17th September
You may know that this Tory Government plans to introduce Univeral Credit in October 2013.
While I think everyone would accept that the benefit system needs a continuous reform process, this step will seriously affect many of the most vulnerable and disadvantaged in Walsall and especially in some wards where many disadvantaged residents live. I post the concerns of many organisations that deal on a day to day basis with those at risk.
The evidence shows there is widespread concern about managing Universal Credit online, the implications of it being paid monthly and being paid to one member of a household, and the gap when the current system is phased out and the new one starts.
Ministers are very keen to ensure that the new system should be "digital by default" - in other words, managed and run online.
The new universal credit system risks causing difficulties to the 8.5 million people who have never used the internet and a further 14.5 million who have virtually no ICT skills," says Citizens Advice.
Only one in ten of claimants think it would make their lives easier”
Women's Budget Group
The public sector workers union Unison makes a similar point, as does the National Housing Federation, the umbrella group for homeless organisations, Homeless Link and Community Links, a charity based in east London, amongst others.
Concerns are raised too about paying Universal Credit monthly.
The Women's Budget Group, which describes itself as an "independent organisation bringing together individuals from academia, non-governmental organisations and trades unions to promote gender equality," also makes some observations.
It tells the MPs: "The government says monthly payment of Universal Credit mimics life in work.
"But many on low incomes in work have wages and/or benefits and tax credits paid more frequently, which matches common budgeting patterns for those on low incomes.
"Only one in ten of claimants think it would make their lives easier. Women are likely to be hit harder, as in low income families they tend to make more frequent purchases that will be squeezed as money is stretched."
There are concerns too that the payment of Universal Credit to one person in a household could, in some instances, upset the family dynamic: potentially putting that individual in a position of considerable power and influence.
Many of those who have submitted evidence are worried about how some people will cope when the changeover from the current benefits system to the Universal Credit takes place.
Work and Pensions Secretary Ian Duncan Smith wants to overcome problems in the benefits system "What consideration has been given to providing grants to cover a shortfall when transitioning from fortnightly to monthly payments, rather than claimants having to rely on budgeting advances or 'pay-day loans' which need to be re-paid?" asks Gingerbread, the charity for single parents.
Manchester City Council raise a broader concern: the effects not just on people, but communities.
We have concerns about the impacts on people but also on 'place' - either from large scale churn de-stabilising people and communities or reductions in income within areas with high concentrations of people currently on benefit."
Let's now turn to look at some of practical problems around making this change happen on time.
A wide range of organisations involved in meeting the government's deadline are clearly very worried about achieving it.
At the heart of the Universal Credit is what is known as the Real Time Information system. The aim is it will be much more responsive to people's changing circumstances.
It will require employers to report their employees' pay each time they are paid. In addition the self-employed will have to report their income every month instead of every year.
This will be a "significant and difficult burden, reliant on information from others", the Chartered Institute of Taxation tells the MPs.
The success of the Universal Credit depends on the new computer system being completed "under extremely tight timelines," the employers' organisation, the CBI says.
The new system's tight delivery timetable, coupled with low awareness among companies, is a risk to business and to the implementation of the Universal Credit."
"There is a real risk that the central government Universal Credit IT systems will not be ready on time," adds the Local Government Association, which represents councils.
So how does the government respond? Radio 4's The World This Weekend invited a minister to appear on the programme, but the invitation was declined.
In its evidence to the committee of MPs, the Department for Work and Pensions claims that "digital skills are a factor in around 72% of jobs", and so encouraging people to manage their Universal Credit online is sensible. It also saves a significant amount of money.
Advice will also be available, the department says, for those recipients who need help with managing their family budget.
"Rigorous, integrated IT testing has also commenced," it adds, pointing out it has "some of the best contingency arrangements in place across government" if things go wrong.
Do you think that this Tory run Council cares a jot about the potential effects to residents in Walsall?
Please commit yourself to supporting Labour here in Walsall who cannot stop these changes but at least are compassionate on their effects and will ( if they are in charge) try to mitigate the disastrous effects on the most vulnerable in our society.
Please post support or otherwise!
Regards
Ian Robertson
secretary Walsall South CLP
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