All Change The Impact of Universal Credit in Southwark and Lambeth

Important research UC is the biggest change to the UK benefits system Huge concern and coverage; Trussell Trust recent research 52% increase in use of foodbanks in longer term UC areas Our research highlights UC experience of local people and local agencies in early roll-out area Submitted as evidence to Work and Pensions Select Committee

Background

Background Part of a larger UC Mitigation Project, drawing together the main advice agencies in Southwark Funded by United St Saviour’s Charity – our first strategic grant - and Walcot Foundation 143 claimants and 72 community agencies responded between spring and autumn 2018, as the ‘full service’ rolled- out across the two boroughs

Agencies Involved United St Saviour’s Charity: initiator, funder (service delivery & research) Southwark Law Centre: lead project partner, consultancy for frontline workers, complex cases by referral Citizens Advice Southwark: general advice Advising Communities: research lead Walcot Foundation: research funder Others – Community Southwark, LB Southwark, SGTO

Claimant Findings

Claimant respondents All 143 were seeking advice (potential research bias) 66% social housing tenants 57% single or single parents 42% unemployed and 16% were in part-time work 61% declared disabilities 75% non-white British. 39% English not first language 40% no personal internet access. Most not internet confident.

Claimant Impact 57% respondents expressed negative/very negative UC experience This rose to 74% in Southwark but experience more mixed in Lambeth with 31% negative and 38% ‘no impact’ (maybe due to later introduction)

Most Affected Groups most impacted people with disabilities women with children & required to work lone parents people with English as a second language self-employed those working in low paid fluctuating hours EU nationals

Reasons for Negative Impact Impersonal nature of UC Claims and transactions being on-line Poor experience of Job Centre support Debt and rent arrears: caused by payment delays, reduced allowances, payments not going to landlord Lack of understanding of UC: advance payments, need to claim CTS

Claimant support needs 81% said they would have been in a worse position without advice agency support Sometimes in need of in-depth and long term support which the agency unable to offer (funding & resource constraints) Personal budgeting and digital support alone (the DWP funded Universal Support offer) is not enough Consistent, holistic and personal support critical to deal with the complexity of making and managing claims

Agency Findings

Local agency impact 72 agencies responded 94% rated UC as having negative overall impact 91% said has created greater financial difficulties for clients 85% - negative impact on mental health clients - angry and distressed (on mental health of agency staff also) 72% - that risk of eviction and homelessness was heightened Local agencies picking up the pieces and insufficiently informed and equipped

Conclusions

Main Conclusions Significant numbers are struggling with introduction of UC The admin. challenges resulting in widespread emotional/ financial stress – most felt by vulnerable groups Stretched local agencies picking up the pieces. Emotional stress for frontline staff too. Claim complexity demands flexible, holistic, personal support. The impersonal nature of support is exacerbating issues. Risk that new, DWP-funded service is inadequate.

Recommendations Provide enhanced, flexible and locally appropriate support Ongoing, and appropriate to local needs/circumstances Funding for challenges and tribunals Ongoing for some, not just for upfront, making the claim Provide for holistic and personalised support in community settings by locally embedded groups

Recommendations 2. Maintain digital support and money management support Local Co-ordination and Information Exchange Sustain the strong partnerships to share knowledge and enable referrals to be made: e.g. Southwark Universal Credit Network Online information for frontline agencies detailing locally available services for claimants and how to access them Training and support for vol. sector and Job Centre staff

Recommendations Inform clients and coordinate UC with other benefits Statutory agencies should provide better information on UC and other benefits: e.g. Council Tax Support and UC advances Systematic Local Learning and Research

“On the old system you used to call them and they could sort it out and you knew what you were dealing with. It’s horrendous now, UC system is so impersonal, all the onus is on the individual to resolve issues. Everyone complained before that they didn’t have enough money, but now there’s less”.

For full report: www.ustsc.org.uk/research/