UC - pros and cons

Having read Andrew’s comments on another thread, its made me think about the pros and cons of UC compared to legacy benefits.

I see a number of single clients, who seem to be trapped in part-time or agency work.  I had thought that UC would be a good benefit for this group due to
(i) it will follow them in and out of work
(ii) more generous earnings disregards and tapers
(iii) in some cases more generous rules for non-dependents

Of course this has to be balanced against the significant drawback of monthly payments.

Some other issues are:

(i) claimant commitment - is this significantly different to the claimant commitment for JSA?
(ii) in work conditionality - how much of a problem is this?
(iii) sanctions - are UC sanctions harsher?  Is there any difference in how the Jobcentre make sanction decisions?

We are only just starting to see UC claims in Wrexham, so I would be grateful for anyone else’s opinions or experiences.

Hi Cordelia -

‘Roll-out’ (arrrgh, I hate that usage) is still very limited in our area but I’ve gone over and over the UC rules and although a limited number of people certainly will be better off working under UC, its failings in other areas are so enormous as to make it unworkable.

The groups selected for the roll-out are by and large those who will do best from UC, but that will give an artificial impression of ‘success’.

My problem is that UC is - from first principles - punitive - and based upon the assumption that everyone wants to do the minimum possible work and take the maximum possible from the state. As a starting-point, that philosophy smells of something very, very bad.

The Claimant Commitment sets out what punishment a claimant will get, but very little (it appears) about what support they will receive. This reflects the way in which the law is written and the underlying political assumptions..

Claimants will need to get their CC dead right first time (in terms of what work-search and availability etc etc), and if they don’t -sanctions. The Work Programme will go on, notorious as it is for delivering ‘good’ results for those easy to place while those who aren’t are ‘parked’.

The CC may be varied, but the Regs read to me as if the DWP has the whip-hand on this and can refuse a claimant’s request. Experience from other areas indicates that a one-size-fits-all approach is taken, and DWP are reluctant to vary the terms of the CC. This will lead to sanctions.

Certain things that were rights in JSA law are now purely discretionary - such as objecting to types of work owing to sincerely held conscientious (etc)‘beliefs. This will lead to sanctions. the sanction will only be lifted on a ‘good cause’ grounds and that is discretionary too.

In- work conditionality will certainly be a problem; NB the assumption that people will do as little as they can get away with (see especially the self-employed rules) We now have an economy based upon short-term, part-time and low-paid work, but those stuck in that particular vortex will be punished for not getting more and better work. They will be made to apply for zero-hours contracts, possibly multiple ones.

One can only assume that people subject to in-work conditionality will also be forced to do extra, unpaid work, on pain of sanctions.

The gains from working are eroded if there is a second earner - NB. CPAG’s latest call for increased support in this aspect.

UC is so heavily work-focused that it reduces disability payments for disabled children and adults compared to the current system (and also links adult payments to the WCA, not to receipt of DLA or PIP), and offers only the Work Allowance as a way of improving income. Owing to the severity of their own disability, some people will not be able to work; similarly if they have to care for a child full-time. As far as I can see, someone in this situation will be far, far worse off than under the current system.

Those who are both disabled and carers will lose enormously, with only ‘work’ as the get-out clause. Some people simply cannot work.

Claimants face more repayable ‘help’ such as hardship payments and STBAs - so the hardship will be ameliorated in the short term, then spread out over a longer period. Overpayments are repayable always, with only a knock-off version of COP 26 to offer any ‘help’.

I’ll stop now but…..there’s more.

As a friend would say, “Gad!”

That is a most excellent summary Andrew. I agree with every word of it.

agree with much of what has been posted but for our clients with a learning disability:

pros:

in theory, its easier to explain how much they can earn via part time work and how long for.  permitted work and the fact tax credits are annual can be difficult for our guys.  especially those with varying earnings and hours

cons

no sdp equivalent is a huge loss as we have a massive number of folks entitled to this
fact you cant have LCFW and have the carers premium
im assuming issues claiming onlne will occur
unlikely to have id required
our guys are likely to agree to unrealistic claimant committments

then you have the fact that the housing element and some other benefits may end up being devolved in scotland which is going to make the full thing very difficult to grasp.

sorry, some more:

• ending the concept of paying child-related costs to the child’s main carer – a backward step
• correct payments depend on claimants, employers, DWP, HMRC, and local authorities, pension providers, other agencies, all inputting the correct information at the same time (if they don’t, claimant is liable for overpayments)
• passporting’ rules – we have no idea what is going to happen to these
• Local Support Services Framework/Universal Support/whatever it’s called this week –  still little detail as to how it will work and very few areas seem to have any details
• removal of 13 weeks’ protection for those who lose their job but could afford the rent when they took on the tenancy
• the zero-earnings rule for mortgage interest
• the proposal (not yet in law) that the state will recover help with mortgage costs by taking a charge upon claimants’ property
• the inter-relation of housing costs and work allowances is complicated
• by my reading, child care costs need to be declared monthly, and if the claimant is late in declaring them – they will lose them
• self-employed people will have to report income 12 times a year (plus self-assessment to HMRC)
• the internal problems of the old benefits will re-surface in UC as many things (such as WCA) have been moved in to it on a cut-and-paste basis
• the abolition of Tax Credits and the introduction of a £16000 capital limit will mean that UC is denied to people who would previously have been supported in work by Working Tax Credit
• disabled students will find it harder to get UC as the claimant must get Attendance Allowance, Disability Living Allowance or Personal Independence Payment and have ‘limited capability for work’

Good analysis .... few more points

- The monthly assessment of changes of circumstance - treatment of a change as having occurred at the start of the assessment period - will disadvantage people in a variety of situations, not least those who fail to report changes on time, or have difficulty understanding the appropriate time periods
- Yes there will be some winners in this respect as well
- The move away from weekly assessments of needs to monthly, has an impact on housing costs where liability is in respect of specific periods (often weekly), and for example a reduction in or end of housing costs towards the end of a period will lead to the reduced amount being paid in spite of liability
- Loss of ‘overlapping’ HB on two homes which enabled people to move to more suitable housing and give notice - will increase indebtedness

Agree with all of above. I’ve only limited experience working with UC so far but pros as well as cons were asked for so:

1) Carer Element included even if you earn too much for Carer’s Allowance
2) Simplified and flat rate non-dependant deductions from housing costs
3) Pension contributions encouraged as not included in net income
4) I think/hope it will prevent underclaiming. One benefit, clearer rules, and less likelihood of overpayments (dubious, but hopefully not as bad as Tax Credits) *should* mean that people won’t miss out through lack of knowledge in the way that at the moment I see clients who had no idea they could claim HB or TC or even get a top up of JSA as they just weren’t aware of the rules and always thought they wouldn’t be entitled. This all depends on the experience of claiming UC though - if the process, and the in-work conditionalilty, make it too stressful/difficult then underclaiming may increase.
5) It does encourage people on low incomes or unemployed to try work if available*. At least compared to JSA, where you can take a job for 10 hours per week and find yourself only £5 better off (essentially working for 50p an hour).

*(I’m not IDS in disguise, I promise)

More worries – as adult disability elements will depend upon the WCA and not receipt of qualifying benefits, are they not more vulnerable to being lost? On many occasions people have won an appeal and are then put through a new WCA quick as you like and put in WRAG or found fit for work - appeal again, Support Group again, and so on.

Also – if I have got these examples right, there are massive losses facing those who cannot work:

Single – ESA SG - enhanced PIP both elements
£186.90 IRESA with SDP and EDP.
Universal Credit £146.17 weekly, LCWRA element

Couple – both on Support Group ESA, both are on PIP for daily living, they are one another’s carers
£366.55 IRESA with 2x SDP, 2 x Carer and EDP
Universal Credit £222.66 weekly – one LCWRA element, one carer element

Agree with all the above and have another reservation to add to the list:

Single payments will make it a lot worse for people in abusive relationships. At least with CB/CTC going to the primary carer, the one responsible for the children had some money to meet their needs.

I also have a question: how are joint tenants who aren’t couples treated if they are both on UC because of unemployment? There is a school of thought that each is treated as a non-dependant of the other, and a deduction made.

Excellent overview of pros and cons of UC and Sarah beat me to in in respect of the loss of overlapping when held to notice when moving home. We also await the 7 waiting days for UC which although now applies to JSA & ESA it does not apply to housing benefit.