Universal credit: Frank Field MP wants to hear your experiences

I still don't understand how the government managed to push Universal Credit through in the beginning. Does everything that is supposed to bring savings just automatically get pushed through without an independent investigation as to whether those claims are true.

Oops nieve head on. Of course they do. Warnings are disregarded and things that are reported to 'save' money actually cost more. And few people in government seem to care.

Now the Audit Commission acknowledges a lot of the disaster that is UC, both to claimants and the Government (as it doesn't save money and doesn't work, even the software doesn't work), but says the changeover can't be reversed.

I have no idea how I will cope when the changeover to UC occurs. How I will feed my son (both of us have disabiities), pay bills etc. Last time there was a changeover to benefits I was told there was a loan you could get to help while waiting for the change to go thru. Lost my application. So I just didn't eat. Tried to give what I had to my son who was then 5. And I am a diabetic (unstable) as well as having other challenges.

Yep I dread UC. Its like a shadow hanging over every benefit claimant. I doubt I will ever work because of the challenges I have. I don't have a lot of choice. No government should be able to behave this irresponsibly.

deannatrois wrote: »

....

Now the Audit Commission acknowledges a lot of the disaster that is UC, both to claimants and the Government (as it doesn't save money and doesn't work, even the software doesn't work), but says the changeover can't be reversed....

The Audit Commission was abolished in 2015. I think you mean the National Audit Office.

https://www.nao.org.uk/report/rolling-out-universal-credit/

I should start with an admission that I'm still on legacy benefits, though I have an appreciation of the effects of UC as I volunteer as an adviser.

For me, in my position as a carer for my disabled partner (currently claiming carer's allowance and ESA) the rules surrounding working on UC are much, much more generous than ESA. The harsh withdrawal of benefits on ESA if I work mean I feel trapped. UC gives a work allowance much more generous than the £20 a week of ESA (in our case with no housing costs it's £409 a month), and then instead of a pound for pound reduction in benefit it's a taper rate of 63%. I now feel that I can try and have a working life in addition to being a carer. Our claim under UC will be greater than ESA even if I don't work as my partner is in the support group.

I do however have concerns surrounding the treatment of self employed people on UC. While I broadly support the aims of the minimum income floor, the application of the rule on a monthly basis doesn't take into consideration the seasonal nature of many businesses or even the quite reasonable desire to have an annual two week holiday. An employee will have 'holiday pay' which is held back by their employer and paid while they are on holiday. A self employed person cannot 'hold back' a similiar income as it has to be declared in the month it is earned, and therefore their income will be severely reduced in the month they take their holiday. The MIF will kick in and they will be left in a much poorer position than a similar paid employee.

A further issue with the MIF concerns self employed people who are ill for a short or medium term. It has been confirmed to me via a FOI request that if the self employed person intends to resume employment once their health has improved then the MIF will still be in place, even if they have a fit note. The example given in a government document is a plumber with a broken leg who is not expected to be able to work for 6 months, still has the MIF applied. Again, they cannot 'hold back' income to cover these situations, and if the MIF is applied when there is no prospect of being able to earn then self employed people face very real hardship including losing their homes.

The last issue with self employment is the unfairness of how those earning less than their MIF compare to employed persons earning less than their CET. The employed will be put onto the 'light touch' regime if the household income over £338 per month (single claim) or £541 a month (joint claim). They will have no obligation to work search or increase earnings and UC will be maximised. However the self employed have the MIF set at their CET and if they earn the same as a household of employed persons at the light touch level the self employed person will be penalised by the MIF assuming their earnings are at the higher CET level.