Tag: UK Government

Shocking impact of welfare cuts revealed

UK Government urged to end benefits freeze

Social Security Secretary Shirley-Anne Somerville has called on the UK Government to use this month’s autumn statement to announce an end to the benefits freeze that has brought misery to families and communities.

In a letter to Esther McVey, the Work and Pensions Secretary, Ms Somerville has highlighted the findings of the annual Welfare Reform Report, which estimates that the UK Government’s welfare cuts will lead to a £3.7 billion fall in social security spending by 2021 in Scotland.

The report estimates the benefit freeze has the biggest impact, reducing spending by around £190 million in the current year, rising to around £370 million by 2020/21.

Other findings include:

  • Over the first year of its implementation around 3,800 Scottish families have seen their incomes reduced due to the Two Child Limit – each year more children will lose out on up to £2,780 per year because they were born after the arbitrary April 2017 cut-off date
  • Around 3,500 Scottish households have been capped each month since the Benefit Cap was lowered in 2016 – 89% of families with capped legacy benefits have children, while 64% are lone parent households. 45% of these households lose out by £2,600 per year or more
  • Because of the decision to reduce Universal Credit (UC) work allowances, each year sees more and more working people lose out as they move onto UC. By 2021 working UC claimants in Scotland are expected to lose around £250 million per year in total

Social Security Secretary Shirley-Anne Somerville said: “This detailed report paints a stark picture of the reality of life for many people in Scotland. It represents damning evidence against the DWP’s current programme of welfare cuts which are only set to get worse.

“These cruel cuts are forcing more people into poverty at the very time the Scottish Government is focussed on getting children and families out of poverty.

“More and more families are finding it hard to make ends meet as prices of essentials go up and the levels of their income and benefits go down. The increased reliance on food banks is a damning indictment.

“Esther McVey cannot ignore this report. That is why I am sending her a copy and urging her to immediately end the freeze on benefits. I will also be sending a copy to the UN Special Rapporteur on extreme poverty and human rights in advance of his visit to the UK later this year.

“Scotland’s social security system is being built upon principles of dignity and respect. Today’s report – published at the start of Challenge Poverty Week – shows that the current UK system is built upon the complete opposite.”

2018 report on welfare reform

Director of the Poverty Alliance, Peter Kelly said: “Scotland is a compassionate country where we all believe everyone should have a decent standard of living. The help that people receive through social security is important in helping to make that happen. This report shows that more needs to be done.

“In order to ensure everyone has a decent standard of living we need to see an end to the freeze in benefit levels. The cost of living hasn’t been frozen, so it’s right that social security payments should keep up with those costs.”

Challenge Poverty Week runs from Monday 1 until Sunday 7 October. More than 100 groups and organisations are expected to take part in the annual event to highlight the problem of poverty in Scotland, to show its impact on the whole of society and showcase solutions.

A full list of activities can be found at www.challengepoverty.net/events/

The Benefit Cap refers to the UK Government’s policy to limit the total benefit entitlement for working age households, with some exemptions.  From November 2016, couples with or without children (living outside London) cannot receive more that £20,000 in benefit entitlement per year. The cap is lower for single people without children (£13,400 per year).

The Benefit Freeze refers to the UK Government’s policy to not uprate with inflation the main working-age rates of Income Support, Jobseeker’s Allowance, Employment and Support Allowance (excluding the support component) and Housing Benefit, as well as most elements of Working Tax Credits and Child Tax Credit (and the corresponding element of Universal Credit) and Child Benefit. The policy is in place for four years from 2016/17 until 2019/20 inclusive.

The Two-Child Limit refers to the UK Government’s policy to restrict the Child Tax Credits (CTC) and child element of UC to two children per household. The rule applies to new births after 5 April 2017 for Child Tax Credits and new claims to Universal Credit. A number of exceptions apply, in the cases of multiple births and non-consensual conceptions.

 

 

 

UK leads fight to eradicate the scourge of modern slavery

  • UK to protect up to 800,000 people in fragile and conflict-affected parts of Africa by providing families with alternative livelihood opportunities and protecting children from exploitation.
    • Support for Prime Minister’s Call to Action from international community underlined by endorsement from 77 states, increasing from 37 this time last year.
    • UK, US, Canada, New Zealand and Australia commit to eradicating modern slavery from global supply chains.

Continue reading UK leads fight to eradicate the scourge of modern slavery

£15.6 million underpayment identified for workers on the minimum wage

More than 200,000 workers who were paid less than the minimum wage have been identified following a record government clampdown.

  • Record £15.6 million of underpayment identified for more than 200,000 workers
  • Employers fined unprecedented £14 million for not meeting legal obligations
  • More than 600 employers named in 2017/18 as part of ‘naming’ rounds
  • Ramped up efforts by HMRC to crackdown on underpayment and boost compliance

Her Majesty’s Revenue and Customs (HMRC) achieved record enforcement results this year, identifying £15.6million of underpayments.

The number of workers identified as underpaid was double that in 2016/17 and the highest number since the National Minimum Wage came into force. In every case, the government instructs employers to repay their workers and enforces the return of the missing cash.

The rise in cases follows increased efforts by HMRC to promote compliance and improve employer awareness of the minimum wage.

Business Minister Kelly Tolhurst, said: “We are dedicated to stopping underpayment of the minimum wage. Employers must recognise their responsibilities and pay their workers the money they are entitled to.

“The UK’s lowest paid workers have had the fastest wage growth in 20 years thanks to the National Living Wage and today’s figures serve as a reminder to all employers to check they are getting their workers’ pay right.”

Over the past year, 56 employers took advantage of a HMRC pilot scheme where employers were encouraged to come forward outside of an investigation. This resulted in nearly £250,000 in arrears being declared for just under 700 workers.
The year also set a new record for penalties issued by the government, with £14 million in fines issued to employers.

More than 600 employers who were found to have underpaid their workers the minimum wage were named in 2017/18. This is the largest number in any single year since the scheme began in 2014.

This year, the social care, retail, commercial warehousing and gig economy sectors have been prioritised by HMRC for enforcement of the minimum wage. This is alongside employment agencies, apprentices and migrant workers. These sectors are where non-compliance with National Minimum Wage is believed to be more widespread.

Penny Ciniewicz, HMRC Director General of Customer Compliance, said:
“HMRC is committed to ensuring that workers receive the wages they are legally entitled to, irrespective of their employer’s size or business sector, and today’s figures highlight our success over the last year.

“If anyone thinks they are not receiving at least the minimum wage, they can contact the Acas helpline on 0300 123 1100 in confidence or submit a query online through our complaints form.”

Low Pay Commission Chairman Bryan Sanderson said: “All workers are entitled to be paid at least the minimum wage, so it is good to see increased focus on enforcement bearing fruit and securing more arrears for more workers.

“Awareness of the minimum wage is vital for workers and employers alike, and strong enforcement is critical to its success.”

Funding for minimum wage enforcement has reached record levels, rising to £26.3 million in 2018/19 from £20 million in 2016/17.

For more information about your pay, or if you think you might be being underpaid, get advice and guidance at www.gov.uk/checkyourpay. Workers can also seek advice from workplace experts Acas.

 

Overwhelming public backing in fight against plastic pollution

UK Government announces record-breaking public support for reducing single-use plastics and boosting recycling through the tax system.

Individuals, businesses and campaign groups have expressed overwhelming support for action on tackling the impact of plastics on our environment. Continue reading Overwhelming public backing in fight against plastic pollution

Protecting pedestrians: cracking down on careless cyclists

Consultation to look at whether a new offence equivalent to causing death by careless or dangerous driving should be introduced for dangerous cyclists.

Continue reading Protecting pedestrians: cracking down on careless cyclists

Billion-pound backing for “catapult centres”!

  • £780m of extra funding for high-tech hubs
  • This builds on £180m announced last month for North East
  • £96m of extra funding for high-tech hub in Scotland
  • Backing for British expertise at 40-year high
  • Latest GDP figures confirm economy continues to grow

Britain’s world-leading researchers and entrepreneurs will benefit from an additional £780 million to create the technologies of tomorrow, the Chancellor announced yesterday. Continue reading Billion-pound backing for “catapult centres”!

Leaders sign off City Deal

£1.3 Billion boost for local economy

Prime Minister Theresa May and First Minister Nicola Sturgeon joined council, business and academia leaders to formally sign off the Edinburgh and South East Scotland City Region Deal yesterday.

The £1.3 billion deal will deliver inclusive economic growth across the region through housing, innovation, transport, skills and culture. The Scottish Government and the UK Government will each invest £300 million over the next 15 years.

The Scottish Government’s investment will contribute towards 41,000 new homes, 21,000 jobs and improve the skills of an estimated 14,700 people.

The Scottish Government’s investment in the City Region includes:

•         £60 million towards a Data Driven Innovation programme of investment, including the creation of economic infrastructure across the region to ensure that businesses and communities across the region are fully able to engage in the resulting opportunities
•         £65 million towards a regional housing programme, including the creation of a new housing company and housing infrastructure funding to enable the delivery of 41,000 new homes
•         £120 million for transport improvements to Sheriffhall Roundabout
•         £20 million for public transport improvements in West Edinburgh
•         £25 million for an Integrated Regional Employability & Skills Programme to reduce skills shortages and gaps and deliver opportunities for people across Edinburgh, the Lothians, Fife and the Borders
•         £10m towards a new concert venue for the city, providing a home for the Scottish Chamber Orchestra and reinforcing Edinburgh’s reputation as a leading centre for music and the performing arts.

In addition, the Scottish Government is also providing Edinburgh Festivals with a £5 million investment over the next five years to fund The Platforms for Creative Excellence (PLaCE) programme which supports new innovative programming and skills development opportunities across the capital’s 11 major festivals between 2018-2023.

First Minister Nicola Sturgeon said: “Edinburgh and the South East of Scotland is an area of huge importance to the Scottish economy.  The region contains over a quarter of Scotland’s population and contributes £33 billion to the Scottish and UK economies.

“The Scottish Government’s £300 million investment in the City Region Deal will contribute towards 41,000 new homes, 21,000 jobs and improve the skills of an estimated 14,700 people across the region. Our investments will ensure businesses and communities from across the region benefit from the opportunities created by this the city region deal.

“Taken together these projects will help the region continue to thrive and grow, fulfilling our ambitions for the region to be one of the fairest and most inclusive areas in the country.”

Prime Minister Theresa May said:  “It is fantastic to be here at the University of Edinburgh to sign off on the Edinburgh and South East Scotland City Deal.

“We are in one of the great cities of our United Kingdom, at a time of year when it serves not just as the capital of Scotland but as the cultural capital of the world.

I had the privilege of experiencing first-hand some of the cultural riches that the Edinburgh Festivals have to offer earlier today, and a great pleasure it was to do so. The Festivals are an international calling-card for Edinburgh and the surrounding area and when people come to take part in them they find a city and a region that has huge potential for the future. You see it clearly in the imagination and creativity on display here every August.

“But you see it too in the innovative and ground-breaking work that goes on in this city and area all year round. In great universities and colleges. In high-tech businesses. In financial and legal services hubs.

This is a city and a region that has so much to offer Scotland, the UK and indeed the world.

“The Edinburgh and South East City Deal is all about building on those strengths to open up new opportunities for the future in the creative industries, in research, in housing, in transport and in skills, and it will have a lasting legacy.

The UK and Scottish Governments are both helping to build the IMPACT Concert Hall – a new venue to cement Edinburgh’s place as the world’s Festival City.

The City Deal partners also want to turn Edinburgh into the Data Capital of Europe.

“So we are providing capital investment to develop new data storage and analysis technology here in Edinburgh. This great new facility, the Bayes Centre, will open in the autumn with UK Government investment, and will provide shared working spaces for applied data science and artificial intelligence research teams.

“It is one of five hubs across the city that will use data technology to support research and development activity in sectors of the future, from fin-tech and robotics to bio tech and health sciences. I want the UK to lead the world in these technologies. I want us to have the best regulation, the most advanced research and the most lucrative commercial applications.

“The City Deal will put Edinburgh at the cutting edge of that work and it is exciting to think about the future possibilities that this investment will open up. UK City and Growth Deals are a key part of our Modern Industrial Strategy. The UK Government has already committed over £1 billion to them here in Scotland.

Five have been signed, and three more are being negotiated.

“Just like the Modern Industrial Strategy as a whole, they are a partnership between Government at all levels, business and academia to combine our resources and to tackle the challenges of tomorrow. Because I believe we can achieve far more together than we ever could apart.

“So thank you to all the Deal partners for your work to get us here: The University of Edinburgh, who have hosted us today, as well as Heriot-Watt University, Edinburgh Napier University, and Queen Margaret University.

“To the local authorities: Edinburgh City Council, Midlothian Council, East Lothian Council, West Lothian Council, Scottish Borders Council and Fife Council. And of course our colleagues in the Scottish Government.

“This is a great day for the south-east of Scotland and an exciting step towards a brighter future for this wonderful part of the UK.”