Category Archives: Universal credit

More than 1m households to get £420 budget boost in universal credit change

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Exclusive: move will cap amount that can be deducted from benefit payments to repay short-term loans and debts

More than 1m of the UK’s poorest households will be £420 a year better off on average as a result of a change to universal credit set to be announced in next week’s budget.

The measure is intended to primarily help the worst-off families, and will be seen as a way for ministers to head off criticism over decisions to cut winter fuel allowance for most pensioners and maintain the two-child benefit cap.

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Surprise fall in UK inflation badly timed for benefit recipients

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Payments such as universal credit linked to previous September’s figure, meaning a rise of just 1.7% in April

Last month’s surprise fall in UK inflation lands with bad timing for millions of people who receive state benefits linked to the figure, who can now expect their payments to rise by just 1.7% next April.

A number of benefits, including universal credit, are increased each tax year in line with the cost of living figure for the previous September.

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Labour’s benefit fraud crackdown would allow officials to access bank accounts

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Proposals will require financial institutions to share data that may help identify scammers

Labour has promised to crack down on benefit fraud by reintroducing “snooper’s charter” proposals mooted under the last government that would allow welfare officials to request information from claimants’ bank accounts.

A fraud, error and debt bill will require banks and other financial institutions to share data that may help identify benefit fraud as part of a package of measures designed to “catch fraudsters faster” and save £1.6bn over five years.

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Benefit sanctions more likely for minority ethnic claimants, UK data shows

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Black universal credit claimants 58% more likely to get sanctions than white people, while mixed ethnic groups are 72% more likely

Black and minority ethnic benefit claimants are disproportionately likely to be hit with universal credit sanctions – financial penalties typically running into hundreds of pounds – according to official statistics unveiled for the first time.

Black universal credit claimants were 58% more likely to be sanctioned than white claimants, mixed ethnic groups were 72% more likely and Asians 5% more likely, according to the figures published by the Department for Work and Pensions (DWP).

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Which benefits are available to vulnerable people under Labour?

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As the winter fuel allowance is scrapped for many pensioners, we outline some other key benefits

• Millions facing ‘cruel winter’ without fuel payments, Labour MPs warn

Labour backbenchers are warning that millions of vulnerable people will face a “cruel winter” amid rising energy prices and a reduction in benefits, including the removal of winter fuel payments for millions of pensioners.

Keir Starmer’s government has promised to improve conditions for those most in need, with a commitment to “reduce and alleviate” child poverty and end the “moral scar” of food banks. And while Labour sees economic growth and creating more reliable and well-paid jobs as crucial to achieving these aims, it cannot ignore a number of pressing and often interrelated problems in the social security and benefits system.

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Labour MP calls two-child benefit cap ‘heinous’ in latest call to scrap policy

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Keir Starmer under pressure to scrap limit as more than dozen MPs thought to support king’s speech amendment

Keir Starmer has come under further pressure to scrap the two-child benefit limit after another of his backbench MPs described the policy as “heinous”.

Writing in The Sunday Times, Canterbury MP Rosie Duffield said the cap, which came into effect under then-chancellor George Osborne in 2017, was “sinister and overtly sexist” and had been the main reason driving her to stand for parliament.

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‘It’s put so many families in poverty’: people on the impact of the two-child benefit cap

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As Labour backbenchers call for Keir Starmer to scrap the cap, families reveal their struggles as a result of the two-child limit

Keir Starmer has launched a cross-government taskforce to tackle child poverty, but backbench Labour MPs are calling for the government to go further and scrap the two-child benefit cap. Here people reveal how the limit affects their families.

Alicia* is a mother of four children in Newcastle, and is separated from their father. She does everything she can to avoid going to collect a parcel from a food bank. She will often buy a big sack of potatoes and cook them in different ways throughout the week – jacket potatoes, fried chips, wedges – so her kids get variation. She often skips breakfast and lunch herself.

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Sunak accused of making mental illness ‘another front in the culture wars’

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Charities say high rates of people signed off work are caused by crumbling public services after years of underinvestment

Rishi Sunak has been accused of making mental ill health “another front in the culture wars”, as critics warned his plan to curb benefits for some with anxiety and depression was an assault on disabled people.

In a speech on welfare, the prime minister said he wanted to explore withdrawing a major cash benefit claimed by people living with mental health problems and replacing it with treatment.

Shifting responsibility for issuing fit notes, formerly known as sicknotes, away from GPs to other “work and health professionals” in order to encourage more people to return to work.

Confirming plans to legislate “in the next parliament” to close benefit claims for anyone who has been claiming for 12 months but is not complying with conditions on accepting available work.

Asking more people on universal credit working part-time to look for more work by increasing the earnings threshold from £743 a month to £892 a month, so people paid below this amount have to seek extra hours.

Confirming plans to tighten the work capability assessment to require more people with “less severe conditions” to seek some form of employment.

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Thousands of disabled people ‘will get £2,800 a year less under universal credit’

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Single people with long-term disability that stops them working will be much poorer after rollout, Resolution Foundation says

The rollout of universal credit is on course to make thousands of working-age disabled people significantly poorer, according to a report showing that more than 7 million people will be covered by the six-into-one benefit change before the end of the next parliament.

A single person with a long-term disability that prevents them from working is £2,800 a year worse off when they transfer to universal credit (UC), the Resolution Foundation said, adding that all single people with long-term disabilities will suffer this loss of income when the rollout of UC is completed by 2030.

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Coroner criticises benefits rules after vulnerable claimant’s death

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DWP missed many chances to act as woman’s mental health declined while under overpayment investigation

A coroner has criticised the Depart­ment for Work and Pensions (DWP) after a woman died from an overdose in the wake of a six-month official investigation that left her with soaring universal credit debts.

Fiona Butler, the assistant coroner for Rutland and North Leicestershire, wrote a Prevention of Future Deaths (PFD) report to the DWP highlighting its failures to respond to the victim’s mental health issues.

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UK ‘in violation of international law’ over poverty levels, says UN envoy

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Exclusive: Special rapporteur Olivier De Schutter to urge ministers to increase welfare spending on visit to country this week

Poverty levels in the UK are “simply not acceptable” and the government is violating international law, the United Nations’ poverty envoy has said ahead of a visit to the country this week, when he will urge ministers to increase welfare spending.

Olivier De Schutter, the UN’s special rapporteur on extreme poverty and human rights, cited research showing universal credit payments of £85 a week for single adults over 25 were “grossly insufficient” and described the UK’s main welfare system as “a leaking bucket”.

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Universal credit system not working for artists, says Julie Hesmondhalgh

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Former Coronation Street actor calls for more support, as survey finds lack of safety net for self-employed creatives

More financial support should be available to artists in the periods where they are not working, the former Coronation Street actor Julie Hesmondhalgh has said, as research revealed universal credit is pushing the creative workforce into destitution.

The study by the performing arts union Equity and the University of Warwick found that of those subject to the universal credit rule known as the “minimum income floor” (MIF) – which reduces the amount of support that self-employed creatives are eligible for – 41% had gone without essential items such as food or utilities.

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Food banks supported 800,000 UK children in 2021-22, data shows

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One-fifth of UK population was in relative poverty after first year of pandemic, when support measures scrapped

Families including 800,000 children were forced to turn to food banks to feed themselves as poverty levels started to rise again after the first year of the pandemic, the first official figures on UK food bank use show.

The statistics came in official poverty data, which revealed that the reduction in relative poverty achieved during the first year of the Covid crisis in 2020-21 was temporary and was reversed after ministers scrapped support measures.

In-work poverty remains high – half (54%) of people in poverty lived in a household where at least one adult was in work, while more than two-thirds of children in poverty (71%) lived in working families.

Child poverty rates were much higher among black (53%) and Asian (47%) families than white families (25%). About 44% of children in single-parent families, and 36% of children living in families where someone has a disability, were in poverty.

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Hunt’s disability plans put 1m at risk of losing £350 a month, IFS says

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Charities and disability campaigners say chancellor’s proposals set out in his budget more ‘stick than carrot’

Up to 1 million people currently claiming incapacity benefits could lose hundreds of pounds a month as a result of plans outlined in the budget to push ahead with the “biggest reforms to the welfare system in a decade,” experts have said.

The warning came as ministers unveiled a range of measures to try to drive more people back into the workplace, including scrapping controversial “fit for work” tests for disabled claimants and stepping up the threat of benefit sanctions against part-time workers.

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Revealed: record number of households in UK depending on food banks

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Almost 90% of food banks see increased demand, as organisers fear having to cut support or turn people away

More people are depending on food banks than ever before in Britain, new figures show, as “ever-increasing” numbers of households – including pensioners, NHS staff and teachers – seek help amid the cost of living crisis.

New research by the Independent Food Aid Network (Ifan), shared with the Observer, found that almost 90% of food banks surveyed reported increased demand in December 2022 and January 2023 compared with a year earlier. Half of the 85 organisations running 154 food banks that responded said if demand rose further they would either have to cut support or turn people away.

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Zayn Malik urges Rishi Sunak to give free school meals to all children in poverty

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Bradford-born singer who relied on free school lunches urges PM to extend provision to all families on universal credit

Zayn Malik has called on Rishi Sunak to “give all children living in poverty” free school meals during the cost of living crisis.

The former One Direction singer, 29, who relied on free school lunches as a child growing up in Bradford, recently became an ambassador for the Food Foundation and is backing its Feed the Future campaign.

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UK food banks at breaking point urge Liz Truss to boost aid to poorest

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As cost of living crisis bites, 3,000 volunteers across several organisations sign letter of warning to the prime minister

Thousands of food bank volunteers will warn Liz Truss on Monday that they are having to ration provisions, as their services have become “overstretched and exhausted” because of an influx of people needing their help.

In a sign of a continuing cost of living crisis that was building even before the economic crisis that followed the government’s mini-budget, a letter signed by more than 3,000 food bank workers will be delivered to Downing Street.

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Liz Truss on verge of major U-turn on real-terms benefits cut

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Exclusive: Tory MPs warn PM she would lose vote on increasing benefits only in line with earnings rather than inflation

Liz Truss is teetering on the edge of performing another big U-turn as Tory MPs warned she would lose a vote on delivering a real-terms cut to benefits while new research showed the move could push an extra 450,000 people into poverty.

Despite desperate pleas for party unity from senior ministers after weeks of bitter infighting, the row over welfare threatened to overshadow the prime minister’s attempt to reassert her authority when the Commons returns from recess on Tuesday.

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Kwasi Kwarteng to shrink part-time work benefits to grow labour supply

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New UK chancellor aims to reverse inactivity in labour market, especially among over-50s

Kwasi Kwarteng will tighten benefit rules for part-time workers, requiring them to work longer hours or take steps to increase their earnings.

The new rule will require benefit claimants working up to 15 hours a week to take new steps to increase their earnings or face having their benefits reduced. The current threshold is nine hours, though it was increased this summer to 12 hours, which will come into force next week.

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British minister accused of trying to hide reports on impact of Tory welfare reforms

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Thérèse Coffey ‘set out to minimise evidence’ on studies including research into deaths of benefit claimants and help for vulnerable

Ministers have been accused of deliberately attempting to hide the impact of the government’s wide-ranging welfare reforms by concealing a range of official reports on benefits.

Thérèse Coffey, the work and pensions secretary, said she would not publish five reports or research on the benefit cap, deaths of benefits claimants, the impact of universal credit (UC), and benefit sanctions, and that she had no plans to publish two further reports on unpaid carers and work capability assessments.

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