Universal Credit – Page 4 – The NEN

Public Health Scotland supports retaining uplift to Universal credit

Public Health Scotland supports retaining the £20 a week uplift to universal credit and working tax credits, brought in by the UK Government in April 2020, to help create a Scotland where everybody thrives.

The social security top-up payment was introduced in April 2020 to help low-income households deal with the economic impact of the COVID-19 pandemic, and is due to expire in October.

The evidence is becoming stronger that increasing the incomes of the poorest, including by increasing means-tested benefits, can help narrow the gap in life expectancy and improve mental health and wellbeing.

All of those families affected claiming working tax credits are already in employment, as are 35% of people claiming universal credit. Another 31% of people claiming universal credit have health problems or caring responsibilities which compromise their ability to secure and retain jobs. Therefore, focusing on getting people into work, in itself, will not be sufficient.

Martin Taulbut, Public Health Intelligence Adviser at Public Health Scotland said: “People with higher incomes are healthier and live longer. Experiencing material hardship can have a profound direct impact on health by affecting our ability to buy the goods and services that support good health and underpin healthy life expectancy.

“The increase in value of universal credit and tax credits has reduced poverty, protecting the physical and mental health of low-income families and supporting working-age adults’ ability to find and keep good work. Decreasing the value of means-tested benefits is likely to result in a decline in the (already poor) health of the unemployed and low-income families, particularly after the experiences of the COVID-19 pandemic.

“As well as enabling families to live healthier lives now, action taken to improve and protect the health of children from early in life pays dividends for decades. By embedding health and wellbeing into policy decisions across areas of economy, employment and mental health, Scotland has an opportunity to make real progress on national outcomes.”

First Minister to meet trades unions to discuss fair recovery

First Minister Nicola Sturgeon and representatives from Scotland’s trades unions led by STUC General Secretary Rozanne Foyer will meet later today (Thursday 12 August) to discuss key issues affecting workers as Scotland recovers from the coronavirus (COVID-19) pandemic.

Matters such as the need for the UK Government to extend the furlough scheme and reverse plans for damaging cuts to Universal Credit that will see households lose out on over £1,000 per year are on the agenda, as well as discussions on how to ensure workers’ needs are protected as Scotland’s economy undergoes transformation to net zero.

The Scottish Government has written to the UK Government on seven occasions to call for the £20-per-week uplift to Universal Credit to be made permanent and extended to legacy benefits.

Analysis from the Joseph Rowntree Foundation indicates that cutting Universal Credit at the end of September will pull 500,000 people across the UK, including 200,000 children, into poverty.

Speaking ahead of her biannual meeting with the STUC, First Minister Nicola Sturgeon said: “We are committed to a just transition to net zero, making sure we don’t leave individuals or communities behind – and we must ensure we incorporate the same fairness as we emerge from the pandemic to deliver greater, greener and fairer prosperity as the economy recovers.

“Partnership with unions is key to making sure that workers are represented as part of that process, therefore communication and collaboration between unions and Government is absolutely essential.

“How we emerge from the pandemic – and support workers and employers through that economic recovery – will not only be crucial to safeguarding the livelihoods of people hit hardest by the impacts of COVID, but will inform our work as we plan for a just transition to a net zero economy.

“As economic activity is restored, businesses and workers will still require support from the furlough schemes as they move through recovery. Our focus is on helping them to doing this.

“Not all of the levers are in our hands however, and clarity is urgently needed from the UK Government on whether it will reverse its plans for harmful welfare cuts, extend furlough, and protect jobs as restrictions ease and the economy recovers.

“If not we must see the detail on what support will be put in place to ensure those hit hardest by the economic impacts of COVID aren’t left out in the cold.”

STUC General Secretary Rozanne Foyer said: “We are meeting the First Minister at a critical moment. Our focus is on building a recovery from COVID that creates a more equitable Scotland with fair work as a driver of economic transformation and sustainable economic growth. To achieve this and to bring about a just transition we need to create well-paid, unionised, green jobs in the public and private sectors.

“Our priorities include public sector pay, transport and a future Scottish National Care Service and we look forward to raising these issues with the First Minister.

“We share the Scottish Government’s call for an extension of the furlough scheme, for the £20-per-week uplift to Universal Credit to be made permanent and for the devolution of further borrowing powers to drive a fair recovery.”

TUC: Universal  credit cut will hit millions of working families  and key workers

The UK Government has now confirmed that £20 a week will be cut from Universal Credit in October. By removing this lifeline, poverty will increase among the 6 million claimants of Universal Credit, says the TUC.

40 percent of these claimants – over two million people – are in work.

Number of people on Universal Credit 2020/21 (including in work and out of work breakdown):

Source – TUC analysis of stat explore data using May 2021 data

Our new analysis reveals the regional and local impact cutting Universal Credit will have on low-paid workers.

Numbers on Universal Credit in work by region/nation (May 2021):

Region/nation	Number in work receiving UC	Total number receiving UC	% Of UC recipients in work
North East	100,437	281,759	35.6%
North West	282,131	755,400	37.3%
Yorkshire & Humber	194,344	518,269	37.5%
East Midlands	166,265	403,272	41.2%
West Midlands	214,730	585,069	36.7%
East of England	199,459	494,271	40.4%
London	375,426	1,015,321	37.0%
South East	274,235	677,609	40.5%
South West	184,983	439,612	42.1%
Wales	103,609	279,068	37.1%
Scotland	176,935	481,263	36.8%
Total	2,274,976	5,938,914	38.3%

Source – TUC analysis of stat explore data using May 2021 data – for constituency level data see press release

The impact on poverty

The government justifies the £20 cut by saying its focus is to move people into jobs, but this misses the point. Many of those on Universal Credit (40 percent of claimants) are already in work.

2.3 million workers, many of which are key worker households, will be worse off as a result of the government’s plans to cut universal credit.

The working tax credit is also being cut, having also been raised by £20 per week in early 2020. This cut to crucial in-work support will push more families below the breadline. 

Analysis by the Joseph Rowntree Foundation shows the majority of families that lose out will be working families.

These cuts are likely to worsen already record-high levels of poverty.

Just before the pandemic hit, poverty was at a record high, with 14.5 million people in poverty. The majority of these (57 per cent, or 8.3 million people) were in working households. The idea that work is a guaranteed route out of poverty is now simply not true.

Low standard rate

Even with the increase in the rate by £20 a week – the basic rate of universal credit is worth around a sixth of average weekly pay.

The UK system is strikingly less generous than in most other European countries, where unemployment benefits are related (at least in the initial period of unemployment) to previous wages to cushion income shocks, ranging from 60 per cent of previous wages in Germany to 90 per cent in Denmark.

The TUC believes that rather than being cut, Universal Credit should be increased to at least 80 per cent of the level of the living wage, around £260.

And the temporary £20 top-up excluded those on legacy benefits all together, many of whom are disabled or carers, and cannot work. This should be extended to these claimants too.

Change is needed

The UK safety net is failing as a result of years of deliberate attacks on the social security system, with around £34 billion of cuts made to social security since 2010.

The reason for increasing Universal Credit and Working tax credits was that previous rates were too low. Removing this increase makes no sense. The pandemic might – hopefully – be going away, but the need for social security isn’t.

The £20 increase in universal credit has been a “vital lifeline” for low-paid workers: having £20 a week less to spend will mean going without the essentials in life.

An ambitious agenda to tackle in-work poverty would include decent pay, secure work, progression opportunities for those on low incomes, and affordable childcare and housing costs.

It would not include a cut to the lifeline support that working families across the country are relying on.

Committees unite to call for UC uplift to be made permanent

The UK Government should make the £20 per week uplift to Universal Credit and Working Tax Credit permanent, according to a joint letter issued by cross-party committees from Westminster, the Northern Irish Assembly, the Welsh Senedd and the Scottish Parliament.

The Chancellor of the Exchequer, Rishi Sunak and Work Pensions Secretary, Thérèse Coffey, have confirmed that the uplift will come to an end in October.

However, if the uplift is removed, the 6 million people claiming Universal Credit will lose £1,040 in annual income overnight. According to the Joseph Rowntree Foundation this could force 500,000 people, including 200,000 children, into poverty.

The letter also raises concerns that the benefit will be removed from families at the same time unemployment is due to peak as the Coronavirus Job Retention Scheme comes to an end.

The Committees call on the uplift to be extended to legacy benefits, to make sure those in need do not miss out.

The letter was signed by Neil Gray MSP, Convener of Holyrood’s Social Justice and Social Security Committee, Stephen Timms MP, Chair of Westminster’s Work and Pensions Select Committee, Paula Bradley MLA, Chair of Stormont’s Committee for Communities, and Jenny Rathbone MS, Chair of the Senedd’s Equality and Social Justice Committee.

Neil Gray MSP, Convener of the Social Justice and Social Security Committee, said: “The UK Government did the right thing at the start of the pandemic to increase Universal Credit and Working Tax Credit to give better support to people during these incredibly challenging times.

“But removing the uplift in October would have devastating consequences for our most vulnerable in society, who have been hit hardest by this pandemic.

“This risks sending many more people into poverty at a time when we should be doing all we can to support them.

Mr Gray added: “All four of our Committees agree that by spending this money now on social security, we can avoid putting more people into poverty, helping save more money in the longer term on health, education, justice and other social services.”

Rt Hon Stephen Timms MP, Chair of the House of Commons Work and Pensions Committee, said: “To sweep away such a vital lifeline from people who have felt the very worst effects of the pandemic risks plunging hundreds of thousands of people into poverty at a time when they will have had little or no chance to get back on their feet.

“Six Conservative former welfare secretaries have warned the Chancellor of the grave consequences of his proposed course of action. The strength of feeling on all sides of the political divide, and across the UK, could not be clearer. The Government must change course.

“At the same time, the Government must also increase support for the people who, through no fault of their own, are still claiming older benefits and have received no pandemic-related increases at all – despite their living costs rising during the pandemic.”

Jenny Rathbone MS, Chair, Equality and Social Justice Committee, said:

“Whilst, in Wales, policy relating to Universal Credit and other social security benefits is reserved to Westminster, we are deeply concerned about the impact removing the uplift might have on widening social inequality in Wales; growing indebtedness as a result of the economic impact of Covid; and the ability of low income families to eat as well as pay their rent.”

Children’s Commissioners appeal to UK Government to end ‘discriminatory’ two-child limit on benefits

The Children’s Commissioners of Scotland, Wales and Northern Ireland have today published a letter they have sent to the Secretary of State for Work and Pensions calling for an end to the two-child limit on Universal Credit and Child Tax Credit.

In the letter, the Commissioners state that the policy, which disallows benefits payments to the third and subsequent children born after April 2017 in most circumstances, is ‘a clear breach of children’s human rights’ that “is inconsistent with the commitments made by the UK through the ratification of the United Nations Convention on the Rights of the Child.

The UK Parliament’s Work and Pensions Committee will today hear evidence from Bruce Adamson, Children and Young People’s Commissioner for Scotland who will present the collective views of the Commissioners in Scotland, Northern Ireland and Wales, that the efforts of their devolved governments to tackle child poverty are being restricted by UK benefits rules.

He will talk about the impact of current welfare benefits on child poverty in Scotland and explain that even before Covid-19, poverty represented the greatest human rights issues facing children.

Children and Young People’s Commissioner for Scotland, Bruce Adamson, said: “With more than a quarter of a million children affected, poverty is the most significant human rights issue facing children in Scotland. Living in poverty affects every aspect of a child’s life, including their educational attainment and mental and physical health.  

“The UK’s approach to poverty was examined in 2019 by the United Nations’ top expert on poverty and human rights who highlighted that it is political decisions by government that are leading to disastrous levels of poverty.

“When Professor Alston came to Scotland to meet with children and their families he heard from them about the serious impact that poverty is having on their human rights. Now after over a year of the Covid-19 pandemic, the situation for children in Scotland has become much worse.”

The open letter from the Commissioners to the Right Honourable Thérèse Coffey, MP states that the two-child limit breaches children’s rights to an adequate standard of living and is contributing to a rising gap in poverty levels between families with three or more children and smaller households.

The Commissioners note that the policy also has disproportionate impacts on social groups where larger families are more common, such as some minority faith and ethnic groups and in Northern Ireland where families are larger than the rest of the UK.

Bruce Adamson added: “The Scottish Government has taken some action to reduce the number of children in poverty including rolling out the Scottish Child Payment during the pandemic, however I remain concerned that children’s rights are continuing to be breached in Scotland by the two-child limit on child tax credit and universal credit. That is why we have taken the step of writing to the UK Government to urge that this policy is reversed.

“We will continue to hold our devolved governments to account in relation to their obligations to respect, protect and fulfil children’s rights, but these governments can only go so far in their efforts to ensure children and their families get the support they are entitled to while this discriminatory policy also remains in force at a UK level.”

The Commissioners conclude their letter by stating that the ‘levelling up’ agenda signalled in the Queen’s Speech earlier this month must start by discontinuing the two-child policy: ‘With the focus in the Queen’s speech in May 2021 on ‘levelling up’, there can be no excuse for continuing to breach children’s rights through this discriminatory policy that will continue to harm and prevent children and families from moving beyond the impact of the global pandemic.’

Letter-from-CCommissioners-to-TCoffey Download

Concern over delays to Workplace Capability Assessments

The Work and Pensions Committee Chair Stephen Timms has written to Minister for Disabled People Justin Tomlinson asking what action the Government is taking to address delays to Workplace Capability Assessments (WCA).

The letter raises concerns about the ‘exceptionally long waits for assessments’ some people applying for Employment Support Allowance (ESA) and Universal Credit have been experiencing since the start of the coronavirus pandemic and the suspension of face-to-face assessments more than a year ago.

This affects people who DWP has decided cannot have their claims assessed on paper or by telephone.

Previous correspondence from the Minister failed to answer the Committee’s specific questions on the number of people affected, waiting times and the reasons behind the lack of progress on conducting remote assessments for these claimants.

Rt Hon Stephen Timms, Chair of the Work and Pensions Committee, said: “DWP has left some disabled people in an impossible situation: they can’t have a face-to-face assessment, while they are also told a decision on their claim can’t be made over the phone.

“Instead, they’ve simply been left in limbo, forced to get by on less money than they are entitled to, in some cases for more than a year—at a time when we know living costs have been higher than ever for disabled people. So far, the Minister hasn’t even told us how many people have been affected.

“We all know that DWP has been under enormous pressure this year. But there has been a disappointing lack of urgency in addressing this problem. It’s high time the Government fixed this.”

MSPs call on UK Government to make the £20 Universal Credit uplift permanent

A Scottish Parliament Committee has called on the UK Government to make permanent the temporary £20 Universal Credit (UC) uplift and has expressed ‘considerable concern’ about the significant number of people unable to access social security support during the pandemic.

The findings are part of the Social Security Committee’s report into how social security can aid Scotland’s recovery from Covid-19.

With the pandemic having a disproportionately negative impact on the poorest in society, the Committee highlights the urgent need to review what has been learned so far to ensure existing services are reformed and new services designed to provide people with the support they need to come through this major economic shock.

While praising the unprecedented amount of resource that has been passed to public bodies, local authorities and the third sector to help in response to the pandemic, the Committee express deep concerns about the number of people unable to access any support.

They say the newly self-employed and people with savings are two groups who have not been given sufficient support by the current social security system.

The Committee has called on the Scottish and UK Governments to work together to consider the feasibility of a Citizens Basic Income (CBI) as part of the response to any future crisis.

They say this is potentially a fairer way to share available support and could avoid some groups of people receiving no support at all.

Given the main income-replacement benefit (UC) is reserved to UK Ministers and the interlink between Scottish social security benefits and UK Government DWP benefits, the Committee say it is more important than ever that both Governments work constructively together to respond to this crisis.

Speaking as the report was published, Social Security Committee Convener, Bob Doris MSP, said: “This pandemic continues to have a devastating impact on people’s lives, particularly our most vulnerable in society.

“Social security has a critical role to play in supporting people at times of crisis and while we recognise the unprecedented support both the Scottish and UK Governments have provided, it is clear that too many people have fallen through the cracks.

“In order to protect the most vulnerable, the temporary uplift in Universal Credit must be made permanent, and more must be done to help those not currently eligible for support, particularly the newly self-employed and those with savings. A Citizens Basic Income for the duration of any future crisis may be one way to protect those who have missed out on support.

“As we know, responsibility for assistance with housing costs lies mainly with the UK Government and Scottish Ministers have very limited powers in this area. So we are calling on both Governments to work together to look at what assistance can be provided to people struggling, whatever their tenure.”

He added: “The Committee is extremely disappointed that the Secretary of State for Work and Pensions did not accept any of the Committee’s invitations to give evidence, either for this inquiry or previous Committee work. Given the interlinked nature of social security across both Governments: this must change in future.

“We’d like to thank all who contributed to our inquiry. The long-term impact of the pandemic is still unknown but it is vital that social security provides a safety net for all of those who need it during this and any future crises.”

The Committee say the pandemic has exposed some of the shortcomings of the current social security system, including problems with the Scottish Welfare Fund (SWF). They say these problems have been exacerbated by the pandemic and have urged the Scottish Government to work with COSLA to review the SWF to ensure it is fit for purpose.

The Committee’s report also says although locally distributed discretionary payments play an important role when responding to urgent or temporary need, longer-term needs are better met by national entitlements with clear and consistent eligibility criteria to give people certainty when accessing support.

NHS Lothian committed to Young Person Guarantee

NHS Lothian has announced that, as part of a commitment to the #youngpersonsguarantee, they will be the first Health Board in Scotland to go live with #kickstart opportunities throughout 2021.

The Kickstart Scheme is a 6 month paid job with a local employer, funded by the Government. It provides a fully funded opportunity for young people to gain experience of working in one of Britain’s most exciting companies.

The Kickstart Scheme was announced by the Chancellor in the Summer, and will offer hundreds of thousands of job opportunities over the next two years. A £2 billion pot is available to fully fund exciting positions with businesses across Britain.

Jobs from the Kickstart Scheme are open to 16-24 year olds, who are claiming Universal Credit, and are at risk of long term unemployment. If you have a work coach they will talk to you about the Kickstart Scheme and whether it’s right for you.

We have roles on offer in many different types of businesses, and across England, Scotland and Wales. Plus if you take on a Kickstart placement you might be able to progress to an apprenticeship within the same company.

Ask your Work Coach about these opportunities and look on the Apprenticeships website.

The first jobs are now live, talk to your work coach to find out more. If you don’t have a work coach, find out more about your career options.

Three-in-ten new Universal Credit claimants have seen their debts grow during the crisis

Over three-in-ten people who have started claiming Universal Credit (UC) during the pandemic have either acquired new debts, or seen their existing debts grow, as the crisis enters its eleventh month, according to new research published by the Resolution Foundation.

The debts that divide us – which includes analysis of a detailed online YouGov survey, supported by the Health Foundation – explores how people who have newly claimed UC during the pandemic have coped financially, as well as their prospects for the coming months.

The Foundation notes that of the almost six million people who are currently claiming UC, around three-in-five made a new claim in 2020, including many of the 1.4 million people who made a new claim at the start of the crisis in April and May of last year.

The research finds that families newly claiming UC have taken a major income hit, even with the vital £20 a week uplift to UC. Almost half (45 per cent) reported seeing their income fall by at least a quarter, while around one-in-three (34 per cent) reported seeing their income fall by at least 40 per cent.

And with the pandemic-induced economic crisis having lasted almost a year, the research shows that the big income losses faced by people moving onto UC are taking their toll on their ability to cope financially.

The research finds that over three-in-ten (31 per cent) new UC families have either acquired new debts or seen their existing debts grow, while around one-in-five (21 per cent) have fallen behind on paying essential (non-housing) bills.

Looking ahead to the next three months, a period in which UC is set to be cut by £20 a week (from 5 April 2021), three-in-five (61 per cent) UC families say they will struggle to keep up or will fall behind on bills, around twice the proportion of families across the economy as a whole (31 per cent).

The Foundation says that the uplift to UC has been essential for protecting family incomes during a pandemic that is lasting far longer than anyone expected when the policy was announced back in March 2020. The uplift is likely to prove just as vital in the coming months too, as more people claim UC off the back of rising unemployment.

It adds that with millions of households claiming UC experiencing real financial hardship, cutting their support in just two months’ time would be a grave error – and extinguish any hopes of a living standards recovery this year.

Karl Handscomb, Senior Economist at the Resolution Foundation, said: “Over three million people have started claiming Universal Credit since the pandemic began, including 1.4 million people who moved onto the benefit right at the start of the crisis.

“As the pandemic reaches its eleventh month – a depressing duration few expected last March – the income shock from with moving onto Universal Credit has evolved into mounting debts and arrears on essential bills.

“The Chancellor was right to raise Universal Credit to support families through tough economic times. And with tough times set to continue as unemployment rises through 2021, this vital boost to family incomes must be maintained.

“Cutting the incomes of six million families in just two months’ time, when public health restrictions are still likely to be widespread, makes no sense politically, economically, or in terms of raising people’s living standards.”

Universal Credit £20 weekly increase must be extended, says Westminster committee

The Chancellor must maintain for another year ‘at the very least’ the £20 per week increase in Universal Credit (UC) and Working Tax Credit introduced to support families during the coronavirus pandemic, MPs say today.

Work and Pensions Committee calls for year-long extension of increase ‘at the very least’
Removal in April while pandemic still being felt would plunge hundreds of thousands of families into poverty
Any plans to replace rise with one-off payments must be abandoned amid concerns over fraud and impact on vulnerable

The report from the Work and Pensions Committee notes that since March the number of people claiming UC has doubled to around six million, while job vacancies remain far below pre-pandemic levels.

It warns that removing the payment as planned in April, while the effects of the pandemic are still being felt, would ‘plunge hundreds of thousands of households, including children into poverty’ while dragging those already in poverty ‘down into destitution’.

While the Committee recognises that continuing with the increase would come at a ‘substantial cost’, the Committee argues that this should be seen in the context of the Treasury’s own £280bn figure for total spending on coronavirus support measures this year. The Joseph Rowntree Foundation has estimated that keeping the £20 rise would cost around £6.4bn in the next financial year.

The report also calls on the Government to abandon any plans for one-off payments to replace the weekly rise. The Secretary of State confirmed to the Committee last week that the DWP had been asked to investigate such an option but said it was not ‘one of the Department’s preferred approaches to providing that financial support’.

The report has been published after evidence sessions with frontline support organisations and policy experts and the Secretary of State and Permanent Secretary last week.

Rt Hon Stephen Timms MP, Chair of the Work and Pensions Committee, said: “Removing the extra payment in March would represent a failure by Government – failure to recognise the reality of people struggling.

“Without regular support, hundreds of thousands of families will be swept into poverty or even destitution. Government must end the uncertainty and commit to extending this lifeline.

“The Chancellor faces difficult decisions about the public finances. He may find it hard at present to make the increase permanent. But the pandemic’s impact on the economy and livelihoods will, sadly, be with us for some time. An extension for a year should be the bare minimum.

“We must also hope that Rishi Sunak will listen to the groundswell of arguments against one-off payments as an alternative, including from his cabinet colleague at our Committee last week. There is broad agreement that a steady income is necessary to support people.”

Report findings and recommendations

Impact of removing the £20 per week increase (Chapter 2)

Analysis by the Joseph Rowntree Foundation (JRF) has concluded that withdrawing the temporary increase ‘will risk sweeping 700,000 more people, including 300,000 more children, into poverty’

One-off payments (Chapter 3)

The Committee shares the Secretary of State’s view that a steady income is the best way to support people and is concerned that one-off payments could increase the risk of fraud and about the risks to vulnerable people.

The proposed way forward (Chapter 4)

The Committee has previously called on the Government to make the £20 per week increase permanent with annual inflation-based increases. The report acknowledges however that ‘in the short term, the Chancellor faces some very difficult decisions about the public finances amid a great deal of uncertainty about the future.’
If the Chancellor cannot yet commit to making the increase permanent, he should at the very least extend it for a further 12 months. The Government should then announce its future plans for the rate of Universal Credit no later than the Autumn Statement 2021, to give claimants enough time to plan and budget.