In 2015, Welfare Weekly reported that research by the Institute for Fiscal Studies (IFS) found that 2.6million working families on Universal Credit would lose £1,600 a year from the changes and 1.9 million would be £1,400 a year better off.

Analysis from the independent Office for Budget Responsibility suggested the changes to universal credit would save the chancellor close to £3bn by 2019-20 – a figure quoted by Public Finance.

Graph from House of Commons Library blog, last November, ‘Jam Tomorrow’

In March this year a study by the Child Poverty Action Group (CPAG) and the IPPR thinktank that a series of cuts and changes have left the government’s flagship welfare overhaul failing to meet its original aims.

Although universal credit was intended to boost household incomes by strengthening incentives for claimants to move into work or take on more hours, the study says that more families will be worse off than under the scheme’s original design.

Families with children are the biggest losers under the cuts made to universal credit since it was first established. Lone parent families will be on average £2,380 a year worse off, while families with two children lose £1,100 on average and those with three youngsters lose £2,540. Lone parents and couples where one parent works part-time to care for young children are hit particularly hard and face having have to find up to two days’ extra work a week to meet the shortfall in income from the cuts.

Currently just 450,000 people are on universal credit, which is not expected to be fully operational across the country until 2022. At that point, according to estimates by the Institute for Fiscal Studies, 2.1 million families will be worse off under the new system, and 1.8 million better off.

David Hencke quotes Catherine McKinnell, Labour MP for Newcastle North, who said:

“My office has been deluged with complaints from constituents about a Universal Credit system that is clearly struggling to cope and failing to deliver the support that claimants need in anything like an orderly or timely fashion”.

She reveals a very sorry picture. The new IT system means people can’t talk to a human. It has a verification process that requires claimants to produce photographic identification such as a passport or driving licence, “which many simply do not possess and certainly cannot afford”. She adds:

“There are numerous examples of Universal Credit claims being shut down before they should be; of documentation being provided to the DWP, at the constituent’s cost, and repeatedly being lost or even destroyed; and of totally conflicting, often incorrect, information being provided to constituents about their claims.” A list of other problems may be seen here.

Precisely the case seen repeatedly 20 years ago when the writer (David Hencke) was a volunteer in a local night-shelter.

Hencke ends, “What this shows to me is a growing disconnect between the people at the top – who are computer savvy, have nice centrally heated homes, no problems with bills, can afford expensive holidays, and can’t conceive of anyone not having a passport – designing a system for poor, dispossessed, desperate people without any understanding of how the world works for them.

 

 

 

 

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