UK Government welfare policies having ‘devasating impact’ on housing

 

Households renting in the private and social sector have been severely affected by UK Government welfare policies, according to a new report released by the Scottish Government.

The Impact of UK Welfare Policy on Housing report (below) highlights the negative effect of Universal Credit on both tenants and landlords, due to the major increase in rent arrears. In East Lothian for example, 72% of social housing tenants claiming Universal Credit were in arrears, compared to 30% of all tenants.

In addition, the UK Government’s freeze on local housing allowance rates – a benefit paid to private rental tenants  – has also substantially limited households ability to afford rent on properties.

The Scottish Government funds the full mitigation of the bedroom tax, which would otherwise affect over 70,000 individuals who would lose an average of around £650 a year, as well as providing additional funding for direct mitigation of welfare reforms, wider direct support for those on low incomes and advice and other services.

Housing Minister Kevin Stewart said: “Almost half a million Scottish households receive some form of financial support for their housing. It is clear that UK Government welfare cuts are having a devastating impact, with money taken from the pockets of people across the country, pushing them into crisis and debt.

“We are doing all we can, with the powers we have to protect those on low incomes from these devastating UK Government cuts – spending more than £125 million this year alone to do so. This includes £62 million to fully mitigate the ‘bedroom tax’, help for those impacted by the freeze in local housing allowance, as well as providing support for low-income households.

“This report builds on previously published evidence of the undue pressure on people that UK government changes to our welfare system are causing, including housing. We want to ensure everyone has access to a safe, warm place to call home – as part of that, the UK Government must urgently change course.”

Annual Report follow up paper – Housing and Social Security

The Impact of UK Welfare Policy on Housing report is the third in a series of reports looking at the impact of UK welfare reforms. The first report focused on the impact on families, and the second report on the impact on disabled people.

In the private sector there are limits in the maximum housing benefit payable against rent, set in relation to household size and local market rents – the Local Housing Allowance (LHA) rates. The LHA rate was reduced as part of the coalition government welfare reform, to the 30th percentile of market rents, and has remained frozen since 2015.

Annual Report follow up paper – Housing & Social Security

Scottish Affairs Committee to investigate cash machine network

The Scottish Affairs Committee will hold a one-off session on the cash machine network in Scotland tomorrow (Tuesday 15 May). The session will examine the long-term future of the network, particularly in rural areas, in light of proposals to change the way it is funded.  Continue reading Scottish Affairs Committee to investigate cash machine network

Healthier Wealthier Children: Financial boost for pregnant women due to Green scheme

 

New research reveals that an anti-poverty scheme championed by Scottish Green MSPs is set to boost the incomes of pregnant women and vulnerable families by over £9 million a year when it is rolled-out across Scotland.

The Scottish Greens’ 2016 election manifesto called for the Healthier Wealthier Children scheme run by NHS Greater Glasgow and Clyde to be replicated in other regions, and since then the party’s social security spokesperson Alison Johnstone has pressed Scottish Ministers to agree to this, and support the roll-out with funding.

Analysis published yesterday details the potential £9.3 million income boost, and shows how ready different health boards are to deliver the scheme, which sees NHS staff referring people to money and welfare rights advisers to access relevant benefits, help with housing and childcare costs, and debt reduction. For example, NHS Lothian has set up Healthy Start and Family Friendly Advice schemes.

However, health boards found to be lacking in clear schemes designed to boost incomes are Ayrshire & Arran, Borders, Dumfries & Galloway, Grampian, Forth Valley, Orkney, Fife, Shetland and Tayside.

Ms Johnstone recently amended the Child Poverty Bill which means local authorities and health boards will soon have a duty to explain what they are doing to boost the incomes of pregnant women and families.

Scottish Greens social security spokesperson Alison Johnstone MSP said: “Poverty experts agree that boosting incomes can have an immediate impact on children’s quality of life. Making this part of NHS services as soon as possible will help thousands of families across Scotland, tackling child poverty and helping reduce health inequalities.

“Our research shows there are pockets of good practice throughout Scotland, but in some places work is needed to build strong links with the midwifery and early years services who come into contact with the women and families most in need.

“Greens are making Scotland fairer by championing ideas such as Healthier Wealthier Children. We’ll continue to keep up the pressure so that all new families get the financial support they’re entitled to.

“It’s over a year since the Scottish Government agreed to roll-out this scheme, and while they have pledged £500,000 towards this, the sooner it happens the better as pregnant mums and families are missing out on £9million they’re entitled to.”

Income Maximisation Report:
https://greens.scot/files/boostingfamilyincomesreport

 

 

Letters: Poverty Pay

Dear Editor,

Six weeks on from the 33p rise to the National Minimum Wage implemented on Sunday 1st April 2018 (now £7.83 for those aged 25 and over), workers in Scotland and throughout the rest of the UK continue to suffer from the disparity between wage increases and the rate of inflation.

Less than a year ago, the Low Pay Commission suggested that nearly two million jobs in the UK are currently ‘paid at or below the National Minimum Wage’, and predicting that ‘this is likely to rise to 3.4 million by 2020’.

The UK Government’s Department for Business, Energy & Industrial Strategy recently exposed 179 companies that had underpaid many of their workers, including many with outlets in Edinburgh such as Wagamama, Thursday (UK) who trade as TGI Friday’s, and Cost Effective Catering Limited.

Amidst ever increasingly precarious short-term and low-wage employment, and with the Office for National Statistics revealing that almost 1.8 million throughout the UK are on zero hour contracts, the situation is only going to become worse for millions of working people and their dependents.

Zero-hour, part-time, sessional, and relief worker contracts mask the reality of unemployment and underemployment. In 2017, Cardiff University found that more than 60% of households living in poverty already had at least one working member.

With the National Minimum Wage now set at £7.38 for those aged 21-24, £5.90 for 18-20, £4.20 for under 18s, and a mere £3.70 for apprentices, workers movements, trade unions, and activists throughout the UK must pressure employers to both pay a livable wage to their employees and to guarantee work to those trapped in zero-hour contracts.

In this light, we should recognise the fantastic achievement of Richie Vention who, following his election to the National Executive Council of the Union of Shop, Distributive and Allied Workers (USDAW) – the fourth biggest union in the UK – led a unanimously passed vote for a minimum 16 hour contract for all workers, save for when an employee wishes to negotiate for fewer hours.

In addition, the Scottish Socialist Party are to praised for their efforts four times a week with their Princes Street stalls calling for £10 an hour now for all workers aged 16 and over. This activism has ensured that workers in central Edinburgh never lose sight of the realities of poverty pay, and in fact the UK Labour Party has now also adopted the policy!

Given their recent efforts to highlight pay issues at the Princes Street Apple Store and as one of the only organisations to have responded to the poultry increase of thirty pence to National Minimum Wage, the consistency of the membership’s efforts are to be heralded.

This week, Three UK customers received a text or email alert notifying them of a 4% increase. When workers in the third sector and beyond face pay freezes, 1% cost of living awards, or minuscule pay rises for meeting core competencies, despite going over and above their duties on a daily basis – including regularly being forced to write service user contact notes at home due to a lack of work time – the current trajectory is unsustainable.

Luke Campbell, West Pilton

@chainuptheswing (Twitter)

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