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Universal credit 'a nightmare', says claimant who advertised welfare reform | Universal credit 'a nightmare', says claimant who advertised welfare reform |
(about 2 hours later) | |
A universal-credit claimant who featured in a government film to promote the reform now says the system is riddled with computer problems and could make people destitute. | A universal-credit claimant who featured in a government film to promote the reform now says the system is riddled with computer problems and could make people destitute. |
In the Department for Work and Pensions (DWP) advert, Daniel Pacey explains how the reform helped him to find work. | In the Department for Work and Pensions (DWP) advert, Daniel Pacey explains how the reform helped him to find work. |
But he now says a six-week delay before the first payment and subsequent monthly payments are "a nightmare". | But he now says a six-week delay before the first payment and subsequent monthly payments are "a nightmare". |
The DWP said monthly sums replicate the world of work and tackle dependency. | The DWP said monthly sums replicate the world of work and tackle dependency. |
A spokesman said: "Universal credit is simplifying the benefit system and [makes] the transition into employment smoother. | |
"Our work coaches discuss budgeting support with all claimants and nearly 80% say they are confident in their ability to manage a monthly budget." | |
Mr Pacey, 24, from Wigan, Greater Manchester, said: ''It might be easy for a government minister to make their wages last a month. But I'd like to see them make £250 last four weeks while looking for work." | Mr Pacey, 24, from Wigan, Greater Manchester, said: ''It might be easy for a government minister to make their wages last a month. But I'd like to see them make £250 last four weeks while looking for work." |
The government has announced that a national roll-out of universal credit is starting in earnest across the country. The aim is for it to be offered in all job centres in England, Scotland and Wales by 2016. | The government has announced that a national roll-out of universal credit is starting in earnest across the country. The aim is for it to be offered in all job centres in England, Scotland and Wales by 2016. |
Work and Pensions Secretary Iain Duncan Smith told BBC News the new benefit was £600m under budget and had been implemented gradually on advice. | Work and Pensions Secretary Iain Duncan Smith told BBC News the new benefit was £600m under budget and had been implemented gradually on advice. |
But Mr Pacey, who lives with his father, said his job centre struggled with failing computer systems, adding: "I hate to think about how I would have coped had I lived on my own. I know I couldn't have." | But Mr Pacey, who lives with his father, said his job centre struggled with failing computer systems, adding: "I hate to think about how I would have coped had I lived on my own. I know I couldn't have." |
The DWP spokesman added: "People can apply for advanced benefit payments if they need extra support and we are working with local authorities to make sure people get budgeting and debt advice. | |
"The IT system adapts smoothly to claims as they become more complex, which we have already seen across the North West. | |
"Computer problems in offices are separate issues and are resolved quickly but these do not impact the operating system, or have an impact on claims." | |
Rent arrears and debt | Rent arrears and debt |
The scheme was initially piloted in Ashton-Under-Lyne nearly two years ago. | The scheme was initially piloted in Ashton-Under-Lyne nearly two years ago. |
Under the old system, payments were bi-weekly, with housing benefit paid directly to landlords. | Under the old system, payments were bi-weekly, with housing benefit paid directly to landlords. |
Under universal credit, claimants are instead paid monthly and are expected to pay their rent themselves. | Under universal credit, claimants are instead paid monthly and are expected to pay their rent themselves. |
Housing Associations in Ashton-Under-Lyne say rent arrears and debt are on the rise amongst universal-credit claimants. | Housing Associations in Ashton-Under-Lyne say rent arrears and debt are on the rise amongst universal-credit claimants. |
The chief executive of the National Housing Federation David Orr said: "This scheme isn't even ready to fully roll out in Ashton-Under-Lyne, where it's been piloted for two years, let alone the rest of the country." | The chief executive of the National Housing Federation David Orr said: "This scheme isn't even ready to fully roll out in Ashton-Under-Lyne, where it's been piloted for two years, let alone the rest of the country." |
The DWP spokesman said: "In some cases, we can arrange for alternative payment arrangements, including rent being paid direct to landlords." | |
The government says it is important for people to learn how to handle their own monthly budgets, as this replicates the world of work. | The government says it is important for people to learn how to handle their own monthly budgets, as this replicates the world of work. |
But Mr Pacey's new job in a call centre pays bi-weekly. | But Mr Pacey's new job in a call centre pays bi-weekly. |
He said: "In my experience, most low-paid jobs pay weekly or every other week, not monthly. You can't make small sums of money last a month. | He said: "In my experience, most low-paid jobs pay weekly or every other week, not monthly. You can't make small sums of money last a month. |
"It's not about dependency, it's about living, being able to get a bus to go to the job centre. The government needs to rethink this." | "It's not about dependency, it's about living, being able to get a bus to go to the job centre. The government needs to rethink this." |
Less time and resources | Less time and resources |
The scheme has also been criticised by the National Audit Office as badly managed and failing to deliver on its targets. | The scheme has also been criticised by the National Audit Office as badly managed and failing to deliver on its targets. |
It is concerned that a roll-out from pilot areas in north-west England is taking place with fewer resources to spend on staff training and less time for staff to get accustomed to the changes. | It is concerned that a roll-out from pilot areas in north-west England is taking place with fewer resources to spend on staff training and less time for staff to get accustomed to the changes. |
About 50,000 people in selected areas have claimed the benefit since it was introduced in April 2013 - far fewer than the government originally said would be getting it by now. | About 50,000 people in selected areas have claimed the benefit since it was introduced in April 2013 - far fewer than the government originally said would be getting it by now. |
Computer problems have also caused delays and seen ministers write off tens of millions of pounds. | Computer problems have also caused delays and seen ministers write off tens of millions of pounds. |