universal credit the shape of things to come angela toal welfare rights worker cpag in scotland
TRANSCRIPT
Universal CreditThe Shape of Things to Come
Angela ToalWelfare rights worker
CPAG in Scotland
The Case for Change
• Poor work incentives– Benefits mean going
back to work doesn’t pay
• Complex system– For claimants– To administer
What is Universal Credit
• A single means-tested benefit• For working age people• Paid in work or out of work• Withdrawn at constant rate
as earnings rise• Support for adults and
children• Support for rent and
mortgages
Who Can Claim
Depends on• Your age• Your residence in GB• Your means• Accepting a
‘claimant commitment’
Lone parents
Sick or disabled people
Carers
Out of work
Low waged
UNIVERSAL CREDIT
INCOME SUPPORTINCOME-BASED JSAINCOME-RELATED ESA
CTC/WTC
SF BUDGETING LOANS
COMMUNITY CARE GRANTS
CRISIS LOANS
HB/CTB
How Much Is It
Standard allowance • Single claimant or couple (joint
claimants)Additional amounts• For a child• For a disabled child• For limited capability for work• Higher disability addition• For caring for a disabled person• For rent or mortgage
Going Back To Work
Earnings disregard
Single taper rate
Net earnings
Universal credit
Adapted from 21st Century Welfare, DWP, July 2010
Basic allowanceout of work or low wagedreplaces IS, JSA, ESA, WTCAdditional amountseg, mortgage, rent, children, disability, caring
Earnings disregard example - disabled person
• Her earnings disregard is £7,000.• She has housing costs in her universal credit of £70 a
week which means an annual amount of £3,640.• £3,640 x 1.5 is £5,460. • Her earnings disregard of £7,000 is reduced by this
amount.• However her ‘disregard floor’ is £2,080, and her
disregard will not reduce below this.• £40 pw of her earnings will be disregarded.• After that her UC will be tapered away at 65%.
Claimant Commitment
Four groups
• No work-related requirements
• Work-focused interview only
• Work preparation• All work-related
requirements
How is it Administered
• Online claims and reporting
• Real-time earnings information from HMRC
• Assessment and award made automatically
• DWP administered
• Payments possibly monthly
• All overpayments recoverable
Will It Reduce Child Poverty
• Government’s child poverty strategy gives no figures
• In debate, said increased take up and entitlement changes would mean child poverty would fall by 350,000
• Others say set to rise because of cuts
What’s the Verdict
More InformationCPAG advice and resources:• website www.cpag.org.uk• COMING SOON COMING SOON Universal credit guide• Welfare Rights Bulletin• training• advice line
• www.dwp.gov.uk/policy/welfare-reform