This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/society/2017/oct/02/universal-credit-why-problem-can-benefits-system-be-fixed
The article has changed 8 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Universal credit: why is it a problem and can the system be fixed? | Universal credit: why is it a problem and can the system be fixed? |
| (4 months later) | |
| The government says it is rolling out its new benefits scheme – but critics say it is seriously flawed and increases rent arrears | |
| Patrick Butler Social affairs editor | |
| Mon 2 Oct 2017 14.11 BST | |
| Last modified on Mon 27 Nov 2017 16.05 GMT | |
| Share on Facebook | |
| Share on Twitter | |
| Share via Email | |
| View more sharing options | |
| Share on LinkedIn | |
| Share on Pinterest | |
| Share on Google+ | |
| Share on WhatsApp | |
| Share on Messenger | |
| Close | |
| What is universal credit? | What is universal credit? |
| Universal credit is the supposed flagship reform of the benefits system, rolling together six benefits (including unemployment benefit, tax credits and housing benefit) into one, online-only system. The theoretical aim, for which there was general support across the political divide, was to simplify the benefits system and increase the incentives for people to work, rather than stay on benefits. | Universal credit is the supposed flagship reform of the benefits system, rolling together six benefits (including unemployment benefit, tax credits and housing benefit) into one, online-only system. The theoretical aim, for which there was general support across the political divide, was to simplify the benefits system and increase the incentives for people to work, rather than stay on benefits. |
| How long has it been around? | How long has it been around? |
| The project was legislated for in 2011 under the auspices of its most vocal champion, the 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 have seen it fall at least five years behind schedule. | The project was legislated for in 2011 under the auspices of its most vocal champion, the 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 have seen it fall at least five years behind schedule. |
| Why are critics calling for a pause in its rollout? | Why are critics calling for a pause in its rollout? |
| The benefit has, in its latest iteration, been rolled out slowly – at a rate of about five jobcentre areas a month in selected areas since May 2016. About 600,000 people are currently on the benefit. But the government has decided to push ahead with an accelerated rollout of 50 jobcentre areas a month from October. Critics say ministers need to slow down to review and fix serious design flaws in the system. | The benefit has, in its latest iteration, been rolled out slowly – at a rate of about five jobcentre areas a month in selected areas since May 2016. About 600,000 people are currently on the benefit. But the government has decided to push ahead with an accelerated rollout of 50 jobcentre areas a month from October. Critics say ministers need to slow down to review and fix serious design flaws in the system. |
| What are the design flaws? | What are the design flaws? |
| There are manifold problems, but the political focus centres on the minimum 42-day wait for a first payment endured by new claimants when they move to universal credit (in practice this is often up to 60 days). For many low-income claimants, who lack savings, this in effect leaves them without cash for six weeks. The well-documented consequences for claimants of this are rent arrears (leading in some cases to eviction), hunger (food banks in universal credit areas report striking increases in referrals), use of expensive credit, and mental distress. | There are manifold problems, but the political focus centres on the minimum 42-day wait for a first payment endured by new claimants when they move to universal credit (in practice this is often up to 60 days). For many low-income claimants, who lack savings, this in effect leaves them without cash for six weeks. The well-documented consequences for claimants of this are rent arrears (leading in some cases to eviction), hunger (food banks in universal credit areas report striking increases in referrals), use of expensive credit, and mental distress. |
| What have ministers proposed to do about the six-week wait? | What have ministers proposed to do about the six-week wait? |
| The work and pensions secretary, David Gauke, recognised the widely held concerns about the long payment wait (including 12 of his own party’s backbenchers) in his speech to the Tory party conference on Monday. He said he was overhauling the system of advance payments available to claimants to enable them to access cash up front to see them through the six-week waiting period. Payments would be available within five days, and in extreme cases within hours. | The work and pensions secretary, David Gauke, recognised the widely held concerns about the long payment wait (including 12 of his own party’s backbenchers) in his speech to the Tory party conference on Monday. He said he was overhauling the system of advance payments available to claimants to enable them to access cash up front to see them through the six-week waiting period. Payments would be available within five days, and in extreme cases within hours. |
| Will this solve the problem? | Will this solve the problem? |
| The payments are loans that must be repaid. Claimants can only get an advance for a proportion of the amount they are owed as a first payment, and must repay it within six months. Normally, claimants must prove to officials that an advance is needed to pay bills, afford food or prevent illness. Official figures show about half of new universal credit claimants apply for an advance payment. Ministers say this is good news as it shows they are getting help. Critics say the high demand proves the wait is too onerous for too many people. | The payments are loans that must be repaid. Claimants can only get an advance for a proportion of the amount they are owed as a first payment, and must repay it within six months. Normally, claimants must prove to officials that an advance is needed to pay bills, afford food or prevent illness. Official figures show about half of new universal credit claimants apply for an advance payment. Ministers say this is good news as it shows they are getting help. Critics say the high demand proves the wait is too onerous for too many people. |
| What other options do ministers have? | What other options do ministers have? |
| Charities and landlords could reduce the long wait marginally by cutting the seven-day “waiting period” introduced in 2013 (an arbitrary period during which new claimants are prevented from lodging a claim after being made redundant). They could introduce more flexible repayment terms for advance loans. And they could speed up the payment process (currently slower than the supposedly cumbersome “legacy” benefits they replace). | Charities and landlords could reduce the long wait marginally by cutting the seven-day “waiting period” introduced in 2013 (an arbitrary period during which new claimants are prevented from lodging a claim after being made redundant). They could introduce more flexible repayment terms for advance loans. And they could speed up the payment process (currently slower than the supposedly cumbersome “legacy” benefits they replace). |
| Are there other design problems with universal credit? | Are there other design problems with universal credit? |
| Plenty. Landlords (private, council and housing association) are worried about the level of rent arrears racked up by tenants on universal credit. Unchecked, this will lead to a spike in evictions. Private landlords have said they will no longer take on universal credit claimants as tenants because the risk of arrears is too high, and the bureaucracy involved in tackling problems too soul-destroying. Housing associations have warned that the accumulated bad debts run up by tenants as a result of universal credit could affect their housebuilding plans. Claimants complain that universal credit is bafflingly complex, unreliable, and difficult to manage, particularly if you are without internet access. | Plenty. Landlords (private, council and housing association) are worried about the level of rent arrears racked up by tenants on universal credit. Unchecked, this will lead to a spike in evictions. Private landlords have said they will no longer take on universal credit claimants as tenants because the risk of arrears is too high, and the bureaucracy involved in tackling problems too soul-destroying. Housing associations have warned that the accumulated bad debts run up by tenants as a result of universal credit could affect their housebuilding plans. Claimants complain that universal credit is bafflingly complex, unreliable, and difficult to manage, particularly if you are without internet access. |
| So it is all about ironing out a few technical glitches? | So it is all about ironing out a few technical glitches? |
| Not quite. Multibillion-pound cuts to work allowances imposed by the former chancellor George Osborne mean universal credit is far less generous than originally envisaged. According to the Resolution Foundation thinktank, about 2.5m low-income working households will be more than £1,000 a year worse off when they move on to universal credit. Reversing those cuts requires a political decision, not a technical fix. | Not quite. Multibillion-pound cuts to work allowances imposed by the former chancellor George Osborne mean universal credit is far less generous than originally envisaged. According to the Resolution Foundation thinktank, about 2.5m low-income working households will be more than £1,000 a year worse off when they move on to universal credit. Reversing those cuts requires a political decision, not a technical fix. |
| What is the future for universal credit? | What is the future for universal credit? |
| Gauke confirmed today that the current rollout will continue to the planned timetable (which will see, in theory, universal credit extended to about 7 million people by 2022). However, the problems of universal credit are unlikely to go away, and it has some powerful critics, including the Treasury, which has always opposed the project. It would be possible to cancel the project, or overhaul it substantially. However, some argue the billions pumped into universal credit – and the huge amount of political capital and credibility invested in it – mean it is too big to fail. | Gauke confirmed today that the current rollout will continue to the planned timetable (which will see, in theory, universal credit extended to about 7 million people by 2022). However, the problems of universal credit are unlikely to go away, and it has some powerful critics, including the Treasury, which has always opposed the project. It would be possible to cancel the project, or overhaul it substantially. However, some argue the billions pumped into universal credit – and the huge amount of political capital and credibility invested in it – mean it is too big to fail. |
| Universal credit | |
| Conservatives | |
| Benefits | |
| Welfare | |
| Conservative conference 2017 | |
| Conservative conference | |
| news | |
| Share on Facebook | |
| Share on Twitter | |
| Share via Email | |
| Share on LinkedIn | |
| Share on Pinterest | |
| Share on Google+ | |
| Share on WhatsApp | |
| Share on Messenger | |
| Reuse this content |