A number of news stories have highlighted existing and potential problems with the plans for introducing Universal Credit, the benefit designed to replace income-based jobseeker’s allowance, income-related employment support allowance, housing benefit, working tax credit, child tax credit and income support.
Already at least £100 million over budget and problems sith the IT, the timescale has also slipped, despite confident assertions from the Department of Work & Pensions (DWP) that all is well.
Independent news report: Benefits reform under threat after IT glitch
The Commons Work and Pensions Committee said it had “serious concerns” about how those without bank accounts and internet access would adapt to the new consolidated monthly payment. The committee is urging the government to address these issues before the pilots begin and then carefully monitor the impact on people of the changes from the outset.
BBC news report: Vulnerable universal credit claimants may struggle, say MPs
Community Housing Cymru (CHC) launched a campaign to warn people of impending changes to the benefits system. Homelessness could increase and more people may turn to loan sharks if welfare reforms go ahead.
The UK government’s Welfare Reform Act also introduces a so-called “bedroom tax” in the social rented sector. Tenants with spare bedrooms will see their housing benefit cut when the change is introduced next April.
The UK government’s own impact assessment calculates that 40,000 households in Wales will be affected.
Welsh Housing Minister Huw Lewis told BBC Wales he was concerned that authorities in Wales would be left to handle any resulting problems.
He said: “My greatest fear is just that; that the Welsh government, that Welsh local government and the third sector will have to pick up the pieces, the casualties if you like, of these precipitous changes that are a complete re-moulding of the welfare state in terms of housing benefits.”
BBC news report: Benefits reforms could increase homelessnes
The Northern Ireland Council for Ethnic Minorities (NICEM) has told a Stormont committee that it is “highly likely” there will be a legal challenge against the Welfare Reform Bill.
They are concerned by suggestions that EU migrant workers would possibly be paid at lower rates as “this would constitute direct discrimination”. And that a new resident’s test would be introduced which would require the worker to have been in the UK for two out of the last three years. Such a test had previously been seen to be in breach of EU law.
BBC news report: Welfare reform bill legal challenge ‘highly likely’
