Tag: Universal Credit

EATING or HEATING?

Tragic choice two thirds of “forgotten disabled people” have been forced to make during pandemic

· For ten months UK Government has refused emergency funding to over 2.2 million people on legacy benefits to support them through the COVID-19 crisis

· New evidence sent to Chancellor Rishi Sunak shows disabled people now facing immense hardship

· Coalition of over 100 organisations working with disabled people fear ‘terrible consequences’ if Government fails to announce financial support for legacy benefits claimants in March Budget

Denying disabled people on legacy benefits, including Employment and Support Allowance (ESA) and Jobseeker’s Allowance, financial help to survive the COVID-19 crisis has left growing numbers unable to pay for rent, food and heating, new research shows.

The Disability Benefits Consortium (DBC), a network of over 100 organisations including the MS Society, Z2K, Disability Rights UK and Inclusion London, asked 1,126 legacy benefits claimants what difficulties they have been facing since the start of the pandemic.

The findings – which are included in the ‘Pandemic Poverty: Stark choices facing disabled people on legacy benefits’ report – reveal:

· The majority (82%) said they had spent more than they normally would – due to greater food shopping and utility bills, as well as having to pay for taxis to attend essential appointments – since the COVID-19 crisis began.

· Two thirds (66%) said they had to go without essentials like food, heating or medication as a result of increased costs since the pandemic started.

· Nearly half (44%) said they had fallen behind on financial commitments like rent, mortgage payments, or household bills.

The devastating impact shown in the report comes ten months after over 2.2 million people on legacy benefits were originally refused a £20 per week lifeline to support them through the pandemic – something people on Universal Credit have been getting since last March. The Universal Credit uplift will expire in April and no announcement has been made on whether it will be extended.

Excuses as to why legacy benefit claimants have been left behind include ‘technical difficulties’ and ‘they are getting a 37p annual increase from April’. The latest is that people on legacy benefits have the option to switch to Universal Credit, ignoring the fact that wider adjustments could leave people worse off, as well as serious flaws in the assessment and monitoring process of Universal Credit.2

Deborah, 53, from Cleckheaton in West Yorkshire lives with fibromyalgia. She cares for her partner, Steve, who has a congenital heart condition, and has just been diagnosed with diabetes. The couple rely on Deborah’s overdraft to pay for their food deliveries and heating, but now she is £800 overdrawn and having to make the choice between the two.

She says: “Being overdrawn makes me really stressed out because I’m thinking ‘how am I going to get this all back down?’ We’re already having to cut back on things like food, but the worst is not being able to have the heating on.

“We both feel like we’re undervalued…as if we don’t matter to the Government, whereas people on Universal Credit are better looked after. That extra £20 would be a godsend, and would mean we could put the money towards things we desperately need.”

David Allen, 62, was diagnosed with primary progressive multiple sclerosis (MS) in 1996 and lives alone in Luton. He has been receiving legacy benefits for over 10 years. David was bedbound with COVID-19 in March, and, as he is clinically vulnerable, has no choice but to have food delivered.

He says: “My shopping bill usually comes to £20 to 35 per week, but as I don’t feel safe going to the supermarket I’m having to rely on deliveries. The minimum order is £25, but if your order is less than £40 you get hit with by a delivery charge. On top of this, a tremor caused by my MS means it’s dangerous for me to use a knife or carry pans with hot water in, so I have to buy ready meals and prepared vegetables that I can put in the microware. These all come at a premium.

“I’m constantly worrying about other costs – I find myself sitting in the dark more than I should so as not to turn the lights on for too long, as well as only switching the TV on when I’m watching a programme. I live on my own so it’s hard not to think your world is closing in around you. The harsh reality is that the pandemic has meant our bills are going up quicker than our income, and there’s just nowhere to go to make up for that. It’s meant we feel abandoned and left to sink.”

Over 120,000 people have signed the ‘Don’t Leave Disabled People Behind’ petition, and 98% of MPs in the UK have heard from their constituents about the issue.

In addition, The Work and Pensions Select Committee, Social Security Advisory Committee, MPs from all parties, countless other charities and coalitions, the Lords Economic Affairs Committee and, most recently, the APPG on Poverty have all supported the DBC’s call to immediately give all out of work benefits the same COVID-19 emergency £20 increase that Universal Credit has seen.

Anastasia Berry, Policy Manager at the MS Society and Policy Co-Chair of the DBC, says: “An unforgivable number of disabled people have been put in danger of falling into poverty because of the extra costs of the pandemic – and the Government continues to ignore them.

“For nearly a year over 2.2 million people on legacy benefits have been given little more than a promise from the Prime Minister that he would “wrap his arms around the country” – but platitudes don’t keep people warm. Many have been forced to make awful choices to help them survive – from choosing between heating and eating to racking up debt to pay for rent.

“We have heard every excuse for why disabled people are being discriminated against, but the latest – that they can ‘move to Universal Credit’ – is the most misleading yet. The Government’s disregard of the facts could result in people being even worse off financially. The upcoming budget is a chance for the Chancellor to finally show the forgotten disabled people they matter, and they’re as important as those in receipt of Universal Credit. Without the £20 lifeline more people will be pushed into poverty and face terrible consequences.”

Ella Abraham, Z2K’s Policy and Campaigns Officer and Campaigns Co-Chair of the DBC, says: “2.2 million people on legacy benefits, the majority of whom are disabled, have now been excluded from the £20 per week financial lifeline for 10 months. The Chancellor’s inaction on this has created a two-tier discriminatory welfare state which has pushed a huge number of people into poverty.

“Forcing people onto Universal Credit where many will not be better off isn’t a solution, what we need is a social security system that ensures people are not having to survive on the bare minimum but have the income they need to live a stable and dignified life. The Government must increase legacy benefits now.”

pandemic-poverty-stark-choices-facing-disabled-people-on-legacy-benefits-finalDownload

DBC’s letter to Rishi Sunak: 

Dear Mr Sunak,

Re: Increase Disability Benefits campaign reaches over 119,000 signatures.

You will no doubt remember that we wrote to you back in June. Then, as now, we called on you to give parity to disabled people claiming legacy benefits, such as Employment and Support Allowance, Job Seekers Allowance and Income Support by extending the £20 uplift afforded to those claiming Universal Credit since Spring.

Since we last wrote, thousands more have signed our petition urging you to do justice to those on legacy benefits by extending the uplift. And today, in anticipation of your Spending Review announcement, we deliver these tens of thousands of calls to action to you.

Just as you no doubt do, those who have signed our petition recognise that disability costs. People living with a disability and those with long-term health conditions tend to have lower real incomes and higher costs than the general population. This has been compounded during the pandemic, with many disabled people facing extra costs. Costs such as paying for taxis, to avoid the risk of public transport; paying for supermarket deliveries to avoid the risk of going to shops; paying for higher call and data charges to avoid loneliness and isolation.

Both the Social Security Advisory Committee and the Work and Pensions Select Committee as well as a number of MPs have called for the uplift to be introduced. The Secretary of State cited the inability of the IT systems as a reason not to implement an immediate change. However, with the Spending Review imminent where the benefit rates will be decided, this is your opportunity to do the right thing.

We believe that it cannot be the deliberate intent of Government to abandon some of the most severely and chronically disadvantaged citizens to heightened financial struggle in the midst of the destabilising, frightening and isolating experience of living with disability in the context of a global pandemic. With no immediate end in sight to this pandemic, it is only fair and reasonable to provide the same boost to those on Job Seekers Allowance, Employment and Support Allowance or Income Support as has been provided to those claiming Universal Credit.

Disabled people are likely to feel the impact of this crisis for a long time to come. Please don’t leave them behind!

Should you have any questions please contact me at matthew.harrison@mencap.org.uk.

Yours sincerely,

Matt Harrison

On behalf of the DBC Steering Group (Parliamentary Co-chair, Disability Benefits Consortium)

TUC calls for a ‘Workers’ Budget’

  • NEW POLL: 50% of low-paid workers have suffered income loss in the pandemic, compared to 29% of high earners
  • TUC budget submission calls for a “workers’ budget” and extension of JRS to the end of 2021

New polling, published this week by the TUC, finds that low earners are more likely than middle and higher earners to have been forced to cut spending and take on debt during the pandemic.

The poll findings (conducted for the TUC by BritainThinks) come as the TUC publishes its budget submission, which calls on the Chancellor to improve pandemic support for low- paid workers, and to invest in job protection and creation to prevent an unemployment crisis following the pandemic.

Low paid workers and the pandemic’s impacts

Over a third (37%) of workers said that their household had suffered a reduction in disposable income since the pandemic began.

This rises to half (50%) for workers with annual earnings below £15k, while it is just three in ten (29%) for workers earning more than £50k.

The lowest earners are also the most likely to have had to reduce spending and take on debt.

Percentage of workers saying that since start of pandemic they have….
Annual earnings(1) Less disposable income(2) Needed to reduce spending(3) Taken on more debt
Less than £15k50%46%29%
Between £15k and £29k35%30%18%
Between £29k and £50k33%31%20%
More than £50k29%24%18%
All workers37%34%21%

The TUC says that low-paid workers have been worse affected because:

  • Insecure work: Low paid workers are often employed on terms such as zero-hours contracts, which give them no protection when their hours of work are cut back.
  • Household budget flexibility: Workers who are already struggling on low pay have much less flexibility than middle and higher earners to reduce spending and avoid debt.
  • Hard-hit sectors: Hospitality, leisure and non-essential retail have had by far the highest rates of furlough, and they are both sectors with large numbers of low-paid workers.
  • Remote working: Middle and high wage earners are more likely to have jobs that can be done form home, meaning they can avoid the need to be furloughed and may also make savings such as their usual commuting costs.
  • Furlough is protecting incomes but can pay less than minimum wage: The job retention scheme does not have a floor, meaning that some workers receiving 80% of their wages have fallen below the minimum wage. Two million employees were paid below the minimum wage in April 2020 (compared to 409,000 in April 2019) and the majority of these were on furlough at the time.

TUC Budget submission

The TUC’s budget submission calls for a workers’ budget.

The union body encourages the Chancellor to follow the recommendations of the OECD to make greater use of fiscal policy to support the economy.

By increasing support for working people and low-income households, the Chancellor would also be using fiscal policy to protect the economy and stimulate recovery.

TUC budget recommendations include:

  • Extending the job retention scheme to the end of 2021.
  • A wage floor within JRS to prevent furlough pay falling below the minimum wage.
  • Permanent retention of the £20 per week increase in universal credit, and an end to the five-week wait for new universal credit claimants to receive payment.
  • Increasing child benefit and child tax credit and removing the two-child limit.
  • Fixing statutory sick pay by raising it to £330 per week (to match the level of the real Living Wage) and by extending eligibility to the two million low-paid workers currently excluded from SSP.
  • Raising the national minimum wage to at least £10 per hour.

The full submission includes further recommendations to invest in job creation and boost skills – including retaining the £12 million Union Learning Fund, which supports 200,000 workplace learners annually.

TUC General Secretary Frances O’Grady said: “When a crisis hits, the most exposed should get the most protection. But many low-paid workers are struggling through the pandemic on less money and with higher costs. And they are falling into deeper poverty and debt.

“Good government means stepping in to help. The Chancellor should help by extending furlough to the end of the year, with a guarantee that support will never be less than minimum wage. And last year’s boost to universal credit should be kept – permanently.

“Many of these low earners are key workers who have kept our country going. We owe it to them to build a fairer economy after the pandemic. The Chancellor should give Britain a workers’ budget next month. It should be a plan for full employment, with decent pay and job security for every worker.”

CAP urges Westminster to ‘Keep the Lifeline’

Pressure has mounted on the Prime Minister to provide a vital lifeline to millions of families across the UK after a House of Commons debate and vote on Monday evening to extend benefit increases which is worth £20 per week.

Millions of low -income households across the UK could see their incomes fall dramatically in April if the uplift in universe credit ends. 

It is estimated that around 16 million people will be in households facing an overnight income loss equivalent to £1,040 a year, with those on the lowest incomes and families with children being hardest hit. 

In an instant, 700,000 more people risk being pulled into poverty, including 300,000 children, and 500,000 more of those already in poverty will be plunged deeper into poverty (more than 50% below the poverty line).

Christians Against Poverty along with other charities are urging the Prime Minister to back the ‘Keep the Lifeline’ campaign and support making it permanent for those on Universal and tax credits.

Emma Jackson, National Director of CAP in Scotland said, “The uplift has been a lifeline for people and to remove it would cause devastating effects. We are urging the government to keep the £20 Universal credit uplift in place, and extend it to those on legacy benefits.

“Introducing this was a bold and compassionate measure made by the government and this one action has prevented hundreds of thousands of families across the UK from being pulled further under by the tide of poverty. We know right now that things are incredibly difficult for those on the lowest of incomes and they need financial support.

“We are delighted that significant support has been displayed today in favour of keeping the £20 a week uplift on UC and tax credits. Introducing the £20 a week uplift has been a vital lifeline for so many of our clients at CAP. This one action has prevented hundreds of thousands of families across the UK from being pulled under by the tide of poverty.

“However, we’re extremely disappointed that the government has yet to take the opportunity to extend the uplift. This will put extra pressure and uncertainty on so many families, including pushing families into debt to meet essential costs.

“For those already worried about debt, CAP and other free debt help charities are still here and still working to help those overcome the weight of debt.”

Scots families face disaster if enhanced benefits withdrawn

New report shows 60,000 Scots face poverty as result of UK cuts

More than 60,000 people in Scotland, including 20,000 children, will be plunged into poverty if the UK Government continues with plans to withdraw benefits brought in to provide support through the coronavirus (COVID-19) pandemic, a new report has shown.

Scottish Government analysis shows that if the UK Government takes away the £20-a-week increase in Universal Credit and Working Tax Credits, and reinstates the Minimum Income Floor for the self-employed, as planned in April 2021, Scottish households will lose up to £476 million.

Social Security Secretary Shirley-Anne Somerville said: “We are very concerned about the economic impact of the pandemic on people, particularly those on low incomes. This report highlights that if these cuts go ahead, hundreds of thousands of households in Scotland will see their incomes drop by more than £1,000 per year. This could push even more people into poverty.

“Last year the Scottish Government invested nearly £2 billion to support low income households and to tackle poverty. We have also introduced the new Scottish Child Payment to tackle child poverty head on.

“The UK Government must match our ambition and support people in need. They can start by using next week’s spending review to confirm that they will keep the £20 uplift to Universal Credit and Working Tax Credits and give people the certainty they need, not wait until April 2021 when people will face a cliff edge.”

Peter Kelly, Director of the Poverty Alliance, said: “Increasing Universal Credit payments was the right thing to do when the pandemic first struck. It has been a vital lifeline for hundreds of thousands, and it’s right that this support remains in place.

“More people will be swept into even deeper poverty if the £20 uplift is cut. Lone parents will be particularly hard hit, but the impact will be felt by all groups which need this vital support.

“We would urge the UK Government to act on this important evidence, to keep households afloat by retaining this lifeline.”

Scheduling the withdrawal of the £20 uplift and the reinstatement of the Minimum Income Floor to April 2021 will coincide with the Job Support Scheme and the Self-Employment Income Support Scheme coming to an end.

The Job Retention Scheme has played an important role in curbing unemployment since it was introduced in March, with nearly a quarter of a million workers furloughed in Scotland as of 31 August. If the scheme finishes as scheduled in April 2021, it is likely the number of people claiming benefits will rise further.

The Scottish Government report, Impact of withdrawing emergency benefit measures, can be read in full here. 

The Minimum Income Floor (MIF) is a base amount used to calculate how much Universal Credit should be awarded to self-employed people. Anyone earning below the MIF is treated as though they earn that amount, while those earning more have their actual earnings taken into account.

When the UK Government removed the MIF, everyone who was self-employed received benefits based on their actual earnings.

Scotland’s Social Security Secretary recently joined Ministers from Wales and Northern Ireland in writing to the Secretary of State for Work and Pensions Therese Coffey, asking that they work together to ensure those who are entitled to financial support are receiving it – and to call for the £20 uplift on Universal Credit to be made permanent and extended to other benefits which will eventually be replaced by UC.

That letter can be read in full here.

Committee seeks answers to Universal Credit questions

The Work and Pensions Committee publishes the Government response to its report DWP’s response to the coronavirus outbreak.

The report, published in June, made a number of recommendations about supporting those claiming Universal Credit, as well as legacy benefits and those with no recourse to public funds due to their immigration status.

It also made recommendations on the HSE and called on the DWP to develop a strategy for dealing with the effects of the economic downturn.

Committee Chair Stephen Timms MP has now written to the Secretary of State Thérèse Coffey MP to press the Department on a number of points not addressed by the Government response.

Rt Hon Stephen Timms MP, Chair of the Work and Pensions Committee, said: “We don’t necessarily expect the Government immediately to accept every recommendation we make. But we do expect that it will at least explain its position. This response to our report leaves many questions unanswered.

“In the course of our inquiry, we heard concerns that the Government’s very welcome increases to some benefit rates would be undermined by the benefit cap. Ministers assured us in April that only a small number of people would be affected. In fact, DWP’s own statistics show that 84,000 households were newly capped between February and May this year.

“The Secretary of State also assured the House in May that she was looking very carefully at what could be done for people who had mistakenly applied for Universal Credit and left themselves worse off as a result. We recommended that the Government act urgently to put this right. It now seems that nothing is going to be done for these people. If that’s the case, the Government should say so clearly, and explain why.

“Just as importantly, there seems to be little acknowledgement of the role of the Department in planning for future pressure on the social security system. There needs to be a firm commitment to analysing how coronavirus has affected levels of poverty and a clear strategy—available for public scrutiny— for coordinating the employment response to the economic downturn.”

Substantial reform of Universal Credit needed, says Lords report

The House of Lords Economic Affairs Committee report ‘Universal Credit isn’t working: proposals for reform‘, calls on the UK Government to make substantial changes to universal credit in order to protect the most vulnerable.

Universal Credit is failing millions of people, particularly the most vulnerable. The Economic Affairs Committee agrees with the original aim of Universal Credit but blames the scheme’s design for soaring rent arrears and the use of food banks.

Cuts to social security budgets over the last decade is causing widespread poverty and hardship. Universal Credit needs urgent investment to catch up and provide claimants with adequate income. The temporary increase in the standard allowance in response to the Covid-19 pandemic shows that the previous level of awards was too low. The increase should be made permanent.

The Government is using Universal Credit to recover debt, mostly £6 billion of historic tax credit debt. Deductions of up to 30% of the standard allowance, and in some cases more, can be taken from claimants. This has left many households with less money than they are entitled, often at no fault of their own. Tax credit debt should be written off as it is unlikely to be repaid.

The five-week wait for the first Universal Credit payment is the main cause of insecurity. This wait entrenches debt, increases extreme poverty and harms vulnerable groups disproportionately. The Government should introduce a non-repayable two-week grant to all claimants.

The way payments are calculated can result in large fluctuations in income month-to-month, making it extremely difficult for claimants to budget. The level of awards should be fixed at the same level for three months. There should be a mechanism to enable claimants to have an early reassessment if their circumstances change.

Lord Forsyth of Drumlean, Chair of the Economic Affairs Committee, said: “Most people, including our Committee, broadly agree with the original aims and objectives of Universal Credit. However, in its current form it fails to provide a dependable safety net. It has led to an unprecedented number of people relying on foodbanks and not being able to pay their rent.

“The mechanics of Universal Credit do not reflect the reality of people’s lives. It is designed around an idealised claimant and rigid, inflexible features of the system are harming a range of claimant groups, including women, disabled people and the vulnerable.
 
“Universal Credit needs more money to catch up after 10 years of cuts to the social security budget. It requires substantial reform to its design and implementation, the adequacy of its awards, and how it supports claimants to navigate the system and find work.

“The five-week wait for a first payment must be replaced by a non-repayable two-week grant to all claimants. The monthly payment calculations which can result in big fluctuations to claimants’ incomes should be fixed for three months. Historical tax credit debt needs to be written off.

“The punitive nature of Universal Credit has not worked. It punishes the poorest by taking away their sole source of income for minor infractions. It needs rebalancing, with more carrot and less stick, particularly as large numbers of claimants will have ended up on it because of events completely out of their control.”

The Committee’s other key findings and recommendations include:

  • The Government must prioritise helping people into work, particularly with the increase in unemployment that the Covid-19 pandemic is causing. All claimants should have a work allowance, at a higher rate than now, to allow them to keep more of their award as they move into work.
  • The Government should consider reducing the taper rate to ensure that the poorest in society do not pay higher marginal effective tax rates compared to the richest in society.
  • The conditionality requirements on claimants who can look for, or prepare for work, has been increased significantly over recent years. Less emphasis should be placed on obligations and sanctions. Instead, there should be more support to help coach and train claimants to find jobs or to progress in their current roles. Conditionality should be adapted to accommodate changing labour market conditions, including at the local level, particularly in the light of the economic impact of the Covid-19 pandemic.
  • The UK has some of the most punitive sanctions in the world, but there is limited evidence that they have a positive effect. Removing people’s main source of support for extended periods risks pushing them further into poverty, indebtedness and reliance on food banks. There is a substantial body of evidence which shows that sanctions harm people’s mental health. The Government should evaluate the current length and level of sanctions. It should also expedite its work on introducing a written warning system before the application of a sanction. Sanctions must be a last resort.
  • The Government is doubling the number of work coaches in response to potential levels of high unemployment. This may not be enough to support people to find work in a stagnant labour market with high levels of competition for jobs. A cap should be introduced on the number of cases for which each work coach can be responsible.
  • Paying awards on a monthly basis does not reflect the way many claimants live. It causes unnecessary budget and cash flow problems. All claimants should be able to choose whether to have Universal Credit paid monthly or twice monthly.
  • Including childcare support in Universal Credit was a mistake. Paying costs in arrears has been a barrier to in-work progression and in some cases, it has been a disincentive to work. The Government should remove childcare support from Universal Credit and be made into a new standalone benefit paid in advance.

Over 110,000 Universal Credit claims since coronavirus outbreak

Claims for Universal Credit in Scotland have increased from an average of 20,000 per month in 2019 to over 110,000 between 1 March and 7 April, highlighting the impact the pandemic is having on people’s finances.

That’s why the Scottish Government, in partnership with the Citizens Advice network, is launching a new campaign to raise awareness of the financial support available to people.

The campaign will provide information and advice on issues including rent and mortgage payments, energy bills, council tax, and benefits people may be entitled to.

People will be able to access this advice online, by phone or by contacting their local Citizens Advice Bureau.

Cabinet Secretary for Social Security and Older People Shirley-Anne Somerville said: “This huge increase in claims for Universal Credit demonstrates just how many people across the country are struggling financially due to the coronavirus pandemic.

“These are difficult and worrying times for everyone, with many people requiring financial support for the first time and even more pressure on those who were already struggling to make ends meet.

“It is welcome that people are claiming the support that they are entitled to from the DWP, and I would encourage people to look into what additional help is available. Even if you are not entitled to Universal Credit, there could be other assistance that you can access so it is worth checking.

“That’s why we’ve been working with the Citizens Advice network in Scotland to create this central source of information – with everything from guidance on benefits, right through to what you can do if you are worried about paying your mortgage or rent.”

DWP entered into a new partnership with Citizens Advice in March last year, providing £39 million of funding to Citizens Advice and Citizens Advice Scotland to provide this service. DWP also funded Citizens Advice and Citizens Advice Scotland a further £12 million to set up delivery to ensure a smooth transition to the new delivery model. 

Citizens Advice Scotland Chief Executive Derek Mitchell said: “The Citizens Advice network in Scotland is known for always being there to help and the support we give will be more important than ever to help people avoid getting into crisis.

There may also be lots of people who have never used our services before and it’s crucial that they know our information and advice is there for them too.

“Our national network of Citizens Advice Bureaux is still operating for those who need it – if you have been financially impacted by the coronavirus outbreak your local Citizens Advice Bureau can help make sure you have access to all the income you are entitled to, as well as giving tailored advice about what’s on offer within local communities across Scotland.

“There’s increased demand for our advice on financial services, that’s why we’ve created dedicated COVID-19 content online so people get the information they need 24/7 and from the comfort of their own homes.

“We’ve also got a dedicated helpline for people who might not be able to access our services online. If you have been financially impacted by the coronavirus outbreak and require free, confidential, financial support, please visit cas.org.uk or call 0800 028 1456.

“Local Citizens Advice Bureaux are situated around the country. To find your local service, simply enter your postcode at cas.org.uk/bureaux”

Universal Credit claimants can verify identity through Government Gateway

People applying for Universal Credit will now be able to use their existing Government Gateway account to confirm their identity, helping to speed up their claim, says the Department of Work and Pensions.

The move is expected to help thousands of claimants applying for the benefit and will be available to those who have used the Government Gateway in the last 12 months to access their Personal Tax Accounts, including to check their tax credits, send a personal tax return, or check their state pension.

Others applying for the benefit can continue to confirm their identity using GOV.UK Verify.

The DWP is acting to streamline processes where possible after receiving more than 1.4 million claims since 16 March 2020, as well as urgently redeploying 10,000 staff with a further 5,000 being recruited to aid efforts.

As people apply for Universal Credit, they will have the option to submit their

Government Gateway credentials which the department will use to progress their claim.

The department has already introduced a package of measures in response to COVID-19 providing urgent financial support, including increasing the standard allowance of Universal Credit and basic element of Working Tax Credit and suspending the Minimum Income Floor for the self-employed.

You can find out more about how to apply for Universal Credit here.

MPs want to hear experiences of people claiming benefits

Westminster’s Work and Pensions Committee wants to hear about how coronavirus is affecting people who rely on the benefits system as part of its new inquiry into the DWP’s response to the virus outbreak. 

The Committee is interested in finding out about the experiences of people who are having to claim benefits for the first time, the experiences of people who were already claiming benefits, and the experiences of people who need support but find they can’t claim any benefits.

The Committee has also published a letter from the Permanent Secretary at the DWP responding to several questions about the Universal Credit application process and how the Department is dealing with the unprecedented increase in applications. The letter reveals that nearly a million new claims were made between 16 March and 3 April this year.

Rt Hon Stephen Timms MP, Chair of the Work and Pensions Committee, said: “The DWP’s front line staff are making a herculean effort to deal with the unprecedented numbers of new claims for Universal Credit, and we thank them for everything they’re doing at such a difficult time.

“I know they will be focused on making sure that people who need money urgently get their payments as quickly as possible. But it is disappointing that the Permanent Secretary can’t tell us what proportion of people who’ve asked for an Advance payment have had one, or tell us anything about the delays that people are facing on DWP’s phonelines.

“So we can better understand the issues faced by people who rely on the benefits system, we’d like to hear from people about their experiences getting the support they need. We are keen to hear about any specific problems claiming benefits and also more generally about whether people are getting enough money to support themselves and their families during these immensely difficult days.”

Some of the questions the Committee is interested in are:  
  • How well is the Universal Credit system working for the unprecedented numbers of new claimants?
  • Has there been any improvement in the significant delays that new UC claimants were experiencing in the second half of March?
  • How quickly are people who ask for Advance payments of Universal Credit receiving their payments?
  • What lessons can be learned from the changes that have been made to the processes for verifying the identity of UC claimants? Are there any particular changes that should stay in place after the outbreak ends?
  • How effective have DWP’s communications with the public been during this period?
  • How do the needs of people claiming UC for the first time now differ from the needs of groups who’ve claimed UC in the past? How well is Universal Credit working for these new groups of people?
  • Are there any indications of how well the UC system will work for these claimants as they move into work in the short- to medium-term?
  • How well is the benefits system working for self-employed people who aren’t able to access the Government’s Self-employment Income Support Scheme? Is there a case for temporarily suspending the capital limits in UC during this period?
  • How easy is it for people to understand what they’re entitled to claim? For example:
  1. Is it clear enough how the benefits system interacts with other forms of Government support during this period, such as the Coronavirus Job Retention Scheme?
  2. Is it clear enough how public health guidance interacts with the benefits system?
  • How is the assessment process for Employment Support Allowance working? Have there been any difficulties with obtaining medical evidence to support claims?
  • What impact has the outbreak had on people who were waiting for a Mandatory Reconsideration of a decision, or who were going through the appeals process?
  • Have people who were already claiming benefits when the outbreak began seen any changes to the support they receive from DWP?
  • Are people who are claiming benefits receiving enough money to cover their basic living costs during this period?
  • Are there groups of people who need support but aren’t able to access it through the benefits system? What should DWP be doing to support those people?
  • Are support organisations and charities able to access the resources they need from DWP to support vulnerable people? What more could DWP be doing to facilitate that support?

GET INVOLVED

If you’re someone with personal experience of the benefits system, you might prefer to complete our short survey. The deadline is Wednesday 15 April.

If you’re responding on behalf of an organisation, or you’re an individual who wants to send us a longer written submission, you can send us your evidence here.

You don’t need to answer all of the questions below, and you can tell us anything relevant, even if it isn’t covered by these questions. The deadline for sending your views is 11am on Thursday 16 April.

Universal credit: Emergency boost needed

The last few weeks have seen an unprecedented change in the economic situation of the UK (writes the TUC’s KATE BELL). Since the Prime Minister announced a full ‘lockdown’ on the 23rd March, economic activity in the UK has been rightly restricted in the service of protecting public health.

The TUC has clear priorities throughout this crisis. First, to ensure that public health is protected. Second, to protect workers’ jobs and livelihoods.

Following calls from the TUC and unions the government has announced welcome schemes to try to keep people in work. Protecting jobs must be the first step to protecting incomes and ensuring the country can get back on its feet when the crisis subsides.

But there is still more to do to ensure everyone who is sick gets the income support they need and support the livelihoods of those who do lose their jobs.

Our safety net has been dramatically undermined after years of underinvestment. The UK has avoided mass unemployment since the recession of the early 1990s, and the devastating unemployment of the early 1980s. Those experiences left deep scars, which we are still seeing the legacy of today. It is vital the government does everything it can to keep people in work now.

But even in the 1990s, our safety net was stronger. In 1993, the last time the unemployment rate went over 10 per cent, the basic rate of unemployment benefit was worth around a fifth of average wages. In 1984, when unemployment was over 11 per cent, the benefit was worth a quarter of the average wage. And in 1979, it was worth 30 per cent of the average wage. Today – even after the welcome recent increase by £20 a week – the basic rate of universal credit is worth around a sixth of average weekly pay (17 per cent).

UC

The UK system also compares poorly to the support provided internationally. In most European countries, 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.

In a new report we call for a new plan to fix the social safety net, building on our previous reports on sick pay, a job retention scheme, and support for the self-employed. We call on the government to urgently raise the basic level of universal credit. Restoring ‘replacement rates’ to the level seen before the long dismantling of the safety net began in the 1980s, would mean increasing the payment of universal credit to £165 a week – around 30 per cent of average wages.

But we think the government should be more ambitious to protect against this income drop. We recommend raising the basic rate of universal credit for this period to the value of 80 per cent of weekly earnings at the national living wage – or £260 a week.

In addition government should:

  • Suspend any conditionality requirements with universal credit, as well as parts of the application process. Applications for universal credit are being delayed by the need to carry out a telephone appointment with a work coach. The requirement to hold a phone interview should be suspended, in addition to any work-related conditionality within the Universal Credit system.
  • Remove the savings rules in universal credit to allow more people to access it.
  • End the five week wait by converting emergency payment loans to grants.
  • Significantly increase Child Benefit payments. Child Benefit is the simplest, quickest and most effective way to get money to households with children. The level has long been too low. This payment would also recognise the additional costs many parents will face with having children at home because schools are closed.
  • Ensure nobody loses out as a result of these changes. The benefits cap should be lifted so that these increases do not just mean a change in the composition of the benefits someone receives. As well as this, no one on legacy benefits should lose the protection of the managed transition to UC as part of this change.
  • Remove the minimum hours requirements in working tax credits. Families still claiming tax credits must work a minimum number of hours to be eligible. This rule should be removed with immediate effect.

Government has acted swiftly to protect jobs. But for those who do lose work it’s vital the safety net is strengthened – fast.