Welfare Reform

Depth_Charge

Hi

Good, interesting and informative article from the Joseph Rowntree Trust on the impact of localising Council Tax Benefit

http://www.jrf.org.uk/publications/impact-localising-council-tax-benefit

Changes are coming in NEXT WEEK on Housing Benefit (or commonly known as the bedroom tax) and Council Tax, these basically have to impact on disposable incomes for those affected, significantly in some cases.

If you are on a payment arrangement with creditors such as a Debt Management Plan, IVA or maybe even a bankruptcy order then you probably need to be aware and prepare.

Rent and council tax are priority expenditure and therefore would turn into priority debt if arrears start to accrue.

Arrears can soon start to build up and before you know it letters start dropping through the door and then perhaps being followed by recovery and legal action that can soon start to clock up the costs and so on.

Info on welfare reform, rent and council tax arrears including the potential consequences from CAB & Shelter

Welfare Reform
http://welfarereform.nedcab.org.uk/

Rent
http://www.adviceguide.org.uk/england/debt_e/debt_rent_arrears_e.htm

http://england.shelter.org.uk/get_advice/help_with_money/rent_arrears

Council Tax
http://www.adviceguide.org.uk/england/tax_e/tax_council_tax_ew/council_tax.htm

CAB Debt Remedy, Online Debt Management Plan & Budgeting Tools

http://mymoney.nedcab.org.uk/moneyadvice/

http://mymoney.nedcab.org.uk/moneyadvice/dmp.asp

http://moneysmart.nedcab.org.uk/

The Local Authorities & Social Landlords have and in some cases are sending out information on the changes and on where to find and get help & advice if necessary.

Its all about to start folks, get ready and be prepared

Depth_Charge

Hi

Latest on UC

Universal Credit pilots scaled back!

http://www.bbc.co.uk/news/uk-politics-21972026

The critics are putting the boot in before UC actually starts, disaster some seem to be saying.

Will they be right?

Its a good call and a tricky one for the powers that be if it all goes wrong.

Tough game politics, but potentially even tougher for those struggling with debt and their finances.

My take

Growurown

I think there are some good and bad points to Universal Credit. The bad point is paying one lump sum each month and expecting people to pay their rent themselves. Whilst many people will manage this fine, there are a lot who won't and will struggle. They won't pay their rent, arrears will increase and housing associations will have a much reduced income.

I have had people say to me why pay rent when I can use the money to get high, or have a really good night out and get insanely drunk. Rent money seems to get used as free credit. The problem is though that on a low income it takes a long time to pay back the rent owed. However I think people who do this are in a minority.

I heard Peter Lilley MP talking about this on the radio this morning and I agreed with his point that people are reluctant to come off benefits and take a job because if the job doesn't work out then it is extremely difficult to sort the benefits out. It takes weeks before the claim is processed and any money is received, and if you have children then people are not going to take the risk. If UC sorts this problem out then this would be a very good point.

BigMummaF

Growurown wrote: »

I think there are some good and bad points to Universal Credit. The bad point is paying one lump sum each month and expecting people to pay their rent themselves. Whilst many people will manage this fine, there are a lot who won't and will struggle. They won't pay their rent, arrears will increase and housing associations will have a much reduced income.

I have had people say to me why pay rent when I can use the money to get high, or have a really good night out and get insanely drunk. Rent money seems to get used as free credit. The problem is though that on a low income it takes a long time to pay back the rent owed. However I think people who do this are in a minority.

I heard Peter Lilley MP talking about this on the radio this morning and I agreed with his point that people are reluctant to come off benefits and take a job because if the job doesn't work out then it is extremely difficult to sort the benefits out. It takes weeks before the claim is processed and any money is received, and if you have children then people are not going to take the risk. If UC sorts this problem out then this would be a very good point.

If your children are cold & hungry, chances are you'll buy food & the necessary fuel to keep at least a bit of warmth before even considering paying housing costs Those who prefer to pub/smoke/gamble it away have always existed & will no doubt continue to do so, but decent folk WILL put family first--the parents made redundant from a production line, armed forces & public sector jobs, employees with chronic injuries sustained at work--none of them 'scroungers' yet treated as such when they are unfortunate to come up against circumstances far from their own making :mad:

As for not wanting to take a job if "it doesn't work out", I feel it is much more the case that no-one is going to give up the security of knowing you have some money coming in regularly, to gamble on work that may disappear sooner rather than later (remember Woolies, F0rd, etc etc) or to sign a six WEEK contract that offers no protection or employment rights whatsoever.


Those upper-class twits up in Westminster really do not know what it is like in the REAL World :wall:

Growurown

BigMummaF wrote: »

If your children are cold & hungry, chances are you'll buy food & the necessary fuel to keep at least a bit of warmth before even considering paying housing costs Those who prefer to pub/smoke/gamble it away have always existed & will no doubt continue to do so, but decent folk WILL put family first--the parents made redundant from a production line, armed forces & public sector jobs, employees with chronic injuries sustained at work--none of them 'scroungers' yet treated as such when they are unfortunate to come up against circumstances far from their own making :mad:

As for not wanting to take a job if "it doesn't work out", I feel it is much more the case that no-one is going to give up the security of knowing you have some money coming in regularly, to gamble on work that may disappear sooner rather than later (remember Woolies, F0rd, etc etc) or to sign a six WEEK contract that offers no protection or employment rights whatsoever.


Those upper-class twits up in Westminster really do not know what it is like in the REAL World :wall:

Agreed. People on benefits often have to choose between either having food or heating. Sometimes they can't afford both. The problem with not paying housing costs is ultimately it ends in eviction. People have said to me that they won't get evicted because they have children but that isn't so. Families have been evicted for rent arrears. I understand what drives people to put food and warmth before their rent but the rent must take priority.

Hopefully UC will help to alleviate the job problems you mention. It is all very well for the politicians to say there are plenty of jobs out there but many jobs will be part time or only for a short contract term of a few weeks, or the hours may vary from week to week - all of which create havoc with a person's income and benefit situation. If the government want people in work then they need to make sure work pays and doesn't disadvantage people.

seven-day-weekend

The best way to provide for your children is to make sure they have a roof over their heads. To not pay the rent first is just irresponsible.

Buy some seasonal vegetables, cook a stew using cheap cuts of meat like neck of lamb, nourishing food does not have to cost a fortune.

darren_clarke

i think a lot will depends on where you live, most jobs down here are £6.50 a most, and most jobs are only part time 15, as the employers get cheaper tax so there is no incentive for them to employ full time, so some times people are better off being unemployed

Growurown

seven-day-weekend wrote: »

The best way to provide for your children is to make sure they have a roof over their heads. To not pay the rent first is just irresponsible.

Yes rent is the priority, however when you are cold or hungry or even worse your children are cold or hungry then the rent doesn't seem so important. The increased costs of energy and food are pushing people to the limits and there is always next week to try and catch up with the rent. Trouble is they never catch up.

seven-day-weekend wrote: »

Buy some seasonal vegetables, cook a stew using cheap cuts of meat like neck of lamb, nourishing food does not have to cost a fortune.

Some of the families I work with don't have much experience with cooking and are scared of trying because if they spend the money on food that no one likes or wants to eat, then it is wasted. Plus sometimes they don't have the money to pay for the energy to cook the food.

If they were organised and planned their meals and menus there are lots of cost savings to be made. If they had a good knowledge of cooking they could take advantage of reduced items in the shop because they would know what to make with their purchases. However they have never learnt to cook or manage a food budget and find it difficult.

seven-day-weekend

Growurown wrote: »

Yes rent is the priority, however when you are cold or hungry or even worse your children are cold or hungry then the rent doesn't seem so important. The increased costs of energy and food are pushing people to the limits and there is always next week to try and catch up with the rent. Trouble is they never catch up.



Some of the families I work with don't have much experience with cooking and are scared of trying because if they spend the money on food that no one likes or wants to eat, then it is wasted. Plus sometimes they don't have the money to pay for the energy to cook the food.

If they were organised and planned their meals and menus there are lots of cost savings to be made. If they had a good knowledge of cooking they could take advantage of reduced items in the shop because they would know what to make with their purchases. However they have never learnt to cook or manage a food budget and find it difficult.

That is very sad but imho no reason for them not to pay their rent, nor to be subsidised by the State if they have an extra bedroom, maybe if they learned to cook they would not have so many financial problems. And if their kids were hungry, like you say, they will eat the food that is cooked.

Is there a local community group that could hold cooking classes? Otherwise these people are never going to be productive members of society taking responsibility for their own lives.

BigMummaF

Just to clarify...I did not say put comfort first; I was merely saying it is understandable that some would.

I know it is important to keep your housing costs up to date, but also a huge temptation to have food to help you keep as well as is possible to enable you to physically & emotionally, carry on.

For far too long people have been encouraged--by government--to 'have it all' & some took that too literally, so not all the blame can be theirs if thrift is a word they need to look up in a dictionary.