welfare reforms – Page 8 – The NEN

Welfare cuts ‘intolerable’ – Sturgeon

The true impact of the UK Government’s benefit reforms have been revealed by a new Scottish Government analysis that shows people in Scotland could be hit with a cut of £4.5 billion in the five years to 2014-15 – £2 billion more than the UK Government originally claimed.

The report also estimates that £1 billion of the welfare cuts will have a direct impact on children living in Scotland – a situation Deputy First Minister Nicola Sturgeon today described as “intolerable”.

Ms Sturgeon (pictured below) said: “The Scottish Government’s analysis we are publishing today suggests that the true scale of the cuts on Scottish households as part of the UK Government’s welfare reforms could be much greater than previously anticipated. In 2011, the Department for Work and Pensions claimed Scotland’s benefits bill would be reduced by £2.5 billion by 2014-15. We believe that today’s new analysis shows this to be a huge underestimation, with hard working families and children among those being hit with a reduction in benefits that may will actually reach over £4.5 billion. The UK Government must urgently clarify the true scale of the impact in Scotland.

“These unfair cuts to the welfare system have been imposed on Scotland and will hit a million working age households in Scotland, weakening consumer demand and damaging economic growth. The fact that around £1 billion of the welfare cuts will directly impact on children in Scotland is particularly worrying – it is an intolerable situation that represents a devastating blow to the hard working people of Scotland.

“Our vision of an independent Scotland, is one where the welfare system will reflect our nation’s values and provide fair and decent support for those who need it most. It will encourage those people who can – and should work – into work. But it will also support people who are unable to work, allowing them to play a full and active part in society, and it will tackle poverty where this exists. It is clear that the UK Government’s agenda is completely at odds with the aspirations we have for our country. With every day the case for independence becomes even more compelling.”

A Happy New Year?

A Happy New Year? Not for people on benefits. The introduction of the controversial Universal Credit is sure to be one of the biggest stories of 2013. It’s the most radical shake-up to the welfare system in seventy years, but what does it mean for you? Granton Information Centre’s Roddy Samson (pictured below) has been giving presentations on changes to the benefits system, and the impact these changes will have on the lives of millions of people. Below, he guides us through the benefits maze:

‘The rationale for changing the welfare system is a generally accepted belief that the current system is far too complex, with too many different types of benefit and allowances. So the Westminster government is seeking to simplify the system and make it easier to understand – and will also make savings of around £8 – 10 billion as it does so!

The idea behind the reforms is to get people back to work, and to try to make pay. Between 2010 and 2013 there will be 39 changes to the benefits system, some are already in place and more will come in next year.

The main points to consider are Income Support, Rent Capping, Disability Living Allowance (DLA) the introduction of the Universal Credit, benefits caps, Housing Benefit and the scrapping of Incapacity Benefit.

Income Support is now generally paid to lone parents – is used to be the case that lone parents could claim income support up until their child was 16 years of age. That dropped to twelve, then seven and now, when the child reaches five years of age, the parent is expected to register to be available for work. That’s a major change.

Disability Living Allowance (DLA) is currently paid to people who have a disability or a long-term condition, and it’s paid both to people in work and out of work. There are two sections to it – mobility and care – but DLA will be scrapped altogether next year and replaced by Personal Independence Payment.

There will be a new, tougher medical test for people on DLA; new claimants will be tested and existing claimants will be re-assessed by an organisation called ATOS who were contracted by the Department of Work and Pensions to carry out the medical assessments. The retesting will mean a lot of people will lose their entitlement to this benefit, there will be substantial loss of income and the impact will be that people with disabilities – many of whom require a significant level of care – will find that they have far less money coming into their household. Universal Credit is the flagship of the government’s welfare reform agenda, a single ‘super-benefit’ that will replace a number of existing benefits – including Income Support, Job Seekers Allowance, Employment Support Allowance, Housing Benefit and Tax Credits – and replace this with one single benefit payment.

Universal Credit is supposed to be structured to make work a better choice than being on benefits, but there has already been a lot of criticism of the proposals. Universal Credit introduces conditionality and sanctions for the first time. Just now, you have Tax Credits to top-up the incomes of people on low pay, which are paid if you work 16 hours a week. – but the government proposes that you must now work for at least the equivalent of 35 hours a week at the national minimum wage to qualify – and if you don’t, they suggest you should ask your employer either for more hours or for a wage rise!

Job Seekers Allowance will also become part if the Universal Credit, but if you fail to meet the conditions of the benefit the sanctions will now go much higher – they are talking about sanctioning people for up to three years, which means that people could be left with no money for that period.

The other problem with Universal Credit is that it’s going to be paid monthly, with all benefits paid in one lump sum. There’s a real problem with this, in that – to take housing benefit, for example – rent is currently paid directly to landlords. If you give large sums of money to people with drug or alcohol issues, and other vulnerable people, what is likely to happen is that they will spend the money on other things and not on the essentials, leading to rent arrears and potential debt problems.

The other problem with this is that applications for Universal Credit must be made on-line, which poses huge problems for people who either do not have access to computers or others who have difficulty operating them – the on-line application can take one and a half to two hours to complete. The government also plans to introduce a Benefit Cap from next April. This is supposed to be about fairness – making sure that people on benefits are not better off than families in work – but this will impact on larger families and those whose housing costs are higher. The benefits cap has been set at £500 for couples with or without children living with them, and for single parents whose children with them. For single adults without children or with no children living with them the cap is set at £350.

The new rules on Housing Benefit is being called the Bedroom Tax, and it basically means that, if you are a single person who lives in a two bedroom house, you will not be paid additional housing costs – you will only get enough to cover the cost of a one-bedroom flat. The idea behind it is that there are lots of people living in homes with spare rooms, but the fact is that there are very few one-bedroom flats available, particularly in areas like North Edinburgh. The difference in cash terms is a cut of around £14 a week per unoccupied room.

People on Incapacity Benefit are also facing tougher tests as the government tries to get more people off benefits and into work, and the medical focuses on what people are able to do other than what they are unable to do, the thinking being that almost everybody could carry out some form of work. What we’re finding, though, is that as many as 34% of those on Incapacity Benefit don’t turn up for their medical and disappear off registers altogether. Of those who do turn up for the medical, 37% are passed fit for work – but 71% of those who challenge the decision are successful on appeal when they are represented by organisations like ourselves.

In summary, these are massive cuts. It’s clear that no-one will be better off as a result of the latest welfare reforms, whereas even more people will be worse off as the new arrangements are introduced. There are massive social implications, affecting huge swathes of society – but the poorest, in particular, will be hardest hit.’

So there you have it. As Neil Kinnock once said: ‘I warn you not be ordinary. I warn you not to be young. I warn you not to fall ill. I warn you not to get old.’ That day of reckoning is now fast approaching. For too many British citizens, rather than a new year of hope and opportunity 2013 promises to be a year of pain, misery and despair.

If you are confused about how the benefits system changes will affect you, make an appointment to see an adviser at Granton Information Centre or attend a drop-in session. Telephone 552 0458 for more information.

Welfare reform advice on it’s way to council tenants

Council tenants facing housing benefit changes are being contacted by the City of Edinburgh Council. Leaflets highlighting the potential impact the new rules will have when they come into force next year are now being issued across the city. These leaflets will give helpful advice on the options tenants have to limit the financial impact of the reforms.

The biggest effect is going to be on tenants who have an unoccupied bedroom as they will receive less housing benefit from April next year. Anyone under-occupying will lose 14% of their housing benefit if they have one spare bedroom (between £13 and £15 per week) or 25% for two or more spare bedrooms (between £20 and £27 per week). Options for tenants cover areas like paying rent, moving to a smaller home, maximising income and sharing with friends, family members or lodgers.

Councillor Cammy Day, Housing leader for the City of Edinburgh Council, said: “Tenants need to know just exactly what these changes will mean to them and the potential financial impact it’s going to have. Some tenants could be faced with a 25% reduction in their housing benefit. Their rent will still have to be paid so that means they will have to make up the difference from their household income. If tenants don’t pay their rent they are at risk of losing their home. No one wants to see that happen so we are advising people to get in touch with their local housing team now to discuss the various options open to them.”

Third sector braced for ‘criminal’ welfare reform challenge

Charities and voluntary organisations have launched a scathing attack on the Westminster government’s welfare reforms. The Scottish Council for Voluntary Organisations (SCVO) says proposed cuts to benefits through the introduction of the new Universal Credit are ‘criminal’.

Research figures released by SCVO show that three-quarters of welfare charities expect demand for their services to increase in the next year as benefit cuts start to bite, while facing further funding cuts themselves.

Martin Sime, Chief Executive of SCVO, said ‘ill-conceived’ cuts are coming at a time when the country is struggling to emerge from the deepest recession for generations, and that charities and voluntary projects are concerned about meeting an anticipated record high demand for services.

“It’s clear from this research that Westminster’s criminal cuts to welfare are putting so much pressure on charities’ services that some will struggle to keep up with demand from people and families in Scotland,” he said. “The sector is pulling together to pick up the pieces and help to mitigate the terrible effects of these ill-conceived Westminster cuts which should never have happened in the first place.”

The government is cutting £10bn from the welfare budget to make benefits fairer and more able to tackle poverty. Six different benefits will become just one – the Universal Credit – with changes coming into force from next year, and up to nineteen million people will be affected by the controversial reforms.

The Westminster government determines welfare payments, and insists that the reforms are necessary and fair. Secretary of State for Work and Pensions Iain Duncan-Smith (pictured below) said: “The introduction of the Universal Credit is not about cuts. This is about taking a very complex system and making it simpler, easier and fairer. Yes, it is an enormous change but it rewards and supports those people who make decision to go back to work. Really caring about people is about saying: ‘look, I want to change your life with you’ – we offer positive incentives to help people to do that.”

The Scottish government has no control over welfare payments and says that the Westminster reforms are both ill-considered and are being implemented with undue haste, leaving local councils and the voluntary sector to deal with the consequences. Deputy First Minister Nicola Sturgeon admitted there is only so much Holyrood can do, and said: “The Scottish government will do all it can to mitigate the impact of these cuts and changes, although there are consequences that are currently out with the capability of the Scottish government’s powers.”

First Minister Alex Salmond said that only independence can give Scotland the powers it needs to develop a welfare system that allows work to pay ‘without reducing people to penury or despair.’ He told a Third Sector conference: ““We need the powers of an independent country if we are to properly protect the foundations of the welfare state in Scotland. In our own hands, it would surely not be beyond our collective abilities to manage to make work pay without reducing people to penury or despair. We do not want independence for its own sake – independence is a means to greater ends, and this is a prime example of that. We want Scotland to be independent because we know that only then can we build a society that reflects our shared values. An independent Scotland can and will be a fairer Scotland.”

There is no public sympathy for those who can work but choose not to, but campaigners fear that benefit changes will hit the worst-off hardest – the poorest families will suffer most.

Alison Garnham, Chief Executive of Child Poverty Action Group, said: “It’s not problem families, but families faced with the problem of low pay and shrinking government help for families. It’s some of the hardest working families that have been first in the queue for cuts – they’ve had their tax credits cut, their Child Benefit frozen year after year and many will have had essential help for childcare costs slashed.

“Six out of ten poor children come from working families. These are some of the hardest working people in the country, working the longest hours, for the lowest pay, in the worst conditions and with the highest aspirations for themselves and their children.

“A child in poverty is much more likely to be in poverty because they have a parent who is a security guard or a cleaner than one who is a drug addict or ‘feckless’. There is no evidence that people don’t want to take jobs but plenty that shows that people are hurling themselves at the labour market – the problem is that they don’t stick, not that they don’t try.”

Granton Information Centre is one of the voluntary organisations already seeing the impact of the welfare reforms. The advice centre based on West Granton Road dealt with over 5000 benefit enquiries last year, but staff have already seen a 50% rise in demand during the first six months of this year due to benefit changes that have already taken place.

GIC manager Caroline Pickering said: “Over the last couple of months we have been making presentations to other agencies, groups and health professionals to prepare them for the changes and many have been shocked by the scale of what is being proposed, and the effect it is likely to have on both their clients and patients and the services they currently provide. We are already seeing an upsurge in client numbers and there’s absolutely no doubt that this number will at least double next year as the effect of the changes are felt. At least we know the changes are coming – but we know that there are still a lot of people out there who are not aware of some major changes to their benefit entitlement. As an organisation we are as prepared as we can be, but resources are very tight. We will be facing a huge challenge.”

Welfare reform: getting the facts in Forth

The current reform of welfare and benefit payments is the biggest to be undertaken for over sixty years. Whether you agree with the reforms or not, the changes will affect hundreds of thousands of people across the country. How will you be affected? Find out at a briefing and information session later this month.

Forth Neighbourhood Partnership’s Health Action Group is hosting a briefing on the Welfare Reform Act on

Wednesday 17 October from 10 – 11.30am in West Pilton Neighbourhood Centre.

Granton Information Centre’s Roddy Samson (pictured below) will be leading the session – which is aimed at local community, voluntary and statutory organisations – and there will be ample opportunity for questions and discussions.

Roddy Samson said: “The Welfare Reform Act 2012 introduces the greatest changes to welfare benefits in sixty years. These changes will have far reaching impacts for benefit claimants and their families, particularly for vulnerable people and the services which support them. The impact of these changes will affect those in receipt of Incapacity Benefit, Employment Support Allowance, Disability Living Allowance, Housing Benefit, Working Tax Credits and Job Seekers Allowance. This event will give you the opportunity to learn about the latest details of the Government’s welfare reform programme and help you to understand the new system and prepare for the changes ahead – where possible.”

To find out more or to book your place at the West Pilton briefing, contact Forth Neighbourhood Partnership’s partnership development officer Jim Pattison on 529 5082 or email jim.pattison@edinburgh.gov.uk