Letter to Kirklees Council regarding Universal Credit from DWP
I am deeply disappointed with the poor response in relation to our motion on Universal Credit from the Government's Head of Ministerial Correspondence.
The introduction of Universal Credit is not the best route out of poverty as stated in the response.
In fact, Universal Credit is responsible for additional pressures on vulnerable people, often at a time of financial crisis and this takes a toll on people's general sense of well being. In Kirklees we are seeing an increasing number of sex workers within our services as women are pushed into desperate measures due to welfare reform.
As the response states, rates for the majority of in-work benefits such as universal credit, tax credits and local housing allowance have been frozen since April 2016. This has saved the Treasury £4.4 billion last year alone but has inflicted a 6% real terms cut to benefits once inflation is taken into account.
Last year the charity Citizens Advice reported that universal credit claimants were especially affected, with more than half reporting that they had gone without essentials such as food and toiletries. Nearly the same proportion said that they had lost sleep over their dire finances. The message is clear: welfare provision is failing to keep up with living costs.
In fact, Universal Credit is responsible for additional pressures on vulnerable people, often at a time of financial crisis and this takes a toll on people's general sense of well being. In Kirklees we are seeing an increasing number of sex workers within our services as women are pushed into desperate measures due to welfare reform.
As the response states, rates for the majority of in-work benefits such as universal credit, tax credits and local housing allowance have been frozen since April 2016. This has saved the Treasury £4.4 billion last year alone but has inflicted a 6% real terms cut to benefits once inflation is taken into account.
Last year the charity Citizens Advice reported that universal credit claimants were especially affected, with more than half reporting that they had gone without essentials such as food and toiletries. Nearly the same proportion said that they had lost sleep over their dire finances. The message is clear: welfare provision is failing to keep up with living costs.
The Government's income tax cuts overwhelmingly favour higher earners with those earning £50,000 reaping benefits to the tune of £860 a year, six times the £130 that will go to someone who earns £12,500 a year. Increasing inequality in income does not benefit society as a whole and has shown to be correlated with higher prevalence of social problems such as higher crime rates, higher levels of addictions and increasing health inequalities.
Welfare reform is not working. "Thirteen million people and four million children in poverty is too many for the world's seventh richest country". Yes, employment levels may have increased but this incorporates a sharp rise in zero hour contracts with around 1 million workers in unstable employment. The Institute for Fiscal Studies reported that 58% of people living in 'relative poverty' are from working households with 2.1 million working households standing to lose, on average, benefit income of around £1,600 per year with the continued rollout of Universal Credit.
All this while rents are rising without housing benefit rising to match the shortfall. This forces families into increased poverty, some facing a daily struggle to pay their rent and put food on the table. Some risk homelessness. Families with children are most affected and two thirds of affected families are in work. Homelessness has risen over the last six years and the National Audit Office thinks welfare reforms and a freeze in housing benefit are a likely cause. Over a million vulnerable people with low incomes are experiencing worse poverty because they have to rent in the private sector since social accommodation is in very short supply. Benefit sanctions drive tenants into rent arrears, can lead to evictions and homelessness. Dr Julie Rugg of the Centre for Housing Policy at the University of York said: "Because of sanctions you're more likely to fall into arrears and to be asked to leave because you are in arrears. The welfare system has created vulnerability. It didn't used to be the case 10 years ago but it is now." I agree with your statement that other factors such as lack of affordable secure housing also contributes to the increase in the usage of food banks and would argue that Universal Credits further confounds the housing crisis.
Our current welfare system will exasperate inequalities further and ultimately will lead to more pressures on the NHS and other services. Social Support should be a route out of poverty and yet Universal Credit is driving people to despair.
In 2018, Philip Alston, the UN Special Rapporteur on extreme poverty and human rights found that Government policies and cuts to social support:"...are entrenching high levels of poverty snd inflicting unnecessary misery, driven by a political desire to undertake social re-engineering rather than economic necessity."
Universal Credit is having a detrimental effect on the public's wellbeing, exasperating mental health problems and driving many into destitution. It's not working and needs total reformation. I call upon the Government to think again.
Welfare reform is not working. "Thirteen million people and four million children in poverty is too many for the world's seventh richest country". Yes, employment levels may have increased but this incorporates a sharp rise in zero hour contracts with around 1 million workers in unstable employment. The Institute for Fiscal Studies reported that 58% of people living in 'relative poverty' are from working households with 2.1 million working households standing to lose, on average, benefit income of around £1,600 per year with the continued rollout of Universal Credit.
All this while rents are rising without housing benefit rising to match the shortfall. This forces families into increased poverty, some facing a daily struggle to pay their rent and put food on the table. Some risk homelessness. Families with children are most affected and two thirds of affected families are in work. Homelessness has risen over the last six years and the National Audit Office thinks welfare reforms and a freeze in housing benefit are a likely cause. Over a million vulnerable people with low incomes are experiencing worse poverty because they have to rent in the private sector since social accommodation is in very short supply. Benefit sanctions drive tenants into rent arrears, can lead to evictions and homelessness. Dr Julie Rugg of the Centre for Housing Policy at the University of York said: "Because of sanctions you're more likely to fall into arrears and to be asked to leave because you are in arrears. The welfare system has created vulnerability. It didn't used to be the case 10 years ago but it is now." I agree with your statement that other factors such as lack of affordable secure housing also contributes to the increase in the usage of food banks and would argue that Universal Credits further confounds the housing crisis.
Our current welfare system will exasperate inequalities further and ultimately will lead to more pressures on the NHS and other services. Social Support should be a route out of poverty and yet Universal Credit is driving people to despair.
In 2018, Philip Alston, the UN Special Rapporteur on extreme poverty and human rights found that Government policies and cuts to social support:"...are entrenching high levels of poverty snd inflicting unnecessary misery, driven by a political desire to undertake social re-engineering rather than economic necessity."
Universal Credit is having a detrimental effect on the public's wellbeing, exasperating mental health problems and driving many into destitution. It's not working and needs total reformation. I call upon the Government to think again.
