IDS Iain Duncan Smith

Iain Duncan Smith and the Tories F*Up again: Training people to use universal credit ‘could cost hundreds of millions’

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http://www.theguardian.com/society/2013/nov/21/universal-credit-benefit-training-cost-millions

Research shows many benefit claimants will need extensive help to get online, open bank accounts and manage budgets

Image of Iain Duncan SmithEquipping benefit claimants with the digital and financial skills to use the government’s new universal credit welfare system is likely to cost hundreds of millions of pounds, unpublished research commissioned by the Department for Work and Pensions (DWP) has found.

The study, carried out by three London councils using DWP data and a methodology agreed with Whitehall officials, found they would each need to spend about £6m over a two-year period to support vulnerable claimants to get online, help them open bank accounts and manage monthly budgets.

The research, seen by the Guardian, , reveals the extent to which socially excluded claimants will struggle with the huge cultural and behavioural changes demanded by universal credit, and warns that without help, those who fail to get to grips with the new welfare system will face debts, arrears and eviction, leading to a rise in homelessness.

It suggests councils, charities and private companies will be required to deliver millions of hours of specialist training and support face-to face and over the telephone to ensure claimants are confident and technically proficient enough to use the system.

Around one in 10 users of the system are likely to need intensive or ongoing support, it finds.

The scale and cost will unnerve ministers, who are struggling to roll out the beleaguered £2.4bn universal credit system, and have admitted that they have already written off at least £140m on failed IT systems for the project. Ministers are expected to decide by Christmas whether to write off universal credit altogether and start again, or reduce it in size and complexity to make it more manageable.

Those behind universal credit see it as an opportunity to tackle digital and financial exclusion for up to 8m households. Iain Duncan Smith, the work and pensions secretary, has called it a chance for claimants to “get back in to the 21st century“.

But while they anticipated that this would require some investment, they are understood to be taken aback by the potential size of the support bill – which could reach £100m for London alone – and have ordered departmental analysts to see if it can be reduced.

Under universal credit, six existing benefits will be rolled into a single monthly payment, out of which claimants will be expected to pay rent, spread living costs over a four-week period, and provide regular online updates marking changes in their income and job status. Unemployed claimants will also have to search for jobs online.

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Continue ReadingIain Duncan Smith and the Tories F*Up again: Training people to use universal credit ‘could cost hundreds of millions’

Labour: We’ll scrap benefits for under 25s [unless they agree to be subjected to forced labour or some useless training course]

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http://www.telegraph.co.uk/news/politics/labour/10461175/Labour-Well-scrap-benefits-for-under-25s.html

Only those in “purposeful” training or carrying out an “intensive” job search would be eligible for the allowance, under proposals being considered by the party

People under the age of 25 would be barred from claiming unemployment benefits under proposals being considered by the Labour Party.

The Institute for Public Policy Research will publish a paper later this week proposing a new means-tested “youth allowance” for 18 to 24-year olds who are not in work or education.

Only those who prove they are in “purposeful” training or carrying out an “intensive” job search would be eligible for the allowance, the group will say.

The allowance would be dependent on family income, with the children of parents earning more than £25,000 a year unable to claim it, the IPPR will suggest.

The youth allowance would be set at £56.80, the same level as Job Seekers’ Allowance.

Under-25s would be banned from claiming additional benefits including Employment Support Allowance and Income Support. Paying those two benefits to under-25s costs taxpayers almost £1.3 billion a year.

It is understood that Rachel Reeves, the Labour shadow work and pensions secretary, is considering adopting the policy, though is undecided about applying a means test.

Ed Miliband, the Labour leader, has also hinted at taking young people out of the benefits system.

The Conservatives have also suggested stripping benefits from under-25s. David Cameron said last month that if he was re-elected in 2015, he would insist that young people would either “earn or learn”, without the option of claiming welfare.

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George Eaton claims that Labour isn’t planning to scrap benefits for under-25s. That’s exactly what they’re planning.

I find the continuous attacks on the young difficult to understand. Is it simply that they are relatively powerless and can’t fight back? It may have something to do with low voting rates.

1.30pm update

Shadow work and pensions secretary Rachel Reeves has denied that Labour is planning to strip young unemployed people of unemployment benefits.

Previously: Labour will be tougher than Tories on benefits, promises new welfare chief

“Nobody should be under any illusions that they are going to be able to live a life on benefits under a Labour government,” she said. “If you can work you should be working, and under our compulsory jobs guarantee if you refuse that job you forgo your benefits, and that is really important.”

She added: “It is not an either/or question. We would be tougher [than the Conservatives]. If they don’t take it [the offer of a job] they will forfeit their benefit. But there will also be the opportunities there under a Labour government.

“We have got some really great policies – particularly around the jobs guarantee and cancelling the bedroom tax – that show that we are tough and will not allow people to linger on benefits, but also that we are fair. Where there are pernicious policies like the bedroom tax, we will repeal them.”

Continue ReadingLabour: We’ll scrap benefits for under 25s [unless they agree to be subjected to forced labour or some useless training course]

Archbishop attacks UK food poverty

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http://www.theguardian.com/society/2013/nov/19/food-poverty-archbishop-york-john-sentamu

Image of Archbishop of York, John SentamuJohn Sentamu calls for ‘more equitable, more caring world’ and questions effects of government’s welfare reforms

The archbishop of York has attacked the “new and terrible” blight of food poverty and increasing malnutrition in Britain, questioned the effects of the government’s welfare reforms and called for a renewal of the postwar spirit that hungered for “a more equitable, more caring world”.

In a long and often angry address to the Church of England general synod on Tuesday, John Sentamu said static salaries and rising prices had left nine million people living below the breadline at a time when the chief executives of the UK’s 100 biggest companies were earning on average £4.3m – 160 times the average national wage.

“We are an advanced economy, a first-world country, and we have been one for longer than most,” said the archbishop. “But we suffer from blight – increasing poverty in a land of plenty.”

Sentamu, who chairs the Living Wage Commission, said politicians needed to stop referring to “hard-working” families and recognise that they were instead “hard-pressed” families struggling to survive despite their best efforts.

“Once upon a time you couldn’t really be living in poverty if you had a regular income,” he said. “You could find yourself on a low income, yes. But that is not longer so. You can be in work and still live in poverty.”

Reports of malnutrition and food poverty in Yorkshire “disgrace us all, leaving a dark stain on our consciences”, he said. “How can it be that last year more than 27,000 people were diagnosed as suffering from malnutrition in Leeds – not Lesotho, not Liberia, not Lusaka but Leeds?”

The effects of the government’s welfare reforms, Sentamu said, were “beginning to bite – with reductions in housing benefit for so-called under-occupation of social housing, the cap on benefits for workless householders and single parents, and the gradual replacement of the disability living allowance with a personal independence payment”.

He questioned whether the bedroom tax made economic sense, as those leaving accommodation to avoid the under-occupancy charge were being rehoused in private lodgings at a greater cost. He expressed incredulity that the statutory minimum wage had been raised by just 12p last month.

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Continue ReadingArchbishop attacks UK food poverty

Bedroom tax affected more than 522,000 people, first figures show

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http://www.theguardian.com/society/2013/nov/13/bedroom-tax-figures-august

The government has released the first statistics showing the impact of the controversial subsidy withdrawal in August

More than 522,000 housing benefit claimants were subject to the bedroom tax in August and had their housing benefit reduced by an average of £14.50 a week, official figures show.

The Department for Work and Pensions (DWP) said the figures were the first official returns on the impact of the controversial tax, or bedroom subsidy withdrawal.

They show more than 429,000 people were penalised for having one bedroom too many, losing an average of £12.66 a week; more than 92,000 were penalised for having two excess bedrooms, and were losing an average of £23.43 a week.

The government said there had been a steady fall in the number of households affected, with 24,000 fewer claimants affected than in May.

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Continue ReadingBedroom tax affected more than 522,000 people, first figures show

Bad management and cruelty: Iain Duncan Smith and the failures of the Work Programme

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http://www.newstatesman.com/uk-politics/2013/11/bad-management-and-cruelty-failures-work-programme

A toxic mixture of policy by soundbite, twisted statistics and a spurious belief in the efficacy of the private sector has created a programme that is going to fail a whole generation.

by Alan White

Image of IDS Iain Duncan Smith

 

 

 

 

Earlier this year, Cait Reilly, a 24-year-old Geology graduate, won a legal battle at the Appeal Court after claiming that her unpaid work placement at Poundland, which she had been required to undertake in return for continued benefits payments, breached laws on forced labour.

Iain Duncan Smith vented his frustration on The Andrew Marr Show:

I’m sorry, but there is a group of people out there who think they’re too good for this kind of stuff […] The next time somebody goes in – those smart people who say there’s something wrong with this – they go into their supermarket, ask themselves this simple question, when they can’t find the food they want on the shelves, who is more important – them, the geologist, or the person who stacked the shelves?
It was despicable, if unsurprising, to watch a cabinet minister smearing a young woman who’d been volunteering in her preferred career field. And the second part of his statement was the kind of populist hokum that carries as much intellectual weight as an X-Factor judge’s comments (“Well when there’s an earthquake and you’re buried under a pile of tinned tomatoes in Tesco ask yourself who’s more important THEN? You, or the geologist, or the shelf stacker? Yeah. I don’t know either. Makes you think.”)

But such rhetoric is indicative of Duncan Smith’s modus operandi: policy by soundbite. To quote Jane Mansour, a policy consultant who has been involved in welfare-to-work in the UK and Australia for the last 15 years:

‘Tough’ is consistently used as a synonym for ‘effective’. They are not the same thing. It is unclear how the complexity of issues that underpin worryingly high levels of youth unemployment will be addressed by benefit removal for under 25s, or how any job churn and negative impacts on wages that occur as a consequence will be mitigated.

A considerable amount of research data, particularly that on the value of specific interventions, has been compiled or commissioned by DWP and funded by the taxpayer. Wasting such a valuable resource should be condemned forthrightly […] It’s like deciding to buy a house, paying for a full structural survey, ignoring the issues it identifies, and then building an extension on walls, that (had you read the report you would know) are not strong enough to hold it up.
So it’ll come as absolutely no surprise to hear that – by the DWP’s own reckoning – mandatory work activity schemes such as the one Cait Reilly was supposed to attend are ineffective. That analysis didn’t even mention the impact on disabled people. And it’ll also come as no surprise that the analysis was published alongside an announcement that the department was, erm, expanding the scheme.

Perhaps part of the floundering’s due to the fact Iain Duncan Smith’s trying to solve an impossible problem. You might see him ranting about a something-for-nothing culture, or alleged job snobs like Reilly – but you won’t hear a peep from him about the long-term political and economic failure that’s left nearly five people chasing every vacancy, that saw 4,300 people apply for 150 jobs at Tesco in Gosport and which has left youth unemployment a ticking economic and social time bomb.

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Continue ReadingBad management and cruelty: Iain Duncan Smith and the failures of the Work Programme