody can get.

Which seems reasonable but with rents in some cities…

So you can be out of pocket in the first place.

So, this is the Government’s latest attempt to solve some of these multiple problems by patching up relations with the (better) landlords.

Inside Housing today reports:

The Department for Work and Pensions (DWP) will be promoting its Universal Credit landlord portal with a six-week social media campaign, starting today.

The portal allows social landlords to ‘verify’ claimants’ rent, which makes it easier for claimants to set up a claim for the housing elements of the benefit payment swiftly.

It also allows landlords to make a request for tenants to be switched back onto the direct payments arrangement, where the rental payments are paid directly to them rather than to the tenant.

This is the case for legacy housing benefit, but is a key reform introduced by the Universal Credit system.

There are currently 538 registered landlords from the social rented sector using the portal.

Justin Tomlinson, minister for family support, housing and child maintenance, said: “The landlord campaign aims to increase awareness of the ways landlords can support Universal Credit, and receive their payments in time. It’s fantastic we’ve signed up 538 registered landlords from the social rented sector already – the feedback we’ve had so far has been overwhelmingly positive.”

“The campaign is spearheaded by partners in the sector and features real life case studies from landlords who explain in their own words their experience of working with the Department of Work and Pensions to support tenants who are claiming Universal Credit.”

A spokesperson for housing association Riverside said: “The landlord portal allows us to verify tenants’ rent and offer support to them early in the Universal Credit process.”

When social landlords enrol with the landlord portal they are invited to accept ‘Trusted Partner status’, allowing them to apply for alternative payment arrangements such as managed payments.

Written by Andrew Coates

November 26, 2018 at 5:34 pm

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

As Rents Rise and People Risk Homelessness: End the Freeze on Local Housing Allowance!

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Housing benefit freeze leaving poorest private renters with shortfall of up to £140 a week

Low-income tenants in the private rented sector face a “heat, eat or pay rent” problem because housing benefit rates have failed to keep up with the soaring cost of accommodation, a study has found.

The benefit freeze is not just affecting people’s ability to pay bill, or to buy food in the shops (where massive price rises are predicted on basics)

Welfare Weekly reports,

Research from the Chartered Institute of Housing (CIH) reveals that more than 90% of Local Housing Allowance (the equivalent of housing benefit for private renters) rates across Great Britain are insufficient to cover even the cheapest rents, as they were originally designed to do.

LHA rates were frozen for four years in 2016 and CIH is warning that they have fallen so far behind even the cheapest rents that private renting has become unaffordable for most low income tenants – putting them at risk of homelessness as they are forced to choose between basic living expenses and paying the shortfall. The organisation is calling on the government to review the policy and to end the freeze immediately.

LHA rates are meant to cover the cheapest 30%t of homes in any given area. But they haven’t been increased in line with local rents since April 2013 and they remain frozen until April 2020.

As a result, renters are facing gaps ranging from £25 a month on a single room in a shared home outside London to more than £260 a month on one to four-bedroom homes in some areas of London.

Over 12 months, those gaps rise to £300 and £3,120 – making it increasingly likely that renters will be forced to choose between paying for basic necessities like food and heating or their rent.

The government introduced targeted affordability funding in 2014 to bridge the biggest gaps but CIH’s new report has found that its impact has been negligible, covering only a handful of the shortfalls completely.

CIH chief executive Terrie Alafat CBE said: “Our research makes it clear just how far housing benefit for private renters has failed to keep pace with even the cheapest private rents.

“We fear this policy is putting thousands of private renters on low incomes at risk of poverty and homelessness.

“We are calling on the government to conduct an immediate review and to look at ending the freeze on Local Housing Allowance.”

Matt Downie, director of policy and external affairs at Crisis, said: “This report highlights just how much housing benefits for private renters are falling short of the levels needed, leaving many homeless people stuck in a desperate situation and putting yet more people at risk of homelessness.

“There are 236,000 people across Britain experiencing the worst forms of homelessness – this includes those sleeping on the streets, living in unsuitable hostels, and sofa-surfing. In many of these cases, people simply can’t find a home because there isn’t enough social housing and housing benefits are too low to cover private rents.

“Homelessness is not inevitable – there is clear evidence that it can be ended with the right policies in place. The government must urgently reform housing benefits for private renters, so they not only match the true cost of renting but also keep pace with future rent changes.”

There is some serious research behind this: MISSING THE TARGET? Is targeted affordability funding doing its job?

What are the consequences of the uprating freeze for private renters?

• Tenants are expected to make up any gap out of their jobseeker’s allowance (JSA) (or other basic benefits) even though basic benefits don’t include an allowance for rent. Basic working age benefits are also subject to the uprating freeze and are now only worth 93 per cent of their 2012 value.

• Single people aged under 25 only get the shared accommodation rate and a lower rate of JSA (£57.90). On average they are expected to contribute 10 per cent of their JSA on the gap (equivalent to a 17 per cent contribution in real terms).

• Young jobseekers’ resilience is severely limited because the basic benefit allowance for this group

 

Background: the local housing allowance and uprating policy (2008-2020)

How LHA rates become misaligned with local rents

• In April 2008 the government introduced the local housing allowance (LHA) which set a maximum rent that housing benefit can cover for private tenants. The LHA is the rent figure which a set percentage (currently 30) of all of the rents in that market fall below (‘the 30th percentile’) – ensuring that same percentage of homes is affordable to low income households.
• For each of the 192 distinct local housing markets across Great Britain there are five LHA rates, one for each category of dwelling (e.g. shared accommodation, one bedroom, two bedrooms etc.). Each LHA rate is calculated using a database of rental market evidence compiled by rent officers (professional valuers who work for Her Majesty’s Revenue and Customs in England or the devolved governments in Scotland and Wales).
• In April 2013 the link with local market evidence was broken and henceforth (for an unspecified period of time) existing LHA rates were uprated by the consumer prices index (CPI) or a lower figure set by the government. From April 2014 for two years the uprating index was capped at one per cent, and from April 2016 LHA rates were frozen for four years.
• Over the medium to long term rents tend to rise faster than prices (i.e. CPI), so that from April 2013 when the link with local rents was broken, the LHA’s purchasing power receded and this has accelerated during the one per cent cap and the current freeze.
• From April 2014, to ensure that LHA rates remain reasonably well aligned with local rents, the government introduced targeted affordability funding (TAF). Under this policy a proportion of the savings that accrue from uprating by one per cent or zero instead of CPI is awarded to those LHA rates that have the lowest percentile value (i.e. cover the smallest proportion of the whole range of rents that are paid in that market).

Written by Andrew Coates

August 30, 2018 at 11:38 am

Pressure Grows on Universal Credit Rollout.

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Image result for universal credit cartoon

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

Today,Birmingham Mail.

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

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

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

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

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

But will Ministers listen?

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

Sunday:  The Observer view on the rollout of universal credit

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

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

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

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

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

….

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

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

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

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

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

But, as people here have pointed out…

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

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

Written by Andrew Coates

September 18, 2017 at 10:34 am

When will Universal Credit Fall off a Cliff?

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Image result for falling off a cliff

Warning: Universal Credit Ahead!

Sometimes you wonder when or where  it will all end.

Or Collapse, as the image above suggests.

Ken already notes on the comments that people are racking up debts because of Universal Credit,

Newcastle tenants on Universal Credit rack up £1.1 million in rent arrears

Housing managers say a new benefits system is leading people into debt and forcing some to use food banks.

Ken adds this to boot,

An automated system is leeching cash away from essentials like clothes and food to cover costs elsewhere

StepChange Debt Charity said the use of direct deductions from people’s benefits, by utility companies, housing providers, councils and others, to cover arrears payments is making it harder for families to pay for essentials forcing many to use credit to keep on top of bills.

http://www.mirror.co.uk/money/third-party-deductions-dwp-policy-11164892

That’s just a a sample of our contributors’ news from the media, their own experience and comments.

Is the Government worried?

Do they take account of the stream of criticism that’s levelled at the madcap scheme that’s causing widespread misery?

They and the DWP are in denial.

The Ghost of Iain Duncan Smith, in a rage at the fate of his love child,  speaks through one of his minions,

THIS BLOG IS A DISGRACE!! IT EXISTS ONLY TO DISCOVER LOOPHOLES IN DWP RULES AND REGULATIONS, AND TO FIND WAYS AND MEANS FOR SHYSTERS TO AVOID DWP JUSTICE. ITS OWNER – ANDREW COATES – WHO LIKES TO PRETEND HE DOESN’T KNOW WHAT IS HAPPENING ON HIS OWN BLOG AND ALL THE OTHERS WHO SOUGHT TO BRING ABOUT THIS PERVERSE DECISION WHICH ALLOWED A GUILTY MAN TO EVADE DWP JUSTICE SHOULD BE PROSECUTED FOR CONSPIRACY TO PERVERT THE COURSE OF JUSTICE AND CONSPIRACY TO DEFEAT THE ENDS OF JUSTICE. FUMING!

This is the news today, from the Independent,

Universal Credit delays leave claimants to ‘drop off a cliff’ in rent arrears, hear MPs

It comes after Citizens Advice warned the accelerated roll-out of the new regime was a ‘disaster waiting to happen’.

Claimants “drop off a cliff” and “remain in freefall” in rent arrears due to delays in receiving payments under the new Universal Credit regime, MPs have heard.

It comes as the Government plans to accelerate the delayed roll-out of Universal Credit – devised by the former welfare chief Iain Duncan Smith – to 50 new areas in the autumn despite warnings that it is a “disaster waiting to happen”.

Speaking to MPs on the Commons Work and Pensions Select Committee in Westminster, council leaders, food banks and charities from across the country raised concerns about the system which intends to merge six existing benefits into one single monthly payment from claimants.

One councillor from the London council of Southwark – where Universal Credit is already up and running – said an additional £1.3m of rent arrears was attributable to the new regime since its introduction by the council two years ago.

Southwark Councillor Fiona Colley told the committee, chaired by the former Labour minister Frank Field, that the roll-out had a range of impacts on the council and its residents due to typical 12-13 weeks to administer the first payment.

“The most significant for us that I want to tell you about is how it has impacted rent arrears and on payment of rent,” she said. “That has very much dominated our experience.

“What we are particularly concerned about is the speed at which rent arrears are increasing after people claim Universal Credit. We see them drop off a cliff once the claim goes in and remain in free-fall for about three months thereafter until people start getting into payment.”

Pressed on whether the system had got any better in the two years the council had been administering Universal Credit, she replied: “I don’t think so.”

“We’re looking to make this work – we can’t afford for it not to.”

Not to mention this:

Universal Credit roll-out a ‘ticking timebomb’, say private landlords

Welfare Weekly.

The Government’s flagship Universal Credit (UC) system is pushing a growing number of private sector tenants into rent arrears, with the number falling behind on payments rising by 10% over the last year.

A survey of almost 3,000 landlords by the Residential Landlords Association (RLA), who represent landlords in the private sector across England and Wales, found that 38% of tenants in receipt of UC experienced rent arrears in the last year – up from 27% in February 2016.

The average amount of rent arrears owed by private tenants to their landlords is now £1,150, with the RLA blaming the long wait before UC claimants receive their first payment.

Then there was this:  Homelessness rise ‘likely to have been driven by welfare reforms’

The number of homeless families in the UK has risen by more than 60% and is “likely to have been driven” by the government’s welfare reforms, the public spending watchdog has said.

Homelessness of all kinds has increased “significantly” over the last six years, said the National Audit Office.

It accused the government of having a “light touch approach” to tackling the problem.

The government said it was investing £550m by 2020 to address the issue.

There has been a 60% rise in households living in temporary accommodation – which includes 120,540 children – since 2010/11, the NAO said.

A snapshot overnight count last autumn found there were 4,134 rough sleepers – an increase of 134% since the Conservatives came into government, it added.

A report by the watchdog found rents in England have risen at the same time as households have seen a cut to some benefits.

Homelessness cost more than £1bn a year to deal with, it said.

Reforms to the local housing allowance are “likely to have contributed” to making it more expensive for claimants to rent privately and “are an element of the increase in homelessness,” the report added.

Homelessness rise

England, 2010-2017

134% rise in rough sleepers

60% rise in households living in temporary accommodation

  • 77,000 families in temporary accommodation, March 2017, including…
  • 120,000 children
  • £1.15bn council spending on homelessness 2015-16

Welfare reforms announced by the government in 2015 included a four-year freeze to housing benefit – which was implemented in April 2016.

Auditor General Sir Amyas Morse said the Department for Work and Pensions had failed to evaluate the impact of the benefit changes on homelessness.

“It is difficult to understand why the department persisted with its light touch approach in the face of such a visibly growing problem.

“Its recent performance in reducing homelessness therefore cannot be considered value for money.”

The ending of private sector tenancies – rather than a change in personal circumstances – has become the main cause of homelessness in England, with numbers tripling since 2010/11, said the NAO.

Its analysis found private sector rents in England have gone up by three times as much as wages since 2010 – apart from in the north and East Midlands.

While in London, costs have risen by 24% – eight times the average wage increase.

I saw people sleeping in doorways in Ipswich last night.

Not at all unusual.

Anywhere.

Update: still somebody’s happy:

Written by Andrew Coates

September 14, 2017 at 11:14 am

​Inquiry into Universal Credit – or Yet Another Inquiry…

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Related image

Even Owls Can be Flummoxed…

Earlier this year we had this:

Universal Credit rollout: inquiry re-launched

21 February 2017

Following compelling evidence of the problems in the rollout of Universal Credit in its recent follow ups the Committee has re-launched its inquiry and is now accepting written submissions.

Followed by,

Due to the general election on 8 June 2017 the Committee has now closed this inquiry. Following the dissolution of Parliament on 3 May 2017, all Select Committees cease to exist until after the general election. If an inquiry on this subject is held in the future, the Committee may refer to the evidence already gathered as part of this inquiry.

Then, post General Election,  this:

The National Audit Office is engaged in ‘work in progress’ in producing yet more reports on Universal Credit.

The Department is due to increase the pace of roll-out from October 2017, so that full service will be available to new claimants in all jobcentres by September 2018. The Department then plans to transfer existing claimants to Universal Credit by March 2022.

In this study we will examine whether the Department is on course to deliver Universal Credit in accordance with its plans. We will also assess whether there are early signs that Universal Credit is delivering its objectives, and what impact it is having both on claimants and on local stakeholder

In this study we will examine whether the Department is on course to deliver Universal Credit in accordance with its plans. We will also assess whether there are early signs that Universal Credit is delivering its objectives, and what impact it is having both on claimants and on local stakeholders.

After a mountain of complaints about Universal Credit,, which take up a big part of this Blog and others, we had Gaucke’s response a few weeks ago,

The work and pensions secretary has signalled that the government will press ahead with controversial welfare changes, insisting the system of universal credit is “making work pay and transforming lives”.

Responding to a letter signed by 30 Labour MPs and the Green co-leader Caroline Lucas, expressing concerns about UC and calling for its implementation to be paused, David Gauke underlined his commitment to the policy.

“Getting UC right is a priority for me,” he said. “UC is revolutionising the welfare system by making work pay and transforming lives. Those on UC are moving into work significantly faster and working longer than under the old system. Only through this balanced approach can we as a country provide effective and holistic support for families and individuals to enter the world of work while ensuring fairness for the taxpayer.”

He added this touching note,

he does acknowledge the concerns of claimants struggling to navigate the new system, saying: “I know change of any kind can be difficult, especially for families struggling to get by.”

Since then, silence from the chap who shows such concern for families “struggling to get by”.

But lo!

Now we learn of this:

Inquiry into Universal Credit follows landlords’ criticism

Simple Landlords.The National Audit Office is launching an inquiry into the effectiveness of Universal Credit after a leading landlord body criticised the system.The probe will assess whether the Department of Work and Pensions (DWP) is on course to deliver Universal Credit, in accordance with its plans.

It will also determine whether there are early signs that Universal Credit is delivering its objectives, and what impact it is having both on claimants and on local stakeholders.

The Residential Landlords Association (RLA)  has criticised the controversial system, which ‘bundles’ individual benefits into a single monthly payment, as it makes it tougher for landlords to rent to people who are on low incomes, because they lack the confidence that they will receive the rent.

Richard Jones, the Residential Landlords Association’s (RLA) policy director, said: “We strongly believe that the Government’s whole approach is flawed and although the objective of helping tenants manage their financial affairs is in isolation a laudable one, the Government has wholly failed to appreciate the consequences of this.”

When Universal Credit was initially unveiled, the Residential Landlords Association (RLA) predicted the changes would be “a much higher level of arrears, an unwillingness of landlords to house benefit claimants, increased unwillingness by banks to lend for this kind of property, much higher levels of evictions and much greater homelessness.”

Sue Sims, a Birmingham based landlord, is one of those who thinks she’ll have to stop renting to tenants on benefits – because the numbers simply don’t add up anymore. At a Simple Landlords Insurance event, landlords discussed the challenges ahead. Sue explained: “It’s already been proved that the arrears rates in the areas which have universal credit have gone up hugely. You need the security that you’re going to get your rent paid on time, otherwise you can’t pay your mortgage. As a result, I won’t even consider housing benefit tenants in my properties any longer.”

Indeed, recent research published by Residential Landlords Association (RLA) research lab PEARL shows that out of 2,974 landlords, 38 per cent reported that they have experienced Universal Credit tenants going into rent arrears in the past twelve months and were owed an average £1,600 in rent arrears. And Sue is not alone in her reluctance to rent to Universal Credit – another survey of more than 1,000 landlords in found that 91.6 per cent of landlords said the introduction of universal credit would make them less likely to rent to those on benefits.

Our Newshounds will have to track this one down but I find no evidence anywhere else –  though who could doubt the seriousness of the Landlords and their associations? –  of this inquiry.

 

Written by Andrew Coates

September 7, 2017 at 4:13 pm

Minister silent as desperate DWP launches helpline for landlords and Allegations about “massaged” Benefit Sanction Figures made.

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Image result for David Gauke DWP

Gauke, Taking it Easy as DWP Descends into Omnishambles.

Parliament briefly heard of Work and Pensions secretary David Gauke  when he announced in Parliament in July that the state pension age will rise to 68 .

Since that time this is his last known statement of the Man,  as key policies of his government, which his Department is in charge of, such as Universal Credit, are in a condition worse than omnishambles.

6th August 2017

After a busy year so far, the summer recess comes as a welcome slow-down for most MPs.  There has been no shortage of drama in politics for the past couple of years and recent months have been no exception.  General elections tend to be somewhat exhausting and, on this occasion, it resulted in a less than conclusive result.

The General Election was then followed by a reshuffle and, on a personal note, I moved on from the Treasury to the Department for Work & Pensions.

The summer recess is a good opportunity for ministers in new departments to get their heads round new issues and attempt to get on top of their brief.  In my case, I am spending some of the period when Parliament isn’t sitting visiting DWP offices around the country, meeting staff and understanding the breadth of work undertaken by the department.  I am also spending plenty of time reading into the various subjects covered by the department – employment, disability benefits, pensions and so on.

This should, I hope, be helpful for the autumn when Parliament returns and we have the party conferences.

Much of the work is quite technical in nature but my previous ministerial experience is helpful, whether it is experience of a big operational part of government (I previously worked closely with HMRC), pensions policy (I worked on pensions tax policy when at the Treasury) or just an understanding of large parts of public spending (which was key when I was Chief Secretary to the Treasury).

Meanwhile, the constituency work continues with the correspondence and regular constituency surgeries.

Parliamentary recess is not a long holiday (a point MPs often make, somewhat defensively!) but it should enable us to recharge our batteries for a busy few months.

We imagine he in some quiet holiday retreat away from the world, ready to re-assume his pressing duties here, “David is a Patron of the Hospice of St Francis, the Watford Peace Hospice and the Three Rivers Museum.  He writes regularly for the Croxley, Rickmansworth and Chorleywood editions of My Local News magazines and The Berkhamsted & Tring Gazette.”

Meanwhile while Gauke relaxes, the Residential Landlords Association announces,

 

The Department for Work and Pensions (DWP) has introduced a new helpline for landlords whose Universal Credit tenants will not communicate with them.

The new number 0345 600 4272 can be used by landlords who are unable to obtain the tenant’s co-operation to get DWP to supply information when it comes to enquiries about major payments –  such as a direct payment to the landlord.

This is a significant change as, before now, landlords were totally dependent on the goodwill of the tenant when it came to accessing information.

The new number can only be used by landlords in areas where Universal Credit has been fully rolled out.

The official Universal Credit guidance says the landlord should:

  • In the first instance engage with their tenant about the issue.  The tenant has access to their own information via their online account and can share it with their landlord
  • If more assistance is required the claimant can ask to share their personal information with their landlord or other representative via their online journal, face to face or by calling the service centre and giving explicit consent
  • When contacting Universal Credit the claimant’s representative will be asked to confirm their identity so the case manager can speak to the landlord direct.

Earlier this summer DWP said it will address problems faced by landlords who house Universal Credit tenants following a meeting with the RLA.

RLA directors David Smith and Chris Town met with Caroline Dinenage MP, the new Minister responsible for housing cost support, to discuss issues including rent arrears and direct payments.

This came about after the RLA’s most recent quarterly survey showed 38% of landlords with tenants in receipt of UC had seen them fall into rent arrears in the past 12 months. With tenants owing an average of £1,600.

The RLA runs a course on Universal Credit, with dates currently available in Manchester and Leeds.

The other story the Gentleman of Leisure is avoiding is this:

The London Economic (TLE)

A freedom of Information request shows that new welfare reforms are allowing the government to distort the true figures of those sanctioned on welfare, disability and in receipt of pensions

The very latest figures from the Department for Work and Pensions (DWP) obtained by The London Economic in response to a freedom of information request I submitted show that new welfare reforms such as Universal Credit are allowing the true figures regarding people sanctioned to go grossly unreported.

Today 20 million people in the UK are claimants, 13.8 million are on a pension, and a further 6.8 million people are of working age.

The DWP has started, from August 2017, to publish a Quarterly Statistical Summary of information on the length of time over which a reduction in benefit due to a sanction lasts.

In this report, they say for the first time, the duration of sanctions to be implemented for Employment Support Allowance (ESA) and Universal Credit (UC), Jobseekers  Allowance (JSA) and Income Support (IS).

Furthermore, they say they are working on the methodology used to calculate sanction durations.

Yet, when you look at the Government’s own headline figures, a staggering 4.4 million people have been sanctioned up to 31 March 2017 and these figures probably underestimate the true number by a further 2 million under-reported sanctions, as Government figures do not include people sanctioned more than once; people who are presently challenging their sanctions or the huge number of people who have been successful in winning their appeals.

Moreover, Universal Credit is also helping the Government to massage the sanction figures downwards.

Rest of Story here.

Written by Andrew Coates

August 24, 2017 at 4:12 pm