Tag: DWP

Universal Discredit

Philip Alston, UN special rapporteur on extreme poverty and human rights, travelled across the country to examine the impact of austerity. He came to Newcastle, visiting a West End foodbank, among other places. He concluded that Universal Credit and other ‘reforms’ are “entrenching high levels of poverty and inflicting unnecessary misery.” According to his research, 14 million people – a fifth of the population – live in poverty. Four million of these are more than 50% below the poverty line, and 1.5 million are destitute, unable to afford basics essentials. Alston said: “In the fifth richest country in the world, this is not just a disgrace, but a social calamity and an economic disaster, all rolled into one.” 

Universal Credit has been designed to change the relationship between the state and citizens. It is about altering the public’s expectations of the role of government. It is about deepening targeted austerity. It is also about cutting social security and dismantling the welfare state. 

The one-off £10 payment, which was designed to be an extra boost to families over the festive period, has been axed under Universal Credit, which demonstrates very well what kind of “mean spirited” intentions went into the design of system. I rang the Department for Work and Pensions press office to confirm this and it was affirmed that the cut has happened. A spokesperson said: “Universal Credit claimants have never received a one-off December payment, but many disabled people on Universal Credit will be better off on average by £100 month than when they received Employment and Support Allowance (ESA).”

Yesterday, someone I know through social media sent me a copy of a notice they got when they logged onto the Universal Credit system. It said: Image may contain: text

So, if an employer pays his employees early in December due to the Christmas holiday period or pays a Christmas bonus, people may well receive a reduced Universal Credit payment in December or none at all. This is due the fact that the unadaptable system cannot cope with people being paid twice in one assessment period, even though it isn’t an additional payment, it is simply an early payment. 

Judicial reviews

The controversial Universal Credit programme is to undergo another legal challenge at the High Court in London, as evidence mounts further that the new social security system will leave thousands of people already on low incomes significantly worse off. Four women are taking the government to court because of this reason.

This is the second judicial review of Universal Credit. It follows the High Court’s finding in June that the Universal Credit system was unlawfully discriminating against severely disabled people. Those who had qualified for the support component of income-related Employment and Support Allowance (ESA) are also eligible for a disability premium.  However, as a result of the abolition of both the severe disability premium (SDP) and enhanced disability premium (EDP) under Universal Credit rules, according to the disability charity, Scope, the cut to the disability income guarantee will see disabled people lose as much as £395 a month

The high court judge ruled that the Department for Work and Pensions unlawfully discriminated against two severely disabled men who both saw their benefits dramatically reduced when they moved Local Authority – one of them because of the bedroom tax – and were required to claim Universal Credit. The court found that the implementation of Universal Credit and the absence of any ‘top up’ payments for this vulnerable group as compared to others constitutes discrimination contrary to the European Convention on Human Rights.

Since the court case, Esther McVey, then Secretary of State for Work and Pensions, announced that no severely disabled person in receipt of the SDP will be made to move onto Universal Credit until transitional protection is in place. She also committed to compensating those like the two claimants who have lost out on their disability premium because they had to claim Universal Credit.

Yet despite this, Secretary of State for Work and Pensions has sought permission to appeal, maintaining that there was “nothing unlawful” with the way the claimants were treated.

The second judicial review comes amid mounting concern over Universal Credit, which academics have described as a “complicated, dysfunctional and punitive” system pushing people into debt and rent arrears. 

Last week it emerged that more than half of people denied Universal Credit were found to be entitled to it when their cases were investigated, prompting fresh demands for the national rollout of the new system to be halted. It’s something of an irony, given that Universal Credit was introduced in 2013 with the stated intention of bringing “fairness and simplicity” to Britain’s social security system.

Now, four plaintiffs say the flaw, which relates to the way Universal Credit monthly payments are calculated, disproportionately affects working parents with children and leaves claimants with a “dramatically fluctuating income” and unable to budget from month to month.

In one case uncovered by the Child Poverty Action Group (CPAG) reported by The Guardian, a family’s monthly payment swung from £1,185 to zero, making budgeting impossible. One of the women has said that as well as being irrational, the payment system is also discriminatory as it disproportionately affects single parents, who are predominantly female. Last month, MP Frank Field said the system was driving some women in his constituency into sex work in a bid to avoid absolute poverty.

A single mother says she was forced to turn down a promotion and use a food bank after issues with the assessment period for the new benefit system made it “impossible to budget”.  

She said: “I invested £40,000 in higher education studies so that I could become an occupational therapist and it’s great that I’ve got my degree but I have had to put my career hopes on hold because of Universal Credit.  

“I had to go to a food bank and I took out an advance that I am still paying back. I took two jobs – as a PA and a waitress – which I could do without the education I invested in but which had paydays which don’t clash with my assessment period. I wanted to become free of welfare through my chosen profession but Universal Credit is holding me back from that.” 

Although she had originally wanted a healthcare job, which was relevant to her degree and would move her nearer earnings that would eventually take her out of the social security system altogether, she found that the NHS and other health organisations mostly paid salaries at the end of the working month so she would face the same assessment period trap. 

She left the council and initially took two part time jobs, and she now has one part time job.

Her solicitor, Carla Clarke of Child Poverty Action Group (CPAG), said: “Universal Credit is promoted as a benefit that ‘incentivises’ work but in practice its rigid assessment period system undercuts that claim. 

“Our clients have been left repeatedly without money for family essentials simply because of the date of their paydays.

“One of them, for example, did her utmost to find a workaround but ultimately had to decline a promotion in a job with good prospects when her then contract came to an end just to escape the trap.

“We say that the DWP’s refusal to alter our clients’ assessment period dates to avoid this problem discriminates against working parents – one of the two groups who are entitled to a work allowance – as well as being irrational and undermining one of the stated purposes of universal credit – to make sure that ‘work always pays’.”

CPAG argues that the DWP refusal to alter Woods’ assessment period dates to avoid the problem discriminated against working parents – one of the two groups who are entitled to a work allowance – as well as being “irrational and undermining.” 

Clarke added “This is a fundamental defect in Universal Credit and an injustice to hard-working parents and their children that must be put right for our clients and everyone else affected”.

Another of the women involved in the court case is paid by her employer on the last working day of each month. However, the Universal Credit assessment periods run from the last day of each month, meaning that if she is paid before the last day of the month she is assessed as having been paid twice that month.

Lawyers from the legal firm supporting  Johnson at LeighDay, say: “This has resulted in her receiving fluctuating Universal Credit payments throughout the year, making it very hard to budget from one month to the next.”

They add: “It has also caused her to be around £500 worse off annually due to the fact that she is entitled to ‘work allowance’ as a parent.

“The work allowance is a disregard of £198 per month of a parent’s monthly earnings so in months where she is treated as having no earned income, she loses the whole benefit of the work allowance. In months where she is treated as having double income, she does not receive any extra work allowance.”

Legal aid for social security appeals is almost entirely gone. People adversely affected by unfair decisions are effectively being denied support in accessing justice. It’s difficult to see this as anything other than a planned and coordinated attack on people’s most basic human and democratic rights. 

Universal Credit increases and extends the risk of domestic abuse

Couples who live together are required to make a single household claim for Universal Credit. Their individual entitlements are calculated—based on household income—and combined into a single payment, paid into one account only. In December 2017, 55,000 couple households, including 40,000 with dependent children, were claiming Universal Credit. Once it is fully rolled out, around 2.9 million couple households will claim it. MPs have warned that Universal Credit increases the risk of allowing domestic abusers to exert financial control over victims. 

A critical report by the Work and Pensions committee in August said the way Universal Credit is paid per household means that perpetrators could too easily take control of the entire budget, leaving vulnerable women and their children dependent on an abusive partner to survive. Frank Field, Labour chair of the committee, said: “This is not the 1950s. Men and women work independently, pay taxes as individuals, and should each have an independent income.

“Not only does Universal Credit’s single household payment bear no relation to the world of work, it is out of step with modern life and turns back the clock on decades of hard-won equality for women.”

He added “The government must acknowledge the increased risk of harm to claimants living with domestic abuse it creates by breaching that basic principle, and take the necessary steps to reduce it.”

Ministers were urged by the committee to consider overhauling the system so payments are automatically split between couples, as victims face “great danger” if they request their own payments under current rules.

The report said: “Universal Credit currently only allows claims to be split between partners in ‘exceptional circumstances’.

“The DWP itself recognises the risk that requesting such an arrangement poses to survivors. The perpetrator will realise the survivor has requested the split when their own payments fall, potentially putting them in great danger.

“In light of this risk, many survivors simply will not request a split.”

The committee also suggested the main carer of children should automatically receive the whole payment, while officials explore ways to develop a split payment scheme. JobCentres must set aside private rooms for vulnerable claimants and appoint a domestic violence specialist to deal with specific claims, the report also said.

Katie Ghose, chief executive of Women’s Aid, said: “We have long been warning that Universal Credit risks making the domestic abuse worse for survivors and putting an additional barrier in the way of them escaping the abuse.

“That’s why we welcome the committee’s report and urge the government to take action to make Universal Credit safe for survivors.

“We know from our work with survivors that abusers will exploit single household payments, yet applying for a split payment can also be dangerous. If the abuser finds out that a survivor has made an application, she may be at further risk.”

Domestic abuse is hugely complex, and the training Work Coaches currently receive leaves them ill-equipped to perform this vital function. Under Universal Credit, claimants living with domestic abuse can face seeing their entire monthly income—including money meant for their children—go into their abusive partner’s account. There is no guarantee that any of the money they need to live or care for their children will reach them. That risks them remaining dependent on their abusive partner and making it much harder for them to leave, should the opportunity present itself.

Yet the Scottish Parliament has passed legislation which requires the Scottish Government to introduce split payments by default.

Universal Credit is perpetuating gender inequality – an issue that the Equality and Human Rights Commission have also raised concerns about. If money is paid into an abuser’s account, that compromises a woman’s financial autonomy. Their recent report recommends:

  • offering Universal Credit as single payments to individuals rather than joint payments to avoid exacerbating financial abuse for women experiencing domestic violence
  • reconsidering the ‘spare room subsidy’ regulations which discriminate against survivors of domestic abuse who have safe rooms.

But the government justifies the policy by claiming that few couples manage their finances separately. They argue that paying one benefit into a single bank account means families can make decisions about their household finances without government interference. However, this assessment ignores the realities of women trapped in controlling relationships.

Two child policy – regarding children as a commodity, and some say, eugenics by stealth

This policy restricts support through means-tested family benefits to two children only and affects the child tax credit payable for all third or subsequent children born after April 2017 and all new claims for Universal Credit, whenever they were born. In doing so, the two-child policy breaks the fundamental link between need and the provision of minimum support and implies that some children, by virtue of their birth order, are less deserving of support. It is a very large direct cut to the living standards of the poorest families of up to £2780 per child, per year.

In 2015/16 — the latest year for which data is available — 27 per cent of households with children had more than two children, representing more than 1 in 3 children in poverty (after housing costs). The risk of poverty is already 39 per cent for households (after housing costs) with three or more children compared with 26 per cent for one- and 27 per cent for two-child families. The most recent statistics reveal that during the first year of operation, 59% of the 73,500 families who lost financial support for a third child were in work. Nine per cent of UK claimant households with three or more children were affected.

A number of groups in the population are particularly likely to be hard hit by the policy, including Orthodox Jews, Pakistani and Bangladeshi families, and Roman Catholics. It will also hit large families bereaved by the loss of  a parent, divorced families, and all large families falling upon hard times and needing to claim means-tested support.

Originally there were no intentions to make exceptions to the two-child policy, but the government was forced to make concessions for, among others, third and subsequent children under kinship care and those conceived as a result of rape — which in itself forces highly sensitive disclosure. A number of women’s rights and rape support organisations have raised serious concerns about the third-party evidence model for the rape/coercion exception and the risk that women claiming this exception will be exposed to further trauma and gross breaches of privacy.

The so-called rape clause has been condemned by campaigners, who say it is outrageous that a woman must account for the circumstances of her rape to qualify for support. The SNP MP Alison Thewliss called it “one of the most inhumane and barbaric policies ever to emanate from Whitehall”.

A government spokesperson said: “The policy to provide support in child tax credit and universal credit for a maximum of two children ensures people on benefits have to make the same financial choices as those supporting themselves solely through work.

The rationale for the two-child limit was to reduce the deficit by £1.36 billion per year by 2020/21. But the government also sought to justify it on the basis that they are hoping to ‘change behaviours’ — hoping to ‘encourage parents to reflect carefully on their readiness to support an additional child’. Yet, the savings to be made from the policy are quite modest in the context of the austerity cuts of £27 billion per year since 2010.

The rollout of Universal Credit will increase the number of families affected. All new claims for the benefit after February 2019 will have the child element restricted to two children in a family, even if they were born before the policy was introduced.

The government estimated 640,000 families will lose support as a direct result of the proposed changes. The Children’s Society estimate that the total loss of a child element plus the family element of child tax credit will mean that a family with three children will lose up to £3,325 per year. A family with four children will lose up to £6100. Troublingly, disabled children will also be affected by this measure on top of the major cuts in children’s disability support through Universal Credit.

Jamie Grier, the development director at the welfare advice charity Turn2us, has spoken out about mothers in low income families faced with the agonising choice of terminating wanted pregnancies already, because of their financial circumstances.

Alison Garnham, the chief executive of Child PovertyAction Group, said: “An estimated one in six UK children will be living in a family affected by the two-child limit once the policy has had its full impact. It’s a pernicious, poverty-producing policy.”

The Institute for Fiscal Studies has projected that 600,000 more children will live in absolute child poverty by 2020/21 compared with 2015/16 — all of them in families with three or more children. The absolute child poverty rate is to increase over that period from 15.1 per cent to 18.3 per cent. The two-child limit accounts for around a third of this impact. Absolute poverty is when people can’t meet one or more of their basic survival needs.

The policy is extremely likely to contravene human rights treaties to which the UK is a signatory, including those relating to women’s reproductive rights and protection from religious and gender-based discrimination contrary to Article 16 of the Convention on the Elimination of all Forms of Discrimination Against Women.

It would also discriminate against groups with a conscientious objection to contraception and abortion, or for whom large families are a central tenet of faith, in breach of Article 14 of the European Convention on Human Rights. Furthermore, it fails to give primary consideration to the best interest of the child in contravention of Article 3(1) of the UN Convention on the Rights of the Child. 

The UN Committee on Economic, Social and Cultural Rights raised a specific concern about the effect of cuts to social security on the standard of living enjoyed by families with two or more children in the Concluding Observations of its recent review of the UK’s compliance with the International Covenant on Economic, Social and Cultural Rights. The policy is going to be challenged in the courts on discrimination grounds and may well reach the Supreme Court and European Court of Justice. 

Context and policy intent

Universal credit is the controversal reform of the social security system, rolling together six so-called “legacy” benefits (including unemployment benefit, employment and tax credits and housing benefit) into one benefit paid monthly to claimants, to “make work pay.”

However, at a time of stagnant wages and ever-increasing living costs, the government slogan ‘making work pay’ is certainly not about a national wage increase. It’s rather more about neoliberal supply-side ideology.  Supply-side policies include the promotion of greater competition in labour markets, through the removal of what are deemed ‘restrictive practices’, and labour market rigidities, such as the protection of employment and workers’ rights. For example, as part of  neoliberal supply-side reforms in the 1980s, trade union powers were greatly reduced by a series of measures including limiting workers’ ability to call a strike, and by enforcing secret ballots of union members prior to strike action. More recently the Conservatives have again made substantial legislative changes that undermine the role of trade unions.

Deregulation and privatisation of state industry and services are also components of supply-side economics. Supply-side measures have a negative effect on the distribution of income. For example, lower taxes rates for the wealthiest, lower wages for workers, reduced union power, and privatisation have all contributed to a widening of the gap between rich and poor citizens. Universal Credit facilitates a supply-side labour market, it coerces people into accepting low paid, insecure work. Any work.

People claiming Universal Credit do not get a say in the kind of work they take on. If people don’t comply with Universal Credit conditionality they are generally sanctioned. This entails a loss of welfare support for between four weeks and up to a maximum of three years for refusing to take a job or prescribed community work. 

Some economists argue that a lack of bargaining power because union membership has been in long term decline – is leading to fewer widespread agreements on earnings increases, which has served to  keep wages stagnant. A lack of employee confidence and certainty following the recession and fears, then, over job losses has also led to fewer demands for rises.

Given that collective bargaining has been politically undermined, it is particularly outrageous that the government has introduced sanctions for those on low pay and in work, for a failure to single handedly negotiate better pay or an increase in working  hours with their employer. 

Perhaps we should ask “making work pay” for whom?

It’s interesting that the government have outlined what Universal Credit means for employers, indicating the intent behind the policy is not about mitigating poverty. It’s about employers “having access to a more flexible and responsive workforce, which can help your business with the challenges of filling vacancies.

“Universal Credit payments automatically adjust each month based on the real time PAYE information you report to HMRC, so it’s important that you report this information accurately and on time.”

The ‘business friendly’ government says “Universal Credit increases the financial incentive of work and provides employers like you with a more flexible workforce.”

So while employers are promised a workforce that will accept more, in terms of conditions, rates of pay and job security, the same workforce is being set up to fail when trying to negotiate more pay and longer hours by the government’s ‘business friendly’ deregulation. And failure can mean facing having their Universal Credit cut via sanctions.

It does go on to say on the site that “Jobcentre Plus work coaches will encourage claimants to discuss with their employers how they can increase their chances of earning more. This could be by improving their skills which may help them to take on more responsibilities. You may find your employees asking for more hours or for help with building their skills. You can play a role in this – helping your business become more productive.”

So, employers “can” but workers “must”, despite the substantial imbalance of power, made worse by the fact that workers are being coerced into “flexibility”. That invariably means lowering their expectations of employers and of the conditions of their employment.

The publicly stated aim of Universal Credit, for which there was orginally general support across the political divide, was to simplify the welfare system, making it more “efficient” and easy to access at a single claim point. Despite these claims, many have complained that Universal Credit is bafflingly complex, unreliable and difficult to manage, particularly if you are without internet access, and that Universal Credit staff are often poorly trained. The combination of these problems is leaving people in precarious and very vulnerable circumstances.

For families and lone parents in particular, there are barriers to taking short term low paid work, as continuity of income and availability of childcare are key priorities for parents.

The Conservatives have also claimed that the new benefit will provide incentives for people to work rather than stay on benefits. Perhaps it’s worth noting that only 34% of people claiming state welfare are of working age, the majority – 66% – are people of pension age.

The government say “It is intended that by introducing a single in-work and out-of-work benefit, previous barriers to employment such as taking up temporary employment or fewer hours are removed, therefore making it easier for claimants to take up any work and changing claimant perceptions of work and welfare, and their employment behaviours, at an individual and household level.”

The Conservatives go on to claim that employment levels are at a record high, because Universal Credit is “working”. Some 80% of men are in work, the joint highest employment rate since 1991. And over 70% of women are in work, the highest employment rate since records began in 1971. But that increase is down, partly, to state pension age changes which mean fewer women are retiring between the ages of 60 and 65. 

However, as I have indicated, the structure of the employment market also matters. Zero hours contracts and hyper-flexible employment might be welcomed by some for the options they offer, but they work against collective bargaining agreements on earnings, keeping wages low. And low wages, not lack of incentives, are the reason why people need welfare support. The trade union wage gap, the difference in earnings of union members compared with non-members, is 16.9% in the public sector and 7.1% in the private sector (which employs well over 80% of people). There cannot be any genuine economic ‘bounce back’ until the UK’s decade-long stagnation in wages ends.

Universal Credit was supposedly intended as a payment to help people with living costs. It’s for those on a low income or out of work. As of February this year, the number of people on Universal Credit was 770 thousand. Of these people 300 thousand were in employment. The intention embedded in the design of Universal Credit to force up to a million low-paid workers to seek more hours or move to higher-paid jobs, under threat of financial sanctions (in-work conditionality), is another ticking bomb.

It is being introduced in stages across the country.  People claiming Universal Credit receive a single monthly household payment, paid into a bank account in the same way as a monthly salary; support with housing costs will usually go direct to the person claiming as part of their monthly payment. 

People will usually make a claim for Universal Credit online, during which initial claim verification will take place. This entails people providing evidence of their identity. However, there have been some problems highighted with the government’s verification framework. 

MP for Liverpool Walton, Dan Carden, called on the Department of Work and Pensions (DWP) to postpone the roll-out of Universal Credit in his constituency until after Christmas and highlighted an issue with people having to pay out for a driving licence as one of many administrative problems with the new system.

In a letter to the secretary of state, Amber Rudd MP, Carden said: “We have families experiencing poverty on an unprecedented scale and now facing further avoidable hardship in the run up to Christmas. 

“I have now been informed that job centres across Liverpool are advancing payments to my constituents to obtain provisional driving licences for the purposes of identification and then deducting the cost from their benefits.

“Constituents are also having to pay for postal orders, passport photographs and postage, just to obtain provisional licences.”

He explained that the DVLA says there is a five-week wait for provisional licences, and highlighted the delays before the first payments are made when someone is transferred on to Universal Credit.

The controversial benefit is being rolled out in many parts of Liverpool this week. Carden added: “Continuing with this roll-out will leave many of the most vulnerable families in Liverpool Walton destitute by Christmas and I am therefore asking you to intervene as a matter of urgency.”

Rudd’s response was to say Carden was ‘scaremongering’, and she denied that ID was needed to claim Universal Credit. However, it seems she failed to bother checking her own government’s web site for advice and evidence. The site which outlines how to claim Universal Credit  completely contradicts Rudd’s claims, it says on the government’s site:

Amber rudd lies 1

Amber rudd lies 2

When people apply for Universal Credit they are asked to verify their identity online via the GOV.Verify service. 

To do so, you need either;

  • A valid UK driving license
  • A valid UK passport.

On the government document it says “Universal Credit cannot be paid to a claimant whose identity has not been verified. Failure to provide identity documentation means that there is no valid claim.”

Of course this creates significant problems for those without the required documents. Their Universal Credit claim cannot go ‘live’ without conforming to the ID verification framework. People generally can’t get an advance because their claim isn’t live. Once they’ve received their new ID document, (takes around 6-8 weeks usually), it’s then a further 5 weeks (at least) until their first Universal Credit payment. That’s a very long time to go without support that is intended to meet people’s most basic living needs: food, fuel and shelter. 

According to the government web site, you can only apply for an advance on your first payment if you have already verified your identity. It says:

You can apply for an advance payment in your online account or through your Jobcentre Plus work coach.

You’ll need to:

  • explain why you need an advance
  • verify your identity (you do this online when you submit your Universal Credit claim or at your first Jobcentre Plus interview)
  • provide bank account details for the advance (talk to your work coach if you cannot open an account.)

The claim date is the date that a claimant completes this process and submits their claim. After making a claim, an initial interview will take place with the claimant, where the eligibility for Universal Credit will be confirmed and the claimant will accept a Claimant Commitment. Failure to comply with the Commitment without ‘good reason’ will result in a sanction. What constitutes a ‘good reason’ unfortunately varies from area to area and even among advisors in the same building. One of the many criticisms of welfare sanctions is how arbitrary they are. Universal Credit is a far stricter regime than the previous ones, and indications are that people are being sanctioned more frequently.

The Universal Credit project was passed through legislation in 2011 under the patronage of its loudest champion, former secretary of state for work and pensions Iain Duncan Smith. The plan was to roll it out across the UK by 2017. However, a series of management failures, expensive IT blunders and design faults mean it has fallen at least five years behind schedule.

Under the current schedule it will be fully implemented to include about 7 million claimants by 2022-23, when it is estimated that it will account for around £63bn of spending. A substantial proportion of that is due to administration blunders. Earlier this year, the National Audit Office said “The benefits that it set out to achieve through Universal Credit, such as increased employment and lower administration costs, are unlikely to be achieved.”

The administrative cost of every Universal Credit claim is an eye-watering £699 per case against an ultimate target of just £173, others in the field are calling to stop this utter shambles now and reconsider all options. 

The Department is seriously criticised for “a lack of regard in failing to understand the hardship faced by some claimants”. Forget normal Whitehall tact, here are eight years of unrelenting failure, ploughing on despite alarms as costs rose to £2bn. One of the most urgent needs is to restore the £23bn that George Osborne cut from the budget, which is due to cause a record 37% of children in poverty by 2022, according to the Institute for Fiscal Studies. That’s likely to be a conservative estimate.

Despite a few minor changes, such as shortening the waiting period by a week, huge underlying problems remain with Universal Credit. Multibillion-pound cuts to work allowances imposed by the former chancellor have left it hollowed out. According to the Resolution Foundation thinktank, Universal Credit will leave about 2.5 million low-income working households more than £1,000 a year worse off. Reversing those cuts requires a political decision, not more tinkering around the edges and technical fixes.

Universal Credit is paid monthly, in arrears, so people have to wait one calendar month from the date they submitted their application before their first UC payment is made. This is called the assessment period. People then have to wait up to seven days for the payment to reach your bank account. That is of course providing everything goes right. 

So far, the ‘customer’ experience of Universal Credit for too many people (and other stakeholders, such as landlords) has been utterly dismal. Critics argue that Treasury cuts to the benefit mean it is now far less likely to incentivise people to move into work, or to work more hours – what the Conservatives call ‘in-work progression’. As a result of cuts, Universal Credit is significantly less generous than originally intended, leaving many claimants worse off when they move on to it than they were while claiming legacy benefits. Added to that are design flaws and administrative glitches that put poorer claimants especially at heightened risk of hunger, debt and rent arrears, ill-health and homelessness. 

Their report is intended to help the Council and partners to further develop the approach to supporting those affected by current and future welfare reforms. 

It builds on Sheffield Hallam University research published in March 2016 which suggested that welfare reforms have cost the city’s economy the equivalent of £157M per year, set to rise to £292M per year by 2020. Liverpool City Council has had a 58% cut in central government funding since 2010 and has to find another £90M in savings by 2020, is having to use around £7M of those reduced funds to help with rent top ups and crisis payments.

Liverpool Food People are part of a food insecurity sub group that reports into The Mayoral Action Group on Fairness and Tackling Poverty – food has been identified as one of the basic needs – and a recommendation within the report is that action to address food poverty and fuel poverty is coordinated across the city and that research is carried out on the level of food insecurity (both moderate and severe) across the city. 

New research conducted for Gateshead council concludes that Universal credit has become a serious threat to public health after the study revealed that the stress of coping with the new benefits system had so profoundly affected peoples’ mental health that some considered suicide.

The researchers found overwhelmingly negative experiences among vulnerable citizens claiming Universal Credit, including high levels of anxiety and depression, as well as physical problems and social isolation, all of which was exacerbated by hunger and destitution.

The Gateshead study comes as the United Nation’s special rapporteur on extreme poverty and human rights, Philip Alston, prepares to publish a report of the impact of Conservative austerity in the UK. Alston has been collecting evidence and testimonies on the effects of the welfare reforms, council funding cuts, and Universal Credit during a two-week visit of the UK. 

This research is highly likely to raise fresh calls for the system’s rollout to be halted, or at the very least, paused to attempt to fix the fundamental design flaws and ensure adequate protections are in place for the most vulnerable people claiming it.

Approximately 750,000 chronically ill and disabled claimants are expected to transfer on to Universal Credit from 2019. Yet earlier this year, the first legal challenge against Universal Credit found that the government unlawfully discriminated against two men with severe disabilities who were required to claim the new benefit after moving into new local authority areas. Both saw their benefits dramatically reduced when they moved to a different Local Authority and were required to claim Universal Credit instead of Employment and Support Allowance.

The study findings are yet another indication of how unfit for purpose Universal Credit is. Six of the participants in the study reported that claiming Universal Credit had made them so depressed that they considered taking their own lives. The lead researcher, Mandy Cheetham, said the participant interviews were so distressing she undertook a suicide prevention course midway through the study.

The report says: “Universal Credit is not only failing to achieve its stated aim of moving people into employment, it is punishing people to such an extent that the mental health and wellbeing of claimants, their families and of [support] staff is being undermined.”

One participant told the researchers: “When you feel like ‘I can’t feed myself, I can’t pay my electric bill, I can’t pay my rent,’ well, all you can feel is the world collapsing around you. It does a lot of damage, physically and mentally … there were points where I did think about ending my life.”

An armed forces veteran said that helplessness and despair over Universal Credit had triggered insomnia and depression, for which he was taking medication. “Universal Credit was the straw that broke the camel’s back. It really did sort of drag me to a low position where I don’t want to be sort of thrown into again.”

Unsurprisingly, the report concludes that Universal Credit is actively creating poverty and destitution, and says it is not fit for purpose for many people with disabilities, mental illness or chronic health conditions. It calls for a radical overhaul of the system before the next phase of its rollout next year.

Alice Wiseman, the director of public health at Gateshead council, which commissioned the study, said: “I consider Universal Credit, in the context of wider austerity, as a threat to the public’s health.” She said many of her public health colleagues around the country shared her concerns.

Wiseman said that Universal Credit is “seriously undermining” efforts to prevent ill-health in one of the UK’s most deprived areas.

She added “This is not political, this is about the lives of vulnerable people in Gateshead. They are a group that should be protected but they haven’t been.”

The qualitative study focused on those claimants with disabilities, mental illness and long-term health conditions, as well as homeless people, veterans and care leavers.

The respondents found that compared to the legacy benefits, Universal Credit is less accessible, remote, inflexible, demeaning and intrusive. It was less sensitive to claimants’ health and personal circumstances, the researchers said. This heightened peoples’ anxiety, sense of shame, guilt, and feelings of loss of dignity and control.

The Universal Credit system itself was described by those claiming it as dysfunctional and prone to administrative error. People experienced the system as “hostile, punitive and difficult to navigate,” and struggled to cope with payment delays that left them in debt, unable to eat regularly, and reliant on food banks.

The government claimed that people making a new claim are expected to wait five weeks for a first payment. That’s a long time to wait with no money for basic living requirements. However, the average wait for participants on the study was seven and a half weeks, with some waiting as long as three months. Researchers were told of respondents who were so desperate and broke they turned to begging or shoplifting.

Wiseman made a point that many campaigners have made, and said that alongside the human costs, Universal Credit was placing extra burdens on NHS and social care, as well as charities such as food banks. It also affected the wellbeing of advice staff, who reported high stress levels and burnout from dealing with the fallout on those claiming the benefit.

Guy Pilkington, a GP in Newcastle said that the benefits system had always been tough, but under Universal Credit, those claiming faced a higher risk of destitution.

“For me the biggest [change] is the ease with which claimants can fall into a Victorian-style system that allows you to starve. That’s really shocking, and that’s new,” he said.

A spokesperson for the Department for Work and Pensions (DWP) said: “This survey of 33 claimants doesn’t match the broader experience of more than 9,000 people receiving Universal Credit in Gateshead, who are taking advantage of its flexibility and personalised support to find work.”

“We have just announced a £4.5bn package of support so people can earn £1,000 more before their credit payment begins to be reduced, and we are providing an additional two weeks’ payments for people being moved from the old system.”

That will still leave people with nothing to live on or to cover their rent for at least three weeks. The study focused on those less likely to be able to work – people with disabilities, mental illness or chronic health conditions. The DWP failed to recognise that this group have different needs and experiences than the broader population, which leave them much more likely to become vulnerable when they cannot meet their needs.

Vulnerable people are suffering great harm and some are dying because of this government’s policies. It is not appropriate to attempt to compare those peoples’ experiences with some larger group who have not died or have not yet experienced those harms. Where is the empirical evidence of these claims, anyway? Where is the DWP’s study report?

Callousness and indifference to the suffering and needs of disadvantaged citizens – disadvantaged because of discriminatory policies – has become so normalised to this government that they no longer see or care how utterly repugnant and dangerous it is.

The DWP are not ‘providing’ anything. Social security is a publicly funded safety net, paid for by the public FOR the public. It’s a reasonable expectation that citizens, most of who have worked and contributed towards welfare provision, should be able to access a system of support when they experience difficulties – that is what social security was designed to provide, so that no one in the UK need to face absolute poverty. It’s supposed to be there so that everyone can meet their basic survival needs.

What people in their time of need find instead is a system that has been redesigned to administer punishments, shame and psychological abuse. What kind of government kicks people hard when they are already down?

Universal Credit was considered the antidote for the Conservative’s ‘welfare dependency’ myth, yet there has never been any empirical evidence to support their claims of the existence of a ‘culture of dependency’ and that’s despite the dogged research conducted by Keith Joseph some years ago, when he made similar claims. He never found any evidence despite trying very hard. Most people move in and out of work, because jobs have become increasingly precarious over the last few years. 

In fact over recent years, an international study of social safety nets from The Massachusetts Institute of Technology (MIT) and Harvard economists categorically refutes the Conservative ‘scrounger’ stereotype and dependency rhetoric.  Gabriel Kreindler, Benjamin Olken and colleagues re-analyzed data from seven randomized experiments evaluating cash programs in poor countries and found “no systematic evidence that cash transfer programmes discourage work.”

The phrase ‘welfare dependency’ diverts us from political class discrimination via policies, increasing inequality, and it serves to disperse public sympathies towards the poorest citizens, normalising the inequality and prejudice embedded in neoliberal ideology and resetting social norm defaults that then permit the state to target protected social groups for further punitive and cost-cutting interventions to ‘incentivise’ them towards ‘behavioural change.’ Outrageously, the behavioural change required by the state is that the public do not use publicly funded welfare services.

Stepping back from this, it becomes clear that the policy driver is ‘small state’, antiwelfarist neoliberal ideology. This is being propped up by pseudoscientific behavioural economic rationalisations. 

There is mounting evidence, according to local authority researchers in Liverpool, for example, that shows the actual effect is the reverse of what was claimed was intended; Universal Credit is harming the very people it was designed to support. It is forcing households into debt, causing severe poverty including to those in work, leaving too many people, including children, facing food insecurity, destitution and eviction. Liverpool council’s welfare reform cumulative impact analysis last year shows that the groups most adversely affected by the Government’s raft of ‘welfare reforms’ are the long-term sick and disabled, families with children, women, young adults and the 40-59 age group who live in social housing. 

Many working households are suffering a shortfall in Housing Benefit, Housing Allowance and a reduction and removal of many other benefits, all set against the backdrop of ever increasing living costs. Poverty disincentives people. 

In recent years welfare conditionality has become conflated with severe financial penalities (sanctions), and has mutated into an ever more stringent, complex, demanding set of often arbitrary requirements, involving frequent and rigid jobcentre appointments, meeting job application targets, providing evidence of job searches and mandatory participation in workfare schemes. The emphasis of welfare provision has shifted from providing support for people seeking employment to increasing conditionality of conduct, enforcing particular patterns of behaviour and monitoring citizen compliance.

Government Statistics tell us that more people get sanctioned under Universal Credit than under the existing legacy benefits system.

Sanctions are “penalties that reduce or terminate welfare payments in cases where claimants are deemed to be out of compliance with  requirements.” They are, in many respects, the neoliberal-paternalist tool of discipline par excellence – the threat that puts a big stick behind coercive welfare programme rules and “incentivises” citizen compliance with a heavily monitoring and supervisory administration. The Conservatives have broadened the scope of behaviours that are subject to sanction, and have widened the application to include previously protected social groups, such as sick and disabled people and lone parents.

There is plenty of evidence that sanctions don’t help people to find work, and that the punitive application of severe financial penalities is having a detrimental and sometimes catastrophic impact on people’s lives. We can see from a growing body of research how sanctions are not working in the way the government claim they intended.

Sanctions, under which people lose benefit payments for between four weeks and three years for “non-compliance”, have come under fire for being unfairpunitive, failing to increase job prospects, and causing hunger, debt and ill-health among jobseekers. And sometimes, even causing death.

However, if people are already needing to claim financial assistance which was designed to meet only very basic needs, such as provision for food, fuel and shelter, then imposing further financial penalities will simply reduce those people to a struggle for basic survival, which will inevitably demotivate them and stifle their potential.

The current government demand an empirical rigour from those presenting criticism of their policy, yet they curiously fail in meeting the same exacting standards that they demand of others. Often, the claim that “no causal link has been established” is used as a way of ensuring that established correlative relationships, (which often do imply causality,) are not investigated further.

Qualitative evidence – case studies, for example – is very often rather undemocratically dismissed as ‘anecdotal,’ or as ‘scaremongering’ which of course stifles further opportunities for research and inquiry.

The Conservative shift in emphasis from structural to psychological explanations of poverty has far-reaching consequences. The partisan reconceptualision of poverty makes it much harder to define and very difficult to measure. Such a conceptual change disconnects poverty from more than a century of detailed empirical and theoretical research, and we are witnessing an increasingly experimental approach to policy-making, aimed at changing the behaviour of individuals, without their consent.

This approach isolates citizens from the broader structural political, economic, sociocultural and reciprocal contexts that invariably influence and shape an individuals’s experiences, meanings, motivations, behaviours and attitudes, causing a problematic duality between context and cognition. It places unfair and unreasonable responsibility on citizens for circumstances which lie outside of their control, such as the socioeconomic consequences of political decision-making.

I want to discuss two further considerations to add to the growing criticism of the extended use of sanctioning, which are related to why sanctions don’t work. One is that imposing such severe financial penalities on people who need social security support to meet their basic needs cannot possibly bring about positive “behaviour change” or incentivise people to find employment, as claimed. This is because of the evidenced and documented broad-ranging negative impacts of financial insecurity and deprivation – particularly food poverty – on human physical health, motivation, behaviour and mental states.

The second related consideration is that “behavioural theories” on which the government rests the case for extending and increasing benefit sanctions are simply inadequate and flawed, having been imported from a limited behavioural economics model (otherwise known as nudge” and libertarian paternalism) which is itself ideologically premised.

Sanctions and workfare arose from and were justified by nudge theory, which is now institutionalised and deeply embedded in Conservative policy-making. Sanctions entail the manipulation of a specific theoretical cognitive bias called loss aversion.

At best, the new “behavioural theories” are merely theoretical  propositions, at a broadly experimental stage, and therefore profoundly limited in terms of scope and academic rigour, as a mechanism of explanation, and in terms of capacity for generating comprehensive, coherent accounts and understanding about human motivation and behaviour.

I reviewed research and explored existing empirical evidence regarding the negative impacts of food poverty on physical health, motivation and mental health. In particular, I focussed on the Minnesota Semistarvation Experiment and linked the study findings with Abraham Maslow’s central idea about cognitive priority, which is embedded in the iconic hierarchy of needs pyramid. Maslow’s central proposition is verified by empirical evidence from the Minnesota Experiment.

The Minnesota Experiment explored the physical impacts of hunger in depth, but also studied the effects on attitude, cognitive and social functioning and the behaviour patterns of those who have experienced semistarvation. The experiment highlighted a marked loss of ambition, self-discipline, motivation and willpower amongst the subjects once food deprivation commenced. There was a marked flattening of affect, and in the absence of other emotions, Doctor Ancel Keys observed the resignation and submission that continual hunger manifests.

The understanding that food deprivation dramatically alters emotions, motivation, personality and that nutrition directly and predictably affects the mind as well as the body is one of the legacies of the experiment.

The experiment highlighted very clearly that there’s a striking sense of immediacy and fixation that arises when there are barriers to fulfiling basic physical needs – human motivation is frozen to meet survival needs, which take precedence over all other needs. This is observed and reflected in both the researcher’s and the subject’s accounts throughout the study. If a person is starving, the desire to obtain food will trump all other goals and dominate the person’s thought processes.

In a nutshell, this means that if people can’t meet their basic survival needs, it is extremely unlikely that they will have either the capability or motivation to meet higher level psychosocial needs, including social obligations and responsibilities to seek work. Abraham Maslow’s humanist account of motivation also highlights the same connection between fundamental motives and immediate situational threats.

maslow's hierarchy of needs

Ancel Keys published a full report about the experiment in 1950. It was a substantial two-volume work titled The Biology of Human Starvation. To this day, it remains the most comprehensive scientific examination of the physical and psychological effects of hunger.

Keys emphasised the dramatic effect that semistarvation has on motivation, mental attitude and personality, and he concluded that democracy and nation building would not be possible in a population that did not have access to sufficient food.

I also explored the link between deprivation and an increased risk of mental illnesses, including schizophrenia, depression, anxiety and substance addiction. Poverty can act as both a causal factor (e.g. stress resulting from poverty triggering depression) and a consequence of mental illness (e.g. schizophrenic symptoms leading to decreased socioeconomic status and prospects).

Poverty is a significant risk factor in a wide range of psychological illnesses. Researchers recently reviewed evidence for the effects of socioeconomic status on three categories: schizophrenia, mood and anxiety disorders and substance abuse. Whilst not a comprehensive list of conditions associated with poverty, the issues raised in these three areas can be generalised, and have clear relevance for policy-makers.

The researchers concluded: “Fundamentally, poverty is an economic issue, not a psychological one. Understanding the psychological processes associated with poverty can improve the efficacy of economically focused reform, but is not a panacea. The proposals suggested here would supplement a focused economic strategy aimed at reducing poverty.” (Source: A review of psychological research into the causes and consequences of poverty – Ben Fell, Miles Hewstone, 2015.)

There is no evidence that keeping benefits at below subsistence level or imposing punitive sanctions ‘incentivises’ people to work and research indicates it is likely to have the opposite effect

Food banks have reported that demand for charity food goes up significantly when Universal Credit is introduced into the local area.

The Trussell Trust has expressed concern that, given the links between Universal Credit, financial hardship, and foodbank use, the next stage of the roll out could lead to further increased financial need and more demand for foodbanks. Their report uses referral data from Trussell Trust foodbank vouchers to examine the impact of Universal Credit on foodbank use. Their key findings were:

  1. On average, 12 months after rollout, foodbanks see at least a 52% increase in demand, compared to 13% in areas with Universal Credit for 3 months or less. This increase cannot be attributed to randomness and exists even after accounting for seasonal and other variations. 
  2. Benefit transitions, most likely due to people moving onto Universal Credit, are increasingly accounting for more referrals and are likely driving up need in areas of full Universal Credit rollout. Waiting for the first payment is a key cause, while for many, simply the act of moving over to a new system is causing serious hardship.

The Trussell Trust says that poor administration, the long wait for the first payment, and repayments for loans and debts are driving some people into severe financial need. This is particularly acute for families with dependent children and disabled people.

Ministers still claim that evidence from early official trials shows people claiming Universal Credit were more likely to get a job. However, the Office for Budgetary Responsibility (OBR) has said there remains insufficient evidence for this claim. Other researchers have found that the low benefit amounts coupled with rigid conditionality and sanctions profoundly disincentivise people to find work or progress in work. Evidence supports the latter proposition. 

But the government simply responds by labelling researchers and campaigners as ‘scaremongers’ and continues to deny the well-evidenced and documented experiences of citizens which demonstrate that Universal Credit is harmful, creating distress and entrenching inequality and absolute poverty.

 


 

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Government faces second judicial review of universal credit

Judge orders action to be fast tracked over claims removal of certain disability benefits had placed the most vulnerable under dire financial strain

The UK government’s highly controversial universal credit programme is to undergo another legal challenge at the High Court in London, as evidence mounts that the new benefits system will leave thousands of people already on low incomes significantly worse off. 

Four women are taking the government to court because of this reason.

This is the second judicial review of universal credit following the High Court’s finding in June that the system was unlawfully discriminating against severely disabled people. It comes amid mounting concern over universal credit, which academics have described as a “complicated, dysfunctional and punitive” system pushing people into debt and rent arrears. 

Last week it emerged that more than half of people denied universal credit were found to be entitled to it when their cases were investigated, prompting fresh demands for the national rollout of the new system to be halted. It’s something of an irony, given universal credit was introduced in 2013 with the intention of bringing “fairness and simplicity” to Britain’s social security system.

Now, four plaintiffs say the flaw, which relates to the way universal credit monthly payments are calculated, disproportionately affects working parents with children and leaves claimants with a “dramatically fluctuating income” and unable to budget from month to month.

In one case uncovered by the Child Poverty Action Group (CPAG) reported by The Guardian, a family’s monthly payment swung from £1,185 to zero, making budgeting impossible.

One of the women, Danielle Johnson, has claimed that as well as being irrational, the payment system is also discriminatory as it disproportionately affects single parents, who are predominantly female.

Last month, MP Frank Field said the system was driving women in his constituency into sex work in a bid to avoid absolute poverty.

However, responding to claims it was fundamentally flawed, Neil Couling, from the Department for Work and Pensions (DWP), told the court four days ago that the system relied heavily on automation to process claims.

He added would cost “hundreds of millions of pounds” to redesign and he claimed that less than 1% of claimants lost out as a result of the problem. 

Single mother Claire Woods says she was forced to turn down a promotion and use a food bank after issues with the assessment period for the new benefit system made it “impossible to budget”. 

Woods said: “I invested £40,000 in higher education studies so that I could become an occupational therapist and it’s great that I’ve got my degree but I have had to put my career hopes on hold because of universal credit.  

“I am competent managing my own finances and am someone who wants to work for professional and personal development, but the assessment period problem meant my income fluctuated so much that it was impossible to budget.  

“I had to go to a food bank and I took out an advance that I am still paying back. I took two jobs – as a PA and a waitress – which I could do without the education I invested in but which had paydays which don’t clash with my assessment period. I wanted to become free of welfare through my chosen profession but universal credit is holding me back from that.” 

Although Woods had originally wanted a healthcare job, which was relevant to her degree and would move her nearer earnings that would eventually take her out of the social security system altogether, she found that the NHS and other health organisations mostly paid salaries at the end of the working month so she would face the same trap. 

She left the council and initially took two part time jobs, and she now has one part time job.

Woods’ solicitor, Carla Clarke of Child Poverty Action Group (CPAG), said: “Universal credit is promoted as a benefit that incentivises work but in practice its rigid assessment period system undercuts that claim. 

“Our clients have been left repeatedly without money for family essentials simply because of the date of their paydays.

“One of them, for example, did her utmost to find a workaround but ultimately had to decline a promotion in a job with good prospects when her then contract came to an end just to escape the trap.

“We say that the DWP’s refusal to alter our clients’ assessment period dates to avoid this problem discriminates against working parents – one of the two groups who are entitled to a work allowance – as well as being irrational and undermining one of the stated purposes of universal credit – to make sure that ‘work always pays’.”

CPAG argues that the DWP refusal to alter Woods’ assessment period dates to avoid the problem discriminated against working parents – one of the two groups who are entitled to a work allowance – as well as being “irrational and undermining” one of the stated purposes of universal credit: to make sure that ‘work always pays.’  

“This is a fundamental defect in universal credit and an injustice to hard-working parents and their children that must be put right for our clients and everyone else affected,” Clarke added.

Lawyers acting on behalf of Danielle Johnson from Keighley, West Yorkshire, argue that the “irrational” universal credit payment system “has left some families worse off and coping with dramatically fluctuating income from month to month because of its rigid, inflexible assessment system”.

They will also argue that the new benefits system “is discriminatory because it disproportionately affects single parents, who are mainly female”.

Johnson, who will joined at the High Court by three other women in similar situations, is a single mother who works part-time as a dinner lady and relies on universal credit to top up her low income.

She is paid by her employer on the last working day of each month. However, the universal credit assessment periods run from the last day of each month, meaning that if she is paid before the last day of the month she is assessed as having been paid twice that month.

Lawyers from the legal firm supporting  Johnson at LeighDay, say: “This has resulted in her receiving fluctuating universal credit payments throughout the year, making it very hard to budget from one month to the next.”

They add: “It has also caused her to be around £500 worse off annually due to the fact that she is entitled to ‘work allowance’ as a parent.

“The work allowance is a disregard of £198 per month of a parent’s monthly earnings so in months where she is treated as having no earned income, she loses the whole benefit of the work allowance. In months where she is treated as having double income, she does not receive any extra work allowance.”

Johnson said: “I have never been this financially unstable before, to the point of being unable to afford my rent and having to go into my overdraft when buying food. It is getting me into a vicious cycle of debt.

“Universal credit is supposed to be simpler and fairer, but my experience of it is the opposite. I’m doing my best working part-time to make ends meet so that I can look after my daughter.

“I thought the government was supposed to help and support people like me trying to get back to work but I have found it to be the opposite.”

Tessa Gregory, partner at law firm Leigh Day, added: “It is very clear through the multitude of problems reported that universal credit is a broken and ill-thought out system.

“Universal Credit is supposed to “make work pay”. It was purportedly designed to assist those in work being paid on a regular monthly basis, yet flaws in the system mean that our client, who has a regular monthly salary paid like many on the last working day of the month, is struggling to support her family.

“She has been left wondering why she ever went back to work, it is an absurd situation.

“Our client has repeatedly asked the government to address this problem, but they have refused to take action, so our client has been forced to take her case to court.

“It is important that this issue gets addressed as soon as possible as once Universal Credit rolls out fully the numbers affected will run into the tens of thousands if not more.”

Legal aid for social security appeals is almost entirely gone. People adversely affected by unfair decisions are effectively being denied justice.

The legal challenge comes amid mounting concern over universal credit, which campaigners, academics and MPs have described as a “complicated, dysfunctional and punitive” system pushing people into debt and rent arrears.

 


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Government says unpaid carers will be asked to repay up to £50,000 in benefit overpayments

Image result for DWP controversy

A senior MP has condemned ministers’ ‘ineptitude’ after the revelation that people have wrongly received tens of thousands of pounds in error. The huge size of some of the overpayments was exposed by Frank Field, chair of the Commons work and pensions committee. Field has demanded an urgent investigation by the National Audit Office. It is believed that £700m of overpayments have been made in the last five years.

In 2018, tens of thousands of people who receive Carer’s Allowance were overpaid  by amounts ranging from £67 to £48,560, and ministers plan to make many of them repay the money.  

Those among the 6.5 million unpaid carers who earn less than £120 a week after tax and expenses are entitled to receive £64.80 a week in Carer’s Allowance.

However, many had not realised that they completely lose their right to payments if their incomes rise even slightly above the threshold, which meant that many continued to be paid money they are not entitled to. 

That mistake is entirely is down to the government’s complex, opaque rules and incompetence in ensuring that people are actually aware of those rules and importantly, that their own employees are, too.

The Department for Work and Pensions (DWP) said 69,609 people could be asked to repay money through deductions from their welfare support. 

Reports also suggest that 1,000 of them may actually be prosecuted, while up to 10,000 could be forced to pay fines of up to £5,000.

However, it’s difficult to see how a prosecution can proceed when the mistake was down to the incompetence of ministers and staff, and not the result of any intended wrong doing on the part of carers. 

The size of some of the overpayments was revealed in a letter to Field from Peter Schofield, permanent secretary at the DWP. He said that the biggest overpayment in 2017-18 was £41,937, while the year before  at least one carer received £47,761 by mistake.

However, Schofield insisted that the DWP would take into account people’s personal circumstances when trying to reclaim the money, so some people would not be asked to repay anything. 

That anyone at all should face the likely hardship of having to rectify the DWP’s error is grossly unfair. Carers often find it difficult to access jobs with the right number of hours so that they are able to fit work around their caring responsibilities, often turning down extra hours or promotion because of their responsibilities and because they face losing essential support from Carer’s Allowance if they earn anything at all above the earnings limit.

Carers receiving Working Tax Credit because of low earnings are often hit the hardest. If they cut their working hours in order to stay under the Carer’s Allowance earnings limit, they would instead lose thousands of pounds in social security support. The threshold for stopping payments is very small. 

Carers whose earnings rise over the earnings threshold by just a matter of one pence are forced to choose between giving up work, reducing their hours or losing 100% of their lifeline support. While Carer’s Allowance is the lowest benefit of its kind, it can help offset the extra costs of caring and the huge loss of earnings that many carers face. It is hardly fair that just an additional penny in earnings means the loss of £64.80 carers’ support per week. 

Carers make a huge contribution to our society and many are forced to reduce their working hours or leave work altogether to care around the clock for older, disabled or seriously ill loved ones. For carers who are able to combine caring with a few hours of low paid work, the earnings limit has caused them serious problems. 

Yet in 2015, research by Carers UK and Sheffield University found that unpaid carers save the UK £132 billion a year in care costs. The study report, Valuing Carers 2015 – the rising value of carers’ support, was the third in a series of studies looking at the value of carers’ support to the UK economy.

In light of the fact that carers already struggle balancing earning with caring responsibilities and accessing support, and given their enormous contribution to our society and the economy, it seems particularly vindictive of government ministers to threaten them with prosecution and debt recovery because of a mistake their own department has made.

Frank Field said: “It is unfathomable that the DWP could allow someone to accrue close to £50,000 in overpaid Carer’s Allowance. 

“No carer should have to suffer as result of such shocking ineptitude and I believe those overpayments that are the fault of the government’s own incompetence should be written off with the greatest urgency.

“I am referring this gross failure of the DWP, to run properly this aspect of its duties, to the National Audit Office to investigate.”

Field has written to the head of the National Audit Office, Sir Amyas Morse, calling for an urgent investigation into the “truly shocking” matter.

He wrote: “It is deeply concerning that the department has allowed claimants to accrue such eye-wateringly large overpayments – nearly £50,000 at the top of the range. More than just oversight, these figures suggest that systematic failings or gross incompetence – or a combination of the two – are at play.

“It is carers who will bear the brunt of these failings, as the department seeks to claw back money from people who can ill afford to lose it.”

The Work and Pensions Committee has launched an inquiry and an online survey to gather the experience of claimants’ who have been contacted by the DWP about overpayments.

The Committee conducted an inquiry into support for carers including Carer’s Allowance, earlier this year and was deeply disappointed by the Government’s “non-response” received in July – Committee Chair rejects Government “non-response” on support for carers – which the Chair said “has barely paid lip service to an issue that is central to the lives of millions of people. I am sure it can do better for this country’s heroic and undervalued carers as well as their families. So we have taken the unusual step of inviting Government to go away and try again.”

It is now publishing the further response from DWP, as well as follow up on some of the greater remaining concerns, such as the benefit’s in-built “cliff edge”. The Committee is pursuing the possibility of introducing a “taper” such as that which operates for other benefits like Universal Credit, whereby the benefit is reduced rather than ended as earnings increase.

A DWP spokesperson said: “We work extremely hard to make claimants aware of their responsibility to provide correct information when making a benefit claim and to report any change in their circumstances. This includes informing customers of the consequences of incorrect or late reporting of information, including prosecution, financial penalty and debt implications.

“We are also introducing new technology to make it easier to identify and prevent overpayments and improve debt recovery.

“But it is right that we take the appropriate action – we have a duty to the taxpayer to recover outstanding money in all cases of fraud or error.”

Perhaps the DWP need reminding again that carers are also taxpayers, and that there is a fundamental difference between someone setting out to defraud money – which is not what happened here – and a government department behaving recklessly and being too incompetent to trust with our public funds. 

 


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The Choice Architecture Of Poverty – Hubert Huzzah

Special Rapporteur Philip Alston has presented a United Nations Report on Poverty in the UK. The UK Mainstream Media have not really excelled in analysis or presentation of the findings. After almost a decade of Nudge by Press Release, the Guardian has missed the vital message while the BBC has simply recycled old Government Press Releases. The Mainstream Media seem to be shy about embracing the most damning finding of the report.  

In December 2017, Professor Alston carried out a visit to the USA – California, Alabama, Georgia, Puerto Rico, West Virginia, and Washington DC – carrying out the same kind of investigation as has just finished in the UK. The most damning finding of the UN-US Report on Poverty was similar to the most damning finding of the UN-UK Report on Poverty. Had the Guardian excelled in Journalism they might have highlighted that the UN was not simply finding something isolated.

The Guardian and the BBC might not have concluded that the “Government is in denial” because following the implications of the most damning finding is that POVERTY IS A CHOICE 

Both in 2017, in the USA, and in 2018 in the UK, the UN has concluded that poverty is a choice and that Government has made the decision that the only choice on offer is compliance or poverty. The Mainstream Media is failing to follow any kind of analysis that follows the implications of the finding that poverty is a choice and there is no adequate explanation as to why? The notion that poverty is a choice is one that has been foisted onto everybody by the Government since 2010. Welfare Changes have been touted as Reforms which will enable people to choose to lift themselves out of poverty. That choice takes place within the Choice Architecture that has been created by policy.   

In the UN-US Report, Alston states that: 

“ …I heard how thousands of poor people get minor infraction notices which seem to be intentionally designed to quickly explode into unpayable debt, incarceration, and the replenishment of municipal coffers…”  

In the UN-UK Report, Alston similarly finds that:  

One of the key features of Universal Credit involves the imposition of draconian sanctions, even for infringements that seem minor. Endless anecdotal evidence was presented to the Special Rapporteur to illustrate the harsh and arbitrary nature of some of the sanctions, as well as the devastating effects that resulted from being completely shut out of the benefits system for weeks or months at a time. As the system grows older, some penalties will soon be measured in years.”  

The Mainstream Media make no connection between the American Experience and the British Experience. As if there was no connection between US Policy and UK Policy. As if all the shuttling back and forth between Republicans and Conservatives has never had any impact. As if the Minor Infraction Notices are, in no way, related to Benefit Sanctions. There is an almost willing blindness: never stray from the press release.  

The UN Rapporteur was never commissioned to analyse Nudge Theory. The outcome of eight years of Libertarian Paternalism has transformed British Society into something that, the UN recognises, punishes the Poverty it also chooses to deliver. The overwhelming Mainstream Media response has been the Punch and Judy caricature and Poverty Porn Prurience instead of analysis.

How did a Government get to the point where Human Rights are optional or contingent upon being an Employee: this is a question central to the current Welfare Policy which is transforming British Society. It also has an answer that the UN Rapporteur gives: POVERTY IS A CHOICE.  

In putting forward an endless series of press releases and promoting the production of daytime television portraying skivers and strivers the Department of Work and Pensions has been nudging the Mainstream Media into only presenting a narrative where strivers can choose to leave poverty and only skivers would want to avoid that choice. The constant nudging – the well written Press Releases that, frequently, substitute for actual Journalism – has worked. The Government has decided to provide the choice of poverty in a range of ways.  

The Government provision of choices of poverty underline that decisions are placed beyond Claimants in a calculated and cruel manner. The Choice Architecture prevents Claimants from making decisions. Decisions would empower Claimants and also permit innovation. Claimants could determine what is the best course of action. Instead the digital by default process has been used to provide a series of choices without any deviation permitted.

A Claimant who fails to fill in any choice – and fill it in correctly, and fill it in digitally – automatically chooses poverty. Similarly, those who fail to know that choices have been proffered are choosing poverty. The complexity of the choice architecture is overwhelming – even for those engaged in administering it. It is a system that has been designed to deliver poverty – and it has.  

The skills to interact with a State that is being made actively oppositional and digital as the UN-UK Report highlights:   

The reality is that digital assistance has been outsourced to public libraries and civil society organizations. Public libraries are on the frontline of helping the digitally excluded and digitally illiterate who wish to claim their right to Universal Credit.” 

Which is not too distant from the UN-US Report:

Much more attention needs to be given to the ways in which new technology impacts the human rights of the poorest Americans. This inquiry is of relevance to a much wider group since experience shows that the poor are often a testing ground for practices and policies that may then be applied to others. These are some relevant concerns.”  

The truth is, the US and the UK have parallel tracks in overarching Policy objectives: eliminate the State and have the Poor fend for themselves. The emphasis on digital systems as a means to distance Policy Makers from Policy Delivery and to “cut costs” is evident across the US and UK Reports. Pretrial detention has been an area calling for systematic reform in the US for decades. The UN-US Report observes:   

Automated risk assessment tools, take “data about the accused, feed it into a computerized algorithm, and generate a prediction of the statistical probability the person will commit some future misconduct, particularly a new crime or missed court appearance.”

The system will generally indicate whether the risk for the particular defendant, compared to observed outcomes among a population of individuals who share certain characteristics, is ‘high’, ‘moderate’, or ‘low’. Judges maintain discretion, in theory, to ignore the risk score.”  

Which reflects the “automated” nature of the Work Capability Assessment for the Disabled in the UK, previously reported by the UN as being either at risk or actually in the process of grave human rights abuse. In the UN-UK Report the Automated Risk Assessment tools are commented upon:   

But it is clear that more public knowledge about the development and operation of automated systems is necessary. The segmentation of claimants into low, medium and high risk in the benefit system is already happening in contexts such as ‘Risk-based verification.’ Those flagged as ‘higher risk’ are the subject of more intense scrutiny and investigation, often without even being aware of this fact. The presumption of innocence is turned on its head when everyone applying for a benefit is screened for potential wrongdoing in a system of total surveillance. And in the absence of transparency about the existence and workings of automated systems, the rights to contest an adverse decision, and to seek a meaningful remedy, are illusory.”   

Which underlines that the Government of the day – regardless of political inclination – are delivering Policy Objectives without transparency, clarity or even sufficient information to determine what the Policy Objectives are. When policy objectives only become clear through outcomes, there is a clear suspicion that Democracy has been subverted. Which is the general direction the UN-US and UN-UK Reports indicate. There are serious Human Rights failings but also a serious democratic deficit arising from the idea that POVERTY IS A CHOICE.   

The use of Computer Systems is not neutral or innocent. The Special Rapporteur notes that:   

it is worrying that the Data Protection Act 2018 creates a quite significant loophole to the GDPR for government data use and sharing in the context of the Framework for Data Processing by Government.”  

Which is not simplistically that UK Government Departments have “rights” to trawl through personal data but that it is increasingly criminalised for Claimants – more than eight million people – to object to that trawl or to object to the sharing of data with Commercial Contractors. Those same Contractors being Employers and the inevitable consequence of data sharing being to put Claimants at a distinct power and negotation disadvantage when contracts of Employment are considered. Because the UK Government Departments have zero obligation to ensure Claimants get the best possible job. Simply that Claimants flow off the Register.   

Which is how POVERTY IS A CHOICE is being delivered from Government to the People. Interaction with the Department of Work and Pensions has become the single most corrosive interaction with Government that People can have. The design of benefits has become an exercise in delivering the ideological convictions of the Government regardless of the practicality of those convictions. For the Conservative Government, that conviction is that people should be in poverty unless they are Employed. Which ensures the disabled, parents, students, pensioners, entrepreneurs in start-up and Carers are locked into a combative process in which the only exit is to choose poverty.  

The UK Mainstream Media is not really exploring this dimension of the UN Rapporteur’s commentary. It leads to uncomfortable terrain for any Journalist. Not least, the intimate connection between the Republicans in the US and the Conservatives in the UK. The ideological convergence of the Conservatives with the Republicans has delivered a wide range of public policy disasters. The Department of Work and Pensions has been allowed carte blanche to redesign the Welfare State based on the Workfare preferred by the Republicans.

The Nudge Unit has crossed, and recrossed, the Atlantic ensuring that the Conservative’s historic prejudice for “the right to manage” has become inflated. Including all aspects of social existence into contractual relationships between the Government and the People. Dating back to Ronald Reagan’s 1985 “Contract with America” speech where everything was reduced to legislation as contract and society became replaceable with a well ordered business.

The UK Mainstream Media is not really capable of exploring these ideas because, quite simply, to do so is to undermine the interests of their owners. Without any need for coercion, the Government is capable of nudging the Media into endlessly propagating the POVERTY IS A CHOICE agenda.  

Despite the comprehensive nature of the UN Rapporteurs investigations and reporting, there is little about the UN-UK Report that is actually surprising. The connection between the UN-UK and UN-US Reports might well be a surprise to the Media. Realistically, there should be no surprise at all. The Extremists of The Atlantic Bridge, The Heritage Foundation and all the myriad of Far Right Think Tanks since Reagan, have all been promoting the same ideas both sides of the Atlantic. They have all been ensuring that the tools exist for Government to make only once choice possible for the People and that choice is Poverty.  

UN-UK Report  

UN-US Report 

 Picture: Mika Rottenberg, Bowls Balls Souls Holes, Video Installation Rose Art Museum Waltham USA (2104). 

This article was written by Hubert Huzzah.


 

 

Universal Credit is a ‘serious threat to public health’ say public health researchers

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Some citizens in the UK have ended up in an unprecedented and darkly absurd position of having to explain and prove over and over to a cruel and harmful government that their cruel and harmful policies are cruel and harmful.

Recent research has verified that Conservative welfare policies are damaging, yet the government simply denies this is the case.

New research conducted for Gateshead council highlights that Universal Credit, another cruel and harmful policy, is detrimental to peoples’ mental health, because it increases depression and anxiety. 

Public health researchers say that Universal credit has become a serious threat to public health after the study revealed that the stress of coping with the new benefits system had so profoundly affected peoples’ mental health that some considered suicide.

The researchers found overwhelmingly negative experiences among vulnerable citizens claiming Universal Credit, including high levels of anxiety and depression, as well as physical problems and social isolation, all of which was exacerbated by hunger and destitution.

The Gateshead study comes as the United Nation’s special rapporteur on extreme poverty and human rights, Philip Alston, prepares to publish a report of the impact of Conservative austerity in the UK. Alston has been collecting evidence and testimonies on the effects of the welfare reforms, council funding cuts, and Universal Credit during a two-week visit of the UK. 

This research is highly likely to raise fresh calls for the system’s rollout to be halted, or at the very least, paused to attempt to fix the fundamental design flaws and ensure adequate protections are in place for the most vulnerable people claiming it.

Approximately 750,000 chronically ill and disabled claimants are expected to transfer on to Universal Credit from 2019. Yet earlier this year, the first legal challenge against Universal Credit found that the government unlawfully discriminated against two men with severe disabilities who were required to claim the new benefit after moving into new local authority areas. Both saw their benefits dramatically reduced when they moved to a different Local Authority and were required to claim Universal Credit instead of Employment and Support Allowance.

The study findings are yet another indication of how unfit for purpose Universal Credit is. Six of the participants in the study reported that claiming Universal Credit had made them so depressed that they considered taking their own lives. The lead researcher, Mandy Cheetham, said the participant interviews were so distressing she undertook a suicide prevention course midway through the study.

The report says: “Universal Credit is not only failing to achieve its stated aim of moving people into employment, it is punishing people to such an extent that the mental health and wellbeing of claimants, their families and of [support] staff is being undermined.”

One participant told the researchers: “When you feel like ‘I can’t feed myself, I can’t pay my electric bill, I can’t pay my rent,’ well, all you can feel is the world collapsing around you. It does a lot of damage, physically and mentally … there were points where I did think about ending my life.”

An armed forces veteran said that helplessness and despair over Universal Credit had triggered insomnia and depression, for which he was taking medication. “Universal Credit was the straw that broke the camel’s back. It really did sort of drag me to a low position where I don’t want to be sort of thrown into again.”

Unsurprisingly, the report concludes that Universal Credit is actively creating poverty and destitution, and says it is not fit for purpose for many people with disabilities, mental illness or chronic health conditions. It calls for a radical overhaul of the system before the next phase of its rollout next year.

Alice Wiseman, the director of public health at Gateshead council, which commissioned the study, said: “I consider Universal Credit, in the context of wider austerity, as a threat to the public’s health.” She said many of her public health colleagues around the country shared her concerns.

Wiseman said that Universal Credit is “seriously undermining” efforts to prevent ill-health in one of the UK’s most deprived areas.

She added “This is not political, this is about the lives of vulnerable people in Gateshead. They are a group that should be protected but they haven’t been.”

The qualitative study of 33 people claiming Universal Credit and 37 welfare advice staff was carried out by Teesside and Newcastle university academics between April and October. It focused on those claimants with disabilities, mental illness and long-term health conditions, as well as homeless people, veterans and care leavers.

The respondents found that compared to the legacy benefits, Universal Credit is less accessible, remote, inflexible, demeaning and intrusive. It was less sensitive to claimants’ health and personal circumstances, the researchers said. This heightened peoples’ anxiety, sense of shame, guilt, and feelings of loss of dignity and control.

The Universal Credit system itself was described by those claiming it as dysfunctional and prone to administrative error. People experienced the system as “hostile, punitive and difficult to navigate,” and struggled to cope with payment delays that left them in debt, unable to eat regularly, and reliant on food banks.

The government claimed that people making a new claim are expected to wait five weeks for a first payment. That’s a long time to wait with no money for basic living requirements. However, the average wait for participants on the study was seven and a half weeks, with some waiting as long as three months. Researchers were told of respondents who were so desperate and broke they turned to begging or shoplifting.

Wiseman made a point that many campaigners have made, and said that alongside the human costs, universal credit was placing extra burdens on NHS and social care, as well as charities such as food banks. It also affected the wellbeing of advice staff, who reported high stress levels and burnout from dealing with the fallout on those claiming the benefit.

Guy Pilkington, a GP in Newcastle said that the benefits system had always been tough, but under Universal Credit, those claiming faced a higher risk of destitution.

“For me the biggest [change] is the ease with which claimants can fall into a Victorian-style system that allows you to starve. That’s really shocking, and that’s new,” he said.

A spokesperson for the Department for Work and Pensions (DWP) said: “This survey of 33 claimants doesn’t match the broader experience of more than 9,000 people receiving Universal Credit in Gateshead, who are taking advantage of its flexibility and personalised support to find work.

“We have just announced a £4.5bn package of support so people can earn £1,000 more before their credit payment begins to be reduced, and we are providing an additional two weeks’ payments for people being moved from the old system.”

That will still leave people with nothing to live on or to cover their rent for at least three weeks. The study focused on those less likely to be able to work – people with disabilities, mental illness or chronic health conditions. The DWP failed to recognise that this group have different needs and experiences than the broader population, which leave them much more likely to become vulnerable when they cannot meet their needs.

Vulnerable people are suffering great harm and dying because of this government’s policies. It is not appropriate to attempt to compare those peoples’ experiences with some larger group who have not died or have not yet experienced those harms. Where is the empirical evidence of these claims, anyway? Where is the DWP’s study report?

Callousness and indifference to the suffering and needs of disadvantaged citizens – disadvantaged because of discriminatory policies – has become so normalised to this government that they no longer see or care how utterly repugnant and dangerous it is.

The DWP are not ‘providing’ anything. Social security is a publicly funded safety net, paid for by the public FOR the public. It’s a reasonable expectation that citizens, most of who have worked and contributed towards welfare provision, should be able to access a system of support when they experience difficulties – that is what social security was designed to provide, so that no one in the UK need to face absolute poverty. It’s supposed to be there so that everyone can meet their basic survival needs.

What people in their time of need find instead is a system that has been redesigned to administer punishments, shame and psychological abuse. What kind of government kicks people hard when they are already down?

Imagine what that level of state abuse does to a person psychologically. 

Techniques of neutralisation and gaslighting 

The government’s denial and indifference to the needs of others are part of a wider, deplorable gaslighting strategy, which strongly implies that the cruel and harmful policy consequences are actually intended and deliberately inflicted.

I once compared the relationship between marginalised social groups, such as the disabled community, and the state with being in an abusive relationship from which you cannot escape. 

The Conservatives have persistently claimed, contrary to the ever-mounting evidence, that there is no ‘causal link’ between their punitive welfare policies and social harm, such as increases in premature deaths, suicides, distress, poverty, destitution, physiological and psychological harm.

The denials are grounded in techniques of neutralisationaimed at discrediting citizens’ accounts of their own experience. Cruel and harmful policies are described as “support”, “help” and “incentivising behavioural change”, for example.

Techniques of neutralisation provide simple and powerful rationales for why some people violate society’s norms, and they are used to explain to perpetrators and others why it was “okay” to act immorally. Matza and Sykes identified five separate techniques of neutralisation:

1) Denial of responsibility. (Saying repeatedly “There is no causal link established between policy and harm”, for example)

2) Denial of injury.  (Claiming that any abuse causing injury is somehow ultimately in the person’s ‘best interests’. Claiming that any evidence presented of injury is ‘just anecdotal evidence’, and dismissing it, for example).

3) Blaming the victim. (Saying people are ‘scroungers’, ‘parked on benefits’, ‘cognitively biased’, part of a ‘something for nothing culture’, and “we need to ‘change their behaviours’,”for example)

4) Condemning the condemners. (Calling those who challenge the government ‘scaremongers’, or implying they are liars, for example)

5) Appealing to a higher loyalty. (The ‘tax payer’, the ‘national interest’, the economy, ‘the best interests of the individual’. 

Within an abusive relationship, this kind of constant denial – gaslighting – blurs normative boundaries, and what we once deemed unacceptable somehow becomes an everyday event. But gaslighting is a strategy of abuse that is carefully calculated to discredit your account, and to manipulate you into doubting your own perceptions, accounts and experiences. 

The government have normalised cruelty and have fostered an abusive relationship with some of the poorest citizens – those historically most vulnerable to political abuse. That abusive relationship reflects a profoundly authoritarian imbalance of power and traditional Conservative prejudice, contempt and malice towards the most systematically disadvantaged citizens.

Watch Sarah Newton use techniques of neutralisation to discredit the robustly evidenced account of the United Nations, opposition shadow ministers and ultimately, the accounts of the citizens who they represent – many of whom submitted evidence of the harm they have experienced because of government policy to the United Nations.

If you have experienced any of the issues discussed here, or if you are feeling low or distressed for any reason, please talk to someone. The Samaritans can be contacted on 116 123 or email jo@samaritans.org. 

Update Philip Alston, the UN special rapporteur on extreme poverty and human rights, has published his report following his visit to the UK . In it, he also discusses a government ‘denial.’  

He says: “The Government has remained determinedly in a state of denial. Even while devolved authorities in Scotland and Northern Ireland are frantically trying to devise ways to ‘mitigate’, or in other words counteract, at least the worst features of the Government’s benefits policy, Ministers insisted to me that all is well and running according to plan. 

“Some tweaks to basic policy have reluctantly been made, but there has been a determined resistance to change in response to the many problems which so many people at all levels have brought to my attention.”

You can read the report in full here: https://www.ohchr.org/Documents/Issues/Poverty/EOM_GB_16Nov2018.pdf

I will write an analysis of the report in due course.

 



My work is unfunded and I don’t make any money from it. This is a pay as you like site. If you wish you can support me by making a one-off donation or a monthly contribution. This will help me continue to research and write independent, insightful and informative articles, and to continue to support others.

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62 year old woman faces losing home because of unfair and pointless welfare sanction

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A 62-year-old woman says that she’s been forced to leave her home after the Department for Work and Pensions (DWP) sanctioned her – cut her benefits – for turning up late for a meeting.

Faith Hurford, from Hillesley near Stroud, who suffers with a range of medical conditions that haven’t been disclosed, says the benefit sanction means she is unable to afford the rent and has to move away from her home because of the DWP’s callous and unfair decision.

The Stroud News and Journal reports that despite her health problems, Faith had to travel a staggering 15 miles (one way) to attend a meeting about her Universal Credit claim in Stroud.

Due to heat, the sheer distance she had to cycle, as well as her chronic health issues, Faith was forced to stop and take a break at a Sainbury’s store to recover her energy, before continuing the arduous journey.

This meant that Faith turned up late for the appointment and was subsequently sanctioned for failing to turn up for the meeting on time.

Faith described the sanction as “unlawful” and tried to appeal the harsh ruling, but the loss of benefit meant she could no longer afford the rent and has to move away to Nailsworth.

“I had been a supporter of Universal Credit before – it helps you look for work and it’s simpler to use – but that sanction was unlawful.

“By the time I got to Sainsbury’s after hours of cycling I couldn’t go any further, I was completely dazed.”

Faith says that she tried to explain the reason for her lateness but her reasonable appeals fell on deaf ears.

She says that the sanction has cost her nearly £200 in lost benefit payments.

“You need to take a person’s circumstances into account. The effort I went to was not recognised in any shape or form.

“I can’t recover from a sanction like that, I’m on a shoestring. I grow my own veg, I’ve reduced my food intake. There’s nothing else I can do,” she said, adding “I’ve fallen behind on rent and I can’t afford this place now. I’ve got to move out.”

Faith is currently looking for a new place to live while waiting to hear back about an appeal lodged with the social security tribunal.

Sanctions on welfare payments which have caused thousands of claimants to fall into hardship are being handed out without evidence that they actually work. The Department for Work and Pensions doesn’t even monitor and analyse its own data, making claims that sanctions “work” from an evidence-free zone. 

There is no evidence that sanctions work as the government insists they do

A report published earlier this year by the WelCond project, led by the University of York and involving the Universities of Glasgow, Sheffield, Salford, Sheffield Hallam and Heriot-Watt, analysed the effectiveness, impact and ethics of welfare conditionality from 2013 to 2018.

The findings of this report’s adds more evidence to a substantial and growing body that welfare conditionality within the social security system is largely ineffective and that benefits sanctions have severe and negative impacts on personal, financial and health outcomes, including mental health.

The report suggests that too much emphasis is being placed on negative consequences for not being engaged in job-seeking activities and not enough emphasis on more positive and individualised work-shaping activities to help people access work that they wish to be in.

In 2016 the British Psychological Society (BPS) and a range of allied organisations (British Association for Behavioural and Cognitive Psychotherapies (BABCP), British Association for Counselling and Psychotherapy (BACP), British Psychoanalytic Council (BPC)), stated a very clear position against welfare sanctions, in response to reports of a lack of efficacy and potential harm to mental health, as outlined in their 2016 joint response

The organisations say that key concerns remain that not only is there no clear evidence that welfare sanctions are effective, but that they can have such negative effects on a range of outcomes including mental health.

They go on to say “We continue to call on the Government to address these concerns, investigate how the jobcentre systems and requirements may themselves be exacerbating mental health problems and consider suspending the use of sanctions subject to the outcomes of an independent review.”

The collective organisations – BPS, BACP, BPC, BABCP and UKCP – are the UK’s leading professional associations for psychological therapies, representing over 110,000 psychologists, counsellors, psychotherapists, psychoanalysts and psychiatrists who practise psychotherapy and counselling.

In 2016, even the government’s technocratic team of behavioural economists and policy gurus at the Nudge Unit did a u-turn on benefit sanctions. They said that the state using the threat of benefit sanctions may be counterproductive”. The idea of increasing welfare conditionality and enlarging the scope and increasing the frequency of benefit sanctions originated from neoliberal behavioural economics theories of the Nudge Unit in the first place. 

It’s difficult to imagine how punitive sanctioning – psycho-coercion – which entails the removal of people’s lifeline income which was originally calculated to meet the costs of only basic survival needs, such as for food, fuel and shelter, could ever be seen as “helping people into work.” 

Commons Select Committee inquiry into sanctions 

The Work and Pensions Committee has published a report this month regarding the findings of an ongoing inquiry into welfare conditionality and sanctions. They say: 

“The human cost of continuing to apply the existing regime of benefit sanctions – the ‘only major welfare reform this decade to have never been evaluated’ – appears simply too high. The evidence that it is achieving its aims is at best mixed, and at worst showing a policy that appears ‘arbitrarily punitive’.”  

The Committee say in their report that the Coalition Government “had little or no understanding of the likely impact of a tougher sanctions regime” when it introduced it in 2012 with the stated aim, as the NAO describes it, that “benefits, employment support and conditions and sanctions together lead to employment.”

At that point, the Government promised to review the reform’s impact and whether it was achieving its aims on an ongoing basis. But six years later, Government “is [still] none the wiser.”

In their report, the select committee urge the government to reassess the sanctions regime. However, there is no evidence they ever assessed it in the first place.

Commenting on the Work and Pensions Committee inquiry, Chair Frank Field MP says:

“We have heard stories of terrible and unnecessary hardship from people who’ve been sanctioned. They were left bewildered and driven to despair at becoming, often with their children, the victims of a sanctions regime that is at times so counter-productive it just seems pointlessly cruel.

While none of them told us that there should be no benefit sanctions at all, it can only be right for the Government to take a long hard look at what is going on. If their stories were rare it would be unacceptable, but the Government has no idea how many more people out there are suffering in similar circumstances. In fact, it has kept itself in the dark about any of the impacts of the major reforms to sanctions introduced since 2012.

The time is long overdue for the Government to assess the evidence and then have the courage of its reform convictions to say, where it is right to do so, ’this policy is not achieving its aims, it is not working, and the cost is too high: We will change it.”

Yes, we must.

Related

Pointlessly cruel’ sanctions regime must be reassessed, says Commons Select Committee

New research shows welfare sanctions are punitive, create perverse incentives and are potentially life-threatening


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‘Pointlessly cruel’ sanctions regime must be reassessed, says Commons Select Committee

A protest in Kentish Town, north-west London, against benefit cuts and sanctions.

The Work and Pensions Committee has published a report this month regarding the findings of an ongoing inquiry into welfare conditionality and sanctions. 

The Committee says in the report:“Of all the evidence we received, none was more compelling than that against the imposition of conditionality and sanctions on people with a disability or health condition. It does not work.

“Worse, it is harmful and counterproductive. We recommend that the Government immediately stop imposing conditionality and sanctions on anyone found to have limited capability for work, or who presents a valid doctor’s note (Fit Note) stating that they are unable to work, including those who present such a note while waiting for a Work Capability Assessment. Instead, it should work with experts to develop a programme of voluntary employment support.” 

The report concludes that “The human cost of continuing to apply the existing regime of benefit sanctions – the ‘only major welfare reform this decade to have never been evaluated’ – appears simply too high. The evidence that it is achieving its aims is at best mixed, and at worst showing a policy that appears ‘arbitrarily punitive’.” 

The Committee says the Coalition Government “had little or no understanding of the likely impact of a tougher sanctions regime” when it introduced it in 2012 with the stated aim, as the NAO describes it, that “benefits, employment support and conditions and sanctions together lead to employment.”

At that point, the Government promised to review the reform’s impact and whether it was achieving its aims on an ongoing basis. But six years later, Government “is none the wiser.” 

As one expert witness suggested, “if it was not for the embarrassment, the Government would have suspended Employment and Support Allowance (ESA) sanctions altogether as soon as that National Audit Office finding came out that sanctioned ESA claimants were less likely to get into work.”

Some groups ‘disproportionately vulnerable’

The report highlights that single parents, care leavers and people with a disability or health condition are disproportionately vulnerable to and affected by the withdrawal of their benefit. The Committee says that “until the government can show unequivocally that sanctions actually help to move these claimants into work, it cannot ‘justify these groups’ continued inclusion in the sanctions regime’.

In the meantime, and until that positive link is proven, people who are the responsible carer for a child under the age of 5, or a child with demonstrable additional needs and care costs, and care leavers under the age of 25, should only ever have a maximum of 20% of their benefit withheld.”

The report authors go on to say: “The Department for Work and Pensions (DWP) must urgently evaluate the effectiveness of the reforms to welfare conditionality and sanctions since 2012, including their impact on people’s financial and personal well-being.

“Until the Government can point to ‘robust evidence that longer sanctions are more effective’, higher level sanctions should be reduced to 2, 4 and 6 months for first, second and subsequent failures to comply”.

The report goes on to say: “Government should also “immediately stop imposing conditionality and sanctions on anyone found to have limited capability for work, or who presents a valid doctor’s note” stating they cannot work. Instead, it should work with experts to develop a programme of voluntary employment support for those who can get into work.”

Sanctions have no effect on in-work claimants

Randomised Controlled Trials have shown sanctions had no effect on in-work claimants’ outcomes, and work coaches are not yet equipped to get enough decisions right. Sanctioning people who are working is too great a risk for too little return. DWP should not proceed with conditionality and sanctions for in-work claimants until full roll-out of Universal Credit is complete, and even then, only introduce sanctions on the basis of robust evidence that it will be effective at driving progress in work. 

Comment from Work and Pensions Committee Chair Frank Field MP

 “We have heard stories of terrible and unnecessary hardship from people who’ve been sanctioned. They were left bewildered and driven to despair at becoming, often with their children, the victims of a sanctions regime that is at times so counter-productive it just seems pointlessly cruel.

While none of them told us that there should be no benefit sanctions at all, it can only be right for the Government to take a long hard look at what is going on. If their stories were rare it would be unacceptable, but the Government has no idea how many more people out there are suffering in similar circumstances. In fact, it has kept itself in the dark about any of the impacts of the major reforms to sanctions introduced since 2012.

The time is long overdue for the Government to assess the evidence and then have the courage of its reform convictions to say, where it is right to do so, ’this policy is not achieving its aims, it is not working, and the cost is too high: We will change it.”

The Work and Pensions Committee are currently looking into the Government’s plans for moving people who are already claiming benefits onto Universal Credit, which merges six “legacy” benefits into one, single, monthly household payment. The Government calls this “managed migration”. The Committee is also looking at the impact of the changes announced by the Government in the 2018 Budget.

Most recent evidence session: 24 Oct 2018 – Work and Pensions Committee – oral evidence | PDF version (268 KB) | Published 27 Oct 2018.

Evidence given by Steven McIntosh, Director of UK Poverty Policy, Advocacy and Campaigns, Save the Children, Dalia Ben-Galim, Director of Policy, Gingerbread, Joe Shalam, Researcher, Centre for Social Justice, Jonathan Broadbery, Head of Policy and External Relations, National Day Nurseries Association Gaynor Rowles, Hairdresser, Lucy Collins, Beauty technician, Vikki Waterman, Administrator, Thuto Mali, full time mum.

Watch this evidence session.

 


Related

New research shows welfare sanctions are punitive, create perverse incentives and are potentially life-threatening

 

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