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News News Archive 2010 Univeral Credit: "welfare that works"?
News News Archive 2010 Univeral Credit: "welfare that works"?
Univeral Credit: "welfare that works"? |
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| Friday, 03 December 2010 |
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Consultant and trainer, Chris White, provides a timely update on his last article about welfare reform and recovery. Here, he describes the coalition Government's proposed 'Universal Credit' and its implications. Earlier this month the coalition Government in Westminster announced further details of its plan to introduce a single Universal Credit to replace the existing system of work-related benefits. If these plans go ahead, changes will be introduced in 2013 aimed at encouraging more people into work by creating a system where they would be better off in work than on benefits. However, it is likely to take10 years before the proposals are fully implemented. 'Universal Credit' will introduce a single working-age benefit replacing current benefits such as jobseeker's allowance, housing benefit, child tax credit, working tax credit, income support and employment support allowance. The amount of universal credit will depend on individual family circumstances. There will be a basic personal amount with additional sums for disability, caring responsibilities, housing costs and children. There will also be a system of earning disregards, so that as someone begins to move into work, their benefit will be tapered off at the rate of 65p for every pound they earn. This is to ensure there is more incentive to move into some work than there is under the current permitted work rules. As the aim of these changes is to get people back into work, there will a large element of conditionality for those people who the government feel should be looking at some work. For people with an illness or disability assessed as having limited capability for work this will mean having to take part in some work preparation or work related activities. If someone is assessed as able to work then they will be required to take any job offer or participate in community work programmes. As part of the new system, people will face tough sanctions for fraudulent claims or if they do not comply with the conditions of their benefit entitlement. Claimants who fail to prepare for work where this is required, will lose 100% of their benefits until they comply. Failure to seek employment, be available for work, or attend "work-faced" will mean that people will lose the equivalent of four weeks' benefits for a first offence, rising to three months for a second offence. In the most serious cases where people continually breach the conditions of their benefit they could lose entitlement to claim for up to three years. In the majority of cases people will be expected to make and manage their claims online for Universal Credit; similar to an online bank account. This could cause problems for thousands of people who do not have access to the Internet or have little experience of using computers. More recent news is that, following a Independent Review of the Work Capability Assessment, the Government have agreed to fully support the recommendations made. These include: improving the decision-making process and the reconsideration process to reduce the number of appeals; ensuring Atos has in place "champions" with additional expertise in mental, cognitive and intellectual conditions to improve their assessment process; and set up a review group to review the mental, intellectual and cognitive descriptors. This group is comprised of Mind, Mencap and the National Autistic Society. Further information: Universal Credit: welfare that works: Work Capability Assessment independent review |
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