Displaying items by tag: Universal Credit
Universal Credit and debt
The Universal Credit extra payments helping people through Covid have ended, amid fears that many lives will get worse not better this winter. 29-year-old Lynton Lockett is embarrassed to show people his kitchen. A leaking kitchen tap caused mould on the floor and walls. The dampness has brought an infestation of fruit flies. Lynton showed the kitchen to plumber James Anderson who runs a community initiative called DEPHER CIC that provides free heating and plumbing services to people who can't pay for them. James anticipates a 50% increase in calls for help this winter. He has started giving food parcels to struggling families. He said that the end of payments, the higher cost of living, a rise in gas prices and the end of furlough puts too much financial pressure on families. He added, ‘You can't hide the truth. If this continues, people are going to die.’ See also
Universal Credit fraud
Fraud and error on the main Universal Credit (UC) benefit have reached record levels, according to new official figures. The department for work and pensions reported £8.4bn lost in 2020-21, almost entirely due to fraud and almost double the previous year. The number of people on UC has doubled to six million since the pandemic started. Officials said the increased fraud is a product of more people applying for the benefit, and the value of each fraudulent case rising, rather than a higher proportion of people engaging in fraud. It can be as simple as individuals claiming money to which they are not entitled, like not declaring income from other sources. More complex cases involve criminal gangs stealing people's details to apply for advance payments of UC. The money is paid to them, but the person whose identity has been stolen gets the bill.
Millions at risk of UC ‘lockout’
New research by the Salvation Army shows that millions of people risk being unable to access their sickness benefits due to faults in the Universal Credit system. Researchers found that 85% of people surveyed struggled to complete their claim. Of these, nearly 60% cited not being able to use a computer or not understanding the complicated system as the main problems they faced. Thousands of vulnerable people on low incomes - particularly those with mental illness - are at risk of destitution because they do not have the skills or support to apply for and maintain a UC benefit claim. There is ‘overwhelming evidence’ that many people find it a struggle to engage with the mainly digital benefit, leaving them unable to pay rent or buy food and effectively locking them out of employment support.
Universal Credit benefits
Since its introduction, Universal Credit (UC) has made things harder for people receiving it. Now, a court ruling has made it possible for 13,000+ disabled people to receive backdated benefit payments. People who moved from the severe disability benefit to UC, which rolls six payments into one, will receive backdated payments of up to £405 per month alongside the UC benefit. The work and pensions secretary said that claimants who had been entitled to the severe disability premium would be given ‘ongoing transitional payments’ as they moved across to UC, and those who had already moved to the new system would be eligible for backdated payments. While we can thank God for this change, we can continue praying for other support packages which need re-assessing and addressing, including dementia care and undiagnosable illnesses that do not fit into any recognised medical category but still need support with training, transport, supervision, and personal care.
Chancellor’s spring statement - Trussell Trust
The Trussell Trust has said that Philip Hammond has missed a chance to do the right thing by giving people on the lowest income financial support and certainty before Brexit. Our benefits system should ensure proper support is in place when help is most needed. But more people are struggling to make ends meet and face hunger. The trust said a record demand in foodbank use has resulted from benefits not covering the cost of essentials. ‘By failing to end the benefits freeze and the five-week wait for Universal Credit, thousands more people will become trapped in poverty and may be forced to a foodbank as a result.’ Financial experts said that Britain needs urgent spending reviews to address issues around benefits squeezes, education funding, and social care. The Chancellor promised to free up more money to help end austerity if there’s a smooth Brexit, and that a disorderly Brexit would deal a ‘significant’ blow to economic activity in the short term. See
Universal Credit rollout delayed
The next stage of Universal Credit rollout will be scaled back, amid concerns it has made an estimated 3.2 million households worse off. It has also run over budget, is years behind schedule, and is said to have forced claimants into destitution and in some cases even prostitution. Others say they have been left to rely on foodbanks. The Trussell Trust, which runs national foodbanks, said it welcomed the news but added, ‘It will come too late for the thousands making new UC claims over the coming year. As an urgent priority, the 5+ week wait for a first payment must end’. When she started as work and pensions secretary, Amber Rudd, said she would listen ‘very carefully’ to concerns. She admitted the system could be better, and promised to ‘learn from errors’ and adjust the system where needed. See also
Grenfell Tower at Christmas
MP Emma Dent Coad’s seat includes Grenfell Tower. She has urged the government to delay the launch of Universal Credit in the area, as it could leave many of her constituents without money over Christmas. The scheme should come to North Kensington thirteen days before Christmas. A constituent assessed monthly and paid £60 for each Friday in that month would receive £300 in November, a month with five Fridays, but receive £240 in December which has four Fridays. Also they may have to wait the estimated five weeks for benefits to come through. A DWP spokesperson said there were special measures in place in preparation for Universal Credit roll-out in North Kensington. Last Christmas extra money promised to Grenfell Tower survivors and evacuees to help cover the cost of Christmas did not arrive in time for 18 households. Pray this will not be repeated in 2018.
Foodbanks and the poor
Foodbanks expect more people than ever to need their help this Christmas. ‘Cold parcels’ are being given to people who have neither food nor the means to heat it. Many more may well be needed as the impact of Universal Credit rolls out. The charity Crisis tweeted, ‘Dealing with local authority homeless decisions, where one reason to find someone “non-priority” is the fact they have shown capacity and ability to even make the application. Frustratingly bizarre logic. “Your application would have been stronger had you been unable to make it”.’ Someone replied, ‘We see exactly the same thing with disability benefit assessments. If you turn up for assessment and/or an appeal hearing, they find you have no problems with mobility. If you don't turn up, they refuse your claim.’ Meanwhile, in one of the richest countries in the world, it is only charity that prevents some people starving.
Universal credit - another poll tax?
Sir John Major has called the government to rethink the nationwide roll-out of Universal Credit, warning of an unfair cost to families. Benefit changes coming into force next year have been compared to the poll tax that caused the downfall of Margaret Thatcher. About 3.2 million households will be worse off by about £50 a week, according to the Resolution Foundation think-tank. Theresa May has promised financial help for those affected. But the compensation system is not in place yet - and fewer than 20% of affected families are expected to receive support from it. People whose circumstances change, who make a brand-new claim, or who come off benefits and then go back on them, will not be protected. Veteran anti-poverty campaigner Frank Field said families in his Birkenhead constituency were being forced into ‘destitution’ by the introduction of Universal Credit.
Archbishop and Universal Credit
The Archbishop of York, John Sentamu, wrote in the Yorkshire Post, ‘It is five years since Universal Credit was launched to simplify the UK welfare system. Had everything gone to plan, it would have been up and running across the country by now. Instead, the policy remains a source of ongoing controversy. As a follower of Jesus Christ, my greatest concern is how this policy affects the poorest members of our community. In the Bible, we are called to uphold the cause of the poor and the oppressed. It is right that we look at the impact which Universal Credit, in its current form, is having on our poorest neighbours. We must listen to them, pay heed to what they are telling us, and add our voices to theirs in pointing out where improvements might be made. For it is the person who wears the shoe who knows where it is pinching.’