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Politics

Universal Credit now seven years late

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Iain Duncan Smith: Former Cabinet member responsible for welfare farce

THE ROLLOUT of Universal Credit has been delayed again to 2024.
Over seven years after it was originally supposed to be implemented in full and over a decade after it was first piloted, the scheme has lurched from crisis to crisis in its troubled history.
Universal Credit merges six existing benefits, including housing benefit and child tax credits, into one monthly sum.
The government’s stated aim is to simplify the welfare system, both to help claimants, cut fraud, and encourage work. However, its ultimate effect has been to slash welfare payments to the most vulnerable and plunge claimants into debt as they wait for their first payment of the new benefit.
The fresh delay, to September 2024, was uncovered in an upcoming BBC documentary about the government’s contentious welfare reform. It will add an estimated £500m to the Universal Credit programme, which is already billions over budget.
The delay has arisen because fewer people than expected had signed up to the new system, according to a new BBC documentary, Universal Credit: Inside the Welfare State.
In an excerpt released by the BBC, Neil Couling, the DWP’s director-general for Universal Credit said, in August last year: “We’ve had a lot of anecdotal evidence of people being scared to come to Universal Credit.
“It’s a potentially serious issue for us, in terms of completing the project by December 2023, but I’m urging people not to panic,” he said.
Mr Coulting continues in a subsequent meeting to say: “Three, six or nine months, it doesn’t matter – the headline will be: ‘Delay, disaster’.
“I would say, ‘Go safe, put the claimants first, and I’ll take the beating.'”
This week, the DWP admitted the delay was necessary because the number of people who had moved on to UC was lower than official estimates.
The BBC documentary shows the DWP acknowledging that the reason for the lower-than-expected uptake was the fear that new Universal Credit claimants would lose out.
Gross and ongoing delays in making benefit awards on the new system have plunged people into debt recouped from their benefits due to the waiting period for its first payment imposed by the UK Government.
Universal credit was phased in during 2013.
The benefit was first due for full rollout by April 2017. However, transferring claimants to the new system has been plagued by a series of technical delays. Those delays include a fiasco over IT infrastructure and the failure of the system to account for varying incomes for the self-employed and those employed on casual or zero-hour contracts.
Last week, the UK Government lost a major case on the benefit’s rollout.
In a decision handed down in the Court of Appeal by the Master of the Rolls, Lord Justice Singh, the court ruled transitional provisions relating to the treatment of disabled persons were discriminatory. It found that a severely disabled person who moved from an area where UC had not been rolled out to an area in which it had would be treated less favourably than a person who did not move. In a second case, the court quashed provisions meaning those who migrated ‘naturally’ from Severe Disability Premium to Universal Credit less favourably than those who made the transition under the managed migration scheme.
Last year, former DWP Secretary Amber Rudd said that payment delays of Universal Credit were ‘the main issue’ leading to dependence on foodbanks.
The delay’s announcement follows the publication of a report by the Resolution Foundation
The report notes that the final – and most challenging – phase of the roll-out, involving the transfer of existing benefit and tax credit claimants onto UC, is due to start later this year.
The Foundation states that a marginal average increase of a whacking £1 a week for some claimants ‘masks sizeable groups of families that lose out by large sums, and significant geographical variation across the UK. Thanks to factors such as local rent and earnings levels, and the characteristics of local populations, some parts of the country will be left significantly worse off as the switch to UC goes ahead’.
In areas with a relatively high proportion of single parents, out-of-work single people and disabled people, all of whom fare badly under UC, claimants lose out. Also, while Universal Credit favours working families with high rents, it hits those in areas with below-average rent levels.
The Foundation adds that policymakers in Whitehall, and across the UK, need to consider the impact of Universal Credit at a local level. At exactly the time that policy debates are rightly focusing on what can be done to close economic gaps between parts of the UK, this major welfare reform will be rolled out with very different impacts on those places.
Laura Gardiner, Research Director at the Resolution Foundation, said: “Welcome recent reforms mean that Universal Credit is now set to be marginally more generous than the benefits it is replacing. But this average hides a complex mix of winners and losers, with families in some areas of the UK faring particularly badly.
“As well as making reforms at a national level – such as helping families to overcome the first payment hurdle and offering more flexibility for those with childcare – policymakers across the country need to better understand the effect Universal Credit will have in different places. That understanding should be central to policy debates that are rightly focusing on what can be done to close economic gaps between parts of the UK.”
Welfare minister Will Quince said: “Universal Credit is the biggest change to the welfare system in a generation, bringing together six overlapping benefits into one monthly payment and offering support to some of the most vulnerable people in society.
“It is right that we revisit our forecasts and plan, and re-plan accordingly – ensuring that the process is working well for people on benefits.
“Claimants will not lose money due to this forecasting change.”

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Politics

Details of Welsh lockdown, starting next Friday, leaked online

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THE DETAILS of The Welsh Government’s plans for a short lockdown starting at the end of next week have been leaked online and shared on Andrew RT Davies’ Facebook page. He is the Shadow Minister for Environment, Food and Rural Affairs in the National Assembly for Wales.

He said online today: “So there we have it courtesy of Bubble Wales. The details of Mark Drakeford’s proposed lockdown across Wales are now public and below. Everything to be closed bar essential retail.

“What is the point of Senedd? The Presiding Officer needs to drag these clowns in on Monday.”

The letter, a copy of an original published by Bubble Wales, suggests that the lockdown, which will be similar in nature to the one put in place in March, will be announced on Monday and would last until Sunday, November 8.

That means the lockdown would be in place for 17 days.

Andrew RT Davies: Shared leaked letter online

However, ministers in the Welsh Government have said repeatedly that they haven’t made a decision on whether to go ahead with it yet and are due to decide this weekend.

The letter says: “[The fire-break lockdown] will take us back to the situation in March when all but essential retail outlets were open – pubs, cafes, restaurants, hairdressers etc – will all be closed.

“It covers the half term break (Friday, October 23- Monday, November 2) but some schools will reopen on November 2.

“Ministers have not yet determined the details on this; it seems that primary schools will reopen, but a decision on secondary schools will be made over the weekend.”

The letter goes on to say: “While the message for public transport will be essential journeys only, the Welsh Government is yet to decide what level of services should run over the three-week lockdown period.

“They fully recognise that changes cannot be made overnight by operators and that ramping up services is a more difficult and complex task than reducing them.”

On Friday (Oct 16) Mr Drakeford spoke about the plan as a possibility, saying: “This would be a short, sharp shock to the virus, which could turn back the clock, slowing down its spread and buy us more time – and vital capacity in the NHS.

“A “fire-break” would also mean a short, sharp shock to all our lives – it would mean shutting down businesses and the economy.

“We would all have to stay at home to once again save lives. But this time it would be for weeks not months.

“We’re considering a two or three-week “fire-break”. The shorter the period, the sharper the measures will have to be.”

ROW OVER WHO WILL PAY

The planned national lockdown for Wales still has many details to finalise before any final announcement of its terms and length.

The major sticking point is money.

During the UK-wide national lockdown from March to July, the Westminster Government picked up the tab for paying Welsh workers’ wages and provided a massive amount of extra funding for business support.

From November 1, the UK government will support eligible businesses by paying two-thirds of each employee’s salary, up to a maximum of £2,100 a month.

Businesses might also be eligible for grant support of up to £3,000 a month to meet other costs.

Devolved administrations in Wales, Scotland and Northern Ireland will receive a total of £1.3bn in increased funding this year to cover similar measures.

Businesses will only be eligible to claim the grant while they are subject to lockdown restrictions.

Council leaders across Wales have expressed their deep concern to Welsh Government ministers about the lack of any detail of what will be done to provide financial support to businesses, particularly those which are not forced to close by lockdown restrictions but close as a knock-on effect of lockdown.

Local authorities, which channelled most business support during the lockdown which began in March, have still not been told by the Welsh Government what help or how much will be available for businesses in that position, let alone how it will be delivered.

The sour relationship between the Welsh Government and Westminster is not likely to help Mark Drakeford’s administration if it looks for fresh funding help from the Treasury to bail it out of the wider economic consequences of a Wales-wide lockdown.

If the Welsh Government tries to go it alone to soften the blow, it faces making significant cuts elsewhere in its budgets.

A photo of the leaked letter

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Politics

Drakeford to make decision on ‘fire-break’ lockdown in Wales by Monday

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WALES is facing a national lockdown lasting at least two weeks in plans described as a “fire-break” by the first minister.

He said a decision was likely to be made on Monday, while talks continue with health officials, scientific advisors and councils over the weekend.
“Doing nothing is not an option,” he said.

Responding to the speculation First Minister, Mark Drakeford, is set to announce a ‘circuit-breaker’ lockdown in Wales, Welsh Conservative health spokesperson, Andrew RT Davies MS said: “I implore the First Minister to think again before heading down this path.

“The decision to lockdown Wales once again will have devastating consequences – from an economic and public health perspective – and should be the last resort.

“Only yesterday, the former director of communicable diseases at Public Health Wales, Dr Roland Salmon, said a circuit-breaker is likely to fail and the Welsh Labour Government should listen carefully to his warning.

“Earlier this week, Welsh Conservatives called for the urgent resumption of shielding in Wales with a substantial package of support to ensure the financial, physical and mental well-being of those most at risk is protected.

“This should be the immediate action taken by ministers along with prioritising PPE and testing in the problem areas in Wales such as hospitals, care home, universities and meat factories.

“It’s not too late for the Labour Government to reconsider and choose a different approach in Wales.”

Mr Drakeford warned that 2,500 people were now being infected with coronavirus every day in Wales, with critical care units in hospitals full.

“A successful fire-break would re-set the virus at a lower level,” he added.

Together with a new national set of rules for the whole of Wales after the fire-break period we would have slowed the virus down enough to get us through to Christmas.”
Plaid Cymru has been calling on Mr Drakeford to introduce the circuit-breaker without delay, while Labour at Westminster says a similar approach should be adopted in England.

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Politics

Deputy First Minister says use of Penally Camp needs to end ‘as quickly as possible’

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THE DEPUTY MINISTER of the Welsh Government has issued a lengthy statement stating that the end of the camp should end as quickly as possible

Jane Hutt MS, who is also the Chief Whip, says that the camp does not meet the basic human needs of people seeking a new life in the UK and that the camp risks re-traumatising many vulnerable people who may have been fleeing abuse and torture.

The full statement can be read here:

‘Equality and human rights are central to the work of the Welsh Government and our vision for Wales. We believe in fair treatment of every person, especially those who are most marginalised by social systems that prevent people from meeting their basic needs.

Now more than ever, we need to ensure that those seeking sanctuary are safe, secure and not at risk.

We can be proud of the way our nation has responded to successive refugee crises, providing a warm welcome and opportunities to integrate with our communities. However, the decision by the Home Office to use the Penally military camp as a centre to house asylum seekers is the direct opposite of the Nation of Sanctuary approach.

We believe the use of the camp should end as quickly as possible.

The Welsh Government has repeatedly expressed significant concerns about the suitability of the camp at Penally being used to accommodate asylum seekers.

The camp does not meet the basic human needs of people seeking a new life in the UK. It places people in accommodation, which is neither designed nor appropriate for long-term use – mainly poorly insulated huts – and risks re-traumatising many vulnerable people who may have been fleeing abuse and torture.

We sought a delay to the opening of the camp to ensure plans were put in place with local services to enable them to prepare for the arrival of asylum seekers, particularly to make sure covid-19 public health measures were in place. The Home Office denied this request and, as a result, proper measures have not been put in place.

We have made repeated reasoned approaches to the Home Office to make changes to protect the health and wellbeing of the asylum seekers relocated to Penally, while also continuing to engage with local residents.

The Nation of Sanctuary plan is built on the Well-being of Future Generations Act. We involve asylum seekers in our plans and seek to integrate people into communities from day one of their arrival in Wales.

We seek to prevent the most harmful outcomes, such as re-traumatisation and hate crime, while aiming for long-term solutions. We work collaboratively with partners and affected communities to ensure decisions are made constructively and transparently. Crucially we put the person at the centre of what we do – an individual’s needs are more important than their immigration status.

The Home Office’s decision to use Penally camp does none of these things and is incompatible with the Welsh Government’s approach to inclusive and cohesive communities.

We have yet to receive a clear rationale for the reason why the Home Office chose this site to relocate asylum seekers, nor have we been provided with a clear strategy about how the Home Office will address the lack of dispersal accommodation throughout Wales and the United Kingdom.

To date, there has been no financial help from the Home Office for these public bodies to deliver services in these exceptional circumstances during a period in which they have been under unprecedented pressure.

Public bodies in the area are understandably concerned by the potential impacts of this development on a small rural community.

Despite these constraints we are grateful for the spirit of collaboration and dedication with which public bodies locally have approached this situation and to members of the community who have provided a warm and supportive welcome.

I would like to thank the police, local authorities, the NHS and the third sector, and all of our partners for their flexibility and resourcefulness over the last few months. We remain grateful for their support and expertise.

The third sector has rallied to provide support to the asylum seekers transferred to the Penally camp. Migrant Help is coordinating offers of support and has been overwhelmed with gifts and welcome messages. English language tuition providers, including the Oasis centre, are working to provide tuition, Victim Support is engaging with individuals relating to hate crime and other organisations are seeking to understand and plug gaps in services, where they are able. Faith communities have worked on an inter-faith basis to ensure adequate facilities are put in place for religious observance.

I hope we can continue to build on these relationships going forward.’

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