Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

Posts Tagged ‘Housing Benefit

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.

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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

As BBC Women’s Pay Gap Dominates News, Benefits Freeze leads to Evictions.

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Evictions reach a record high - new report for JRF published

More Important than Pay Gap for Women at BBC? 

No doubt this is important, so important that you can barely turn the radio or the telly on without hearing about it.

45 BBC women urge action now from Tony Hall on salaries as Claire Balding reveals Women’s Hour pays 40 per cent less than other shows.

But I can’t help feeling, call me a workerist, a miserabilist, and all the rest, that this is a lot more important.

100 tenants a day lose homes as rising rents and benefit freeze hit

(Thanks Enigma and others…)

Charities demand action to tackle toll of soaring housing costs, welfare cuts and ‘no fault’ evictions.

A record number of renters are being evicted from their homes, with more than 100 tenants a day losing the roof over their head, according to a shocking analysis of the nation’s housing crisis. The spiralling costs of renting a property and a long-running freeze to housing benefit are being blamed for the rising number of evictions among Britain’s growing army of tenants.

More than 40,000 tenants in England were evicted in 2015, according to a study by the Cambridge Centre for Housing and Planning Research for the Joseph Rowntree Foundation (JRF). It is an increase of a third since 2003 and the highest level recorded. The research appears to confirm fears that a mixture of rising costs and falling state support would lead to a rise in people being forced out of their homes. It will raise concerns that even those in work are struggling to pay their rent.

High numbers of “no-fault” evictions by private landlords is driving the increase. More than 80% of the extra evictions had occurred under a Section 21 notice, which gives a tenant two months to leave. The landlord does not have to give a reason and there does not need to be any wrongdoing on the part of the tenant.

The study found that changes in welfare benefits have combined to make rents unaffordable to claimants in many areas. Housing benefit was no longer covering the cost of renting in some cases, with average shortfalls ranging from £22 to £70 a month outside of London, and between £124 and £1,036 in inner LondonHousing benefit has not risen in line with private rents since 2010, and a current freeze means the rates paid will not increase until 2020.

The number of tenants evicted from their properties reached a record high, according to a new report highlighting the misery and insecurity faced by renters struggling on low incomes.

Joseph Rowntree Foundation. 

The report shows:

  • the rented sector has grown in the past 12 years by nearly a half, and the number of tenants being evicted from their homes has grown by a third: 10,000 more tenants lost their homes in 2015 than in 2003
  • the number of tenants evicted by private landlords exceeded the number evicted by social landlords for the first time in 2014
  • the increase in repossessions in recent years has been almost entirely due to the increasing use of ‘no fault’ evictions, using Section 21 (S21) of the Housing Act 1988
  • the use of S21 is highly concentrated geographically – four out of every five repossessions using S21 are in London, the East and the South East, and nearly two-thirds are in London alone.

JRF is calling for the Government to end the freeze on support for housing costs, and uprate Housing Benefit in line with local rents.

According to recent research carried out by CCHPR for the Joseph Rowntree Foundation, the growing gap between rents and support for housing costs is a key factor behind the rise in private rented sector evictions.

The research included in depth interviews with tenants on low incomes and identified the high levels of stress and disruption caused by insecure housing.

‘With the £50 a month [housing benefit shortfall] coming out of the JSA – that’s almost a week’s money in itself – and then you’ve got the other bills…I just couldn’t make it work. I had to choose… do I pay the rent… electricity… buy some food?’

Changes in welfare benefits have not kept up with rising rents, causing misery for tenants as they cope with inevitable financial pressures. Furthermore, the rising number of ‘no fault’ (Section 21) evictions gives rise to insecurity as tenants on low incomes face a complete lack of options when they lose their home.

The full report ‘Poverty, evictions and forced moves’ can be downloaded here.

We call for Labour to Announce Plans to End the Benefit Freeze.

Written by Andrew Coates

July 24, 2017 at 11:12 am

Rent Arrears Grow 5 Times under Universal Credit.

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Image result for universal credit cartoon

Happy Christmas Message!

Some of our regulars have suggested that we will soon face a withered JobCentre, information technology supplied by Nintendo, outsourcing of Housing Benefit to Abbots Lettings, payments turned in loans run by BrightHouse, and ‘advice’ services provided by William Hill Racing Consultants.

Jest ye not….

Meanwhile,

The average rent arrears of a tenant receiving Universal Credit is almost five times the average of those not in receipt of the welfare payment, according to new research.

Data and insight provider HouseMark carried out a detailed analysis of benchmarking data submitted by its members to examine the impact of changes in welfare benefits on social landlords’ income, arrears and collection costs.

While rent collection rates have improved over the five-year period, the report also found that more money is being spent on collecting rent each year.

The Welfare Reform Impact Report collected data from a cross-section of members managing up to 2.5 million properties and includes figures from April 2011 up to March 2016.

In October 2016 HouseMark surveyed members of its Welfare Reform Impact Club on the effect of Universal Credit on arrears rates. It found that the average rent arrears debt of a Universal Credit claimant is £618, compared to average non-Universal Credit arrears of £131 per property.

With average social rents around £96 per week, this Universal Credit debt equates to six to seven weeks’ rent.

Across each quartile, rent collection rates have improved over the five years between 2011/2012 and 2015/2016. In spite of this overall improvement, performance in the years 2012/2013 and 2013/2014 worsened before picking up. These years coincide with the introduction of many welfare reforms that affected tenants’ ability to pay the rent.

Using estimates based on members’ data, HouseMark found that more money is being spent on collecting rent each year, and this expenditure is rising faster than inflation. It estimates that UK social landlords spent over £720 million collecting rent in 2015/2016, a real terms rise of over £100m from 2011/2012.

The data suggests that the rise in expenditure on managing rent arrears and collection is driven by an increase in human resources – i.e. more people being employed to collect rent and manage arrears rather an increase in average pay costs.

Written by Andrew Coates

December 17, 2016 at 11:10 am

Homeless Rise Linked to Benefit Changes.

with 82 comments

The Human Face of Austerity.

Government austerity to blame for 30% rise in homelessness, says parliamentary committee,

Reports the Independent.

MPs warn that the number of homeless people is rising because most housing benefit claimants have to pay rent out of their state payments, rather than it being straight to their landlords

The Government’s welfare reforms are driving up homelessness, according to MPs who conducted the first inquiry into the scale of the problem for 10 years.

In a report, the Communities and Local Government Select Committee found that official figures underestimate the risen in homelessness and demanded urgent action to tackle it. The estimated number of rough sleepers in England rose by 30 per cent to 3,569 between 2014 and last autumn – a quarter of them in London.

This will come as no surprise to anybody with eyes.

Walk around Ipswich and you can see the numbers of people begging in the streets: it is striking.

In London you can see people sleeping rough, right up such Tourist centres as Trafalgar Square, and by the West End theatres in Cambridge Circus – not coincidentally next to the site of one of Victorian London’s worst ‘rookeries’, that is, slums.

The MPs warned that the number of homeless people is rising because most housing benefit claimants have to pay rent out of their state payments. They said all claimants should have the option of their rent  being paid directly to landlords to reduce their chance of getting into arrears and to encourage landlords to rent to tenants at risk of becoming homeless. Many 18 to 21 year-olds are “at significant risk” of homelessness, and the MPs proposed that those losing their job should have a “grace period” of one or two months before losing the housing element of Universal Credit.

Calling for greater financial incentives to work, they said: “It cannot be right that someone must choose between the support they need and employment.”

The committee concluded: “The impact of the welfare reforms of recent years has increased pressure on levels of homelessness.” It added that  the annual cap on benefit payments to one family – £20,000 and £23,000 in London – could worsen the  problem.

The MPs called for women, single people and those with mental health problems to be given extra help. They heard evidence that women were driven into prostitution to avoid sleeping on the streets and said  victims of domestic violence were particularly at risk of becoming homeless.

The committee took the unusual step of endorsing a Private Member’s Bill to be debated in the Commons in October which would give councils new duties to prevent homelessness and help homeless people.

This was also entirely predictable, given the mean-spirited intention behind the ‘reform’.

In a separate report, the Tory modernisers’ think tank Policy Exchange said jobless people aged 25 and under are more likely to have their benefits stopped or reduced for not doing enough to find work than any other age group. It found that young adults account for more than a third of benefit sanctions but account for less than a fifth of claims for Jobseeker’s Allowance. Of the 101,640 young people claiming it last November, 5,812 received a sanction.

Policy Exchange called for a shake-up of benefits and support for 16 to 25 year-olds, including the creation of youth employment centres.

Homeless too often given ‘meaningless advice’ by councils – MPs.

Reports the BBC.

Homeless people are too often given meaningless and ineffectual advice by councils in England, MPs have said.

A Communities and Local Government Select Committee report found homeless people are too often “badly treated” by councils, saying they should have a legal duty to give meaningful support.

Homelessness is increasing and a new government plan is required, MPs added.

However, councils said they needed more money and powers, saying they “cannot tackle this challenge alone”.

The report urged the government to support the Homelessness Reduction Bill – proposed by the Conservative MP Bob Blackman in June – to impose tougher conditions on councils and force them to offer emergency accommodation for up to two months.

Official figures published by the government show that local authorities approved 14,780 households’ applications for homelessness assistance between 1 January and 30 March 2016.

This was up 9% on the same quarter in 2015.

However, the report warned that the statistics did not capture the full scale of homelessness, for example many “hidden homeless” who may be staying with friends or not have sought help.

If they had any decency they would listen to people like Doug, commenting on this Blog.

2 months emergency housing, how did they come up with that exactly as what do they feel will happen after. Are these homeless people going to magically find a property to rent in that 2 months that they couldn’t find before. Do government or even the public believe that the homeless have never looked and tried to secure a property.

And what about DWP and conditionality on the homeless, their expected to look for work or face being sanctioned which is counter intuitive when you consider besides the big issue, no employer will hire a homeless person. DWP know this only to well unless they want to assert every single DWP worker right up to the appointed minister are complete and utter idiots ill placed in the position they are in.

We only have to look at the way UC was developed to sanction housing benefit to know tory government intent and how when even applying for unemployment benefit, your instantly faced with a screen demanding i quote, ” an address you reside at”, which if you haven’t one, you can’t proceed with the claim and its been this way since it was first released and has been mentioned numerous time to DWP not that really it isn’t glaringly obvious from the get go. For the record they don’t even confront homelessness till further into the application and if that wasn’t bad enough, later on it asks for a phone number and again wont allow the person to proceed with the application for benefits if they don’t own a phone and this one gets me, DWP staff have absolutely no answer to it and at best could only if they did and I’m not saying they do, incite the person to add a fraudulently number and then ring DWP to give a change of details.

Now according to the dictionary vulnerable means – exposed to the possibility of being attacked or harmed, either physically or emotionally yet DWP and local council have their own definition and this has been going on for at least a decade, that somehow, if you’re a certain age and of a certain health that your be perfectly ok living on the streets. DWP even expanded this to instruct public service staff NOT to treat people with certain mental illnesses like schizophrenia for example as VULNERABLE.

I’ve witnessed up and down the country, many a homeless person deliberately breaking the law just so they can get a temporary roof over their head and food in the mouth, especially in the depths of winter around Christmas. The amount of mentally ill prisoners is also quite alarming.

Now i and others have said from day one of these welfare reforms that their would be a knock on as people simply don’t lie down and die and will lead to an increase in costs towards the NHS and law enforcement and criminal retention so oh what a surprize certain ministers are now using it to justify change. Constantly others and i have demonstrated how being in prison despite the violence (statistically your odds of being attacked on the street are higher) is easier than being under conditionality, where a murder, a rapist, even a terrorist gets food and a bed no matter the horrible details of their crime yet raise your voice at a DWP staff member, not fulfil your conditions by a mm and WHAM, all monies are suspended.

A week in prison costs the taxpayer £538 a week, a massive 7 times more than the £74 a person gets claiming unemployment. Malnutrition and the illnesses it causes aren’t any cheaper and the recent revelation that a lot of homeless people develop addictions after going onto the streets and not before as previously believed. Add to that being regularly attacked by the public at night and you can easily imagine the financial burden placed on the NHS.

Oh for the record its not strictly 2 months housing, its actually UPTO meaning it could well mean a week or even possibly less, who knows at this juncture. What’s being prescribed is clearly manufactured by people who don’t understand the problems of being homeless in today’s UK as they actually believe by giving a person a house for 2 months (said on ann derbyshire) that magically they will find another, so we are now back where i started and that’s my whole point,

When you’re homeless all you ever do is get the run around only to end up where you started.

And they would also listen to Enigma:

35.When we asked Giles Peaker, Chair of the Housing Law Practitioners Association, what the future of homelessness would be if no action was taken, he was unequivocal:

Will it get worse? Yes. Will it get worse faster? Yes. That is already happening, and is just going to continue … One thing that could be done is to stop making it worse. That is the simple answer. There are some immediate triggers facing us … The roll-out of the reduced benefit cap is going to have a fairly dramatic effect across the country, whereas the first £26,000 one basically affected London. £23,000 and £20,000 outside of London is going to have a dramatic national effect, really taking large swathes of public sector tenancies out of affordability for families in that situation. If the rents continue to increase whilst there is the LHA freeze, without wishing to be overly melodramatic, we are heading towards a serious crisis.48

http://www.publications.parliament.uk/pa/cm201617/cmselect/cmcomloc/40/4006.htm#_idTextAnchor018

Any person with a shred of decency who  listened to the Dougs and the Enigmas of this world would be boiling with anger.

Written by Andrew Coates

August 18, 2016 at 3:19 pm