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/2018/oct/29/philip-hammond-universal-credit-is-here-to-stay
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Philip Hammond says universal credit is here to stay | Philip Hammond says universal credit is here to stay |
| (about 1 month later) | |
| Universal credit is here to stay, Philip Hammond has said, as he announced extra investment in the flagship benefit aimed at making it more generous to some low-income working claimants. | Universal credit is here to stay, Philip Hammond has said, as he announced extra investment in the flagship benefit aimed at making it more generous to some low-income working claimants. |
| By injecting £1.7bn into work allowances, the chancellor reversed much of the cut to universal credit made by his predecessor, George Osborne, in 2015 and suggested ministers were fully committed to the much-delayed benefits overhaul programme. | By injecting £1.7bn into work allowances, the chancellor reversed much of the cut to universal credit made by his predecessor, George Osborne, in 2015 and suggested ministers were fully committed to the much-delayed benefits overhaul programme. |
| Hammond’s cash-for-work allowances may be enough to head off a threatened revolt by Conservative backbenchers concerned that some low-income working families on tax credits would be £200 a month worse off after moving to universal credit. | Hammond’s cash-for-work allowances may be enough to head off a threatened revolt by Conservative backbenchers concerned that some low-income working families on tax credits would be £200 a month worse off after moving to universal credit. |
| Labour: vote down budget if it fails to halt universal credit rollout | Labour: vote down budget if it fails to halt universal credit rollout |
| “Universal credit is here to stay and we are putting in the funding needed to make it a success,” Hammond told the Commons. He said it was a “long overdue and necessary reform” of the benefits system that would help drive jobs and growth. | “Universal credit is here to stay and we are putting in the funding needed to make it a success,” Hammond told the Commons. He said it was a “long overdue and necessary reform” of the benefits system that would help drive jobs and growth. |
| Hammond also announced an extra £1bn over five years to provide extra protection for people on tax credits and other benefits who would be moved over to universal credit in the next few years. Details will be announced this year. | Hammond also announced an extra £1bn over five years to provide extra protection for people on tax credits and other benefits who would be moved over to universal credit in the next few years. Details will be announced this year. |
| There will be “run-on” support from 2020, whereby unemployed claimants will continue to receive existing benefits for two weeks after submitting their universal credit application, in a move aimed at easing the long waiting time for a first payment. | There will be “run-on” support from 2020, whereby unemployed claimants will continue to receive existing benefits for two weeks after submitting their universal credit application, in a move aimed at easing the long waiting time for a first payment. |
| Universal credit rolls together six working-age benefits into a single monthly payment, including jobseeker’s allowance, working tax credits and housing benefits. Work allowances are the amount claimants can earn before benefits start to be withdrawn. Higher work allowances in theory encourage claimants to move into work, or work longer hours. | Universal credit rolls together six working-age benefits into a single monthly payment, including jobseeker’s allowance, working tax credits and housing benefits. Work allowances are the amount claimants can earn before benefits start to be withdrawn. Higher work allowances in theory encourage claimants to move into work, or work longer hours. |
| The Resolution Foundation thinktank welcomed the work allowance boost, saying the £1,000 threshold increase would deliver a £630 boost to low-income families, meaning universal credit was now more generous than the benefit system it was replacing. | The Resolution Foundation thinktank welcomed the work allowance boost, saying the £1,000 threshold increase would deliver a £630 boost to low-income families, meaning universal credit was now more generous than the benefit system it was replacing. |
| Torsten Bell, the Resolution Foundation chief executive, said: “While today’s reforms certainly won’t end all the problems some recipients have faced with universal credit, they should ease the rollout in the months and years ahead.” | Torsten Bell, the Resolution Foundation chief executive, said: “While today’s reforms certainly won’t end all the problems some recipients have faced with universal credit, they should ease the rollout in the months and years ahead.” |
| However, opposition politicians and charities emphasised ministers had not addressed wider cuts to welfare or structural problems with universal credit, such as the long waiting times for payment that forced some families into debt or to rely on food banks. | However, opposition politicians and charities emphasised ministers had not addressed wider cuts to welfare or structural problems with universal credit, such as the long waiting times for payment that forced some families into debt or to rely on food banks. |
| Food bank use will soar after universal credit rollout, warns charity | Food bank use will soar after universal credit rollout, warns charity |
| John McDonnell, Labour’s shadow chancellor, said: “The money promised for universal credit is less than a third of the £7bn of social security cuts still to come and today’s announcement on work allowances reverses just over half the cuts made in 2015.” | John McDonnell, Labour’s shadow chancellor, said: “The money promised for universal credit is less than a third of the £7bn of social security cuts still to come and today’s announcement on work allowances reverses just over half the cuts made in 2015.” |
| Matthew Reed, the chief executive at the Children’s Society, said: “While the government has taken some important steps in the right direction it has still not done enough to address serious problems with universal credit which are causing hardship for many families.” | Matthew Reed, the chief executive at the Children’s Society, said: “While the government has taken some important steps in the right direction it has still not done enough to address serious problems with universal credit which are causing hardship for many families.” |
| Alison Garnham, the chief executive of the Child Poverty Action Group, said: “The work allowance increase is unequivocally good news for families receiving universal credit but a bigger salvage operation is still needed for the benefit.” | Alison Garnham, the chief executive of the Child Poverty Action Group, said: “The work allowance increase is unequivocally good news for families receiving universal credit but a bigger salvage operation is still needed for the benefit.” |
| Hammond’s striking endorsement of universal credit comes after criticism from two previous prime ministers, Sir John Major and Gordon Brown, who said the changes could trigger poll tax-levels of public unpopularity. | Hammond’s striking endorsement of universal credit comes after criticism from two previous prime ministers, Sir John Major and Gordon Brown, who said the changes could trigger poll tax-levels of public unpopularity. |
| Labour has called for universal credit to be halted and fixed before the next stage of its rollout, which will lead to 2 million claimants on tax credits and employment and support allowance migrate on to the new system during the next three years. | Labour has called for universal credit to be halted and fixed before the next stage of its rollout, which will lead to 2 million claimants on tax credits and employment and support allowance migrate on to the new system during the next three years. |
| The chancellor has also been under intense pressure from Conservative backbenchers and poverty campaigners to restore the level of work allowances, seen by many as essential if universal credit is to uphold its original aims of incentivising work. | The chancellor has also been under intense pressure from Conservative backbenchers and poverty campaigners to restore the level of work allowances, seen by many as essential if universal credit is to uphold its original aims of incentivising work. |
| Hammond pointedly paid tribute to the political architect of universal credit, the former work and pensions secretary Iain Duncan Smith, now a backbench MP, “without whose tenacity universal credit would never have seen the light”. | Hammond pointedly paid tribute to the political architect of universal credit, the former work and pensions secretary Iain Duncan Smith, now a backbench MP, “without whose tenacity universal credit would never have seen the light”. |
| Duncan Smith oversaw the introduction of universal credit in the face of opposition from Osborne and a series of implementation disasters. He resigned from the cabinet in 2016 in part over cuts to work allowances the previous autumn. | Duncan Smith oversaw the introduction of universal credit in the face of opposition from Osborne and a series of implementation disasters. He resigned from the cabinet in 2016 in part over cuts to work allowances the previous autumn. |
| The chancellor’s announcement on work allowances was welcomed by the Joseph Rowntree Foundation, which called it “an important step forward” in tackling the rise of in-work poverty that it said would help ease the burden for low-income families. | The chancellor’s announcement on work allowances was welcomed by the Joseph Rowntree Foundation, which called it “an important step forward” in tackling the rise of in-work poverty that it said would help ease the burden for low-income families. |
| Universal credit | Universal credit |
| Philip Hammond | Philip Hammond |
| Budget 2018 | Budget 2018 |
| Benefits | Benefits |
| Conservatives | Conservatives |
| Labour | Labour |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |