Food bank fear factor: Holyrood committee ‘surprised and saddened’

‘It is a sad state of affairs when vulnerable people are frightened to engage with the very system that is supposed to offer them support and care.’ – Michael McMahon MSP

Evidence that shows the link between the UK Government’s welfare reform and an increase in the use of food banks has been sent to Scotland Office Minister David Mundell MP by the Scottish Parliament’s Welfare Reform Committee.

This follows a call from Mr Mundell to show him evidence of the impact of these policies after he expressed doubt that an increase in food bank use was as a direct result of welfare reform.

Much of this evidence has now been forwarded to UK Ministers and the Department of Work and Pensions – but many benefit claimants declined to send in their cases for fear that they might be subject to unfair treatment and reprisals from the DWP if their identity is revealed.

Committee Convener Michael McMahon MSP said: “The Welfare Reform Committee has amassed a growing volume of evidence documenting the impact of welfare reform on Scotland’s communities. We have now sent a further batch of evidence to Mr Mundell and the DWP. However, what we discovered during the course of our enquiries has surprised and saddened us. It is a sad state of affairs when vulnerable people are frightened to engage with the very system that is supposed to offer them support and care.”

Deputy Convener, Clare Adamson MSP said: “UK Government ministers continue to turn a blind eye to the appalling impact that their welfare policies are having on some of the most vulnerable members of society. We have now provided Mr Mundell and the DWP with irrefutable evidence that benefits cuts and sanctions are driving people in ever greater numbers to seek the assistance of food banks and other charities.”

The Background:

Committee’s letter to Rt Hon David Mundell MP.
David Mundell MP, Parliamentary Under Secretary of State for Scotland, gave evidence to the Committee on 3 February 2015 link to official report.
The Committee first evidenced the link between welfare reform and food bank use in its report, published in June 2014.
The Committee has submitted a file of evidence to Mr Mundell and the DWP. To protect identities, this information is not being published. The Committee received evidence from a number of housing and third sector organisations acting on behalf of their clients, and MSPs on the Committee also brought forward case studies involving their constituents. Evidence includes benefits recipients who have been sanctioned and individuals whose benefits payments has been subject to delay, all of which has led to an increased demand on food bank services.

Holyrood committee to study impact of welfare reforms on women

Women urged to share their experiences of welfare reform

The impact of recent welfare reforms on women in Scotland will be the focus of a new inquiry by the Scottish Parliament’s Welfare Reform Committee.

Evidence seen by MSPs has suggested that women are being disproportionately affected and research recently published by the Committee highlighted that lone parents have been severely impacted upon. The Committee has now launched a call for views and is asking how welfare changes have affected women.

Committee Convener Michael McMahon MSP explained: “Previous research conducted for the Committee has shown a significant impact on lone parents. That suggests there is likely to be a wider impact on large numbers of women, a view put forward by Professor Steve Fothergill at our meeting this week.

“Our Committee has put personal experiences at the heart of our work. This inquiry will be no different and we would like to hear from people across Scotland on how welfare changes have impacted their life.”

Deputy Convener, Clare Adamson MSP added: “Our Committee has previously revealed the devastating impact of welfare reform on Scotland’s communities.

“The Committee has already heard first-hand testimony from women in Scotland on the challenges faced by many in light of the UK Government’s welfare reforms. We know there are many other women out there with experiences to share and I would encourage them to get in touch with us.”

The Committee would also like submissions to address the following questions:

What is your (or your clients) experience of being on benefits or employment support?
How has your (or your clients) experience with the benefit system changed in recent years since the introduction of the welfare reforms?
Are there any challenges involved in being in receipt of your (your clients) particular benefits?
What would be your priorities for change when certain benefits / elements of employment support come to Scotland?
Do you have any suggestions of practical improvements that you would like to see when certain benefits / elements of employment support are under Scottish control?

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

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.

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.

Parents and people with disabilities hardest hit by welfare reforms

‘This latest evidence shows that some of those most in need of support, namely parents and disabled people are being hardest hit. For us to be in this situation in 21^st century Scotland is unacceptable.’ – Michael McMahon MSP

Parents and people with disabilities are being hit hardest by the UK Government’s programme of welfare reform according to new research commissioned by the Scottish Parliament’s Welfare Reform Committee.

The report, published yesterday, represents the first time the impact of the UK Government’s welfare reform agenda on different household types in Scotland has been quantified.

The research for the Committee was conducted by Professors Christina Beatty and Steve Fothergill of the Centre for Regional Economic and Social Research at Sheffield Hallam University.

The new evidence shows that in Scotland, it is estimated that couples with dependent children will lose an average of more than £1,400 a year, and lone parents with dependent children stand to lose an average of around £1,800 a year from their income stream.

In all, families with children will lose an estimated £960m a year – approaching two-thirds of the overall financial loss in Scotland.

Disabled claimants and those with health problems have also been shown to be disproportionately affected. Reductions in incapacity benefits are estimated to average £2,000 a year, and some of the same people also face big losses in Disability Living Allowance and reductions in other benefits.

Committee Convener Michael McMahon MSP said: “The Welfare Reform Committee has amassed a growing volume of evidence documenting the impact of the welfare reform agenda on Scotland’s communities. This latest evidence shows that some of those most in need of support, namely parents and disabled people are being hardest hit. For us to be in this situation in 21^st century Scotland is unacceptable.”

The report also shows that almost half the reduction in benefits might be expected to fall on in-work households.

Deputy Convener, Clare Adamson MSP said: “The Scottish Government is to be commended for introducing measures to alleviate some of the worst effects of the welfare reform agenda. New powers over a range of benefits are due to be given to Holyrood in the coming years and this research will help direct those new powers to help those most in need of support.”

Until now, there has been no way to assess the impact across the various benefits on different types of households. Because of the cumulative impact of people being affected by several different benefit streams, the overall impact of welfare reforms has been hidden.

The statistics are expected to become an essential tool for government and local authorities in shaping targeted responses and service delivery.

The research follows two previous reports which measured the financial impact of welfare reform on Scotland as a whole and by local authority area, and the impact down to ward level.

The Committee expects to hear oral evidence on this report at its meeting on 10 March.

Professor Steve Fothergill, of the Centre for Regional Economic and Social Research at Sheffield Hallam University, said: “The figures demonstrate that the welfare reforms impact very unevenly. The very big impact on families with children, in particular, has previously been under the radar because it is the cumulative result of several individual reforms. Coalition ministers have argued that “we’re all in it together”. The impacts of welfare reform, documented in our report, show this is far from being the case.”

Job experts out and about to spread work message

Jobcentre staff are getting out and about and taking work support direct to jobseekers as part of a new blitz targeting unusual locations –from football clubs to prisons and homeless shelters.

Employment numbers have reached a record 30.8 million and the number of people on the main out-of-work benefits is the lowest it’s been for a quarter of a century and now Jobcentre Plus Work Coaches – the government’s ‘army of jobs experts’ – are heading out to meet the public in children’s centres, youth hubs, homeless shelters, and rural work clubs to offer targeted support to people who need it most.

This more direct approach to helping jobseekers back to work has also seen roaming Work Coaches partnering up with professional football clubs, including Arsenal, Everton, and Tottenham Hotspur, to set up schemes that help young people build confidence and skills to prepare them to find work.

And they are setting up shop in prisons across the country to help prisoners who are soon to leave custody prepare for a new life away from crime and in work.

New figures released last week show that an average of 1,500 more people were in work every day over the last year and the number of people on the main out-of-work benefits is down by more than 850,000 to under 4 million – the lowest it has been since 1990.

Employment Minister Esther McVey said: “Our hardworking Jobcentre Plus staff have made a huge contribution to Britain’s jobs success this year. By doing things differently, and getting out to where jobseekers are, they’re helping thousands into work every day.

“We have broken record after record in 2014 – with huge falls in youth and long-term unemployment and the highest number of women in work on record.

“This new approach is working. What we can see at the end of the year is that our welfare reforms are ensuring that people have the skills and opportunities to move into work.

“But behind these record figures there are countless stories of individual hard work and determination – stories of people turning their lives around, of families who are now feeling more secure over the Christmas period with a regular wage, and of young people escaping unemployment and building a career.”

Specialist Work Coaches are based in prisons across the country where they can help parolees sign up to Jobseeker’s Allowance up to 6 weeks before they are released. Once they sign up, they are automatically placed on to the Work Programme to help them build up skills and experience.

The Work Programme is designed to get the hardest to help jobseekers back into work and has now helped 368,000 long-term unemployed claimants find sustainable work.

Jobcentre Plus staff have also helped budding entrepreneurs to set up more than 60,000 new businesses through the government’s New Enterprise Allowance scheme, which helps jobseekers, lone parents and people on sickness benefits, with a good idea, to start up their own business.

Since 2011, more than 360,000 people of all ages have taken up opportunities through employer-led sector-based work academies, or work experience placements through Jobcentre Plus, to give them a job taster and a guaranteed job interview.

In Bootle, Merseyside, Jobcentre Plus has staff working from the local Youth Hub to provide guidance and advice to young people in the area and to offer chances to gain skills and experience through Sector-based Work Academies – which are employer-led training courses that lead to a guaranteed job interview.

And in Scotland, Stranraer Jobcentre Plus staff have established weekly work clubs in rural areas to provide help on budgeting, mock interviews, CVs and cover letters, and job applications.

Have you been supported into work this year? Has Jobcentre Plus helped you start your own business? Get in touch!

Benefit Cap: 'a clear incentive to work'?

The benefit cap is providing a clear incentive to work, according to new research released by the Department for Work and Pensions today. However opponents say welfare reforms have damaged society and have not produced savings promised by the government.

The Westminster government says it has long suspected that the benefit cap was having a positive impact on people’s lives, compelling them to find work, and that the publications ‘now show this is undoubtedly the case’.

The benefit cap was introduced as part of the government’s long-term economic planso that people on out-of-work benefits do not receive more than the average working family earns.

The research shows that:

those who would be impacted by the cap are 41% more likely to go into work than a similar group who fall just below the cap’s level, but this trend didn’t exist before the cap was in place – indeed those with higher weekly benefit used to be less likely to move into work
before the benefit cap fewer than 300 of the highest claiming families got over £9 million in benefits every year – the cap is preventing this and saving millions of pounds a year
38% of those capped said they were doing more to find work, a third were submitting more applications and 1 in 5 went to more interviews
where households said they intended to seek work because of the cap in February 2014 (45%) by August the vast majority of them (85%) had done so – 2 in 5 (40%) of those who said they had looked for work because of the cap in February actually entered employment by August.

Work and Pensions Secretary Iain Duncan Smith said: “We know that the benefit cap has had a real impact in changing attitudes and behaviours, and now we have evidence showing that our welfare reforms are encouraging people into work.

“By putting an end to runaway benefit claims and introducing a system which guarantees you will always be better off in work, we are incentivising people find employment. Every month hundreds of people who have been affected by the cap are making the positive move into work – gaining the financial security and esteem that comes with a job and a pay packet.

“As part of our long-term economic plan, we’ll continue to support people to break free from welfare dependency so they can look forward to a better, more secure future for themselves and their families”.

The DWP cites London as a good example of the policy working.

‘In London where the highest number of people are subject to the benefit cap, scare stories claimed that people would be pushed out of the capital. In actuality, of those capped households living in inner London that moved, 84% continued to live in the central boroughs. In London there is also larger likelihood of capped households moving into work with those in scope for the cap being 70% more likely to go into work than their equivalents just below the cap’.

One interviewee in the research said: “It gave me the shock of my life. But it’s given me the kick I need. I can see what the gentleman was saying, why should we pay for your lifestyle. We should want to work. We shouldn’t sit on our backsides watching Jeremy Kyle. I genuinely do want to work.”

While the government may believe it is on the right track, it’s fair to say that not everyone is convinced that the controversial cap is working, however. Trades Unions, disability rights organisations, charities, anti-poverty campaign groups, churches and opposition political parties all continue to condemn the government’s ‘draconian’ welfare reforms. They point to record numbers of families using food banks as evidence that the welfare reforms are hurting poor families – both in work and on benefits.

There’s also doubt about how much – or how little – money is being saved by the welfare reforms. Today, the Institute for Fiscal Studies said savings from the cap were ‘small’. They say the cap affects about 27,000 families in the UK – less than 1% of working-age families who receive housing benefits – and saved around £100m a year.

More about the benefit cap

Introduced in April 2013 the benefit cap is set at a rate of no more than £500 a week for couples and families and £350 for single people – £500 a week is equivalent to a salary of £34,000 a year after tax.

Over 50,000 households have had their benefits capped since April 2013 and since then 23,900 are no longer impacted – 12,000 because they have found work or are no longer claiming Housing benefit at all.

Lazarowicz backs ‘bedroom tax’ amendment

Mark Lazarowicz MP has joined Labour colleagues in giving a partial welcome to a Private Members’ Bill being debated today in the UK Parliament designed to exempt some people from the so-called ‘bedroom tax’.

The Housing Reform Act 2012 included the removal of the spare room subsidy, which means that social tenants can see their housing benefit cut severely where they are deemed to be occupying a property larger than they need.

The Bill is being introduced by Andrew George, LibDem MP for St Ives, and although committed to abolition of the bedroom tax the Labour Opposition is aiming to strengthen it as a step towards that.

The North and Leith MP said: “The Bill is welcome in so far as it goes in seeking to exempt some people hit by the bedroom tax and in encouraging the building of new affordable housing but the real answer is simple: scrap the bedroom tax as Labour is committed to do.

“This unfair and vicious policy has left vulnerable tenants like disabled people and their carers under threat of having to move and the Government has been forced to apply sticking plaster to the wound it has caused by increasing discretionary housing payments in dribs and drabs.

“It is all very well for some LibDem MPs to be calling for the bedroom tax to be modified to exempt them a few months before the UK General Election – if they had opposed it from the start, the government would not have been able to bring it in at all!

“The real answer to the desperate shortage of affordable housing is not to victimise existing social tenants but to tackle it at root by building more of it.”

Call for ‘living wage’ if Scotland says ‘YES’

An expert group on welfare set up by the Scottish government has recommended a substantial rise in the minimum wage. It said the rate received by the lowest paid should go up by more than £1 per hour if Scotland votes for independence.

The recommendation from the Scottish government’s advisory group was that the minimum wage should match the ‘living wage’ within five years of independence – a rise from £6.31 to £7.65 per hour.

Responding to the latest report, Deputy First Minister Nicola Sturgeon said support to get people into work, action to make work pay and the provision of a strong and decent safety net for those who are unable to work should be the focus of the welfare system in an independent Scotland.

The independent Expert Working Group on Welfare’s second report outlines a vision for a fairer, simpler and more personal welfare system and provides nearly 40 recommendations for change following independence.

The Deputy First Minister confirmed that in an independent Scotland the current government would take forward recommendations, including those to improve support for carers, restore the link between benefits, tax credits and the cost of living and abolish the current Work Capability Assessment.

She also confirmed that the Scottish Government would carefully consider the Group’s recommendations on the minimum and living wage, introduction of a new Social Security Allowance and replacement of the Work Programme with more targeted support to help people find and sustain employment.

Ms Sturgeon said: “I warmly welcome the independent Expert Working Group’s report and thank the members for their significant contribution. The Group’s report includes a wide ranging package of recommendations which would help us create a welfare system in an independent Scotland that better meets our needs.

“As part of their discussions, the Group have engaged with a wide range of people and organisations. It is clear they have listened closely not only to how people feel about welfare, but also how the current reforms are affecting their lives.

“In particular, I strongly endorse the Group’s view that the welfare system should act as a strong safety net and a springboard to a better life. They are right when they say that work should be the best route out of poverty for most people but that the rise in in-work poverty needs to be addressed if this is to be the reality.

“Following a vote for independence, we would be committed to taking on several recommendations straight away to deal with those aspects of the current system that are pushing so many people into poverty.”

The Government would:

• Increase Carers’ Allowance to £72.40 per week, the same rate as Jobseeker’s Allowance for those aged 25 or over. This would amount to an extra £575 a year for the 102,000 people in Scotland who are eligible to claim the allowance.

• Re-establish the link between benefits and the cost of living, with benefits and tax credits being increased each year by the Consumer Prices Index of inflation.

• Abolish the ‘Bedroom Tax’.

• Replace the current system of sanctions with one that is fairer, more personalised and positive.

• Abolish the current Work Capability Assessment that determines the ability to work of the sick and disabled.

• Establish a National Convention on Social Security at the start of 2015.

The Government will also carefully consider the Group’s other recommendations. These include:

• Increasing the National Minimum Wage to equal the Living Wage and with reductions in Employers’ National Insurance contributions to help businesses make this transition.

• Replacement of the Work Programme with new initiatives developed in partnership with those out of work to help them find, and stay in, employment.

• Introducing a new Social Security Allowance that would bring together existing benefits but which would exclude Housing Benefit.

• Better supporting those with long-term disabilities and illness into work.

The Deputy First Minister added: “We are committed to mitigating the harmful effects of Westminster’s welfare reforms where we can, such as securing the transfer of powers over discretionary housing payments to the Scottish Government, allowing us to help people struggling with the Bedroom Tax.

“The report recognises the increased pressures of in work poverty and some of the difficulties in the current labour market. These are challenges all countries face but we are committed to tackling them head on wherever possible. The growing numbers of people in work but still facing poverty is extremely worrying. They need our support and one way to do this, as the Group suggests, would be through making the Living Wage the National Minimum Wage. We will be looking closely at this proposal.

“We will be considering the Group’s recommendations to replace the Work Programme with more innovative, locally-based schemes, designed to help people find jobs and, importantly, stay in work.

“We will also look at the introduction of a new Social Security Allowance, but would keep Housing Benefit separate from this.

“Our focus will be on prevention rather than dealing with existing symptoms, to develop a society that not only provides fair support and decent opportunities for all but also protects the vulnerable in our society. The only way to guarantee that is to have the powers to deliver progressive reform of the Welfare State – only with independence will we have the opportunity to create a welfare system that is fairer and works for all the people of Scotland.”

However Scottish Lib Dem leader Willie Rennie said people who expected big changes to welfare after independence would be “disappointed” by the report, while Labour maintains that being part of the bigger UK economy offers greater financial security. Scottish Labour’s Jackie Baillie said: “Once again we have uncosted promises from the SNP. You can’t have more generous welfare at the same time as you are cutting taxes – it simply doesn’t add up”.

Welfare cuts: the worst is yet to come?

Reforms to the welfare system could see Scottish welfare spending reduced by around £6 billion over the six years to 2015-16, according to new analysis published today.

The reforms will see a reduction in support for families, children and those with disabilities.

The majority of the total reduction in welfare expenditure in Scotland, nearly 70 per cent, is expected to be in 2014-15 and 2015-16, with the largest reductions in expenditure brought about by changes to how benefits are uprated, tax credits and child benefit.

Deputy First Minister Nicola Sturgeon said:

“We are committed to mitigating against the harmful effects of Westminster welfare reforms where we can – but the majority of the cuts are still to come.

“These changes to the budget will not only impact on the most vulnerable in our society, they will also set our progress on tackling poverty back by at least ten years.

“Child Poverty Action Group has suggested that, after housing costs have been taken into account, 100,000 more children in Scotland will be pushed into poverty by 2020 because of these reforms.

“And according to the Trussell Trust, the number of people using food banks is increasing with 56,000 people needing help between April 2013 and February 2014.

“We want to develop a society that not only provides fair support and decent opportunities for all but also protects the vulnerable in our society. The only way to guarantee that is to have possession of the powers to deliver it. Only then can we finally stop these reforms from harming people who need our help.”

Speaking yesterday, Work and Pensions secretary Iain Duncan Smith defended changes to the welfare system, saying they would save the taxpayer £50 billion by the end of this Parliament.

Mr Duncan Smith said: “I think the work programme is now for the first time ever working with people, who were once on sickness benefits and who are now not, going back to work.”

‘Moral case’ for welfare reforms is a sham, says Minister

The UK Government’s “moral case” for welfare reform is harming the living standards of poor and vulnerable people in Scotland, Welfare Minister Margaret Burgess said yesterday. Trussell Trust figures show that over 50,000 people in Scotland received assistance from their foodbanks in the last ten months.

Mrs Burgess highlighted her concerns to MSP’s during a welfare reform debate in the Scottish Parliament, where she said that the current reforms are creating deep concern and anxiety and is leaving already vulnerable people at risk of extreme poverty and exclusion.

The Scottish Government estimates that the reduction in welfare expenditure in Scotland could reach as much as £4.5 billion by 2015.

Margaret Burgess said: “The reforms are unfair and unjust and impact on some of the most vulnerable members of our society. Yet, even with all of that, the UK Government talks about the ‘moral case’ for welfare reform. It is a sham.

“What is evident is that more and more people are struggling to cope and being flung into a downward spiral of misery. Where is the morality in that? It is shameful that in the 21st century, there are people in Scotland who are in desperate straits because of the UK’s relentless and unfair policies. Rather than help, the UK Government’s plans are punishing the most vulnerable in our society.

“In the meantime, the Scottish Government is taking direct action and delivering real support to help people deal with the cuts and changes to welfare provision. That includes investing at least £258 million over the period from 2013-14 to 2015-16 to mitigate the worst impacts of these reforms.

“But these are resources that have been taken away from other areas, money that could have been used for other priorities. For example we could have used this money to invest more in health and education for our people – and in growing Scotland’s economy. With independence, we can take decisions about welfare that will ensure fair and decent support for people in Scotland.”

Ewan Gurr, Scotland Development Officer for the Trussell Trust said: “While The Trussell Trust celebrates the ways in which communities pull together in lean times to respond to emerging need, we do not celebrate the fact the need exists in the first place.

“Foodbanks are a grass-roots response to a systemic problem and are often a lifesaver to many individuals and families who feel they have nowhere else to turn. We applaud the consistent efforts of the Scottish Government to mitigate the effects of food poverty and to raise the profile of this issue in an effort to identify creative solutions.”

However The Department for Work and Pensions said the government’s welfare reforms will make three million households across the UK better off, and refutes claims that welfare reforms have caused increased dependency on food banks. A spokesperson for DWP said: “The benefits system supports millions of people who are on low incomes or unemployed and there is no robust evidence that welfare reforms are linked to the increased use of food banks.”

Last month Prime Minister David Cameron told the Daily Telegraph that the government’s economic plan for Britain was ‘about doing what is right’. He wrote: ‘For me, the moral case for welfare reform is every bit as important as making the numbers add up.’