Sturgeon: UK Budget will hit Scotland’s poorest children

Scottish Government figures give ‘frightening indication’ of potential impact of expected tax credit cuts

Expected cuts to the value of tax credits by the Westminster Government in tomorrow’s budget will impact most on the poorest children in Scotland, First Minister Nicola Sturgeon said this morning.

Figures due to be published tomorrow (Wednesday) by Scottish Government analysts show that, if the Chancellor cuts child tax credits back to 2003 levels in real terms as has been reported, the poorest 20 per cent of Scottish families with children will lose on average nearly 8 per cent of their income – a total impact of £425 million lost across the country – with 60% of Scottish children affected by the changes.

First Minister Nicola Sturgeon described the research as “a frightening indication” of the impact of the expected cuts and warned that the UK Government’s approach will “hit Scotland’s poorest children and families hard”.

The First Minister said: “The UK Government has already warned that tomorrow’s budget will continue their austerity approach, which we are clear is not just unfair but damaging to the economy – undermining attempts to stimulate growth.

“Tax credits form an important part of the tax and welfare system, designed particularly to support working families on low incomes.

“More than 500,000 children in Scotland benefit from tax credits. Two-thirds of the £2 billion expenditure on tax credits in 2013-14 went to low-income working families with children and only 5 per cent to households without children.

“If, as we expect, the UK Government targets tax credits for cuts in tomorrow’s budget, it will hit Scotland’s poorest children and families hard. It is a frightening indication of the potential impact of the expected cuts in tomorrow’s UK budget.”

The First Minister went on to describe the austerity approach as ‘economically counter-productive’:

“We want to support people to get into work and to stay in work and the tax credit system provides important practical help to families on low pay.

“These are people who are in jobs and often working very hard for relatively little pay. It is unfair that their children are the people made to pay for the mistakes of the austerity approach – not to mention economically counter-productive.

“When people are in work, they spend their wages in the local economy, leading to a virtuous circle. Cutting child tax credits back to 2003 levels, as we expect the UK Government to do tomorrow, will risk threatening Scotland’s economic recovery.

“The deficit needs to be reduced but this should be done in a more gradual manner with more resources allocated to a programme of additional investment in our economy, rather than risking a financial body-blow to hard-working parents and their children.”

Women hit hardest by welfare reforms

‘inequalities faced by women have been exacerbated by the welfare reform agenda’ – Clare Adamson MSP

Women are being hit hard on multiple fronts by changes to the benefits system, according to a report published by Holyrood’s Welfare Reform Committee today.

The Committee found women are ‘disproportionately impacted’ by welfare reform across a range of issues and benefits. Its report includes recommendations to the Scottish Government and Department of Work and Pensions, aimed at mitigating the impact of welfare reform on women, including:

An integrated approach to job seeking support across health, housing and social care, to better meet the needs of women.
To tackle the greater dependence of women on the benefits system due to low pay and insecure employment, the Committee calls for better measures to close the gender pay gap and end occupational segregation.

Committee Convener Michael McMahon MSP, said: “The evidence we have set out confirms the devastating impact on women of the UK Government’s reforms to the social security system. Of particular concern is the cumulative impact on women hit by multiple benefits cuts, from child support to carer’s allowance.

“The UK Government urgently needs to look at how women are being affected by these changes and we are also calling on the Scottish Government to look at the gender impact of their own policy decisions.”

Deputy Convener Clare Adamson MSP, said: ““Our report shows inequalities faced by women in Scotland have been exacerbated by the welfare reform agenda. With the Scotland Bill still making its way through Westminster and the Chancellor set to announce even deeper cuts to welfare spending, the Committee is urging the Scottish Government to make use of expected new powers over welfare to help mitigate more of the negative impact of welfare reform on women.

“The Committee would, for instance, support a move away from monthly and single household payments under Universal Credit, as a way of protecting women’s financial autonomy.”

The report will come as no surprise to many, but perhaps of more concern is the scale of cuts still to come: Chancellor George Osborne is expected to announce a further £12 billion of welfare ‘savings’ in his budget on Wednesday.

Welfare Minister Margaret Burgess said more women could be pushed into poverty and disproportionately affected by social security reforms if the UK Government cuts £12 billion from its welfare budget.

Commenting on the Scottish Parliament’s Welfare Reform Committee’s Women and Social Security report Mrs Burgess expressed her fears that the UK Government’s emergency budget would only deepen the gender inequalities highlighted in the findings.

The report backed Scottish Government recommendations on payment flexibilities under Universal Credit and it also highlighted the need for gender impacts to be factored into any policy decisions.

Mrs Burgess will meet women at One Parent Families Scotland in Glasgow today to hear their views on how the Scottish Government can create a Fairer Scotland. This comes on the same day as Barnardo’s Scotland and the Scottish Government joined forces to call a halt to proposed cuts.

Mrs Burgess said: “It is alarming to see that women have been disproportionately affected by the UK Government’s benefits cuts and are twice as dependent on social security than men. I am deeply concerned that the UK Government’s £12 billion cuts will only widen this gap.

“With our new powers we will create a fairer and simpler social security system that aims to tackle gender and other inequalities. However we need to know how the UK Government’s cost cutting will affect benefits that are to be devolved.

“Organisations like One Parent Families Scotland and Barnardo’s Scotland see the effects of social security changes on the groups the report highlights as being particularly vulnerable, on a day to day basis, and are rightly concerned about the devastating impact further cuts could have on children.

“We welcome the Committee’s recommendations over Universal Credit and sanctions, and we will continue to do all we can to break down the barriers that prevent women from entering into work.

“Over the next few months we’ll be listening to the people affected by the UK Government’s welfare changes and cuts and, will be making sure we get the views of women on how we can create a system that suits their needs.

“Despite challenges from the UK Government we are tackling poverty head on. Our new Independent Adviser on Poverty and Inequality will be looking at what more we can do to lift people out of poverty, we have invested £296 million in welfare mitigation measures, extended our childcare and are encouraging employers to pay the Living Wage.”

Last week the children’s commissioners for Scotland, England, Wales and Northern Ireland warned in a report to the United Nations that government austerity measures had failed to protect the most vulnerable children. The report said the £12bn of planned cuts would have the biggest effect on the 2.3 million children in the UK estimated to be living in poverty.

MP ‘distressed’ by report on impact of benefits sanctions

‘It is time to make this system fit for purpose – and that should be to help people recover to better mental health.’ – Jo Anderson, SAMH

Scotland’s leading mental health charity, SAMH (Scottish Association for Mental Health) welcomed Joanna Cherry MP to their Redhall service to help launch a new report last week.

The ‘Fir for Purpose’ report documents the negative impact the welfare system has had on 15 people participating in SAMH’s therapeutic gardening programme. The report calls for an end to benefit sanctions which put undue stress on people with mental health problems.

Last year, one of the participants highlighted the negative impact this had on their health:

‘Well, last year my psychiatrist was reducing my medication. When I got this letter from the DWP… I had to stop that and increase my medication again… Suicidal thoughts are massively increased. Urges for self-harm massively increased. Basically, when it comes to getting reassessed, every other part of my life kind of shuts down because it just has a really bad effect on me. It’s almost as if they were to design a process to make it as difficult as possible to stay alive, this is exactly how they would do it.’

The key findings of the report are:

There was a lack of understanding about mental health throughout the assessment process, with those responsible appearing not to be well trained or experienced in mental health.
Those who experienced repeated reassessments or challenging a poor decision found the experience very stressful, which can have an adverse effect of an individual’s recovery.
SAMH is calling for the Scottish Government to ensure that when it takes over the Work Choice programme for disabled people in 2017, it also takes the opportunity to incorporate tailored support for individuals in order to help more people into work and stay mentally well.

Joanna Cherry MP was elected to represent Edinburgh South West in May. She is a QC and recently co-authored the textbook “Mental Health and Scots Law in Practice’. The new local MP said: “The findings from SAMH’s Fit for Purpose report are quite distressing and highlight the real need for a review of how Work Capability Assessments are conducted and monitored effectively.

“The Redhall service offers a great environment for people to receive training and learn to cope with challenges while recovering from enduring mental health problems. I have met some very inspirational people who have overcome huge obstacles in their life and it is important that both the UK and Scottish Government work together and ensure nothing stands in the way of each person’s recovery.”

Jo Anderson, Director for External Affairs at SAMH said: “We are very grateful to Joanna Cherry for supporting our calls for a review to the Work Capability Assessment, with many of those interviewed stating that their mental health had deteriorated as a result of these changes.

“The majority of people with mental health problems continue to be placed on the Work Programme as opposed to the more successful Work Choice, which offers specialised employment support to people with disabilities and other health issues.

“It is time to make this system fit for purpose – and that should be to help people recover to better mental health.”

If you would like to download a copy of SAMH’s Fit for Purpose report, please visit: www.samh.org.uk/our-work/public-affairs/financewelfare

Life on the edge: fears over latest austerity cuts

Proposed round of welfare cuts could plunge many more into crisis

Social Justice Secretary Alex Neil today expressed concern at the further suffering and negative impact that will be caused if the UK Government carries out proposed £12 billion cuts to benefits.

Mr Neil spoke following the publication of the Welfare Reform Tracking Study, which showed that many people accessing benefits are living in constant fear of further cuts. The Social Justice Secretary said he is worried that Scotland’s most vulnerable people would be pushed further into poverty and desperation.

The Scottish Government commissioned Edinburgh Napier University to carry out the Welfare Reform Tracking Study with interviews with participants carried out between September 2013 and March 2015. The aim of the study is to explore the impact of on-going welfare changes on a range of households in Scotland over time.

The study, which looks at on-going changes to working age benefits, revealed all respondents, including those in work, found themselves in very difficult financial situations and therefore felt an underlying sense of ‘precariousness’. Many were anxious that changes to their circumstances or entitlements would push them into crisis situations.

Many participants also said they received poor and sometimes conflicting communications from benefits agencies and that there is often a lack of clarity over information provided, causing more stress and uncertainty.

Disabled participants also felt they had to present themselves in a negative light and focus on their limitations rather than their capabilities, while the challenges of work capability assessments and repeat assessments for people with permanent disabilities were also highlighted in the study.

Mr Neil said the findings of the study outlined exactly why the UK Government should urgently rethink their plans to further cut the welfare budget.

He said: “The UK Government’s austerity agenda and benefit cuts are having a very damaging effect on people in Scotland. Their approach is slashing the incomes of some of our poorest households and pushing 100,000 children into poverty.

“The Welfare Reform Tracking Study is further evidence that people are living in constant anxiety about changes to their entitlements and are already suffering from the effects of around £6 billion of cuts taken from Scottish Welfare expenditure over the last five years. This is hugely concerning as the UK Government should be looking to lift people out of poverty not push them further into it.

“Despite these frustrations we will do all we can to use our new powers to make our system fairer and simpler and work to improve the experience for people.

“We will work quickly to implement these changes and base our social security system on how best to support people and tackle inequalities and not on crude opportunities to save money.”

The report is available at: http://www.gov.scot/Publications/2015/06/7394 and the appendices:http://www.gov.scot/Publications/2015/06/6817

Living Wage benefits employers too, research finds

Improved productivity and an enhanced company reputation have been highlighted as key benefits of organisations implementing the Living Wage according to an independent report.

The report – Wider Payment of the Living Wage in Scotland – highlights that increased productivity is also likely to outweigh the higher wage for many firms with increased pay creating a ‘feel good factor’ in the workplace.

Reduced absenteeism and reduced staff turnover have also been outlined as potential benefits by the report, which has been published ahead of tomorrow’s second meeting of the Fair Work Convention.

Cabinet Secretary for Fair Work, Skills and Training Roseanna Cunningham welcomed the report and said: “This is a fascinating report which, on the whole, offers a very positive outlook on the benefits of paying the Living Wage.

“As well as the more obvious benefits to individuals receiving higher pay, I hope the findings on improved rates of absenteeism and better productivity help convince employers, not already on board with the Living Wage, that it could be a very positive step for their business.

“A number of respondents also mentioned the reputational benefits of being a Living Wage employer, including reinforcing their positioning as ethical and socially responsible businesses.

“The Scottish Government is committed to fairness, supporting those on the lowest incomes, and we recognise the real difference the Living Wage can make to the people of Scotland. We have been working closely with the Poverty Alliance to encourage every employer to ensure all staff receive a fair level of pay. The Fair Work Convention, which meets for the second time tomorrow, is looking a number of ways to improved workplace relations and productivity, with fair pay seen as key to their work.

“Some of Scotland’s top employers already pay the Living Wage, with Aberdeenshire beer company Brewdog, fast-becoming one of our most recognisable brands becoming the 200^th accredited organisation last week.

“A KPMG report from last month showed that Scotland is most Living Wage-aware region in UK with 9 out of 10 Scots having heard of the Living Wage and a higher proportion of employees paid the Living Wage than the UK as a whole.

“But employers paying the living wage is only half the story here. The tax and benefits system needs to work smarter to make sure that people on low incomes see a greater share of any increases in pay – and we will press the UK Government to make sure this happens.”

The report ‘Wider Payment of the Living Wage in Scotland’ was carried out by Ipsos MORI and Loughborough University and can be found at: http://www.gov.scot/Publications

Among the main points highlighted:

Existing research from other countries suggests that payment of the Living Wage can improve employee wellbeing, including higher satisfaction at the workplace. However, the effects on reducing poverty are less clear, as a large proportion of the employee’s pay increase is often lost in increased taxes and reduced means-tested benefits.

A considerable body of evidence shows no significant reduction in labour demand and employment levels due to increased wage floors.

Although increased productivity is likely to outweigh the higher wage cost for many firms, this does not mean that all firms will experience increased productivity, or that it will fully cover the cost for all those that do experience it. Some employers reduce labour costs in other ways (e.g. non-wage benefits), suffer reduced profits and/or pass the costs on to consumers in the form of higher prices.

To improve the implementation process, the Scottish Living Wage employers interviewed suggested employers should:

• conduct feasibility studies to identify and deal with potential risks

• communicate openly with staff about the rationale for adopting the Living Wage

• create a clear action plan for working with sub-contractors

The Scottish Living Wage employers interviewed suggested the Scottish Government could:

• provide advice and guidance on all aspects of the implementation phase

• encourage dialogue between Living Wage employers and those considering it

• raise awareness among recruitment agencies about the Living Wage

• provide more information and evidence on the benefits of the Living Wage

• provide financial incentives to help small businesses implement the Living Wage

• improve communications on, and engagement in, setting the level of the Living Wage

In the US, evidence on additional contracting costs due to enforcing a Living Wage among public contractors suggests at most very modest effects. In the UK – which, unlike the US, is unable to make payment of the living wage a mandatory requirement – a number of public bodies have nevertheless successfully included living wage considerations in procurement exercises. However, no satisfactory way of dealing with social care contracts has been found, due to very tight public budgets and a cost base dominated by low-paid labour.

Scottish Government contractors identified actions that could support the use of procurement to encourage implementation of the Living Wage, including:

• some form of subsidy to help offset increases in wage costs among contractors

• making use of local government and non-departmental government bodies to provide information and support

• workshops with contractors to provide information and advice on best practice

• providing robust evidence on the impacts, and advice on addressing barriers.

Holyrood comes to Craigmillar!

Jack Kane Centre to host Scottish Parliament Day

People living in Craigmillar are being asked how changes to the benefits system have affected them as the Scottish Parliament visits the regeneration area on the south east side of the city tomorrow (Monday 18 May).

Holyrood’s Parliament Day initiative, introduced by the Presiding Officer, Rt Hon Tricia Marwick MSP, aims to take the Parliament out into communities around Scotland, encouraging local people to take an interest in and engage directly with the Parliament and its work.

The Welfare Reform Committee, which was set up to examine the impact of changes to benefits and welfare introduced by the UK Government, will hold a ‘Your Say’ session from 2 – 4.30pm.

Members of the local communities, including those from Craigmillar, Niddrie and Portobello are invited to come along and get involved.

In the evening, local people are also invited to a relaxed, informal Q&A session at 5:30pm, hosted by the Presiding Officer, where they can quiz MSPs about how their Parliament works for them. MSPs Gavin Brown, Kezia Dugdale and Kenny MacAskill will also be in attendance.

The Presiding Officer said: “We know that the people of Scotland want to be involved in the political process and that is why the Parliament is going out across Scotland and right into our communities.

“I would like to encourage as many people as possible to join us at the Jack Kane Centre. Together with my fellow MSPs we are looking forward to hearing about what matters to local people.”

Committee Convener Michael McMahon MSP said: “The Welfare Reform Committee was set up to examine the welfare reform programme and its impact on Scotland. Our research has shown Portobello/ Craigmillar to be the worst hit area of Edinburgh in terms of the welfare changes.

“Our Committee has put personal experiences at the heart of our work and we want to sit down with local people who have been affected by or are worried about changes to the benefits system.”

Welfare Reform Committee: ‘Your Say’ Informal Meeting

Jack Kane Community Centre, 208 Niddrie Mains Road
From 2- 4:30pm
Free entry, free refreshments

Local residents are encouraged to come along and talk to MSPs and others in an informal, welcoming setting about the changes to benefits that matter to you.

Public Meeting with the Presiding Officer and local MSPs

Jack Kane Community Centre, 208 Niddrie Mains Road
5:30pm
Free entry, free refreshments
Q&A session with MSPs

For more information, visit www.scottish.parliament.uk/parliamentdays

Demonstrators set to ‘besiege’ Edinburgh Jobcentre

‘We are fighting back’ – Ethel MacDonald, ECAP

Demonstrators will descend on High Riggs Jobcentre today to declare their resistance to benefits sanctions and workfare.

The protest at the Jobcentre near Tollcross will continue over lunchtime and organisers Edinburgh Coalition Against Poverty say: ‘We aim to send a strong message that cutting people’s benefits and forcing them to rely on foodbanks is not acceptable. Sanctions and workfare not only attack the claimants directly affected, they undermine all workers’ wages and conditions.’

Ethel MacDonald of ECAP said: “An increasing number of benefit claimants are being sanctioned under the DWP’s increasingly repressive measures and more than ever the Job Centre is aggressively pushing the Workfare programmes.

“Just consider the barbaric numbers: according to Corporate Watch, 139,000 sanctions were handed out to Jobseeker’s Allowance claimants in 2009 but this more than tripled to 508,000 in 2011, the coalition’s first full year in government. And the Child Poverty Action Group state that since 2010 sanctions have increased by 126%.”

Sanctions can be from a period of four weeks to up to 3 years.

ECAP support claimants to contest sanctions and resist being sent on workfare. Ethel MacDonald explained: “Claimants are not prepared to remain passive victims – we are fighting back. With the support of ECAP, Edinburgh Jobseeker Jimmy recently overturned a four week sanction imposed after the Oxgangs Neighbourhood Centre refused to take him on a Community Work Programme workfare placement. Workfare provider Learndirect falsely alleged to the DWP that Jimmy had been ‘very intimidating’ to the placement manager – in fact he had just politely informed him that it was disgraceful that a community resource was participating in such exploiting schemes.

“ECAP and Jimmy met the Scotland area manager of Learndirect, insisted that Learndirect withdraw the sanction referral, and also wrote to the DWP explaining that it was Jimmy’s democratic right to express his views on workfare to the placement boss. The DWP have now overturned the sanction and are repaying Jimmy his benefits.”

542 voluntary organisations have declared they will not take part in workfare and signed the Keep Volunteering Voluntary agreement.

The decreasing number of organisations still participating in the schemes are under pressure to pull out of programmes which lead to benefit cuts and sanctions. ECAP regularly blockade and occupy workfare users such as the Salvation Army and DEBRA, and workfare providers like Learndirect. And this week Brian Tannerhill denounced that the organisation he founded, McSence, were using workfare and called on the communities of Mayfield and Easthouses to tell the directors of the Midlothian social enterprise this was unacceptable.

The Edinburgh action is supported by Edinburgh Anti Cuts Alliance, Greater Leith Against the Cuts, Edinburgh Industrial Workers of the World and Edinburgh Anarchist Federation, and is part of a Britain-wide Week of Action in the run-up to the General Election. Co-ordinated via Boycott Workfare, demonstrations are taking place Britain-wide.

EU jobseekers barred from claiming Universal Credit

‘Universal Credit is a new benefit that will make work pay and help lift people out of poverty and it is already transforming lives’ – Work and Pensions Secretary Iain Duncan Smith

New EU migrants who have arrived in the UK will be prevented from claiming benefits until they have started work. The new regulations, introduced yesterday, mean that under Universal Credit no EU households will be able to access means-tested benefits in the UK without having worked here first.

Action has already been taken to halve the amount of time EU jobseekers can claim Jobseeker’s Allowance, Child Benefit and Child Tax Credit and means that if they don’t have a job after 3 months they will lose their right to reside in the UK. New migrant jobseekers are also now unable to claim Housing Benefit.

These tough new rules are part of the government’s long-term economic plan to protect the benefits system and ensure EU migrants come to this country for the right reasons and to contribute to the economy.

Work and Pensions Secretary, Iain Duncan Smith (above) said:

“Universal Credit is a new benefit that will make work pay and help lift people out of poverty and it is already transforming lives.

“As part of the government’s long-term economic plan we have led the way with a series of measures to tackle abuses, tighten immigration routes, and toughen up the rules on access to UK benefits – and we have seen other European countries follow our lead and take similar action.

“Our new rules for Universal Credit will ensure we have a fair system where people cannot claim means tested benefits until they have worked.”

The department is abolishing 6 existing income-related benefits:

Jobseeker’s Allowance
Employment and Support Allowance
Housing Benefit
Income Support
Child Tax Credit
Working Tax Credits

The Westminster government has introduced a number of measures to make sure that the benefit and tax credit system for EU migrants is increasingly focused only on those who contribute through work:

all EU jobseekers need to live in the country for at least 3 months before they can claim income-based JSA, Child Benefit and Child Tax Credit
after 3 months, jobseekers have to take a stronger, more robust Habitual Residence Test if they want to claim income-based JSA
after 3 months on Jobseeker’s Allowance, they have a ‘genuine prospect of work’ test – if they do not have an imminent job offer they will lose their benefits and their right to reside in the UK as a jobseeker
new migrant jobseekers from the EU are no longer able to claim Housing Benefit
migrants from the EU who claim to have been in work or self-employed in order to gain access to a wider range of benefits now face a new robust test to decide whether they should be considered a worker or ex-worker with a minimum earnings threshold.

Parents and people with disabilities hardest hit by welfare reforms

‘This latest evidence shows that some of those most in need of support, namely parents and disabled people are being hardest hit. For us to be in this situation in 21^st century Scotland is unacceptable.’ – Michael McMahon MSP

Parents and people with disabilities are being hit hardest by the UK Government’s programme of welfare reform according to new research commissioned by the Scottish Parliament’s Welfare Reform Committee.

The report, published yesterday, represents the first time the impact of the UK Government’s welfare reform agenda on different household types in Scotland has been quantified.

The research for the Committee was conducted by Professors Christina Beatty and Steve Fothergill of the Centre for Regional Economic and Social Research at Sheffield Hallam University.

The new evidence shows that in Scotland, it is estimated that couples with dependent children will lose an average of more than £1,400 a year, and lone parents with dependent children stand to lose an average of around £1,800 a year from their income stream.

In all, families with children will lose an estimated £960m a year – approaching two-thirds of the overall financial loss in Scotland.

Disabled claimants and those with health problems have also been shown to be disproportionately affected. Reductions in incapacity benefits are estimated to average £2,000 a year, and some of the same people also face big losses in Disability Living Allowance and reductions in other benefits.

Committee Convener Michael McMahon MSP said: “The Welfare Reform Committee has amassed a growing volume of evidence documenting the impact of the welfare reform agenda on Scotland’s communities. This latest evidence shows that some of those most in need of support, namely parents and disabled people are being hardest hit. For us to be in this situation in 21^st century Scotland is unacceptable.”

The report also shows that almost half the reduction in benefits might be expected to fall on in-work households.

Deputy Convener, Clare Adamson MSP said: “The Scottish Government is to be commended for introducing measures to alleviate some of the worst effects of the welfare reform agenda. New powers over a range of benefits are due to be given to Holyrood in the coming years and this research will help direct those new powers to help those most in need of support.”

Until now, there has been no way to assess the impact across the various benefits on different types of households. Because of the cumulative impact of people being affected by several different benefit streams, the overall impact of welfare reforms has been hidden.

The statistics are expected to become an essential tool for government and local authorities in shaping targeted responses and service delivery.

The research follows two previous reports which measured the financial impact of welfare reform on Scotland as a whole and by local authority area, and the impact down to ward level.

The Committee expects to hear oral evidence on this report at its meeting on 10 March.

Professor Steve Fothergill, of the Centre for Regional Economic and Social Research at Sheffield Hallam University, said: “The figures demonstrate that the welfare reforms impact very unevenly. The very big impact on families with children, in particular, has previously been under the radar because it is the cumulative result of several individual reforms. Coalition ministers have argued that “we’re all in it together”. The impacts of welfare reform, documented in our report, show this is far from being the case.”

Universal Credit ‘makes work pay’

The national roll out of Universal Credit begins tomorrow

Jobcentres from the rural Highlands of Scotland, down through the Vale of York and into London are moving over to the new benefit on Monday 16 February, says the Department of Work and Pensions (DWP). Edinburgh is among the first tranche to move over to UC.

Universal Credit eventually replaces six existing income-based benefits – Jobseeker’s Allowance, Income Support, Employment and Support Allowance, Working and Child Tax Credits and Housing Benefit.

As part of the accelerated roll out announced by the Secretary of State, Iain Duncan Smith in September, over 150 Jobcentres will come on board in the next 2 months. It will then be available in all Jobcentres by this time next year.

And on the eve of this national roll out, new research shows that Universal Credit is getting people into work more quickly and so helping them to earn more.

Work and Pensions Secretary, Iain Duncan Smith said: “This government’s welfare reforms have saved the taxpayer £50 billion and restored fairness to the system.

“The centrepiece of these reforms – Universal Credit – begins national roll out tomorrow. This landmark event is a key part of our long term economic plan, which guarantees you will always be better off in work than on benefits.

“The evidence today shows that under Universal Credit, people move into work more quickly and earn more money, giving them increased financial security. It is very impressive that we have seen these results so soon and that this is having a real impact on people’s lives. This is a cultural change which will alter the landscape of work for a generation.”

The government’s research shows that, over a 4 month period, claimants are:

13% more likely to have been in work than those on Jobseeker’s Allowance
earning more money

Similar to previous findings, the report also confirms that new Universal Credit claimants in the expanded sites are more likely than Jobseeker’s Allowance claimants to:

believe the benefit system is encouraging them to find work
take any job they are able to do
spend more time looking for work

Th DWP says that once fully rolled out, Universal Credit will boost the economy by £7 billion every year.

The Research

Read Universal Credit at Work – spring 2015

The research was carried out by tracking claimants from July 2013 to April 2014 in the areas of:

Warrington
Wigan
Oldham
Ashton-under-Lyne

These results based on income data from Real Time Information (RTI) were compared to a similar group of Jobseeker’s Allowance claimants.

Universal Credit Claims

More than 50,000 people have already made a claim to Universal Credit. It is available in 96 jobcentres including all of the north-west and is available to couples too. Claims from families and lone parents are also being taken in 32 sites.

Read the list of places where Universal Credit will be available between February and July 2015

uc-national-expansion