EU jobseekers barred from claiming Universal Credit

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

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

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

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

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

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

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

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

The department is abolishing 6 existing income-related benefits:

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

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

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

Universal Credit ‘makes work pay’

The national roll out of Universal Credit begins tomorrow

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

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

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

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

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

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

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

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

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

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

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

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

The Research

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

  • Warrington
  • Wigan
  • Oldham
  • Ashton-under-Lyne

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

Universal Credit Claims

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

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

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Civic Scotland urges halt to Universal Credit roll-out

An open letter to Iain Duncan Smith:

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We – the undersigned – are writing with a united voice from across civic Scotland to call on the UK Government to immediately suspend the further implementation of Universal Credit in Scotland until the process of legislating for new powers for the Scottish Parliament is complete.

We know from the Smith Agreement that the bill for further powers that is currently being drafted, will include significant new welfare powers. The detail of how these powers will interact with the Universal Credit system will be complex and require careful consideration and planning. The legislation around welfare is complex and is regularly being adapted: since the enactment of the Welfare Reform Act 2012, there have already been over 40 Statutory Instruments passed by Westminster to bring into force many of its provisions.

Any system of welfare has to be safe and secure. Driving through Universal Credit in Scotland at this stage will create unnecessary administrative complication in an already complex process. The sensible way to roll out Universal Credit in Scotland is to do it once, when the Scotland-specific elements have been carefully planned and incorporated into it. This would avoid wasting precious time and scarce resources, and would protect vulnerable people from bureaucratic change that could wreak havoc.

A key recommendation of the Smith Commission was to significantly improve intergovernmental working between Westminster and Holyrood; this is a golden opportunity to do just that. So we ask you to act immediately to suspend the next phase of the roll-out of Universal Credit in Scotland, before it is scheduled to start in February.

Our diverse, united voices demonstrate that our call is not about politics. It is about protecting the most vulnerable people in our society and creating an effective, robust new system for delivering welfare. Our call is about responsible, effective governance.

Mary Taylor, Chief Executive, SFHA on behalf of my 56 co-signatories, listed below:

Age Scotland – Brian Sloan, CEO

Business for Scotland – Brandon Malone, Interim Chair

Church of Scotland – Rt Rev John Chalmers, Moderator of the General Assembly

Coalition of Care Support Providers in Scotland – Annie Gunner Logan, Director,

Common Weal – The Board

Constitutional Commission – John Drummond, Chairman

Council of Mortgage Lenders – Kennedy Foster, Policy Consultant, Scotland

Cyrenians – Ewan Aitken, CEO

Development Trusts Association – Ian Cooke, Director

East Lothian Tenants and Residents Panel – Mark Ormiston, Chair Person

Edinburgh Tenants Federation – Betty Stevenson, Convenor

Engender – Emma Ritch, Executive Director

Food Train – Michelle McCrindle, CEO

Glasgow & West of Scotland Forum of Housing Associations – David Bookbinder, Director

Health & Social Care Alliance Scotland – Ian Welsh, CEO

Inclusion Scotland – Bill Scott, Director of Policy

Money Advice Scotland – Yvonne MacDermid OBE, CEO

Quarriers – Alice Drife, CEO

Scottish Association of Social Work – Trisha Hall, Country Manager

Scottish Children’s Services Coalition – Sophie Pilgrim, Member

Scottish Community Alliance – Angus Hardie, Director

Scottish Council for Voluntary Organisations – Martin Sime, CEO

Scottish Out of School Care Network – Irene Audain MBE, CEO

Scottish Trade Unions Council – David Moxham, Deputy General Secretary

Scottish Women’s Aid – Lily Greenan, CEO

Sense Scotland – Andy Kerr, CEO

Social Enterprise Scotland – Fraser Kelly, CEO

Social Firms Scotland – Pauline Graham, CEO

St Martins Parish Pastoral Council, Tranent – Fr James Smith. Parish Priest

The Equality Network – Tim Hopkins, Director

The Jimmy Reid Foundation – Bob Thomson, Convener

The Poverty Alliance Peter Kelly, Director

The Wise Group – Laurie Russell, CEO

The Trussell Trust – David McAuley, CEO

Turning Point Scotland – Martin Cawley, CEO

Who Cares? Scotland – Duncan Dunlop, CEO

Voluntary Action Scotland – Calum Irving, CEO

Voluntary Health Scotland – Claire Stevens, CEO

YouthLink Scotland – Jim Sweeney, CEO

Zero Tolerance – Laura Tomson, Co-director

Signatories from Housing Assoc. due to be part of the next stage of Universal Credit roll-out:

ARK Housing Association – Jane Gray, CEO

Barony Housing Association – Rebecca Wilson, CEO

Bield Housing & Care – Brian Logan, CEO

Blackwood – Fanchea Kelly, CEO

Cairn Housing Association – Jason MacGilp, CEO

Castle Rock Edinvar Housing Association – Alister Steele, Managing Director

Dunedin Canmore Group – Ewan Fraser, CEO

Hanover (Scotland) Housing Association – Helen Murdoch, CEO

Knowes Housing Association – Pierre De Fence, Director

Lister Housing Co-operative – Alistair Cant, Director

Manor Estates Housing Association – Lynn McDonald, Director

Melville Housing Association – Andrew Noble, CEO

Prospect Community Housing – Brendan Fowler, Director

Trafalgar Housing Association – Paul McShane, Director

Trust Housing Association – Bob McDougall, CEO

West Granton Housing Co-operative – Gerry Gillies, CEO