CAMPAIGN I Universal credit reform
Ending the five-week wait Alessandra Sciarra provides an update on The Salvation Army’s campaign for universal credit reform
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NIVERSAL credit is a meanstested benefit for people of working age on low incomes to help them meet their living costs. It was first introduced in 2013, merging six existing benefits into one, and is intended to support people both in and out of work. Universal credit has been a muchdiscussed topic over the past few weeks as a result of unprecedented reforms made to the UK’s welfare system. Since the start of the coronavirus pandemic we have seen a steep rise in the number of applications made for universal credit support. Almost a million people applied in the last two weeks of March. Many of them are facing hardship due to having lost their job or having their hours reduced. That’s why it is more important than ever to get universal credit right and make sure it is fit for purpose. The Salvation Army has been campaigning to reform universal credit to ensure it can support the most vulnerable people effectively. One of the key areas for reform that the Army has been working towards is to end the five-week period a person has to wait to receive their first payment. Following calls for change, and as a result of the coronavirus crisis, the government has introduced a number of changes to the social security system, including: O Increasing universal credit allowance by £1,040 per year from levels previously announced for 2020/2021. This amounts to around £20 per week. The exact figure will vary depending on individual circumstances. O Increasing the frontline capacity of
the Department for Work and Pensions (DWP) through redeployment of staff to handle new universal credit claims over the phone. O Suspending all face-to-face assessments. O Introducing a job retention scheme to help people who would otherwise have lost their jobs as a result of coronavirus. This can apply in certain circumstances to people in employment claiming universal credit. Although we welcome these changes, we think that more can and should be done. It is for this reason that we continue to have conversations with relevant government departments and raise the issue publicly through the media. We were recently featured in The Guardian, BBC News, the Daily Mail and more. In February we also published a survey that featured in The Guardian highlighting the challenges faced by universal credit claimants with mental health conditions, and we met the work and pensions minister to present our survey findings. Our work will always be driven by a passion for helping the people most in need and that is why we are calling on the government to make a number of further changes to universal credit. These include: O Ending the five week waiting period for universal credit payments and replacing the current system of advance payments (or bridging loans) with a system of non-repayable grants. O Increasing the capacity of the DWP by redeploying more staff able to support claimants over the phone, which will reduce long waiting times. O Providing a ‘breathing space’ period for people applying for universal credit for the first time who have existing debt, for example from previous rent arrears. Our voice joins the chorus of voices in the charity sector calling on the government to make these changes promptly and stop more people from
falling into debt and destitution. As our Head of Public Affairs Matthew Sowemimo argued at a recent oral evidence session of the House of Lords committee investigating the economics of universal credit, the five-week wait needs to end because it is a key poverty trap in the social security system. The coronavirus pandemic has demonstrated the need for a strong social security system that can meet the needs of everyone, especially in times of crisis. We need to ensure people can meet their basic needs and avoid crippling debts and anxiety about becoming destitute. By removing the five-week wait barrier through a grant system, the government would be taking a fundamental first step to helping create a social security system that works for everyone. If your corps or centre is encountering people who are struggling with universal credit please get in touch with the Public Affairs and Social Policy Unit by emailing public.affairs@salvationarmy.org.uk so that you can share your story. The unit is particularly interested in hearing about people’s experiences of the advance payment system. ALESSANDRA IS POLICY ANALYST, PUBLIC AFFAIRS AND SOCIAL POLICY UNIT, THQ Salvationist 25 April 2020
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