July Would you Credit it? The experience of 100 Universal Credit claimants in Chesterfield and District.

Transcription

1 July 2018 Would you Credit it? The experience of 100 Universal Credit claimants in Chesterfield and District.

2 2 Forward Derbyshire Unemployed Workers Centres with the help and support of Chesterfield Unite Community volunteers took the decision to conduct a survey of Universal Credit (UC) Claimants. Derbyshire Unemployed Workers Centres (DUWC) is an advice organisation set up with the support of Chesterfield Trades Union Council in It is a registered charity supported by Chesterfield Borough Council, North East Derbyshire District Council and Bolsover District Council as well as many Town and Parish Councils and hundreds of individuals. The organisation receives over 10,000 enquiries per year and represents hundreds of people at Benefits Appeals Tribunals. The full digital roll-out of UC took place on 29th November Eight months after, it was decided that enough time had elapsed to gauge the experience of claiming the new benefit. Universal Credit is completely different to existing benefits. It is paid in one single monthly payment and claimants have to wait several weeks for their first payment. UC replaces six existing legacy benefits and may be claimed if a person is on a low income or out of work. It is for all new claims and replaces: Income Based Jobseekers Allowance (JSA) Housing Benefit Working Tax Credit Child Tax Credit Income related Employment and Support Allowance (ESA) Income Support For people already claiming one or more of these benefits UC will not affect their current claim for the time being unless they have a change in circumstances.

3 Methodology Derbyshire Unemployed Workers Centres developed a questionnaire to be used outside Chesterfield Jobcentre Plus Office to be used with people on Universal Credit. In 2017 we conducted a survey by taking telephone numbers of those affected by the issue under scrutiny. Later a full telephone interview was conducted. This proved to be difficult and time consuming as we were only able to contact approximately one third of those who had given their details. Volunteers were leaving messages on answer machines, the time was not convenient, or just no answer and maybe the wrong number. This time we decided it would be more efficient to conduct the interview as people were leaving the jobcentre. Volunteer interviewers emphasised that it would not take long and they recorded the responses as they were given. Volunteers were briefed to ask the questions as written and to explore the answers given. The presence of volunteers outside the Chesterfield Jobcentre also had the advantage of making sure that claimants were aware of all the support structures that have been put in place with the active engagement of both statutory and voluntary organisations (including representation from the DWP) through the Chesterfield Health and Wellbeing group. Those who were unsure of the help and support available were given information on where to access assistance. DUWC, as an advice organisation, only ever sees people who have problems and so without active research would have a skewed impression of how UC was playing out amongst a wider group affected. The surveys took place over a two week period between 2nd and 13th July. A significant number of people were interviewed who had only recently made their claim or had only been on Universal Credit for a few weeks and so could not comment on some of the questions asked. The survey was put together with the assistance of the Welfare Rights Advisers at DUWC. They spotlighted the areas where there have been enquiries at the Centres and help and advice given. The survey has given us the opportunity to form a wider picture of people's experiences concerning the implementation of the Universal credit system. The questionnaire itself can be described as semi-open-ended. In other words the respondents were asked the same general questions but invited to express their views in their own words: they were not asked to tick boxes. As can be seen from the attached interview guidance, in response to the first general question, the views of the respondents about UC were ranked in three categories 1) Those with a clearly positive view of UC 2) Those with a clearly negative view of UC 3) An intermediate category ( OK ) intended to quantify those who had neither a strongly positive nor strongly negative view of UC (as well as specific elements of UC like Work Coaches) This intermediate question obviously required some judgement on the part of the volunteer interviewers as to the respondent s reply. In some cases this arose out of the fact that some had only recently been involved with UC. 3

4 4 Summary of findings Between 2nd and 13th July UC Claimants were interviewed by trained volunteers from the Derbyshire Unemployed Workers Centres as to their experiences of the introduction of Universal Credit. Of those that expressed an opinion 50.5% of respondents had a clearly negative view of Universal Credit. 14.5% had a clearly positive view and 35% held an intermediate opinion of UC. Answers to specific questions: 30 respondents found making a claim online a problem and 25 found maintaining the claim and using the journal a problem. 34 respondents had been put into debt by UC. This does not include the advance on UC payments some had taken as, for the purpose of this survey, this was not regarded as a debt. 12 respondents had been sanctioned although some were not sure whether this had occurred under JSA or UC. 30 respondents said that UC had put them into housing cost problems. Those living at home with parents were not affected and so the number experiencing problems with UC in relation to rent arrears is alarming. Positive aspects of UC recorded responses were: 53% had a positive experience of the work coaches, 6% negative and 41% intermediate. However, from past experience this needs monitoring because it can all change with a change of culture in Jobcentre plus management. 34 respondents took advantage of having an advance. For some who had been on UC for over 9 months this had not been offered. The general experience was that the process was efficient.

5 A selection of the responses Problems with on-line making and maintaining a claim: Struggling not computer literate. Problem with verification had to sort at jobcentre. Don t have wifi can be difficult to access daily. Online awful people promise to phone back then don t. Some who said they didn't have any problems making or maintaining their claim had to use family or friends to help them. Taking an Advance First payment took forever. Ten weeks wait for money borrowed 300 from sister living with no electricity or food. Has reduced payments now and they are deducting more than they said never phone back. Better than nothing for a month underpayment took two months to sort out. Debt Payment days can be inconsistent making direct debits a problem. Left to starve for six weeks had to go to foodbank in debt and no free school meals. Wage threshold on part-time work can lead to no money for six weeks wasn t told to claim housing benefit and ended up paying a full years council tax. Used all savings applied for loan have got four children. Yes three weeks owed on rent still trying to catch up in debt. Had to wait seven weeks for first payment used foodbank and all three discretionary fund payments of 60 from Council. 5

6 Work Coaches Staff have been great. Nice very supportive only one not so good. Pushing to apply for jobs out of area. Wants to see more applications travel costs a problem 3.70 per day to attend three time per week. Sanctions 184 days sanction in total heating engineer calling, tried to alter interview time but not accepted. One sanction for missed appointment due to working!. Sanctioned because I missed an appointment when in hospital!. Housing Cost problems Housing costs take up rest of my money. 300 allocated by UC for Rent but rent 320 per month. Can t pay rent serious problem. Council is trying to evict me. Rent arrears I have eviction notices. Yes owe rent due to delays in UC. In B&B but that ends tomorrow Barnados After care service helping. Six month rent arrears on Council property. Lost his flat has 1000 rent arrears No fixed abode now sofa surfs. Rent paid direct to Landlord but claims he has not received it. Landlord taking me to court getting help from Law Centre. Struggling and 600 in arrears with Council Tax. 6

7 Other issues raised: Everything on line so can t talk to anyone. 900 to 400 per month on change over demoralising. Monthly payments a problem had to borrow from friends. Money gone down by 450 per month. Monthly payments is a problem late payments put me further in debt terrible system. NEA (New Enterprise Allowance Programme) is poor. UC put me into debt, credit rating is poor couldn t get start up loan to begin new business in telecoms. My money has been halved since finishing work can t afford to pay bills. Trouble budgeting because of monthly payment, would like more courses to be available for employability, lost 90 per week when moved over to UC with loss of disability premium. Not enough to live on from 500 to 230 per month due to change of circumstances getting help from Pathways. Not told could claim for travel to training cost 30 but had to claim before course started. Never had same money twice sometimes waiting 3 to 4 weeks to get money poor communication expect people to borrow to cover late or under-payments. Work one day per week which has messed up system of payments. Stopped money because job centre says I have more earnings than I actually have. 7

8 Conclusion With more than half (50.5%) of respondents taking a clearly negative view of their experiences under UC, the survey paints a picture of a failed experiment that in Civil Service speak is doomed to succeed. It is being politically driven and is not heeding the warning signs flagged up by the evidence of claimants as well as the voluntary and community sector along with Local Authorities. Access for Universal Credit has been devised for the benefit of administrators not those claiming UC. When over a quarter of respondents report difficulties with the process of claiming, then UC is clearly not designed with claimants in mind. DWP statistics show a massive under-claiming of the 'legacy' benefits. How many more will be put off claiming their entitlements by the new regime? There is not enough help for people when the system fails them? Claimants are descending into debt, relying on foodbanks, getting into rent arrears and eviction problems purely as a result of in-built problems with UC The damage done by forcing people into indebtedness, far from encouraging people closer to the labour market is driving people away from the prospect of employment as spiraling debt impacts on mental and physical wellbeing. Impoverishing people should not be part of any activation policy. The problems highlighted by this report are going to be multiplied and worsened when the further roll-outs are enacted and the migration of those on legacy benefits takes place. Further independent research involving the recipients needs to be carried out urgently to make policy makers sit up and see the effects that their systems are inflicting on a significant cohort of those experiencing Universal Credit. 8

9 Acknowledgements Derbyshire Unemployed Workers' Centres would like to thank the following for their help in the production of this survey report. Andrew King Elaine Evans Lesley Mathews Margaret Priest Adrian Rimington Ian Christian Anthony Radcliffe Val Graham Steve Bright Richard Banker Dr Ian Rutledge 9

10 Appendix 1 - Questionnaire 1. Are you on Universal Credit? Yes No 2. How long have you been on Universal Credit? 3. What is your experience of claiming Universal Credit? Positive OK Negative 4. Are there any issues that have given you concern? e.g Online claiming making a claim. Online claiming maintaining claim/using the journal Payments 5. Have you had to have an advance payment? Yes No 6. What has been your experience of this? 7. Have you been put into debt? 8. What is your experience of the work coaches? Positive OK Negative 10

11 9. What have been the problems? 10. Have you had problems with the claimant commitment/sanctions? Please expand on this. 11. Have you had any problems with housing costs? Please expand on this. 12. Any other problems? May we have permission to contact you regarding your experience of Universal Credit. Please give your name, post code and contact telephone number. Name:... Postcode:... Telephone Number:... 11

12 For more information contact: Derbyshire Unemployed Workers Centres No.1 Rose Hill East, Chesterfield S40 1NU. Opening hours Monday to Friday, 9.30am - 1pm Tel: info@duwc.org.uk Website: Designed and printed by North East Derbyshire District Council 9698