UNISON Scotland Welfare Seminar 2018 Universal Credit & Welfare Activists briefing Scott Donohoe – Chair SHIWG

Introduction The new benefit, Universal Credit (UC) is gradually replacing income-related Jobseeker’s Allowance, Housing Benefit, Working Tax Credit, Child Tax Credit, income-related Employment and Support Allowance and Income Support. Its aim was supposedly to simplify the benefits system and “make work pay”. The government gave assurances that no one would be worse off under the new system

Context There have been massive changes and huge cuts to benefits and tax credits as a result of the “welfare revolution” started by the Tory-led coalition government and continued under subsequent Conservative administrations. The reforms are the most fundamental changes to the social security system for 60 years and are causing hardship and misery among both unemployed and working households. 


Context (2) Public sector budgets cut Homelessness reaching epidemic levels Welfare Reform A climate of fear Foodbanks commonplace Claimant Suicide cases have rocketed Gap between rich & poor widening The poor & vulnerable in society

UC Roll out Universal Credit (UC) is being introduced in stages across the UK by postcode area. The new benefit was originally due to be phased in over four years between 2013 and 2017, but it is running way behind schedule and is not now expected to be fully implemented until 2022 (2025??) 
When a postcode moves to UC, claimants can no longer make a new claim for benefits like tax credits or Housing Benefit. 
 Those making a new claim for benefits, and those who are already claiming benefits but have a change in their circumstances, may have to claim UC at some point before December 2018 when the roll-out for new claims is due to cover the whole of the UK.
 The exceptions to this rule are families with three or more children making a new benefit claim. They can continue to make new claims for existing benefits and tax credits until at least February 2019.


UC Rollout (2) Once the full roll-out for new claims is complete, existing benefit claimants who have not had a change in circumstances will be moved over to UC at some point between July 2019 and March 2022. This is known as “managed migration”.
 Anyone who has a change of circumstance before that point will be moved earlier. This is known as “natural migration”. 
 UC full service areas are where UC is available to all types of claimants. You can find out if you are in a UC full service area using a postcode checker at:https://universalcreditinfo.net.
 In live service areas, you cannot make a new claim to UC, but may be able to claim other benefits instead.
 Eventually all UC claims will be on the full service and you will have a UC online account.


Claiming UC People on low incomes and those out of work may be able to claim UC. Claims are made online by households rather than individuals and the amount awarded depends on the income and circumstances of all the household members. The government advises claimants they will need the following information to make a claim:
 proof of identify such as driving licence, passport or debit or credit card
 bank, building society or credit union account details 


Claiming UC (2) an e-mail address National Insurance number information about housing, such as the amount of rent
 details of income, such as payslips
 details of savings and any investments, such as shares or a property that is rented out details of childcare costs if the claim includes these
 After making an application, claimants must contact their local Jobcentre Plus within seven days to make an appointment with a work coach


UC Payment levels

UC Payment times Research by the charity Citizens Advice released in July 2017, found that over a third (39%) of people turning to it for help with UC were waiting more than the six weeks it should have taken to receive their first payment, with just over one in nine (11%) waiting over 10 weeks.
 Over half (57%) said they had to borrow money while waiting for their first payment and while a quarter (27%) were able to get an Advance Payment to help tide them over, two in five (40%) said they were not aware that this help was available.
 Between 1 April and 30 September 2017, the Trussell Trust’s foodbank network distributed 586,907 three-day emergency food supplies to people in crisis, this compares to 519,342 during the same period a year before — a 13% increase. 
 Foodbanks in areas of full UC roll-out for six months or more have seen a 30% average increase, compared to a year before.


Creating Chaos in family finance UNISON report modelled a number of examples and showed how the “pay-day effect” can mean that claimants do not receive the UC they should be receiving. In one case, a worker being paid on the last Thursday of the month lost £683.76 a year or almost 7% of the UC they would have received without this effect. Employers paying their employees at Christmas will have the same effect. The report states: “This will have the same effect and will result in people facing financial difficulties just after Christmas as well as possibly being short changed by Universal Credit at the time of the year when family finances are stretched hardest.” Report has called on the DWP to use a standard UC assessment period that begins on the first of each month and ends on the last day of each month, or to give people the right to amend their assessment period so the problem does not arise.

Social Security service The Scotland Act 2016 gave the Scottish government new powers relating to social security, including responsibility over certain benefits. 
 Ill Health and Disability Benefits
 Disability Living Allowance
 Personal Independence Payment
 Attendance Allowance Severe Disablement Allowance
 Industrial Injuries Disablement Benefit


Social Security service (2) Carers Allowance
 Sure Start Maternity Grant (replaced by the Best Start Grant)
 Funeral Expenses Cold Weather Payments and Winter Fuel Payments
 Discretionary Housing Payments
 Some powers in relation to Universal Credit (for example, the ability to split payments between household members)


Reserved Benefits Universal Credit Contributory Job Seeker’s Allowance Contributory Employment Support Allowance
 Child Benefit
 Maternity Allowance
 State Pension
 Pension Credit
 Bereavement benefits.
 This year, the Scottish government used its new social security powers for the first time to increase the frequency of Universal Credit payments and give claimants in full service areas the option of being paid fortnightly instead of monthly.


UC key points for Activists Those making a new claim for benefits and those who are already claiming but have a change in their circumstances, may have to claim Universal Credit (UC) at some point before December 2018, when the roll-out for new claims is due to cover the whole of the UK
 Families with three or more children making a new benefit claim can continue to make new claims for existing benefits until at least February 2019
 A UC full service area is where UC is available to all types of claimants — there is a postcode checker to find out whether claimants are in a full service area or live service area. You cannot make a new claim to UC in a live service area, but may be able to claim other benefits instead
 Unions and other organisations are calling on the government to “pause and fix” UC


Key points for Activists (2) Most working people who are currently eligible for tax credits will be much worse off under UC Transitional Protection is only available for people who have no change in their circumstances that would trigger a move to UC and are therefore moved on to UC by way of a “managed migration” 
 Workers who are paid on a given day of the month, such as the last Thursday, or are paid on a two-weekly or four-weekly basis could see a reduction in the amount of UC they receive 
 For the first time ever, people in work could face being sanctioned (having their benefits stopped or reduced) if they do not prove to the job centre that they are searching for better paid work or more hours, due to “in-work conditionality” 
 


Further information Unison.org.uk tuc.org.uk cpag.org.uk Lrd.org.uk Gain4u.org.uk

Questions ?