[Swinetown]

I haven't seen a thread on this, I did a search and couldn't find one.

This is a new system and a complete overhaul of the current unemployment/low income benefits system.

It is being rolled out to Warrington, Tameside, Oldham and Wigan April 2013 and will go out to the rest of the Country October 2013.

Basically 5 benefits are being combined into one benefit called Universal Credit, that's Income Based JSA, Income related Employment and Support Alllowance, Working tax credits, Child tax credits and Housing Benefit.

Claimants of the benefit will now be getting their money directly to the bank once a month, also, Housing Benefit will be lumped in with this payment and will go direct to the claimant and not direct to the landlord.

Added to this Council Tax is being abolished and a new system will start which will be on a local level ( I have not got a clue what they plan to do with this)

Also this new system is meant to benefit people who get a job part time or fulltime as they will continue to get benefit for a short while after and the benefit will be reduced in incremented levels as the person is in their first few weeks/month of employment. It is meant to show that the person would be better off working as they get to keep all of their wage, instead of the current system.

People make/manage their claims online and can see exactly what is happening with their claims online, apparently the benefits agency will be providing support to people who are not experienced with using a computer over the telephone support and in the benefits centres, I presume this means the Jobcentre.

Also the government are changing Disability Living Allowance to Personal Independence Payment, I haven't researched what is happening with this yet, no doubt someone will enlighten later in the thread.

Claimants will be on an agreement ( I presume more strict than the current JSA agreements) and if the claimant does not fulfil the agreement then the sanctions are that the claimant has benefits reduced, suspended or taken away completely for up to 3 years

i don't know how aware people of this, so thought it would be a good opportunity for a discussion as alot of people will be affected by this, positively of negatively.

i think it has some plus points and some negatives, surely it can't be worse than the large and confusing amount of benefits people can claim currently

I can see the vision, it will be interesting to see how it pans out.

The information is here

http://www.dwp.gov.uk/policy/welfare...versal-credit/

[annette kurten]

having my housing benefit paid to me is a recipe for disaster. the rest of it i don`t even want to think about.

[Swinetown]

Originally Posted by annette kurten

having my housing benefit paid to me is a recipe for disaster. the rest of it i don`t even want to think about.

I think the Housing Benefit element is going to be problematic.

This one is ringing alarm bells with me, I think the vision is to encourage financial responsibility and promote budgeting.

I presume this because of what they say about moving to monthly payments.

[annette kurten]

Originally Posted by Swinetown

I think the Housing Benefit element is going to be problematic.

This one is ringing alarm bells with me, I think the vision is to encourage financial responsibility and promote budgeting.

I presume this because of what they say about moving to monthly payments.

oh for crying out loud.

i`ve just finished paying a couple of thousand in rent arrears i don`t really want to go there again.

[Aneechik]

I support it. Why have all these different benefits that need to be administered when you can just have one.

[Swinetown]

Originally Posted by Aneechik

I support it. Why have all these different benefits that need to be administered when you can just have one.

Yes the new system is supposed to save time and money, so it should reduce the welfare budget

[johnnybgoode83]

Originally Posted by Swinetown

Yes the new system is supposed to save time and money, so it should reduce the welfare budget

At what cost? A one size fits all benefit system will be a disaster, especially with government departments' track record for efficiency in this country. The only losers will be those who need government help the most.

[Swinetown]

Originally Posted by annette kurten

oh for crying out loud.

i`ve just finished paying a couple of thousand in rent arrears i don`t really want to go there again.

As far as I know the government isn't providing any support for people when they change to monthly payments, so I think its best to start saving your pennies for the rainy day that is approaching.

[Swinetown]

Originally Posted by johnnybgoode83

At what cost? A one size fits all benefit system will be a disaster, especially with government departments' track record for efficiency in this country. The only losers will be those who need government help the most.

This is why my 'should' was in italics

Oh and it is not one size fits all its 5 benefits combined, the details are in my first post of which benefits

[What name??]

Originally Posted by Aneechik

I support it. Why have all these different benefits that need to be administered when you can just have one.

Because the different befits are directed to different cirucumstances and needs.

[johnnybgoode83]

Originally Posted by Swinetown

This is why my 'should' was in italics

Oh and it is not one size fits all its 5 benefits combined, the details are in my first post of which benefits

Five benefits combined into one isn't one size fits all?

[molliepops]

Originally Posted by annette kurten

having my housing benefit paid to me is a recipe for disaster. the rest of it i don`t even want to think about.

Why ?

[Swinetown]

Originally Posted by johnnybgoode83

Five benefits combined into one isn't one size fits all?

No because there are alot more than 5 benefits available in the current benefits system, its one size fits five technically

[ROWLING2010]

Monthly payments?

I much prefer weekly/two weekly payments and especially my rent to be paid directly to my Landlord. I can see it becoming a problem with people tempted to spend most/all the money before the end of the month. Also the potential problem of getting more in debt or behind with rent.

Especially as a single parent and currently unemployed I can see this being a struggle to adapt too.

[Janey Jones]

Originally Posted by Swinetown

As far as I know the government isn't providing any support for people when they change to monthly payments, so I think its best to start saving your pennies for the rainy day that is approaching.

BiB - I saw the BBC news article on this yesterday and the emphasis seemed to be on offering money management advice rather than transitional payments

In other words, come October next year, those affected will be expected to make two weeks' money last for a month until their next payment comes through.

There weren't any extra payments made when it changed from a week in arrears/a week in advance to fortnightly in arrears so I can't see there being any financial contingencies in place this time around, either

[flashgordon1952]

It simply will not work "ever". The system is full of holes and the govt has also cut the number of staff dealing with this (its prob the main reason they are doing it).
Another ploy by them to cut the numbers of unemployed but still not sorting out the real problems of "foreign illegal labour " and single young girls haveing babies simply to get on the houseing list.
I say no sort out the root of the problem first !

[annette kurten]

Originally Posted by molliepops

Why ?

why which?

[Swinetown]

Originally Posted by Janey Jones

BiB - I saw the BBC news article on this yesterday and the emphasis seemed to be on offering money management advice rather than transitional payments

In other words, come October next year, those affected will be expected to make two weeks' money last for a month until their next payment comes through.

There weren't any extra payments made when it changed from a week in arrears/a week in advance to fortnightly in arrears so I can't see there being any financial contingencies in place this time around, either

It's funny you mentioned the first paragraph, because i was just sitting here thinking how I had worded that post and then you posted that.
Sorry i meant financial assistance, they will not be providing financial assistance with changing over to monthly. No doubt they will advise what to do in a little leaflet and also advice to go to CAB.

[What name??]

Originally Posted by molliepops

Why ?

Because (a) it will make landlords more wary to take on those who are in receipt of housing benefit as the state no longer stands as guarantors to their payments ie makes them direct (b) for the person in receipt of benefit it gives them the temptation to spend their rent money when an emergency comes up. That leaves them with the hell of making up payments on a low income or being made intentionally homeless (c) because some people on HB will be incapable of budgeting both they and anyone who rents to them is stuffed under such a system and (d) It's been tried before and the result was chaos and misery because of the reasons above.

[johnnybgoode83]

Originally Posted by What name??

Because (a) it will make landlords more wary to take on those who are in receipt of housing benefit as the state no longer stands as guarantors to their payments ie makes them direct (b) for the person in receipt of benefit it gives them the temptation to spend their rent money when an emergency comes up. That leaves them with the hell of making up payments on a low income or being made intentionally homeless (c) because some people on HB will be incapable of budgeting both they and anyone who rents to them is stuffed under such a system and (d) It's been tried before and the result was chaos and misery because of the reasons above.

To be fair it is no one's fault but the individual if they cannot budget their money to pay the rent each month. They need to take it on themselves to learn how to take stock of their incomings and outgoings so that they ensure their bills are paid.

[Swinetown]

The documents I have read on this say that the reason for changing to monthly is to reflect the world of work where people are paid monthly.
Also it is because when a person gets a job they will not find it too much of a trial to change to monthly payments as it said that approx 75% of people get paid monthly in this country.

Also budgeting and financial responsibility are reasons.

Also mentioned, setting up Direct debit work out cheaper as most utilities do reductions on bill for monthly direct debits.

[Swinetown]

Social Fund Element.

I also think its interesting the Social Fund element is being overhauled aswell.

From what i understand Crisis loans will only be given out in the early stages of waiting for first benefit payment and other issues with receiving benefit.

However the part of the crisis loan which is used for unseen emergencies, fridge/freezer breaking etc (cannot think of the reasons) is being being removed and if any assistance is needed in these kind of circumstances then it is up to the Local Authority to provide it.

However, it is at the discretion of the particular Local Authority whether they set up a system to provide assistance for Crisis Loans, same goes for Community Care Grants, which are mainly used for assistance with moving into a new/first home, it is used for other things aswell, but in my work of supported housing this is the main reason it is used, so i mention this.

[molliepops]

Originally Posted by What name??

Because (a) it will make landlords more wary to take on those who are in receipt of housing benefit as the state no longer stands as guarantors to their payments ie makes them direct (b) for the person in receipt of benefit it gives them the temptation to spend their rent money when an emergency comes up. That leaves them with the hell of making up payments on a low income or being made intentionally homeless (c) because some people on HB will be incapable of budgeting both they and anyone who rents to them is stuffed under such a system and (d) It's been tried before and the result was chaos and misery because of the reasons above.

Assuming people getting it are not idiots then they will be able to pay their bills like people in work have to. Or are you suggesting they are too stupid to budget in which case probably unemployable.

[caz06]

my mum works for a company who works with the job centre, and they had a meeting about this coming into force, and apprently reguarding the housing benefit, they will be basing the payments made to you by the number of people residing in the property and the bedrooms that you use, so if say r exmple you have a 3 bedroomed house but only use 2 of the bedrooms and use the 3rd as a spare or its empty, and housing benefit is used to pay the rent for that property, then £9.50 will be decuted each week from the housing benefit payment that the room is not in use, and you will have to pay the added £38 from your monthly lump sum benefit

[Swinetown]

Originally Posted by caz06

my mum works for a company who works with the job centre, and they had a meeting about this coming into force, and apprently reguarding the housing benefit, they will be basing the payments made to you by the number of people residing in the property and the bedrooms that you use, so if say r exmple you have a 3 bedroomed house but only use 2 of the bedrooms and use the 3rd as a spare or its empty, and housing benefit is used to pay the rent for that property, then £9.50 will be decuted each week from the housing benefit payment that the room is not in use, and you will have to pay the added £38 from your monthly lump sum benefit

For under occupying a room in a house/flat it works out at

14% reduction in benefit for under-occupancy by one bedroom
25% reduction in benefit for under-occupancy by two bedrooms or more