Universal credit - how it will work

Sarah69

Mrs_Arcanum wrote: »

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.

Ive been told by a member of my local council that many drug takers and alcoholics will use the money they get for hb/ctb will be used for their addictions and not for rent etc, which will in turn cause arrears and in turn maintanence on the homes will be reduced.

missapril75

Mrs_Arcanum wrote: »

One big issue is the... (relatively) huge amount of money some will get. With no help in ensuring this lasts the whole month...

Even with fortnightly payments there have always been those who can't manage/can't be trusted and have been paid weekly. I assume something like that will continue.

Sarah69 wrote: »

Ive been told by a member of my local council that many drug takers and alcoholics will use the money...for their addictions...

As they do now, but worse.

Blowing your fortnight's money before two weeks are up (or week if one of those I mentioned) is going to be a bigger problem with monthly pays, especially with the restrictions on crisis loans.

No doubt some will say they have to learn to budget but that's just not living in the real world of people with chaotic lives or those with just mild issues who can just about manage for shorter periods, maybe, but not longer.

It's hard not to imagine street homelessness, street crime, petty crime, break-ins etc increasing somewhat.

mrs_motivated

Housing Associations / LA's do receive housing benefit in arrears, however tenants paying rent, the rent is in advance. Which leads me on to direct payments in an average city with a stock of around 22,000 properties this equates to collecting an additional £10 - £11 million in rent from people who in many cases have never actually paid it. OK (with it so far), as housing finance has changed from the subsidy system to self financing. LA's like housing associations are operating on a 30 yr business plan and what they dont collect in - they cant pay out in repairs, improvements and other services...... so this eventually will affect all tenants in receipt of benefit or not.

People keep mentioning state loans (hardship loans etc). This is to be delegated to the Local Authority to budget for and decide criteria (remember the Localism Act) - mmm know any flush Local Authorities who will be able to cope with such an increased annual demand?


Similarly Council Tax benefit - This was funded in effect by Central Government (fixed rates) , however, now we have Localism ( giving more power to the Local Authorities) Govn have handed them the money to sort this - the only snag is, yep you guessed it they will receive 10% less than is currently paid in CTB and have to either find the shortfall or pay less (oh and again this cannot affect pensioners)

Interestingly the housing sector and National housing bodies who where consulted with on this, tenant or landlord (of which I did submit a Paper on behalf on one on the national bodies) the vast majority (90% approx) agreed without more homes, jobs and a great deal of tenant support this would have a disasterous effect on communities and the poorest and most vulnerable in society.

The advice and alternatives were ignored and it was pushed through without though by the minister - the regs surrounding the Act are curently out to consultation - mmm wondering if the consultation results will be acted upon?

mrs_motivated

Sarah69 wrote: »

Ive been told by a member of my local council that many drug takers and alcoholics will use the money they get for hb/ctb will be used for their addictions and not for rent etc, which will in turn cause arrears and in turn maintanence on the homes will be reduced.

The landlord will be able to apply for direct payment when the tenants is a registered drug addict or alcoholic or is espcially vulnerable ...... or eight weeks in arrears

BigAunty

mrs_motivated wrote: »

The landlord will be able to apply for direct payment when the tenants is a registered drug addict or alcoholic or is espcially vulnerable ...... or eight weeks in arrears

Problem is that once the landlord/tenant relationship has broken down through an abuse of trust or failure to honour obligations, it's pretty much irrepairable and the tenant will be served notice anyhow. A landlord will generally know that if a tenant on benefit blows several months rent, it's pretty much irrecoverable from them.

Also, arrears of this amount (if it reaches court) will inevitably mean the landlord will be granted possession earlier than the fixed term of the agreement.

mrs_motivated

BigAunty wrote: »

Problem is that once the landlord/tenant relationship has broken down through an abuse of trust or failure to honour obligations, it's pretty much irrepairable and the tenant will be served notice anyhow. A landlord will generally know that if a tenant on benefit blows several months rent, it's pretty much irrecoverable from them.

Also, arrears of this amount (if it reaches court) will inevitably mean the landlord will be granted possession earlier than the fixed term of the agreement.

So very true

seven-day-weekend

mrs_motivated wrote: »

1. How do people survive for the first month? As the payment will be monthly in ARREARS The same as people manage who start work and have to wait a month.
2.Payment to one person in the family unit? This will surely lead to trouble for many Same as the main wage earner earning the money.
3.What happens when one component of the benefit changes? Will all be suspended until it is sorted. I don't think we know this yet.

See my comments in blue, above.

Inasmuch as the benefit will replicate a monthly wage, this aspect of it appears good.

princessdon

I have vague recollection of hearing that crisis loans will be under control of local authorities and will be less monetary when uc comes in. Does anyone know?

mrs_motivated

seven-day-weekend wrote: »

See my comments in blue, above.

Inasmuch as the benefit will replicate a monthly wage, this aspect of it appears good.

your comments will be true for some - but not for many, the issues are often complex. All I can say is the debt free wannabee board is going to be busier than ever when people cant cope.

Unfortunately, many views are based on the 'scroungers', fraudsters and the tales of people on ESA whilst spinning upside down at Drayton Manor (which by the way makes every tax payers blood boil, mine included)

However anyone living or working in deprived communities where there are multiple issues to be addressed know these cases are the exception and not the rule and ridiculous though it may sound to you, they will not beable to cope a month with no money!

seven-day-weekend

mrs_motivated wrote: »

your comments will be true for some - but not for many, the issues are often complex. All I can say is the debt free wannabee board is going to be busier than ever when people cant cope.

Unfortunately, many views are based on the 'scroungers', fraudsters and the tales of people on ESA whilst spinning upside down at Drayton Manor (which by the way makes every tax payers blood boil, mine included)

However anyone living or working in deprived communities where there are multiple issues to be addressed know these cases are the exception and not the rule and ridiculous though it may sound to you, they will not beable to cope a month with no money!

I take the point of your last paragraph, but does that make it wrong to do Universal Credit this way? It's like banning alcohol for everybody because some people get drunk.