Universal credit - how it will work

missapril75

Jumbo_Cod wrote: »

I fail to see how implementing a "one-size-fits-all" credit to millions of people with different situations simplifies things.

I imagine much the same as when Supplementary benefit changed to Income Support and that was simplified. Badly.

All those "fiddly" allowances that paid people with special diets, exceptional clothing needs, heating allowances, additional medical costs etc were abolished. The one size fits nobody approach took such expenses away from those who needed them and paid them to people who didn't. :T

missapril75

Jumbo_Cod wrote: »

Coming from The States...
....I don't think people here in The UK really understand how good they have it. The fact that you can get your rent paid for....

People of North America would dream of such a system. While many would hate it. :rotfl:

Jumbo_Cod

Exactly. Waiting for the lot accusing of everybody on benefits of being criminals to invade this thread in 3...2...

BigAunty

Jumbo_Cod wrote: »

I fail to see how implementing a "one-size-fits-all" credit to millions of people with different situations simplifies things.

The government shouldn't micromanage, but it makes sense that if someone needs benefits/credits for different purposes they are evaluated differently based on their needs.

Universal credit makes no sense!

One size fits all is a very poor way of describing the changes - households with different needs will get different sums of money, the same as now.

You really ought to read the govt proposal paper on this, then you will understand why it's a good idea.

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

Currently the benefit system has more than 50 different types of benefits and allowances with complex interdependencies. A household may have to fill in multiple forms to different departments, many of which will ask for the same info.

It's not just the sheer number of benefits that are a problem to manage and administer. It's the fact that many households in employment are not significantly better off in work compared to those on benefits - the govt want to make work pay by stripping out some of the barriers and disincentives.

Currently there are more than 200,000 households containing two parents who only work 24 hours in total (used to be just 16 - one parent working 2 days a week!). Now in some cases, it might be that it's hard to find a second or full time job, but it many cases, it's because if they earn less than 25k, it's not really worth bothering because of the payment of transport, childcare, taxes and the steep withdrawal of benefits.

Cate1976

My husband & I are on benefits but would rather we weren't. Due to our circumstances when my husband lost his appeal for being found fit for work by ESA medical, our twin girls were 11 months old so me working full time wasn't going to be practical. I claimed IS for both of us due to being my husband's carer but have been doing some studying as well as some job hunting mostly checking the local papers.

My thoughts on the Universal Credit are that although it will simplify things, it's going to cause problems. The first being for people who rent privately, most landlords want rent paid in advance so that's going to mean some people paying their first month's rent in advance then not having money for food.

The second I can see is that people currently on disability benefits who are only able to work part time will find themselves losing their disability entitlements but then not being able to live an acceptable standard of living, by that I mean enough money for food, clothes and essential bills and a little left over each month to save for clothes.

I have a nasty suspicion that this is what will happen to my husband & I.

At this point I know some of you who tar all people on benefits with the scrounger brush are asking what we're doing about it. The answer is that better employment prospects is one of the reason's we're moving to Norfolk in the Autumn. I'll look for a job which'll pay enough for us to get off means tested benefits, will probably need top up from WTC. My husband is also hoping to look for work, he could cope with max of 20 hours a week. I'm also going to be studying for getting into the accounting area. Am currently waiting on results of first year of Accounting Technicians Ireland Level 5 Diploma.

Our goal is to be off means tested benefits before girls start school in 2014, might be ambitious in current economic climate.

missapril75

BigAunty wrote: »

A household may have to fill in multiple forms

And one assumes it will stay that way. The alternative will be one giant form too heavy to carry, that will be asking young people about their war pensions and far east prisoner of war payments; while older people are asked if they're pregnant and similar odd ideas when people already consider them too long.

Anubis_2

Jumbo_Cod wrote: »

I understand.

Coming from The States I have to say that in comparison..the UK benefits system is extremely simple and straightforward! (It does help that there are generally only one set of rules for the entire country...as opposed to 50 state laws then another several thousand municipal ones).

I know it's derided as being inefficient and crazy (especially around renewal time) but in comparison I don't think people here in The UK really understand how good they have it. The fact that you can get your rent paid for, get income support, and pay no taxes whilst only working 16 hours a week is extremely generous.

As for people having a crunch trying to meet expenses, what about "crises loans" from the council? My wife received one ten years ago due to a rather crazy situation.

You can't do that. Firstly, the work has to be under 16 hours, and apart from a very small exclusion (£5 if single ) income support is reduced £ to £ what you earn.

So someone who earns £50 will have their IS reduced by £45 to ensure that there is no more than an excess of £5 to what is normally received.

A single non disabled person who receives £71 pw IS and earns £80 will no longer be entitled to IS. HB and CT will also be recalculated but given the price of rents here, it is impossible for somone on £80 pw to pay rent, CT, food and normal living and working costs, which is why the help is there.

Living costs are much higher here than the USA for the most part.
Take petrol (gas) for example :eek:

recoverydust

Universal Credit is designed to reduce the benefits bill by increasing the number of people in poverty, just as the introduction of esa is designed to reduce the number of eligible claimants and pip will do the same.
People already on benefits are feeling a significant squeeze and for those yet to become unable to work for a myriad of reasons, the prospect is grim.

BigAunty

Cate1976 wrote: »

My thoughts on the Universal Credit are that although it will simplify things, it's going to cause problems. The first being for people who rent privately, most landlords want rent paid in advance so that's going to mean some people paying their first month's rent in advance then not having money for food.

This is a non issue in terms of the fact that it's exactly what happens now (though there are state loans to overcome this and many councils offer rent deposit guarantee schemes).

Rent is always paid to the landlord in advance, benefits are always paid in arrears - they've never been tenant friendly and housing benefit has always tended to be paid in entirely different periods than when a person's rent is due to the landlord. It's always been up to the claimant to sort this out through budgeting and getting on top of things. Quite often, a tenant will receive the deposit back from the previous place shortly after moving out anyway.

There's absolutely no difference under UC, (albeit the valid anxiety about it switching from multiple disparate payments into as single payment each month and a time lag this might cause).

Mrs_Arcanum

One big issue is the direct HB payments and (relatively) huge amount of money some will get. With no help in ensuring this lasts the whole month or that rent is paid immediately. Those with no idea about money may possibly think they will get more money as usual later in the month, so will spend it all at once.

All this with added possibility of fixed dates for payments meaning some could get almost a months extra money because they apply at just the right moment.

Then we have to hope the ASPIRE computer program actually works as hoped.