Universal credit & Single mum

pinklipy

Hi everyone,

Have been reading up a bit on universal credit and wandering what the implications are for single mums? I can see a lot for couples etc but not for single parents.

Thanks :-)

tomjonesrules

Don't worry, it's not coming into until 2013, I'm sure you'll have a job by then!

BigAunty

You might want to slog through the proposal paper rather than get a chinese whispers interpretation.

http://www.dwp.gov.uk/policy/welfare-reform/legislation-and-key-documents/universal-credit/

Specific doc - "welfare that works"

http://www.dwp.gov.uk/docs/universal-credit-full-document.pdf

Here's some snippets, though, which means there is greater conditionality for receiving UC for lone parents who are only fully excluded from seeking work when their youngest child is under 1.

"The UK has one of the highest rates of children growing up in homes where no one works and this pattern repeats itself through the generations. Less than 60 per cent of lone parents in the UK are in employment, compared to 70 per cent or more in France, Germany and the Netherlands...


People will be placed into groups mirroring the four conditionality levels being introduced under existing benefits:
[FONT=FS Me,FS Me][FONT=FS Me,FS Me]a. Full conditionality[/FONT][/FONT]. This will be the default option for recipients including lone parents and couples with older children. Recipients in this group will be subject to the same requirements to actively seek work and to be available for work as they would under Jobseeker’s Allowance.
[FONT=FS Me,FS Me][FONT=FS Me,FS Me]b. Work preparation[/FONT][/FONT]. Recipients will be in this group if they are disabled or have a health condition which means they have limited capability for work at the current time. They will be expected to take reasonable steps to prepare for work.
[FONT=FS Me,FS Me][FONT=FS Me,FS Me]c. Keeping in touch with the labour market[/FONT][/FONT]. Recipients will be in this group if they are a lone parent or lead carer in a couple with a child over one but below age five. They will be expected to attend periodic interviews to discuss their plans for returning to the labour market.
[FONT=FS Me,FS Me][FONT=FS Me,FS Me]d. No conditionality[/FONT][/FONT]. Recipients will be in this group if they are: disabled or have a serious health condition which prevents them working and preparing for work; a lone parent or lead carer in a couple with a child younger than one ....

Some types of recipient, such as lone parents with young children, are only required to attend work-focused interviews and their failure to attend is more often due to challenging circumstances than wilful evasion of the rules. Therefore, we are improving our methods of ensuring lone parents know about and are able to comply with their responsibilities. However, we will impose a financial sanction where necessary that is broadly in line with current arrangements. ...

...it will now be financially rewarding for a lone parent to work 15 hours per week, or 17 hours per week (both of which would not have been financially rewarded under the existing system which only recognised 16 hours per week); and should more hours be available, the extra earnings will no longer face a Marginal Deduction Rate of 96 per cent. Under the current system a lone parent working 16 hours at the National Minimum Wage would only increase their take home pay by £5 a week if they increased their hours to 25 hours. Under Universal Credit the same lone parent would increase their take home pay by £17....

The viable options for entering work have expanded well beyond the current 16-hour option."

Becles

I was wondering that too and how it will affect me. Thanks for the links

pinklipy

Tomjonesrules: I do have a job lol! It was more to see if their was minimum requirements with hours etc as their is with couples. I will be changing jobs next year and want to make sure its a long term job rather than having to start again as I need more hours, if you know what I mean.

Thanks for the reply's :-)

BigAunty

This organisation has a helpful interpretation of the UC proposal, including specific examples and the earnings disregards for lone parents.

http://www.cpag.org.uk/universalcredit/uc_factsheet.htm

Which benefits will go?

The following benefits will be abolished:

• income support;
• income-based jobseeker’s allowance;
• income-related employment and support allowance;
• housing benefit;
• council tax benefit;
• child tax credit and working tax credit;
• crisis loans and community care grants – responsibility for an equivalent will be passed to local authorities or devolved governments;
• budgeting loans – to be replaced by payments on account (an advance of universal credit) in cases of need.

Which benefits will stay?

Benefits other than those listed above will remain. In particular, people will still be able to claim:

• contribution-based jobseeker’s allowance. The earnings rules will be aligned with universal credit;
• contributory employment and support allowance. The earnings rules will be aligned with universal credit;
• child benefit;
• carer’s allowance;
• bereavement allowance, bereavement payment and widowed parent’s allowance;
• maternity allowance;
• industrial injuries disablement benefit;
• statutory maternity/adoption/paternity pay;
• statutory sick pay;
• maternity grants, funeral payments and cold weather payments – to be extended to people on universal credit according to the information available.

pinklipy

Thanks bigaunty.
Sorry I don't totally understand though, will a lone parent be required to work full time in order to recieve UC like couples? I don't want to do the minimum at all and currently work 26 hours a week but I will find it tough juggling a 5 year old and 9 month old while working full time if that's what is proposed.

pinklipy

So does UC incorporate child tax & working tax credit then? Is it just a new name kind of thing?

BigAunty

pinklipy wrote: »

So does UC incorporate child tax & working tax credit then? Is it just a new name kind of thing?

Blimey, I really don't know how to start responding to this.

It's basically a massive overhaul of the entire benefit system to ensure that people are always better off in employment than on benefits and to reduce the error and fraud that comes from the complexity of 50 plus different types of allowances, benefits and credits. It's not simply a change of name.

Yes, CT and WTC disappear, as per the previous summary. A lot of separate benefits get rolled up into one. It's also going to mean that a household cannot receive in benefits more than they can through average earnings - a proposed cap of £500 per week, I think, though you'd have to check that.

pinklipy

Ok thanks. Had a read through of the links you provided and it is a bit clearer now. But it does seem a long way off if people aren't getting moved over untill 2014, so won't worry about it just yet :-)

BigAunty

Well, some people should be worrying. I'm a bit of broken record on this but some of the self-employed, which will inevitably include lone parents, could get a bit of a shock and ought to be taking stock now.

Currently, someone in SE with a modest avon round, web design, child carer, cake maker, selling tat on ebay, taxi driving, etc, merely has to work x amount of hours and not really worry if they are making much profit, because WTC/TC/HB or LHA/CT etc will kick in and make up the shortfall.

Therefore I assume the number of what I term 'hobby' or 'pin money' businesses have proliferated because it doesn't matter whether or not the household becomes self sufficient from the income.

Under UC, the self employed will be treated as if they earn the National Minimum Wage (even if they don't) as part of the threshold into getting state top-ups.

So those dawdling along with poxy mini businesses really need to consider the risks going forward and may need to step up their game to ensure that they are earning £6 an hour from their endeavors, not a few quid a month.