Industry news Universal Credit benefits system is ‘failing’ people
The roll out of Universal Credit should be put on hold as the benefit payment system is “failing” people, the charity Citizens Advice has claimed. A pause will allow the system’s current problems with processing and payment delays to be addressed before hundreds of thousands of new claimants are enrolled. Universal Credit represents the biggest change
to the welfare system since its inception according to the CAB. By 2022, over 7 million families will be in receipt of this benefit - nearly 3 in 10 (28 per cent) of all working-age households. Over half the households are expected to include children. The charity says it supports the aims of UC to
simplify the benefits system, to make transitions into work easier and make every hour of work pay. However, it claims that some aspects of UC risk causing or exacerbating personal debt problems. With UC roll-out due to accelerate significantly from this Autumn, it fears that the current problems will become more widespread leading to higher levels of personal debt, a growth in homelessness and an increase in mental health issues. Evidence collected by the CAB shows that UC
clients are more likely to have debt problems than those on legacy benefits.
• A quarter (26 per cent) of the people helped with UC by the CAB also needed help with
debt, compared to 19 per cent for legacy benefits;
• They are also struggling to pay off their debts. More than 2 in 5 (41 per cent) of debt clients on UC have no spare income to pay creditors, compared to a third (33 per cent) on legacy benefits;
• 57 per cent of claimants are having to borrow money while waiting for their first UC payment, while 39 per cent are waiting on the first payment for longer than the six weeks target.
STRUGGLES Claimants are struggling with the applications process, the charity said, with 30 per cent of respondents having to call the Universal Credit helpline more than 10 times and some waiting more than 30 minutes to get through. “Universal Credit is already failing too many
people, pushing them into debt and leaving them without the means to make ends meet,” said Gillian Guy, chief executive of Citizens Advice. “The Government needs to pause plans to accelerate the roll-out of full-service Universal Credit this autumn and devote the time and resource needed to tackle the key problems which mean the system is not working.” The charity say measures such as removing the seven-day waiting period at the start of a claim,
Councils warn that nation faces an older persons’ homelessness ‘time bomb’
The nation is facing a “ticking time bomb” in the number of homeless older people after official figures showed an alarming rise of 130 per cent since its lowest point eight years ago, councils have warned. The Local Government Association says that
homelessness among older people is a growing hidden phenomenon that needs greater understanding. Figures show that between April and June this year, councils accepted 620 people aged over 60 as homeless – at a rate of nearly 10 a day. This is up from the 270 accepted between October and December 2009, which was the lowest number since records began in 2005. The LGA, which represents more than 370
councils in England and Wales, is warning that based on existing trends, this is set to double by 2025. Older homeless people are presenting to
councils with a range of complex health conditions. Physical and mental health problems, alcohol abuse and gambling problems are contributory factors in later life homelessness, along with the death of a close relative, relationship breakdown, accommodation being
sold or needing repair and rent arrears. Councils often cite rapidly increasing rents and
stagnating household incomes as key factors driving the increase. Older people who experience homelessness are also more likely to suffer from mental illness or depression, adding to pressures on health and care services.
UNDERSTANDING The LGA’s new report The impact of homelessness on health, launched at its National Children and Adult Services Conference, says the rising number of older homeless will create significant extra pressures for councils, such as in providing housing and social care. While there is an understanding of the link
between homelessness and health for young people, the report says little is known about those experiencing homelessness later in life. It contains information and ideas for local authorities to improve health and wellbeing in their local populations. The LGA is calling for Government to address
the undersupply in specialist housing for older people, and changes in the implementation of
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introducing an online system for booking appointments and making the helpline free of charge should be introduced before the large scale roll-out to existing benefit claimants.
ARREARS The Department for Work and Pensions (DWP) responded by saying the study did not reflect the experiences of the 500,000 people already claiming UC, as it only was based on a survey of 792 Citizens Advice clients. “The vast majority of claimants have told us
they are satisfied with Universal Credit. We are rolling out Universal Credit in a gradual, safe and secure way, and in the rare cases where issues arise, we work closely with local authorities and landlords to support people when they need it,” a spokesperson for the DWP said. “Universal Credit is designed to mirror the way
many people in work are paid, and we have budgeting advice and benefit advances available for anyone who needs extra help.” But social landlords have been reporting that
increasing numbers of tenants in receipt of Universal Credit have fallen into rent arrears and the new system is putting “vulnerable residents at risk of destitution and homelessness”. MPs from all parties are joining the voices calling for a pause and a re-think.
welfare reforms to reduce the risk of homelessness. Councils are being given additional responsibilities next year to support those at risk of becoming homeless, but the LGA says councils need to be able to borrow to invest in new housing to increase supply, boost home ownership and reduce homelessness. Cllr Izzi Seccombe, Chairman of the LGA’s
Community Wellbeing Board, said: “Traditionally homelessness is associated with
young people and it is a tragic fact that a person suffering homelessness lives to an average age of only 47. But we are facing a ticking time bomb in older homelessness, with an alarming rise in the number of older people becoming homeless. “While the actual numbers are relatively
low, at the current rate, this will spiral in just a few years. Homelessness is not just a housing issue. Homelessness and ill-health are intrinsically linked, and this is especially evident in elderly people. For example, older people experiencing homelessness are more likely to suffer from depression or dementia, which has wider implications for social care and health services. “Councils want to end homelessness by
preventing it happening in the first place, we need government to allow councils to build affordable homes and to adapt welfare reforms to ensure housing remains affordable for low-income families.”
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