Welfare Reform and Universal Credit – Equality Briefing
(Click here to download the latest version of this briefing as a PDF)
The move to Universal Credit (UC) has been the most visible aspect of Welfare Reform in 2017-2018 and changed the benefits system by bringing together:
- Housing Benefit
- Child Tax Credits
- Working Tax Credits
- Income based Job Seekers Allowance
- Income-based ESA
- Income Support
UC is an online system that give a claimant the choice between being paid either monthly or twice monthly; and have the housing costs in their award of Universal Credit paid direct to their landlord. This is selected in the Universal Credit online account, and you will be offered them following the first payment, along with further information.
Alternative Payment Arrangements, where housing costs are paid directly to the landlord can be put into place with agreement from DWP.
Note: If you have set this up, we would like to hear from your experiences on how easy this was to set up and if it had an impact on your (or your service user’s) financial security, including effect of the 6 week delay between claim and UC payment.
This briefing summarises information from a range of sources that are dedicated in welfare advice and highlights the equality issues that have been raised. Due to the constantly changing nature of the reform in benefits, it is published as a working document and will be available and updated online at:
Key points
Impact on Equality Groups
The EHRC (2017) interim report and the Scottish Government (2017) Welfare Reform Report highlight the following groups of people with protected characteristics that will significantly adversely impacted by the reforms:
- Ethnic minority households, with average losses for Black households about 5% of net income – more than double that for White households.
- Households with one or more disabled members, will be significantly more adversely impacted than those with no disabled members. Tax and benefit changes on families with a disabled adult will reduce their income by about £2,500 per year; if the family also includes a disabled child, the impact will be over £5,500 per year. For non disabled families, this is estimated at £1,000.
- Disability and ESA assessment process is criticised from both claimants and advocacy organisations, and reassessments from DLA to PIP have resulted in a number of people receiving no award or a reduced award. 57% of those reassessed from DLA saw no change to their award, or had their award increased.
- Lone parents lose around 15% of their net income on average, losses for all other family groups are much smaller, from nothing to 8%. Lone parents – who are mostly women that are reliant on many low income benefits are a big factor in this.
- Women lose more than men from reforms at every income level, on average women lose around £940 per year on average, men lose £460
- Men and Young People have been noted as marginally more likely to be sanctioned, e.g. by removal of default entitlement to housing element of Universal Credit.
- The biggest average losses by age group are experienced by the 65-74 age group at around £1,450 per year, and the 35-44 age group with average losses of around £1,250 per year.
Welfare Reform Timetable: 2018 onwards
The (UK) timetable of planned Benefit changes for 2018 has been detailed by the third sector organisation Turn2Us on at: Benefits Changes 2018. Please note that both the Scottish Government and Fife Council are mitigating several of the changes happening at UK level and
Upcoming dates / planned changes:
- January 2018: Universal Credit Advance
From January 2018, the amount a claimant could receive from an advance payment of Universal Credit will increase from up to 50% of their estimated entitlement to up to 100%. Claimants will be able to receive an advance payment within five days of applying. The period in which the advance is recovered will be increased from six months to 12 months
- February 2018: Universal Credit
From February 2018, the government will remove the seven-day waiting period for Universal Credit, so that the claim starts from the date of application. This means that if Universal Credit is paid on time, claimants will wait five weeks for their first payment instead of six weeks.
- April 2018: Support for Mortgage Interest (SMI) payments
From 6 April 2018, Support for Mortgage Interest will no longer exist as a benefit for new or existing claimants. Claimants will instead be invited to apply for a loan if they want to continue to be supported. Loans will be repaid upon the sale of a claimant’s house; or on a claimant’s return to work if the borrower can afford it.
Fife Resources, Help and Advice
Fife Council
- Guide to Universal Credit, September 2017
- ‘Keeping your Full Benefit Payment’
- ‘Changes to Benefit Caps’
Lyndsey Maricic, Policy Officer
Tel: 03451 55 55 55 + Ext 44 61 38 Contact Lyndsey Maricic online
By Post: Fife Council Brunton House High Street Cowdenbeath Fife KY4 9QU
Mary Williamson, Customer Service Lead Advisor
Tel: 03451 55 55 55 + Ext 57 36 23 Contact Mary Williamson online
By Post: New City House 1 Edgar Street Dunfermline Fife KY12 7EP
Third Sector
- Fife Voluntary Action
Universal Credit Full Service Briefing Paper, October 2017 - CARF / Citizen Advice Scotland
https://www.citizensadvice.org.uk/scotland/benefits/universal-credit/
Welfare benefits phoneline: 0345 1400 092
Scottish Government
Scottish Welfare Fund
- Crisis Grant– if you’ve been in an emergency that risks health or safety
- Community Care Grant– to help you or someone you care for to start to live, or to carry on living, outside of care
Other/National:
- Scotland’s Financial Health Service– find information and advice on debt, managing money, housing, homelessness and ethical lending
- National Debtline– get free, confidential and independent debt advice on 0808 808 4000
- Money Advice Scotland– find details of agencies that give independent financial advice
IN THE NEWS:
Social security changes – April 2017
Link: http://cpag.org.uk/content/social-security-changes-april-2017
Source: CPAG
Equality Topic/Group affected: Poverty, Children, Young People
Benefit changes ‘could push 200,000 children into poverty’
Link: http://www.bbc.co.uk/news/education-39455078
Source: BBC News
Equality Topic/Group affected: Poverty, Children, Young People
New welfare reforms put extra pressure on single parents to enter paid work
Link: https://uk.news.yahoo.com/welfare-reforms-put-extra-pressure-094649776.html
Source: The Conversation
Equality Issue/Group affected: Single parents
The Two-Child Limit Ignores Need And Drives Up Poverty
Link: http://www.huffingtonpost.co.uk/lizzie-flew/two-child-limit-poverty_b_15776332.html?1491217353
Source: Huffington Post UK
Equality Issue/Group affected: Family size, Poverty
Benefit cuts to hit housing association tenants in Scotland
Source: Poverty and Social Exclusion
Equality Issue/Group affected: Poverty, Housing
Cancer patient’s family stands to lose £50k under benefit cuts
Source: Guardian
Equality Issue/Group affected: Widowed Parent’s Allowance, Health and Social Care
Advice: How does Welfare Reform impact on me and my family?
Source: Banbridge Leader
Equality Issue/Group affected: Welfare changes, Family
“For the UK Government, some children appear to matter more than others”— Commissioner blogs on new benefit cuts
Source: Children and Young People’s Commissioner
Equality Issue/Group affected: Young People, Children
“Philip Hammond urged to pause cut in benefits for widowed parents”
Link: https://www.theguardian.com/society/2017/mar/07/philip-hammond-urged-to-pause-cut-in-benefits-for-widowed-parents
Source: Guardian
Equality Issue/Group affected: Family, Bereavement
“UK welfare reform has been a ‘car crash’, say those on the front line”
Link: https://www.holyrood.com/articles/inside-politics/uk-welfare-reform-has-been-car-crash-say-those-front-line
Source: Holyrood
Equality Issue/Group affected: Homelessness
“Scottish housing figures call for welfare reform re-think post election”
Link: http://www.insidehousing.co.uk/scottish-housing-figures-call-for-welfare-reform-re-think-post-election/7020403.article
Source: Inside Housing
Equality Issue/Group affected: Housing
“Austerity renders the lives of disabled people invisible, unliveable, and invalid”
Link: https://www.opendemocracy.net/uk/sophia-benedict/austerity-renders-lives-of-disabled-people-invisible-unliveable-and-invalid
Source: Open Democracy
Equality Issue/Group affected: Disability, Austerity
“Social Security (Scotland) Bill”
Link: http://www.parliament.scot/parliamentarybusiness/Bills/105267.aspx
Source: Scottish Government
Equality Issue/Group affected: Disability, Austerity
PUBLIC POLICY / RESEARCH
Citizens Advice (2016) Welfare Reform and Working People. London: Citizens Advice.
Cribb, R., Hood, A., Joyce, R. and Norris Keiller, A. (2013) Living Standards, Poverty and Inequality in the UK: 2017. London: Institute for Fiscal Studies.
Disability Rights UK, Citizens Advice and The Children’s Society (2012) Holes in the Safety Net: The Impact of Universal Credit on Disabled People and their Families. London: The Children’s Society.
Poinasamy, K. (2013) The True Cost of Austerity and Inequality. Oxford Case Study. Oxford: Oxfam GB.
JRF (2014) The impact of welfare reform on social landlords and tenants
If you would like to contribute you views, research or have any concerns about any of the issues raised, do not hesitate to contact us.
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