Scots explain why they are living in fear of Welfare Reform

Employment, Features, Politics, Poverty & regeneration — By TFNadmin on 02/02/2012 10:32 pm

CAN campaigners make an impact on the most far-reaching reforms to the welfare system since it was created? Recent victories suggest they can but how far they can go remains to be seen. The defeat of all three of the government’s changes to disability support in the House of Lords may appear to be a crushing blow to the coalition but the majority of the biggest changes are imminent or are already happening.

These include the new capability for work assessments, changes to housing benefits and the way they are paid, and payments made to people in care.

The government says changes under the Welfare Reform Bill will save £7bn in welfare spending and encourage people currently on benefits to go out and find a job.

However, for many it is not that simple. Single parents, the mentally ill and the physically disabled will all be re-assessed under the new regime’s ongoing capability programme which is already causing huge controversy, assessing many as eligible for work when they feel unable to do so.

Alongside this are changes to the way benefits are paid. Housing Benefits, for example, will become part of the new Universal Credit system which lumps claimants’ entitlement into one payment. That means many hard-up claimants may be tempted to use money intended for their rent to pay for food or other necessities, leading to a spiral of debt and even eviction and homelessness.

For many the problem is not about eligibility for work; it is about support. Campaigners argue that even if work was available, many would find themselves quickly out of work because they need tailored support to get them back into work.Citizens Advice Scotland has roundly condemned the changes to welfare as “not fit for purpose”, following a report which found that 115,000 people in Scotland would lose their incapacity benefits under the planned reforms.Most of the changes that will make the biggest difference to ordinary people are outlined in the UK Government’s Welfare Reform Bill. While the bill has had a tough time in the House of Lords, where, most recently a plan to cap all benefit entitlements at £26,000 was voted down, it’s still possible that the Commons – which was due to debate Lords amendments as TFN went to press – may push through the original plans.Regardless of the outcome, these welfare reforms have created an outrage across the third sector with poverty organisations, family groups, housing associations and disability groups uniting to condemn them.

The Welfare Bill’s stuttering progress

MINISTERS want the welfare reform bill to become law by the end of this parliamentary session in May. They are targeting a total of £18bn in welfare savings by 2015.

Introducing time limits for ESA is expected to save £2bn a year while the benefit cap will save an estimated £270m a year. Plans to remove the “mobility component” of DLA from people in residential care – which have already been abandoned – were meant to save £135m a year. However the bill has already made significant progress through Parliament so is unlikely to run out of time. Iain Duncan Smith says he is determined that his reforms will get through – and says MPs will overturn any defeats from the Lords.

But how will these changes affect the people who matter most? Here TFN looks at the areas of housing, mental health and care to see what the actual human costs are and whether people at the frontline of changes are able to retain the quality of life ministers promised to protect.

Stephen has mental health problems and has never been given any support to get back to work
Mental health is an area of huge concern for campaigners. All benefits recipients are now subject to medical assessment by a private company.Currently some 60 per cent of claimants assessed through the new scheme have been told they are capable of work in some capacity. As such they are either moved onto Employment Support Allowance (ESA), Income Support or Job seekers Allowance. If deemed fit, they must actively look for work. If a claimant fails to provide proof that they are job seeking their claim will either be suspended or terminated. The DWP says nearly 40 per cent of claimant appeals against Work Capability Assessments are successful.Stephen first experienced problems with his mental health when he worked as a postman. He recalls the time well. “My dad had died the week before and I had gone back to work feeling really down. I just felt I couldn’t cope but didn’t know who to go to or what to do. So I took time off work, got sacked and ended up on benefits.”His grief escalated into depression and then anxiety. Stephen was signed off work by his doctor and put on Incapacity Benefit, which he has been claiming for the last eight years. During this period Stephen says no attempts have been made by JobCentre staff to encourage him back into employment, despite him asking for support. Last November Stephen attended an assessment centre in Glasgow run by the private firm Atos to review his claim. Surprisingly the assessment deemed him medically capable of work, despite Stephen telling the doctor he had become fearful of crowds and new situations, and he was told his claim for Incapacity Benefit would end in January 2012. He believes he is in no shape for work. “My anxiety has actually increased since being out of work,” he says. “I’ve become more anxious, more withdrawn and I rarely venture outside. Even going for the medical was a huge effort. I can’t just get a job because my mental health is too bad. I have asked for help but I’m getting nowhere.” All together Stephen is currently losing about £150 a month in benefits. He has gone from receiving £98 a week to the ESA Assessment rate figure of £67.50 a week. His rent for his flat is still covered but unless he gets a job that will end too. He is currently appealing the decision, during which time he must make himself available for work. The whole affair has increased his anxiety so much so his doctor has written to the DWP to complain on his behalf. “I have asked for support but I can’t get it,” he says. “I can’t just walk into a job; it worried me. I can hardly venture outside.” Stephen knows that if he takes a job and can’t cope with it he is effectively on his own with no money and potentially no home. “That’s what most worries me,” he says. “If I get forced to take a job and I can’t handle it and give it up then I’ll get nothing. I’ll be classified as a non-entity: unable to claim JSA because I walked out my job and unable to claim ESA because I’m not unwell according to them.”

Single mum Gail has two small children but may have to move out of her three-bedroom home
BOTH tenants and social landlords will be affected by new welfare reforms. Under the new laws, tenants will lose a portion of their income through a penalty if their home is under occupied.According to the SFHA, tenants will lose an average of £11 per week to the penalty if they live in a property “judged to be too big”. The body says that 42,000 people in Scotland would be affected with a net loss of some £24.5m in benefits.The plans would mean that tenants could move to smaller properties, but a shortage of smaller homes means in reality they have few alternatives. In Scotland, 62 per cent of all housing association or co-operative tenants need only one bedroom, but only 34 per cent of residences have only one bedroom.For landlords, the reforms could mean higher rates of eviction. Plans to pay benefits direct to claimants under the Universal Credit system means a high likelihood of tenants failing to pay. At present, 96 per cent of housing association and co-operative tenants in Scotland choose to have their housing benefit paid directly to their landlord. When taking into consideration the proposed changes to housing benefit, universal credit and other benefit reforms, the SFHA estimates that as many as one in five tenants’ incomes may be adversely affected. Gail Reagan lives in Fife with her new born son Alfie and daughter Emma. A single parent, she is able to get by through Tax Credits and Income Support. However, while she says she’d like to work her biggest worry is how it’ll pay. “It took me four years to get a flat and I like it here,” she says. “But it’s a three bedroom because I separated from my boyfriend and I’ve already been asked if I’d like something smaller as he doesn’t live here any more.” She says she doesn’t want to move because her daughter has just started school and it would mean leaving her friends behind. “I’m not worried about myself but I do worry for Emma. It’s nice here – the children get on well and so do the parents. I waited four years because I was unwilling to live in a bad area. But if my money drops I’ll be forced to look elsewhere. It’ll be Emma who suffers.” Losing money is not an option. She’s been lucky to get help from her social housing provider, Kingdom, which has been able to advise her on the new regime but she worries changes to benefits would leave people in her position worse off. “I can’t work because I have to look after two children but even if I could then I don’t think I could make enough to cover all my expenses,” she says. “Just now I have enough to get by. It’s not luxury though. Alfie’s clothes are mostly all donated from friends and family and I had to get a crisis loan for Emma’s school uniform in August. “I can’t afford to buy luxuries for myself. I don’t smoke and don’t drink and hardly go out. It would be nice one day to go on holiday but that won’t happen until I am able to get a job. The only reason I am able to cope is because I look after every penny.” Gail believes paying claimants housing benefit direct will be a bad move. “If you are short one week then you could be tempted to use your rent money. “Then the next month you can’t make it up and before you know it you are behind. “Not everyone is good with money and when you’re on benefits debt is a part of life. It’s a bad idea – they should just keep it the way it is.”

Sisters Monica and Bernadette are terrified of being assessed under new disability rules
The most controversy over the reforms has centered around changes to Disability Living Allowance. Because DLA serves the moderate to severely disabled, implementing changes across the board have been met with fervent opposition.A year ago the government consulted the public on getting rid of DLA and replacing it with a new benefit called the Personal Independence Payment (PIP). While details around PIP have yet to emerge, claimants under the new scheme have to be reassessed every few years in the same way people claiming ESA are now assessed.One of the most controversial proposals in the bill was to cut mobility allowance for people in care homes. The government wanted care organisations to pick up the tab but backed down late last year after a flood of opposition from leading disabled groups. This has been seen as a major victory for campaigners but it has left many claimants worrying how the PIP will be rolled out and whether it will adversely affect their income.Monica and Bernadette: Bernadette is fortunate in that her younger sister Monica is able to look after her. A car accident in 1990 left her in a wheelchair and reliant on others for support. She receives the highest rate of DLA plus Mobility Allowance on top. Monica receives Attendance Allowance as she is her primary carer. Bernadette subsequently developed a rare bone disease that leaves her in constant pain. She won’t, and can’t, ever work but the constant worry about changes to her DLA has left Bernadette and her sister living in fear of the proposed changes. They say the money they receive is hardly enough to cover normal living expenses and worry constantly about energy bills. “It’s really difficult to get by,” says Monica. “But when you hear they want to take more off you then think you’re a second-class citizen, a fraud. We don’t look for charity but I can’t work; Bernadette needs me here. She can’t prepare a meal; she can’t get to the bathroom herself. I see it as a job but I get very little support. It’s full-time and we constantly struggle to make ends meet.” An advisor from her local disability forum outlined the proposed changes to PIP which has left both of them worried. “They say it won’t affect us but it will as they are now going to assess Bernadette in the same way they assess other benefit claimants. She’s classed as severely disabled and unfit for work but I don’t know if they’ll change that. They might take some of her money away – I just really don’t know.” Monica herself has rheumatoid arthritis and fears that if she became immobile there will be no one to look after Bernadette. “I’m getting older and don’t want to worry about these things,” she says. “If I had the security to know that there was provision to enable us to get a reasonable standard of care then I’d be more than happy. I’ve never looked for handouts in my life – neither of us has – but I have to get by some way. “I just fear it’s getting harder and harder each year and the worry is not doing either of us any good.”

What is Universal Credit?

UNIVERSAL Credit will replace existing benefits such as Jobseeker’s Allowance, Income Support and Housing Benefit. Phased in from October 2013, it will cover 12 million claimants by 2017.It is being put in place to simplify the current system which ministers say is too complex as currently 50 different benefits and other payments can be claimed.The new system will mean many claimants will get just one payment for all benefits, including housing benefit.

And it will in theory encourage people to get work more than the present system as their benefits will be reduced on a sliding scale as earnings grow, thus aiming to avoid the problem where people on benefits couldn’t afford to work.

The government estimates that about 2.7 million households will have higher entitlements as a result of Universal Credit, with more than one million households seeing an increase in entitlements of more than £25 a week.

The timeline for the changes stretch from October 2013 to April 2014 when half a million new claimants will receive Universal Credit instead of Jobseeker’s Allowance, Employment Support Allowance, Housing Benefit, Working Tax Credit and Child Tax Credit.

At the same time, another half a million existing claimants and their families will be transferred to the new credit when their family circumstances change significantly, for instance if they get a job or have another child.

Then, from April 2014 a further 3.5 million claimants and their families will move to Universal Credit.

And from the end of 2015 to the end of 2017 a further three million people will be moved over, focusing on Housing Benefit claimants.

Tags: benefits, TFN 670 - 03 February 2012, welfare, welfare reform, work