Universal credit - how it will work

princessdon

I work in deprived communities and the main problem is lack of budgeting, lack of financial knowledge, an ethos of want (ie will buy a new iPhone) instead of food rather than lack of money.

In our area there is talk of running sessions re above (similar to the loan shark sessions that currently run) but how many will take the advice I suspect is low.

nannytone_2

new iphone? when theyre on benefits? oh my!

i'm sorry, but if people refuse to take responsibility for themselves , they should be made to, rather than being spoon fed!

if my kids didnt tidy rgeyr roms, i didnt do it for them.
i removed what they wanted until they learnt that tidying their rooms were the lesser evil!

people need to get aa grip

BigAunty

princessdon wrote: »

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?

Yes, there will be a transfer of elements of Crisis Loans to local welfare provision, to be delivered by local authorities, from April 2013.


Also

Crisis Loans were set up to meet immediate short-term needs in an emergency. Yet in the last seven years there have been over seven million claims from 400,000 regular users applying for 10 or more crisis loans. Since telephone claims were introduced in 2006 daily spend on the loans has tripled to £1million a day.
From April, the Department for Work and Pensions will no longer pay Crisis Loans for items such as cookers and beds, will limit the amount paid for living expenses and will set a cap of three Crisis Loans for general living expenses in a rolling year.
Minister for Pensions, Steve Webb said:

"It is clear that the system is acting as a sticking plaster that isn’t addressing the real problems that people are facing. We need to ensure that crisis loan support is correctly targeted at those who need it most and ensure we can still afford to pay Budgeting Loans. That’s why we’ve taken urgent action today to protect the budget.
"We don’t want to leave people on low incomes without the safety net of interest-free Budgeting Loans and then turning to loan sharks for help."

Budgeting Loans are intended to help long-term income-related benefit recipients cope with the cost of essential items like furniture and household equipment. If spending continued, money for them would run out by Christmas.

http://www.dwp.gov.uk/newsroom/press-releases/2011/mar-2011/dwp024-11.shtml

princessdon

I agree nannying. It's often a question of priorities but some people really cant budget. For those moving to monthly will be hard, but I still agree that we spoon feed. Its a transition to work skill.

princessdon

Thanks big aunty - thought I'd imagined it.

mrs_motivated

princessdon wrote: »

I agree nannying. It's often a question of priorities but some people really cant budget. For those moving to monthly will be hard, but I still agree that we spoon feed. Its a transition to work skill.

I agree with you. Overall I do think universal credit will be better. I guess my problem is, whilst I agree the reduction of the overall benefit bill is essential I do believe the reduction in benefits, support, direct payments, 'real time claims IT system' (which by the wayis costing an absolute fortune and the contract has gone overseas, so not exactly boding well with the get people back to work spiel), the introduction of the bedroom tax, benefit cap etc. is to much to soon and low income families will be hit hard as well as people totally reliant on benefits. Surely at the same time there needs to be investment in social housing, training and jobs and whilst I agree work should pay and people on benefit shouldn't be better off than working folk, isn't there also a responsibility for employers to pay a decent wage for a days work and not pay minimum wages knowing the state will make up the shortfall in tax credits?

Tackling one problem without addressing the causes is surely futile?

missapril75

Yet in the last seven years there have been over seven million claims from 400,000 regular users applying for 10 or more crisis loans. Since telephone claims were introduced in 2006 daily spend on the loans has tripled to £1million a day.

That comes as no surprise to anyone who ever had anything to do with them.

If there's a bright side, many of the regulars would close their claims to get paid early (out of the usual pattern) and then reapply later applying for loans then.

So they would have periods during which they were not receiving benefits otherwise due.

Whether the extra time wasted needlessly closing claims and opening them up again cancelled out the savings is another matter.

seven-day-weekend

princessdon wrote: »

I work in deprived communities and the main problem is lack of budgeting, lack of financial knowledge, an ethos of want (ie will buy a new iPhone) instead of food rather than lack of money.

In our area there is talk of running sessions re above (similar to the loan shark sessions that currently run) but how many will take the advice I suspect is low.

Therefore not deprived just cr£p at prioritising.

princessdon

mrs_motivated wrote: »

I agree with you. Overall I do think universal credit will be better. I guess my problem is, whilst I agree the reduction of the overall benefit bill is essential I do believe the reduction in benefits, support, direct payments, 'real time claims IT system' (which by the wayis costing an absolute fortune and the contract has gone overseas, so not exactly boding well with the get people back to work spiel), the introduction of the bedroom tax, benefit cap etc. is to much to soon and low income families will be hit hard as well as people totally reliant on benefits. Surely at the same time there needs to be investment in social housing, training and jobs and whilst I agree work should pay and people on benefit shouldn't be better off than working folk, isn't there also a responsibility for employers to pay a decent wage for a days work and not pay minimum wages knowing the state will make up the shortfall in tax credits?

Tackling one problem without addressing the causes is surely futile?

My personal opinion (and yes this is never popular) is that benefits should be the minimum to live on. Workers (full time) should always be far better off financially. Allowing a couple to work 24 hours a week (12 hours each) with teenage children and claim Tax Credits to top it up isn't right (disabilities aside).

The whole system is wrong IMO and whilst UC will have upsides it has downsides too. I personally favour some of the overseas systems.

Eg if someone worked for 20 years then was made redundant they would get the majority of their salary paid for between 6 months to 2 years - depending on contributions. They have a tierred system using insurance, once the insurance goes they then go onto welfare.

It would mean more tax - but I'd happily pay as I know I'd have a safety net if became Ill or out of work, Ie I'd get some benefit. For those incapable of work the govt pays their insurance so they are not disadvantaged.

At the moment I wouldn't get any help if out of work or ill (partner working and savings), I don't think I will get a state pension - feel pretty sure it's on the way out for those who have worked and have private pensions etc. It makes you feel like all you do it give. I don't mind giving (I'd rather live in a society that protects and helps those unable), but not the way it is now.

I feel like I support at times peoples lifestyle choice. Why should 2 parents of older children with no disabilities be able to claim TC on 24 hours a week? Why aren't they sujbect to JS rules - Ie they have to sign on to get more work. I don't see why tax payers pay for what can be at times a "lifestyle choice" where a SAHM wants to stay at home and not work (even when her children are capable of being left ie healthy and older etc). If she wants that luxury then they shouldn't claim TC to make up the difference. Sorry if this offends but it's how I feel.

mrs_motivated

Certainly didn't offend me. I enjoy reading different opinions and perspectives.

I know very little about how welfare systems work abroad and your ideas are interesting. I would also pay more tax, for a safety net and the confidence that what I currently pay is spent wisely.


My comments on this thread are not political by the way. I personally believe all political parties are as bad as each other and only vote at all so I feel entitled to moan.