Changing benefits to monthly payments - why is it a problem?

Yuki60

monkeytrumpet wrote: »

Why is it so hard??? Gas you put on example £10 a week so you put on £40 How is that so hard? Or should we now give basic maths lessons? Or is it more the fact that by week 4 all the money for fags and drink will be gone.[/QUOTE]

Who peed in your cheerios this morning? Arrogant ignorant comment that was totally unnecessary. So people on benefits are more likely to smoke and drink than those who aren't? Mebbe I should give up my job then and give it a try. Absolutely unnecessary attention seeking comment to make. There's always one trolling the boards with their one gcse in hand feeling superior.

mazza111

princessdon wrote: »

There are discussions going to Re the transition - they are looking at this to minimise the disruption. Quite what that is I have no idea but yes a "loan" has been discussed.

They are also in my area looking at budgeting courses and help with budgeting and it talks with CAB and CAP etc.

I think it is the way forward - but it needs careful handling not the usual !!!! up they do.

Think you've hit the nail on the head there. Anything they touch is usually a big *!*! up. Look at the chance they had to change ESA, all they've done is cost more with people going to tribunal to get their benefits reinstated. I would love to see how much they will actually save. Using all the figures, those not now on ESA, the tribunal costs, the costs now for JSA.

mrs_motivated

BigAunty wrote: »

Housing benefit for social housing tenants (and I think the HB bill for the social housing sector sees more tenants receive it proportionally) is paid directly to the social housing landlord.

Social housing tenants are virtually impossible to evict and social housing landlords will be aware of any impacts and will have prepared for them. Private tenants are more vulnerable.

There is supposed to be some kind of transitionary period when the payment cycles change, don't know what this involves but the govt seem aware of issues that come from the lag.

Social landlords are preparing and panicing. For example , a landlord managing a large stock could be faced with having to collect an extra £12 million in rent, when housing benefit is not paid direct anymore. I know for a fact there are many landlords, who are worried about this. After all the rent money amongst other things pays for repairs, re servicing voids etc. what's not collected cannot be spent on essentials. Ok they can apply for direct payments when the tenant is vulnerable (still no definition for this yet) or when they fall eight weeks in arrears, however once the arrears start to reduce the payment will revert to direct payment to the claimant again.

Patronus

Forgive me, I haven't read all the posts but I think monthly payments for benefits like JSA are great because they will get people accustomed to how life would be in work, to an extent.

I'm on Carers Allowance and personally don't think I would find it a huge deal if benefits were changed to monthly. I do live very hand-to-mouth, as in, I don't really have any luxuries but still, I know how to budget and deal with money.

flight747

And next year change to quarterly payments! Every 3 months!

System

I'm so grateful my job pays fornightly...made the transition from benefits to work much simpler. Though i guess if it was monthly that would help in most other jobs. Personally i am terrible at budgeting, i try but mainly if i get manic its a nightmare.

Morglin

It might work, in some cases, but there have always been problems around payments to people with severe mental health issues, or severe learning difficulties, even with more frquent payments.

Many of them simply do not understand budgeting or that money needs to be spread out, and blow it all as soon as they recieve it - which, if monthly paid, would be a nightmare for both them and agencies that have to try and support these vulnerable people.

There is little point (financially) for the government to move people onto monthly payments, and it's a mystery why they are choosing to go down a more expensive route (as it will be with IT adjustments, overpayments etc.,)

Lin

BigAunty

mrs_motivated wrote: »

Social landlords are preparing and panicking. For example , a landlord managing a large stock could be faced with having to collect an extra £12 million in rent, when housing benefit is not paid direct anymore. ...

I'm not aware of any plans that will stop the direct payment of housing benefit to social housing landlords, it's only ever affected private sector landlords. Link, please.

BigAunty

Morglin wrote: »

...

There is little point (financially) for the government to move people onto monthly payments, and it's a mystery why they are choosing to go down a more expensive route (as it will be with IT adjustments, overpayments etc.,)

Lin

Well, there's got to be a lot less processing if 12 payments are made per year instead of 52, for starters.

And I assume (haven't seen evidence, though) that the govt see this as better mirroring the world of employment (this is the reason why LHA is routinely paid to the tenant, on the grounds that they should take personal responsibility for budgeting and mimics what happens in employment).

Most employers pay monthly and all service providers offer monthly direct debits so why is monthly benefit payments seen as such a wild anomaly? It might be strange to long term benefit claimants but it's not to anyone else in society.

Marisco

mazza111 wrote: »

Gosh it's years since I was paid monthly. My last job was a weekly paid one that I was in for about 5 years.

I remember when a supermarket I worked in gave you an interest free loan for 3 weeks money. You then paid this back over the year from your wages. Just to make that transition easier.

I do agree that it would be hard in the first 4 weeks for anyone relying on benefits for that transitional period. Maybe they could do something like my former employer did?

This is what happened many years ago when my ex went from weekly to monthly pay. I've "used" monthly for so long I don't think I could manage weekly now!!!:eek: If they are going to change it, then they will need to give people loans for the transition, they can't just pay someone one week and then expect them to last a month on a fortnights money!! All our bills are geared to monthly payments, and they all come out on the same day, so we know exactly how much is left over for food, extras etc for the rest of the month.