Tag: Universal Credit

More than 1.42 MILLION emergency food parcels distributed in past six months

Food banks in our community gave out just over 1,428,000 emergency food parcels across the UK between April and September this year, charity Trussell Trust reports today.

This includes 508,000 parcels provided for children facing hunger across the UK.

The majority of food parcels were distributed to families with children, with 63% of the total number of parcels going to households with children aged 0–16, the charity reports. More than 277,000 people visited a food bank in the Trussell community for the first time between April and September.  

The total number of parcels provided across the UK is 67,000 fewer when compared to the same period last year, representing a 4% decrease. Trussell says there are a number of possible reasons for this recent small dip, such as the gradual slowdown in the extortionate price hikes we experienced on food and bills in recent years, and an end to the Local Housing Allowance freeze in April, bringing support for private renters back in line with local rents. 

However, Trussell says it’s difficult to say if there has been an actual drop in hunger and hardship. The need for emergency food is still persistently high, and the number of parcels provided is 69% greater than the same period in 2019. 

In fact, some UK regions saw a marginal increase in the number of food parcels provided. East of England and London saw increases of 1% and 4% respectively in the numbers of parcels provided.  

Trussell says while food banks are a last resort for people who’ve been left isolated, facing hunger, and without enough money to live on, many are at breaking point due to years of growing numbers of people forced through their doors. 

Winter is often the busiest time for food banks and Trussell is calling on the public to continue to play their part and support their local food banks to meet this urgent need, by volunteering, donating, fundraising or campaigning to help end hunger in the UK. 

Food banks offer hope, dignity and relief to people facing hardship. Many need vital funds to provide services beyond distributing emergency food, such as advice and support that unlocks money someone should be getting and services aimed at helping people out of financial hardship.    

Trussell says the evidence is clear that hunger in the UK isn’t a food problem, it’s an income problem. People are being forced to turn to food banks because incomes from work, and social security payments, do not cover the cost of the essentials, such as food, bills, and toiletries.

That’s why Trussell has also joined forces with hundreds of communities, food banks and charities including the Joseph Rowntree Foundation, in calling on the UK government to take urgent action now.  

Today, food banks across the UK have joined together to rally for change and are giving out a newspaper, the Hardship Times, in Westminster. The newspaper is made up of messages of hardship and hope, collected from hundreds of food banks across the UK.   

The charity says there is hope and it knows we can end hunger, if positive action is taken. The UK government must act swiftly to follow up announcements in the recent Budget, with a clear plan to meet its manifesto commitment to end the need for emergency food and ensure that we do not see even more people facing hunger and hardship on its watch.  

This plan should include investment in our social security system, at the very least introducing a protected minimum floor in Universal Credit to limit the amount of reductions that could be applied to a household’s Universal Credit. This would ensure, for the first time, that there would be a real safety net below which no one could fall.

The charity says this would be a low cost but concrete step towards ensuring our social security system protects people from facing hunger and hardship.  

Emma Revie, Chief Executive of Trussell, said: “The sheer numbers of people still facing hunger and hardship across the UK is heartbreaking. This cannot go on and we refuse to stand by while so many of us are pushed to the brink, left without enough money to live on.  

“Our food banks are a lifeline, offering a warm welcome and space to be heard. They need everyone to play their part to move us towards ending the need for emergency food in the UK.

“You can help make sure food banks can continue to provide warm, compassionate, practical support and advice this winter by volunteering, donating, fundraising or campaigning to help end hunger in the UK. 

“Meanwhile, alongside our community of food banks campaigning today in Westminster, we will continue to call for change.

“The UK Government was elected with a manifesto pledge to end the need for emergency food and the time to act is now. There have been promising steps, but we need a clearer plan with more decisive action to invest in our social security system, if we are to end hunger once and for all.” 

Number of emergency food parcels distributed by food banks in the Trussell community: 1 April – 30 September 2019, 2023, and 2024:      

        1 April – 30 September 2019 1 April – 30 September 2023 1 April– 30 September 2024 
For adults For children   Total   For adults For children Total   For adults For children Total   
UK 534,786 309,203 843,989 952,394 542,915 1,495,309 920,960 507,721 1,428,681 
England 411,598 243,697 655,295 785,489 451,713 1,237,202 764,077 424,758 1,188,835 
Scotland 75,361 36,891 112,252 87,485 42,136 129,621 82,424 39,967 122,391 
Wales 37,262 21,199 58,461 56,496 32,209 88,705 53,878 28,907 82,785 
Northern Ireland 10,565 7,416 17,981 22,924 16,857 39,781

Edinburgh claimants stop Jobcentre breaking benefit rule

Currently, benefit claimants on Employment and Support Allowance (ESA) are being transferred over to Universal Credit. According to law the vast majority of disabled ESA claimants keep their ‘not fit for work status’ while being transferred over, and continue to receive disability-related payments.

High Riggs Jobcentre in Edinburgh was illegally forcing transferred disabled claimants to obtain a fit note from their GP and go through unnecessary ‘work capability assessments’.  A local anti-poverty group found out about this, through voluntarily accompanying benefit claimants to their appointments, and providing moral support.

Edinburgh Coalition Against Poverty is a community group which helps local people access benefits, register complaints, and voice their concerns over government response to the cost of living crisis.

ECAP held a demonstration outside High Riggs jobcentre on 30th September.

Four local claimants went in, delivering a letter for and requesting a meeting with the local manager. Jobcentre staff told ECAP that they were “unavailable”, and refused to give any contact details.

Local benefit claimants were told that staff would pass on the letter, and that the manager would contact ECAP the next day.

However despite this promise ECAP received no further contact contact from High Riggs Jobcentre, or the DWP.

A second protest was organised to occur at High Riggs jobcentre at 3PM on 30 October, a day before Halloween.

Members of the local community held placards proclaiming “Cutting Disability Benefits Kills”, and a protestor dressed as the “DWP Grim Reaper” brandished their scythe menacingly. Meanwhile an ECAP delegation swerved past security guards into the Jobcentre where they met the manager of High Riggs Jobcentre.

The manager admitted that the jobcentre had been wrongly telling migrating ESA claimants they needed to get a Fit Note. They told us that all High Riggs work coaches had now received instructions that ESA claimants migrating to Universal Credit kept their existing “not fit for work” status and did not need to go through another Work Capability Assessment.

The Manager assured ECAP that if there were any future problems a meeting could be arranged to sort matters.

If you are in this position and have problems contact ecapmail@gmail.com.

An ECAP spokesperson said: “This victory was only achieved by numbers of people mobilising and taking action”.

More information available at edinburghagainstpoverty.org.uk
and in particular at https://edinburghagainstpoverty.org.uk/?p=3463

Contact ecapmail@gmail.com

TUC: Child poverty in working households has increased by over 1,300 a week since 2010

Analysis shows number of kids growing up in poverty in working households increased by 44% (+900,000) between 2010 and 2023

  • Union body says a “toxic combination” of pay stagnation, rising insecure work and cuts to social security have had a “devastating impact on family budgets” 
  • TUC calls for urgent economic reset and for a government that “makes work pay” 

Child poverty in working households has increased by over 1,300 a week, on average, since 2010 – according to new TUC analysis published yesterday. 

The analysis shows that the number of kids living in poverty with at least one parent in work increased by 900,000 (44%) between 2010 and 2023 – the equivalent to 1,350 a week. 

The TUC says in 2023 there were 3 million kids in working households living below the breadline in the UK. 

Children growing up in poverty in working households now account for: 

  • 69% of all children in poverty 
  • 24% of all children in working households  

“Toxic combination” 

The TUC says that a “toxic combination” of wage stagnation, rising insecure work and cuts to social security have had a “devastating impact” on family budgets. 

Real wages are still worth less today than in 2008 and the union body estimates that had they grown at their pre-crisis trend since the Tories took power the average worker would be over £14,000 a year better off. 

And separate analysis from the TUC shows that the number of people in insecure work, low-paid work has increased by nearly 1 million during the Conservatives’ time in office to a record 4.1 million. 

Economic reset 

The TUC says Britain urgently needs an economic reset. 

It highlighted the importance of Labour’s New Deal for Working People and Green Prosperity Plan in creating good jobs and helping make work pay. 

And it called on political parties to make reducing child poverty a national priority. 

TUC General Secretary Paul Nowak said: “No child in Britain should be growing up below the breadline. 

“But under the Conservatives we have seen a huge in rise in working families being pushed into poverty. 

“A toxic combination of pay stagnation, rising insecure work and cuts to social security have had a devastating impact on family budgets. 

“We urgently need an economic reset and a government that will make work pay. Reducing child poverty must be a priority in the years ahead.” 

New rules require 180,000 people on Universal Credit to increase their working hours

New rules meaning over 180,000 Universal Credit claimants will have to look for more work have come into force today (Monday 13 May), as the Westminster Government helps people progress in work and off welfare.

  • Universal Credit claimants working less than half of a full-time week will have to look to increase their hours, benefitting from extra work coach support.
  • 400,000 to receive more help to progress in work, as Mel Stride says “I want to help thousands of people on their journey off benefits”.
  • Changes come as the PM announces once a generation welfare reforms to help people find work, boost their earnings, and grow the economy.

Before 2022, someone could work only nine hours a week and remain on benefits without being expected to look for more work.

The latest rise in the Administrative Earnings Threshold (AET) means someone working less than 18 hours – half of a full-time week – will have to look for more work.

These Universal Credit claimants will move into the ‘Intensive Work Search group’, meeting with their work coaches more regularly to plan their job progression, boost their earnings and advance the journey off welfare altogether.

Combined with previous increases, 400,000 claimants are now subject to more intensive Jobcentre support – and with that the expectation that those who can work must engage with the support available or face losing their benefits.

The move comes as last month the Prime Minister announced a once in a generation package of welfare reforms to help thousands more people benefit from employment, building on the Government’s £2.5 billion Back to Work Plan providing extra help to over a million people to break down barriers to work.

Prime Minister Rishi Sunak said: “Welfare should always be a safety net, and not a lifestyle choice which is why we’re ushering in a new era of welfare reforms to help more people progress off benefits and into work.

“Today’s changes will help more people on Universal Credit move into well paid jobs and progress towards financial independence – which is better for them and for the economy.”

Secretary of State for Work and Pensions, Mel Stride MP said: “We will always back those who want to work hard, and today we are radically expanding the support available to help people progress in work.

“With the next generation of welfare reforms, I want to help thousands of people on their journey off benefits and towards financial independence.

“Our plan is making work pay, with people in full-time work now £7,000 better off than on out of work benefits, and our tax cuts putting £900 back in the pockets of millions of workers across Britain.”

The AET determines how much support an individual will receive to find work based on how much they currently earn and how many hours they work.

Together with the accelerated rollout of Universal Credit, even more claimants will benefit from the dedicated employment support offered through our Jobcentres like CV support and skills training, so people can take up better paid, higher quality jobs.

This builds on the significant steps already taken to break down barriers to work, with almost four million more people in employment compared to 2010.

The UK Government is clear those who can work to support themselves, should work, and they should feel better off for doing so.

That’s why the Government is getting tough, putting work at the heart of welfare and enforcing a stricter sanctions regime.

The PM recently announced a package of welfare reform measures, including exploring legislation to close the claims of those who don’t comply with conditions set by their Work Coach after 12 months.

With over 900,000 job vacancies in the economy, the Government ‘makes no apologies for helping people achieve financial security through work, as we grow the economy and help people build a better life for themselves’.

Britain’s ‘new approach’ to Welfare

UK Government Work Scheme delivers almost 100,000 placements

Almost 100,000 workplace training places have been delivered in the past year for jobseekers, smashing the Government’s 80,000 annual target, new data has revealed.

  • Record number of workplace training places have been delivered this year helping boost jobseeker skills and the economy 
  • Significant milestone hit as Prime Minister sets out welfare reforms to jumpstart UK labour market
  • DWP working directly with businesses to hire work-ready Brits and reduce dependence on foreign labour  
  • Comes in week that NICs cuts worth £900 hit pay packets ensuring work pays

Part of the Westminster Government’s plan to help people back to work and grow the economy, Sector-based Work Academy Programmes (SWAPs) help benefit claimants move off welfare and into work by providing tailored training and work experience before a guaranteed job interview.

Businesses who are actively hiring help craft these six-weeks on-the-job programmes, so that participants gain the right experience and skills for their roles.

The latest figures published this week show that in the last year 98,710 places were delivered – the highest annual figure yet. It brings the total number of SWAP starts to 283,930 – in sectors ranging from coding to hospitality, construction, health and social care. 

It comes in the week that the Government’s NICs cuts worth £900 to the average worker hits pay packets as part of the plan to cut taxes, grow the economy and build a brighter future for hard-working families.

Backed by industry giants such as UKHospitality, the British Chamber of Commerce and Business in the Community, alongside household brands like Amazon, JD Sports and Lidl, jobseekers leave SWAPs work ready as they apply for live job roles. 

The milestone follows the UK Government’s ‘bold new vision’ for welfare, with the Prime Minister outlining reforms to tackle inactivity as we give more Brits the skills and support to get back into work as we bring down migration levels. 

Secretary of State for Work & Pensions, Mel Stride MP said: “Our Jobcentres are a proven route to changing lives through work and the learning and upskilling opportunities they provide are second to none.

“As part of our plan to build our new welfare settlement for Britain and grow the economy, this major milestone helps people get on with the skills they need to secure a great job, a higher wage, and a brighter future for their family.

After the Prime Minister announced the accelerated rollout of Universal Credit last week, together with increases to the Administrative Earnings Threshold (AET), even more claimants will benefit from the dedicated employment support offered through our Jobcentres.

This includes all the programmes under the Department for Work and Pensions’ (DWP) £2.5bn Back to Work Plan, which is set to help over a million people, including those with long-term health conditions to break down barriers to work.

Keith, 47, from St Austell was looking to change careers after he finished a previous role. He said: “I was very interested in getting into Mental Health Care, but I had no qualifications or experience in the area. My Work Coach Tom was really supportive and told me how I could get experience in the sector through a SWAP with the NHS.

“The SWAP opened my eyes to the type of roles available within the NHS and gave me the confidence I needed to kickstart my new career. I’m now working as a Developmental Mental Health Assistant and cannot believe I’ve reached my dream of working in Mental Health so quickly with the help of SWAPs.”

Whether it’s someone’s first job or a career change, jobseekers of any age and experience can access invaluable work experience through SWAPs for a role actively being recruited for. 

Andrew Bush, CPO of Greene King, said: “We were really pleased to be part of the sector-based work academy in partnership with the Department for Work and Pensions and other hospitality employers.

“Through collaboration, we were able to create a programme that gave candidates a greater insight into our exciting industry, providing opportunities for many to achieve a fulfilling career in hospitality.”

The UK Government is taking the long-term decisions to ensure the resilience of the UK’s labour market, building a strong economy where hard work is rewarded and where everyone has a brighter future.

Alexandra Hall-Chen, Principal Advisor for Employment and Skills with the Institute of Directors said: “At a time when many businesses are struggling to recruit the skills they need, SWAPs provide a valuable means by which employers can tap into a wider pool of candidates.

“By providing jobseekers with support and training targeted at key sectors, SWAPs are a key tool in tackling both skills shortages and barriers to employment.”

BPS supports Essentials Guarantee

BPS SUPPORTS CAMPAIGN TO MAKE UNIVERSAL CREDIT ENOUGH FOR PEOPLE TO AFFORD TO COVER ESSENTIALS

The British Psychological Society has joined the Joseph Rowntree Foundation (JRF), the Trussell Trust, and other leading health and care organisations and charities to call for an “Essentials Guarantee”, a new law to make sure Universal Credit’s basic rate is always at least enough for people to afford the essentials. 

The organisations are warning that so many people are routinely going without the essentials it poses a serious risk to the UK’s health.

Together, they have written to the Prime Minister to express their worry that, as the high prices of everyday essentials like food and housing persist, too many people are expected to live with what can be devastating knock-on consequences. 

JRF’s own analysis shows the weekly Universal Credit standard allowance is £35 less than the cost of essential items for a single person, contributing to millions of people forced to use food banks because they can’t make ends meet.

Dr Roman Raczka, President-Elect of the British Psychological Society, and Chair of its Division for Clinical Psychology, said: “Nobody should be in a position of being unable to afford the essentials they and their families need to sustain their health and wellbeing, and it’s clear the current level of Universal Credit falls woefully short.  

“Poverty is one of the major risk factors for the development of physical and mental health problems, and we know that children growing up in poverty are three-to-four times more likely to develop mental health problems, which also leads to long-term impacts upon their education, life chances and quality of life.

“If the government is truly committed to preventing health inequalities from widening further, tackling poverty, and reducing pressure on our already stretched and underfunded public services, it must commit to the Essentials Guarantee to protect this generation, and generations to come.”

About the Essentials Guarantee

The Essentials Guarantee would embed in our social security system the widely supported principle that, at a minimum, Universal Credit should protect people from going without essentials.

Developed in line with public attitude insights and focus groups, this policy would enshrine in legislation:

  1. an independent process to regularly determine the Essentials Guarantee level, based on the cost of essentials (such as food, utilities and vital household items) for the adults in a household (excluding rent and council tax);
  2. that Universal Credit’s standard allowance must at least meet this level; and
  3. that deductions (such as debt repayments to government, or as a result of the benefit cap) can never pull support below this level.

The UK Government would be required to set the level of the Essentials Guarantee at least annually, based on the recommendation of the independent process. JRF analysis indicates that it would need to be at least around £120 a week for a single adult and £200 for a couple.

UK Government extends mortgage support for benefit claimants

An additional 200,000 Universal Credit claimants will be able to access quicker support with their mortgage from today

  • Support for Mortgage Interest loan scheme extended to 200,000 additional Universal Credit claimants in efforts to support more households with the cost of living
  • They will be able to access help towards mortgage interest on their home or certain home improvements worth up to £200,000 after three months on Universal Credit
  • Support will be automatically offered to qualifying claimants after three months on Universal Credit

Previously, claimants would need to have been unemployed for nine months before they could access a Support for Mortgage Interest loan, which helps them cover interest payments for a mortgage, or a home repairs and improvements loan, whilst they seek work.

Today’s reforms, which were announced in the Chancellor’s Autumn Statement, mean claimants will be able to receive the support after just three months of being on Universal Credit, and in another change they now do not have to be unemployed to do so. They will also be able to re-claim the support if they leave Universal Credit but return within six months.

Mims Davies, Minister for Social Mobility, Youth and Progression, said: “The fear of losing your home when you have fallen on difficult times is incredibly stressful and makes getting back on your feet all the more difficult.

“This increased support is an important lifeline to help provide stability for those who are seeking to find work and move back towards long-term prosperity.”

Support for Mortgage Interest loans will now be automatically offered to claimants by the Department for Work and Pensions (DWP) if they qualify after three months on Universal Credit – they do not need to do anything to receive this offer.

The loans are designed to help claimants with the interest on mortgages or loans for certain home improvements, such as repairs or improvements to keep their home habitable or to adapt them for people with disabilities, whilst they are on Universal Credit. Even if claimants reject the offer of a loan initially, as long as they are still eligible, they can start claiming it at any point.

The loan needs to be repaid when claimants sell their home, though no one will be asked to sell their home in order to repay it. If needed, claimants can contact the DWP about transferring the loan to a new home.

More widely, the Government is projected to have spent £28.5 billion supporting renters in 2022/23, whilst the Affordable Homes Programme, worth £11.5 billion, will deliver more affordable homes across the country, including tens of thousands for social rent.

The Government has also provided over £1.5 billion for Discretionary Housing Payments since 2012, whilst Local Housing Allowance rates were increased above inflation during the pandemic and have been maintained since to provide housing support to Universal Credit claimants.

Additional Information:

  • Support for Mortgage Interest loans are available for people on the following qualifying benefits:
  • Universal Credit
  • Income Support
  • Income-based Jobseeker’s Allowance
  • Income-related Employment and Support Allowance
  • Pension Credit
  • For more information on Support for Mortgage Interest, please visit www.gov.uk/support-for-mortgage-interest or speak to your work coach.

TUC: Ministers should boost wages, not slash taxes, in emergency budget

  • Union body says government must prioritise lifting workers’ pay over “bungs to big business and City bankers”
  • **New TUC analysis** shows real wages are down £100 a month compared to same period last year
  • “Don’t reheat failed Osborne-era policies”, TUC warns Chancellor

The TUC has today (Thursday) called on the Chancellor to bring forward an emergency budget that delivers for “working Britain”.

In a submission to the Treasury, the union body warns the government not to repeat the same mistakes of the “Osborne era” when pay and public services were slashed and huge tax breaks were given to big business.

The TUC says the priority for ministers must be to get wages rising across the economy and to fix the staffing crises plaguing hospitals, social care, education and other frontline services.

Pressure on wages

New analysis from the union federation shows that real wages down are down by over £100 a month compared to this time last year – a number that rises to £190 for public sector workers.

For the typical nurse this means a real-terms pay cut of £1,000 over the next year and a real-terms pay drop of £4,300 since 2010.

The TUC says rather than “handing out bungs” to corporations and City bankers the government should:

  • Bring forward inflation proof increases in the minimum wage, universal credit and pensions to October to help families through the cost-of-living emergency.
  • Get the minimum wage on a path to £15 an hour as soon as possible.
  • Give public service staff a real-terms pay rise that at least matches the rising cost of living and begins to restore earnings lost over the last decade.
  • Strengthen and extend collective bargaining across the economy, including introducing fair pay agreements to set minimum pay across whole sectors.
  • Impose a larger windfall tax on oil and gas companies that that are profiteering from UK families.
  • Make sure everyone pays their fair share of taxes by going ahead with increases in corporate tax, and equalising capital gains tax rates with income tax as a first step to fair taxes on wealth.

Speaking ahead of Friday’s emergency budget, TUC General Secretary Frances O’Grady said: “Friday’s mini budget is an acid test for this government. Are ministers on the side of working people, or more interested in handing out bungs to big business and City bankers?

“Tax cuts will do nothing to jumpstart the economy and will only line the pockets of the wealthy and companies like Amazon.

“When millions are struggling to make ends meet, the Chancellor should focus on getting wages rising across the economy – not helping out corporations.

“That means a £15 minimum wage as soon as possible, boosting universal credit and fair pay deals for workers across the economy.

“And it means ensuring those who’ve profited from this crisis pay their fair share – with a bigger windfall tax on oil and gas giants like Shell and BP, and new taxes on wealth.”

On the need to avoid repeating the mistakes of the past, Frances added: “We need a budget the delivers for working Britain – not more continuity conservatism.

“Kwasi Kwarteng mustn’t reheat the failed policies of the Cameron-Osborne government, which slashed pay, workers’ rights and public services.

“This pushed people into debt and locked families into years of declining living standards.

“After the longest wage squeeze in modern history, people can’t afford to tighten their belts any more.”

Tax credits customers warned about scammers posing as HMRC

HM Revenue and Customs (HMRC) is warning tax credits customers to be aware of scams and fraudsters who imitate the department in an attempt to steal their personal information or money.

About 2.1 million tax credits customers are expected to renew their annual claims by 31 July 2022 and could be more susceptible to the tactics used by criminals who mimic government messages to make them appear authentic.

In the 12 months, to April 2022, HMRC responded to nearly 277,000 referrals of suspicious contact received from the public. Fraudsters use phone calls, text messages and emails to try and dupe individuals – often trying to rush them to make decisions. HMRC will not ring anyone out of the blue threatening arrest – only criminals do that.

Typical scam examples include:

·         phone calls threatening arrest if people don’t immediately pay fictitious tax owed. Sometimes they claim that the victim’s National Insurance number has been used fraudulently

·         emails or texts offering spurious tax rebates, bogus COVID-19 grants or claiming that a direct debit payment has failed

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We’re urging all of our customers to be really careful if they are contacted out of the blue by someone asking for money or bank details.

“There are a lot of scams out there where fraudsters are calling, texting or emailing customers claiming to be from HMRC. If you have any doubts, we suggest you don’t reply directly, and contact us straight away. Search GOV.UK for our ‘scams checklist’ and to find out ‘how to report tax scams’.”

HMRC does not charge tax credits customers to renew their annual claims and is also urging them to be alert to misleading websites or adverts designed to make them pay for government services that should be free, often charging for a connection to HMRC phone helplines.

Customers can renew their tax credits for free via GOV.UK or the HMRC app and are advised to search GOV.UK to get the genuine information and guidance.

Renewing online is quick and easy. Customers can log into GOV.UK to check the progress of their renewal, be reassured it is being processed and know when they will hear back from HMRC. Customers choosing to use the HMRC app on their smartphone can:

  • renew their tax credits
  • update changes to their claim
  • check their tax credits payments schedule, and
  • find out how much they have earned for the year

HMRC has released a video to explain how tax credits customers can use the HMRC app to view, manage and update their details.

If there is a change in a customer’s circumstances that could affect their tax credits claims, they must report the changes to HMRC. Circumstances that could affect tax credits payments include changes to:

·         living arrangements

·         childcare

·         working hours, or

·         income (increase or decrease)

Tax credits are ending and will be replaced by Universal Credit by the end of 2024. Many customers who move from tax credits to Universal Credit could be financially better off and can use an independent benefits calculator to check.

If customers choose to apply sooner, it is important to get independent advice beforehand as they will not be able to go back to tax credits or any other benefits that Universal Credit replaces.

Welfare Reform: Reverse the changes!

New report on impact of UK Government policies on families in Scotland

A new report estimates 70,000 people in Scotland, including 30,000 children, would be lifted out of poverty by 2024 if UK Government welfare reforms introduced since 2015 were reversed.

The cost of reversing changes, including the removal of the £20 per week Universal Credit uplift and the two child benefit cap would be around £780 million a year, according to estimates in the Scottish Government’s Welfare Reform – Impact on Families with Children report.

Last month the Scottish Government published its second Tackling Child Poverty Delivery Plan – Best Start, Bright Futures – which sets out immediate and longer term actions to support people out of poverty and to tackle its deep-seated causes.

Social Justice Secretary Shona Robison said: “Tackling child poverty is our national mission and we are helping to lift thousands of children out of poverty in Scotland within our limited powers. This report lays bare the cost of repeated UK Government welfare reforms since 2015 and the challenge we face in lifting children and families out of poverty for good.

“We are determined to tackle the cost of living crisis and we’re already helping to lift thousands of children out of poverty. We invested almost £6 billion from 2018-21 to support low income households, including around £2.18 billion to directly support children. We are also taking steps to mitigate the impact of the UK Government’s bedroom tax and benefit cap as fully as we can within our limited powers.

“We have introduced a package of five family benefits, including the Scottish Child Payment that we will raise to £25 a week by the end of 2022. We are also investing in employment support for parents, through new skills and training opportunities and key worker support to help reduce household costs and drive longer term change.”

welfare-reform-report-impact-families-childrenDownload