WHAT S GOING ON IN GLASGOW?

Welfare Trackers Research: Briefing No. 1 WHAT S GOING ON IN GLASGOW? Written by Fiona McHardy, Research and Policy Officer The Poverty Alliance NOVEMBER 2014

About the project Welfare Trackers is a collaboration between the Poverty Alliance, Glasgow Council for Voluntary Services and Scottish Drugs Forum and funded by the Big Lottery Fund. The research briefings form part of evidence stream of the project which involves understanding the impact of welfare reform on organisations and service users on the frontline within the Glasgow area. Research Methodology A survey was circulated to community and voluntary organisations involved in the trackers project either through city wide networking sessions or through the local awareness sessions. It was administered through Survey Monkey software. Surveys were completed online or through paper based copies. Introduction Welfare reform is a key issue in Glasgow and across Scotland. The Welfare Reform Act (2012) brought in a number of policy changes. The main ones are: The phased introduction of Universal Credit (UC); The abolition of Council Tax Benefit at a UK level; The abolition of certain discretionary elements of the social fund at a UK level; The phased replacement of Disability Living Allowance (DLA) with the Personal Independence Payment (PIP); Changes to entitlements for the contributory element of Employment and Support Allowance (ESA); Changes to housing benefit in relation to under occupancy in the social housing sector (the Bedroom Tax); Changes to the Local Housing Allowance; The introduction of a cap on the total amount of benefits that working age people can receive; The introduction of new requirements on lone parents to look for work when their youngest child has reached the age of five. At this stage they are no longer entitled to Income Support but must instead claim Job Seekers Allowance (JSA) The introduction of a new Claimant Commitment that set out the particular job seeker activities that any claimant must undertake in order to receive benefit. 1 Research by the Centre for Regional Economic and Social Research showed how these changes will impact on the City of Glasgow. The report showed that of the 20 most adversely affected electoral wards in Scotland, 12 were in Glasgow. 2 This evidence indicates the continuing need for information that helps us understand the impact of Welfare Reform in Glasgow. Data from the Scottish Government indicate Government s changes to welfare since 2010 will result in a reduction in benefit expenditure of around 2.5 billion pounds by 2014/2015. 3 Figures for Glasgow indicate the city faces the biggest loss, in absolute terms and on a per capita basis. Its residents can expect to lose around 270m a year in benefit income, equivalent to 650 a year for every adult of working age in the city 4. These changes will put additional pressure on both those directly affected and those organisations and services which support them. 1

Support Services in Glasgow The Glasgow Trackers Survey made contact with 29 organisations delivering a cross section of support across the Glasgow City area. The vast majority provided community support, social activities and one to one activities. Welfare advice was divided between those directly providing advice and organisations signposting people to advice agencies. In terms of staffing capacity the majority of respondents (39%) were organisations with less than 10 staff, with the second largest group (21%) being organisations with between 10 and 25 staff. Organisations were asked to indicate how many service users/clients/members their organisation served per year. Forty three per cent stated that they were serving around 1000 per year indicating a substantial reach into communities, with 21% indicating that they were serving 250-500 per year. In terms of additional support work, 44% of organisations stated that they involved just over 25 volunteers per year in their work. Other relevant information was around capacity to deliver support. Decreases in funding means additional pressures on staff resources trying to plug gaps and provide some level of service (Survey respondent Glasgow) Research by SCVO (2014) showed similar findings. Their mapping exercise of voluntary organisations across Scotland showed that there was increased pressure on organisations as a result of funding not keeping up with increased demand for their services. 6 The recognition of work that smaller organisations conducted was also felt to be a key issue within the Welfare Trackers survey. It was perceived that third sector organisations are not always valued in the same way in comparison to statutory services. Eighty-eight percent of respondents stated that people on low income were their main service users. The evidence also showed that their main client group/service users were women, people with mental health conditions, families, and people with long term health conditions. This reflects findings from The Scottish Human Rights Commission s (2013) work on welfare reform. This showed that welfare reform, combined with austerity would mean disadvantaged and marginalised groups including women, children, disabled people, older people, ethnic minorities, migrants and refugees will be disproportionately affected. 5 One respondent stated that people leaving prison and psychiatric care were a core population they served. 2

Challenges for support organisations Organisations reported a number of challenges as a direct result of welfare reform. This is shown in Figure 1 below. In terms of financial impact, estimates suggest that Glasgow could lose about 76m as a result of changes to Disability Living Allowance, income support, employment support allowance, incapacity benefit, jobseekers allowance, carer s allowance, attendance allowance, housing benefit, child benefit, tax credits and the benefit cap 7. It is clear that there are many support organisations across the City that need greater capacity to deal with the significant impact welfare reform has had on their frontline services. Lister (2014) 8 et al found that the current benefit system fails to take full account of the specific issues facing certain groups or types of claimant. This has resulted in people with complex needs experiencing problems with the benefits system. As Figure 1 shows the most pressing issues facing organisations were Increased workload and pressures on staff capacity (75%) Need for training for staff/volunteers on welfare changes (71%) More challenging and complex case work for staff/volunteers (67%) Impact on the delivery of core work/service delivery (63%) Upskilling staff to deal with increased pressures from the implementation of welfare reform changes needs to be addressed in order to allow those directly affected by changes within Glasgow to be effectively supported. Research from Institute Research and Innovation Social Services (2014) on the impact of welfare reform on Third Sector care and support services reported similar stark findings. They found that there was increased demand on organisations and in particular reported concern about the availability of welfare reform training for staff in the sector. This in turn had a negative impact on their ability to effectively assist service users and clients. 9 Increased referrals to organisations (58%) Our evidence shows that welfare changes have had a number of negative impacts on support organisations in Glasgow. There was a need for greater provision of information for staff, especially frontline service staff, with 71% reporting a need for more training for staff and volunteers on welfare reform issues. Sixty-three percent of organisations reported that welfare reform had negatively impacted on delivery of core work. In addition respondents reported having to deal with more complex cases (67%) and increased referrals to their service (58%). This is unsurprising given the number of households across the city that are in receipt of welfare benefits and tax credits. 3

How organisations have dealt with welfare reform With welfare reform affecting support services, we asked participants to provide information on the changes they have had to make. The results are shown in Figure 2 below. Figure 2: How organisations deal with welfare reform Organisations and Emergency Support Evidence submitted to the Work and Pensions Committee by Citizens Advice Scotland highlighted many challenges for CAB clients being able to access the benefits to which they were entitled. 11 In addition evidence presented by the Trussell Trust stated that half of referrals to food banks in 2013-14 were a result of benefit delays or changes to benefits in 2013-2014. 12 This was reflected in our survey. Around 25% of organisations reported providing emergency support such emergency fuel cards or food parcels for service users or clients. All organisations expected that this demand would increase. Clients Experiences of Welfare Reform Organisations were asked about the main concerns that their clients or users were raising as a direct result of welfare reform. Figure Three below illustrates these concerns. Key themes emerging from the survey are: The need for more support for service providers and clients in terms of additional advice and information (83%). Increased partnership working, with 79% developing new links with other organisations. Increasing capacity to deal with increased demand (42%). Increasing numbers of staff and volunteers (25%). Increasing provision of service (33%). Organisations reviewed or changed staff remits (33%), re-allocated funds within the organisations (21%) and applied for additional funding (33%). There were more organisations providing emergency food assistance (38%). Recent research by the MacLeod (2015) indicated that there has been a growth in emergency food aid provision in Scotland 10 and findings from this survey in Glasgow reflected this overall trend 33% reporting greater monitoring and evaluation demands and more involvement in lobbying and campaign work (42%). Figure 3: Key welfare reform concerns The main concerns reported were Removal or reduction in benefits (82%) Delays to benefits (73%) hardship/destitution (68%), increased conditionality including sanctions (64%). Recent changes have increased the period of time that individuals can be sanctioned 13 as well as the introduction of the Claimant Commitment 14. Research from Citizens Advice Scotland (2014) indicated that during 2013, nearly 900,000 sanctions were applied to Job Seekers Allowance (JSA) and Employment Support Allowance (ESA) claimants. 4

97% of CAB from across Scotland reported clients skipping meals as a result of sanctions and 94 per cent reported clients requesting food parcels as well as going without gas or electricity following a sanction. 15 CPAG evidence from their Early Warning System project (2014) also highlighted problems with sanctions and conditionality across Scotland. This showed that sanctions are often applied erroneously and that many are subsequently overturned during mandatory reconsideration or appeal. They also highlighted the number of claimants who fail to challenge conditionality, stating that DWP figures show that only 3 in 10 people ask the jobcentre to look at their decision again and only 1 in 50 people appeal the decision. Despite the low rate of appeals, 9 out of 10 appeals are successful. CPAG evidence also suggested that people are not well informed about their rights in relation to the conditions placed upon them, how to challenge sanctions or the existence of emergency payments such as hardship payments. 16 A report by the House of Commons Select Committee criticised the time disabled people have to wait to find out if they are eligible for benefit is unacceptable. 17 For example, the UK Government s equalities impact assessment of Universal Credit took into account digital exclusion but not financial exclusion as a dimension of poverty 19. Several other key issues were highlighted as impacting on claimants, although they may not be directly related to welfare reform. This included transport issues (cost, availability) (45%), employment options (45%), lack of face to face support (45%), childcare/caring (41%) and homelessness (32% ). These indicated wider challenges for practitioners in supporting people alongside welfare reform changes. Challenges for service users/clients Respondents were asked what challenges there their service users and clients were facing in regards to welfare reform changes. The top response given was lack of knowledge of changes (82%). This has been supported widely within the welfare trackers project in Glasgow where GCVS, Poverty Alliance and Scottish Drugs Forum have been running awareness workshops on welfare changes and have found many individuals unsure of what changes have happened and what forthcoming changes may affected them. The results are shown in Figure 4 below Evidence also emerged from the trackers survey about knock-on effects on their clients and users health with 36% reporting an impact on physical health and 64% reporting an impact on mental wellbeing. Research by The Scottish Association of Mental Health (2014) showed that 90% of surveyed service users of mental health services stating their mental health has suffered as result of welfare reform 18. Debt was another key issue representing around two-thirds (64%) of responses. Barriers to financial inclusion were also highlighted. Forty-one percent highlighted issues such as lack of identification and lack of a bank account (45%) amongst their clients/service users. This clearly has implications for people affected by the roll-out of Universal Credit with the increased need for claimants to have access to bank accounts. Figure 4: Key Concerns for Individuals A complex mix of issues affected service users across the Glasgow. Highest was lack of knowledge (82%). The second highest response was mental health problems (73%). The impact of welfare reform on those affected by mental health problems has been subject to widespread criticism from The Scottish Association of Mental Health, 20 from GPs serving deprived areas, 21 and the Royal College of Psychiatrists. 5

People with mental health problems and those with learning disabilities are amongst the most vulnerable members of society. We wish to see a fair benefits system that does not disadvantage people with mental health problems. Our welfare system must protect and support people particularly when they are at their most vulnerable. It should also empower them to lead the lives they wish to lead. 22 Knowing where to access support services (68%) was the third most common response. Such a finding indicates the need for greater promotion of advice services across Glasgow and advertising provision in different ways. Other key issues included low confidence/fear of accessing support (59%), limited or no access to the internet (45%), limited or no access to telephones (45%), communication barriers (45%) problems with literacy/numeracy (41%), lack of adequate childcare (32%), physical health problems (32%), cost of access support services (27%) and language/translation barriers (27%). More work needs to be done throughout Glasgow, to highlight and understand these issues and how they interact with each other. In particular some issues such as language and translation will require concentrated and integrated partnership working to address them in order for people to obtain their rights. Respondents were asked, with which of the following key benefit changes people were most frequently experiencing difficulties. The results are shown in Figure 5 below. The key issue highlighted was Employment and Support Allowance (91%). ESA was introduced to replace Incapacity Benefit. ESA, with its associated Work Capability Assessments (WCA) was also a key issue (73%) and has proven to be problematic in its implementation. The Work and Pension Committee in July 2014 stated that the ESA benefit and assessment process is so problematic, particularly in relation to the confusion and limitations of the outcome groups, that its inefficiencies and the detriment inappropriate decisions cause to claimants can only be resolved in a fundamental redesign of the ESA claims process over the next few years. 23 Majority of our members who are claiming benefits are in receipt of ESA and many are in the support group but we also have significant numbers who are experiencing delays in their application and many instances of people who feel that the work capability assessment process has been flawed and unfair. Increasing number of our members facing issues around conditionality and sanctions. (Survey respondent Glasgow) The bureaucracy associated with current welfare provision demands a high level of literacy. Our service users have low levels of literacy and experience considerable difficulties in completing the forms. Due to many of our clients being in receipt of ESA, they often fail the work capability assessment and are no longer entitled to ESA and experience great difficulties in claiming JSA and appealing decisions. As they have limited funds phone call are expensive, also our local job Centre has gone digital, our clients have difficulty accessing and completing online forms. They also fear using computers in the job Centre as they fear their use will be tracked and they may be sanctioned. (Survey respondent Glasgow) Figure 5: Key Benefit Changes 6

The next key area reported was Jobseekers Allowance (77%), especially in relation to conditionality and sanctions. There have been a number of problems with mandatory reconsiderations for both ESA and JSA sanctions. New system of mandatory reconsiderations and having to claim JSA and time taken for these and then having to appeal and delays in getting back on ESA pending appeal, disruptions and complications (Survey respondent Glasgow) Joseph Rowntree Foundation (2014) reports sanctions are now used much more frequently within the welfare benefits system and the severity of sanctions has also increased. Conditionality is now applied to previously exempt groups (e.g. lone parents, disabled people) and sanctions are having a strongly disproportionate effect on young people under 25, and there is also evidence of severe impacts on homeless people and other vulnerable groups. 24 Housing Benefit (73%) and problems with Local Housing Allowance (36%) were also reported. Social landlords in Glasgow and across Scotland have reported that welfare reform has had serious implications for social housing. Glasgow has 61 housing associations owning more than 99% of all social rented stock in Glasgow. 25 Figures by Glasgow and West of Scotland Housing Associations show there are approximately 108,000 recipients of housing benefit in Glasgow including those living in the private rented sector. 26 Analysis by Scottish government (2014) 27 found that: Welfare reform effects will reduce income and create new uncertainties for recipients of housing. Many individuals and households face a loss of benefits from more than one source which will result in less income availability for housing costs. The financial impact on tenants is at its most extreme where they are impacted by both benefit cuts and sanctions. A combined effect of welfare reform is to make households poorer and less able to secure positive outcomes in the household market. One key issue was the Bedroom Tax or the Under Occupancy Removal of the Spare Room subsidy. As at May 2013 it was estimated to affect around 82,000 households. It will cost these households an average of 50 a month. 80% of those households included a disabled adult and around 1 in 5 of the total cases consisting of families with children. However these numbers will have been significantly reduced as a result of mitigation by Scottish Government via Discretionary Housing Payments. Nonetheless it will still have had a significant impact on those affected. Dealing with Disability Living Allowance (DLA), and in particular the transfer to the Personal Independence Payment (PIP) was another important concern. One respondent pointed out the impact that this was having: Many of our young adults do not know how they stand in qualifying for DLA when it moves to PIP. Many have been receiving DLA for years without understanding the qualifying criteria..and are worried about assessments etc. for PIP. Many of the people we work with have assumed that everyone with a learning difficulty gets the same benefits and didn t realise there was criteria. Quite a few still feel no one is being honest with them as to what is going to happen in the future. (Survey respondent Glasgow) Figures for claimants in Scotland indicate that from 2013-2018, 190,000 working age DLA claimants in Scotland are being reassessed to determine eligibility for PIP. Of this it is estimated that 105,000 working age disabled people will lose some or all of their disability benefits by 2018 with an expected loss of 1120 per year. 28 Of this number around 49,000 (47%) of reassessed DLA claimants will get no PIP award with the remaining 56,000 (53%) facing a reduced PIP award. 29 This will be keenly felt in Glasgow with a higher proportion of people with a disability (23%) compared to other major cities and the Scottish average (19.6%). 30 7

Tax credits were also a key issue for survey respondents (50%). Figures for Scotland show that 367,000 families are in receipt of Tax Credits. 31 A number of changes have affected those claiming tax credits. These include: freezing the basic element of working tax credits; increasing the minimum number of hours worked from 16 to 24 to qualify for tax credits for coupled families; freezing the income threshold for child tax credits at 2011 levels; abolishing the second income threshold for child tax credits; and the introduction of the income disregard for tax credits, affecting those whose income was falling 32. Such changes are likely to have been included in the responses given by those in Glasgow. Further analysis on the impact of tax credit changes is required to understand fully the complexities of these changes and consequences for both households in receipt of the Child Tax Credit and Working Tax Credit. Emergency support from DWP was also criticised. Accessing short term benefit advance (63%) and hardship payments (63%) were highlighted as problematic. Often refused short term benefit advance. Hardship if not deemed vulnerable unavailable for 14 days. Accessing support from food banks was also mentioned. One respondent mentioned lack of staff knowledge about available help and issues such as stigma preventing clients accessing this type of support. Survival strategies Participants in the Welfare Trackers survey were asked to indicate what strategies clients were using to deal with welfare reform changes. The results are shown in Figure 7 below. Figure 6: Accessing Emergency Help Participants were asked on any difficulties experienced when accessing emergency support. Over two-thirds (68%) indicated problems in accessing support from the Scottish Welfare Fund. These included eligibility if an individual had previously received a Scottish Welfare Fund payment as well the decision making process in terms of the time it took to process claims and navigating phone systems to access it. Their clients/service users also had experiences of DWP services not passing on information about the Scottish Welfare Fund. Figure 7: Survival Strategies The responses show that many of their clients/ service users key coping mechanisms were cutting back on essentials such as food (75%), heating their homes (70%). In addition drawing on support networks was critical with 75% reporting clients/ service users borrowing money from family and friends. Worryingly, missing rent payments was also reported as a key issue (75%). The issues of missing rent or mortgage payments and the potential implications of this have been subject to much policy debate. 8

Research conducted by the Glasgow and West of Scotland Housing Forum found that 76% of Housing Associations expected to see rent arrears in 2013/2014 as result of welfare reform measures and sustained pressure on household incomes for those in low- paid work. Other measures taken included accessing support from a food bank (65%), accessing support from the Scottish Welfare Fund (55%), cutting back on social and leisure activities (60%) Measures such as using money-lenders were also reported. This was focused around two key areas Unofficial loans lenders / loan sharks (35%) and Borrowing money from a pay day loan (30%) Other studies have also reported concerns around this. Findings from Real Life Reform (2014) research conducted in England, found almost a quarter of the social housing tenants had borrowed from an illegal lender or pay-day loan provider 33. On a positive note (25%) of those surveyed reported use of credit unions as being a coping strategy. Future Concerns Participants were asked about their future concerns regarding Welfare Reform. Respondents highlighted that the introduction of Universal Credit was a key concern. Other key concerns were supporting service users through sanctions, and assessment processes. Both were highlighted as being detrimental to service users and resulting in greater pressures on organisations supporting them. The introduction of the Personal Independence Payment was also reported as an additional challenge for those organisations supporting individuals accessing this benefit. A large number Personal Independence Payment appeals are expected and will necessitate tribunal representation. This puts a further strain on our resources 9

Footnotes 1 Scottish Government (2014) Welfare Reform (Further Provision) (Scotland ) Act 2012 Annual report 2014 p10 2 Scottish Government ( 2014) Committee commissioned research details local impact of welfare reform: Glasgow wards worst hit www.scottish.parliament.uk/newsandmediacentre/78669.aspx 3 Scottish Government (2014) Welfare Reform (Further Provision) (Scotland ) Act 2012 Annual report 2014 4 Scottish Parliament (2013) 2nd Report, 2013 (Session 4) The Impact of Welfare Reform on Scotland 5 Scottish Human Rights Commission (2013) Submission to the Welfare Reform Committee : Austerity and Human Rights May 2013 6 Scottish Council for Voluntary Organisations (2014) Third Sector and Welfare on the Frontline The impact of welfare reform on families individuals and communities from the perspective of Third Sector Organisations that support them. 7 Scottish Local Government Forum against Poverty and Rights Advice Scotland (2013) People Councils and the Economy 2nd Edition An Assessment of the impact of the proposed changes to the UK Benefits System on people councils and the economy in Scotland. 8 Lister, B et al (2014) The impact of Welfare Reform in Scotland 9 Institute of Research in Social Services and Coalition of Care and Support Providers (2014) The impact of welfare reform on third sector care and support services in Scotland 10 MacLeod M (2015) Making the Connections A study of Emergency Food Aid in Scotland Poverty Alliance : Glasgow 11 House of Commons Select Committee (2013-2014) The role of Job Centre Plus in the Reformed Welfare System Second Report of Session 2013-2014. 12 Trussell Trust (2014) Latest foodbank figures top 900000: Life Has Got Worse Not Better For Poorest in 2013/2014, and this is just the tip of the Iceberg. http://www.trusselltrust.org/foodbank-figures-top-900000 13 Jobcentre plus (nd) Jobseeker s Allowance Sanctions How to keep your benefit payment 14 Go. Uk (nd) Introducing the Claimant Commitment. https://www.gov.uk/government/policies/simplifying-the-welfare-system-and-making-surework-pays/supporting-pages/introducing-the-jobseekers-allowance-claimant-commitment 15 Citizens Advice Scotland (2014) Sanctioned: What benefits?a report on how sanctions are operating from the experience of Scottish Citizens Bureaux 16 Child Poverty Action Group (2014) Early Warning System Policy Bulletin 1A: Sanctions 17 Commons Select Committee ( 2014) Disability delays unacceptable http://www.parliament.uk/business/committees/committees-a-z/commonsselect/work-and-pensions-committee/news/dwp-monitoring-report/ 18 Scottish Association of Mental Health (2014) Worried Sick: Experiences of Poverty and Mental Health across Scotland page 10 19 Anderson R (2013) Welfare Reform And Financial Exclusion in Scotland Poverty Alliance Glasgow. 20 Scottish Association of Mental Health (2014) Worried Sick; Experiences of Poverty and Mental health across Scotland 21 In the deep end (2013) GP Experience of Welfare Reform in very deprived areas : 22 Royal College of Psychiatrists (2013) Welfare Reform and Mental Health http://www.rcpsych.ac.uk/policy/projects/live/welfarereform.aspx 23 Work and Pensions Committee - First Report (2014) Employment and Support Allowance and Work Capability Assessments http://www.publications.parliament.uk/pa/cm201415/cmselect/cmworpen/302/30212.htm 24 Watts, B, Fitzpatrick, S, Bramley, G, Watkins, D (2014) Welfare Sanctions and Conditionality In the UK, Joseph Rowntree Foundation :York 25 Glasgow and West of Scotland Forum of Housing associations (2013) Research report Preparing for Welfare Reform Housing Associations and Cooperatives in the City of Glasgow. 26 Glasgow and West of Scotland Forum of Housing associations (2013) Research report Preparing for Welfare Reform Housing Associations and Cooperatives in the City of Glasgow. 27 Scottish Government (2014) Portal to Evidence the Impact of Welfare Reform on Housing in Scotland http://www.scotland.gov.uk/topics/built-environment/housing/supply-demand/chma/welfarereformhousingevidence/ welfareandhousingevidenceportal 28 DWP (2012) Personal Independence Payment : reassessment and impacts in Scottish Government (2014) Financial Impacts of Welfare Reform on Disabled People in Scotland 29 Scottish Government (2014) Financial Impacts of Welfare Reform on Disabled People in Scotland 30 Glasgow City Council (nd) Poverty Leadership Panel http://povertyleadershippanel.org.uk/node/38 31 Scottish Government ( 2014) The Impact of Welfare Reform in Scotland - Tracking Study - Year 1 Report 32 Scottish Government (2014) Annual Report for the Child Poverty Strategy for Scotland 2014 33 Real Life Reform (2014) Struggling Families turn to loan sharks and pay day lenders, welfare reform studies Find http://www. symphonyhousing.org.uk/2014/07/struggling-families-turn-to-loan-sharks-and-pay-day-lenders-welfare-reform-study-finds-2/ 10

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