Politics

Universal Credit’s Black Hole

Published

8 years ago

July 27, 2018

A Conservative success story: Foodbanks help both those in work and unemployed

THE UK Government’s drive to cut the benefits paid to those most in need through the introduction of Universal Credit has impoverished the most vulnerable in society and removed universal support from the disabled replacing them with a patchwork of make-do-and-mend solutions which rely on councils to bail out the Westminster Government for its own failings in delivering the new benefit system in a working form.

The series of failures has prompted the National Audit Office, which scrutinises public spending for Parliament, to call on the UK Government to pause Universal Credit’s roll out until it sorts out the mess the reform has caused and is causing.

That call was rejected by the UK Government and led to allegations that the minister responsible, Esther McVey, had misled Parliament both about the NAO report’s content and the success of the Universal Credit roll out.

WELSH GOVERNMENT WARNS ON UC

Plagued by IT issues, incompetence, and the sort of ministerial short-sightedness that regarded the Council Tax as an untrammelled success, Universal Credit’s roll out across Wales has caused Welsh Government Housing and Regeneration Minister Rebecca Evans to write to Esther McVey, the Secretary of State for Work and Pensions, to warn about the impact Universal Credit is having on some of the most vulnerable people in Wales.

Rebecca Evans said: “Foodbank use in areas where Universal Credit has been rolled out has increased by 30% according to National Audit Office statistics, compared to a 12% increase in non-Universal Credit areas. This is extremely worrying.

“A Universal Credit claimant survey from Esther McVey’s own department shows that four in ten claimants were experiencing financial difficulties, and that 46% of new Universal Credit claimants need help to make their claim online.

“I have asked the Secretary of State to make Universal Support for people who claim Universal Credit available as widely as possible to help those people who are experiencing difficulties in managing their finances, and for those who are struggling with digital access.

“The recent National Audit Office report was clear; local authorities, housing associations and landlords are all seeing an increase in rent arrears since the introduction of Universal Credit.

“This chimes with many concerns raised and reported to me by the housing sector in Wales.

“The National Audit Office highlighted that the system is lacking in ways to identify vulnerable people, which makes it difficult to see how they are getting the right support, from the outset when they apply for Universal Credit. I have asked the Secretary of State to explain how she plans to rectify this.

“People who are more vulnerable can be offered alternative payment arrangements through Universal Credit, but we are seeing real inconsistencies in the way this is offered to claimants; the Department of Work and Pensions’ own claimant survey indicated that as many as 48% of those surveyed had to request this themselves, rather than being offered it proactively.

“I am deeply concerned about the flaws of Universal Credit, and its impact on the most vulnerable people in Wales, and I will continue to press the UK Government on addressing these.”

In Carmarthenshire, the Council has already set aside resources to help those plunged into uncertainty and financial chaos by the Tory policy, while across Wales Universal Credit recipients have experienced delays in payments and cuts to the benefits they receive leaving many in dire financial straits. In some cases, local authorities are stepping in to bridge the gap, but others are left unable to pay their rent and face eviction as a result. Some landlords are now refusing to take Universal Credit claimants owing to the defects in the payments system, penalising those in need for the incompetence of the DWP.

UNIVERSAL CREDIT FAILING

By the end of this parliament Universal Credit (UC) is expected to be fully rolled out. This new integrated benefits system for people both in- and out-of-work will shape the living standards of the lowest income families in the UK.

Part of the rationale for UC was making sure people are better off working. It is right that families should be able to better their living standards through work, yet in the UK today, the majority of people experiencing poverty live in working households.

Working poverty is highest among lone parents and couples with children with only one earner or where no one works full time.

Among households in working poverty that do not have all adults in full time work, over four in 10 have children of primary school age or below; two in 10 have children under the age of three. Some three in 10 contain a family member with a disability.

Bevan Foundation Director, Victoria Winckler, said: “Universal Credit has been in the pipeline for more than five years, but it is only now reaching all parts of Wales. The number of claimants is starting to go up quite quickly and we are beginning to see the impact of it on individuals, families and communities.”

Despite the number of people set to be affected, there’s been no up-to-date assessment of how the change will affect people in Wales.

Victoria Winckler continued: “The evidence from other parts of the UK is mixed. Some claimants cope well with the transition to monthly payments and the requirement to try to find work or increase the number of hours they work. But others struggle, getting into arrears with bills, debt and even having to rely on food banks.”

BENEFIT CHANGES HIT WORKERS HARD

Serious problems have now emerged in the treatment of the self-employed because of the way their earnings are recorded under universal credit. The issues have arisen because a “minimum income floor” (MIF), based on the national living wage, is used to calculate universal credit payments each month.

Because self-employed workers’ earnings fluctuate from month to month, they sometimes fail to meet the minimum figure and lose out compared with salaried counterparts. They are also only given a year to get their businesses off the ground before the MIF kicks in.

Ministers argue that the system has been designed to encourage people to increase their work and move into better jobs. However, the new report warns that some people have little choice other than self-employment. Ministers also ignore the fact that – for many – better jobs at higher wages are simply not available.

In addition, independent research has established that Universal Credit is – if anything – even worse value for money when it comes to administration costs than the system it replaced.

Having blown £817m on an IT infrastructure project which is unfit for purpose and now redundant, the current running costs per Universal Credit claim run at around £700. The claim made for Universal Credit was that it would reduce costs per claim to £173. There is no sign and little prospect of that target being hit.

DWP DEAF TO REASON

The National Audit Office report into Universal Credit is even more damning.

The NAO says: ‘We think that there is no practical alternative to continuing with Universal Credit. We recognise the determination and single-mindedness with which the Department has driven the programme forward to date, through many problems. However, throughout the introduction of Universal Credit local and national organisations that represent and support claimants have raised a number of issues about the way Universal Credit works in practice.

‘The Department has responded to simple ideas to improve the digital system but defended itself from those that it viewed as being opposed to the policy in principle.

‘It does not accept that Universal Credit has caused hardship among claimants, because it makes advances available, and believes that if claimants take up these opportunities hardship should not occur. This has led it to often dismiss evidence of claimants’ difficulties and hardship instead of working with these bodies to establish an evidence base for what is actually happening. The result has been a dialogue of claim and counter-claim and gives the unhelpful impression of a Department that is unsympathetic to claimants’.

The report continues: ‘The Department has now got a better grip of the programme in many areas. However, we cannot judge the value for money on the current state of programme management alone. Both we, and the Department, doubt it will ever be possible for the Department to measure whether the economic goal of increasing employment has been achieved. This, the extended timescales and the cost of running Universal Credit compared to the benefits it replaces cause us to conclude that the project is not value for money now, and that its future value for money is unproven’.

A BLEAK PICTURE FOR THE POOREST

Chief Executive of Child Poverty Action Group Alison Garnham said: “It was sobering enough to learn from the DWP’s own survey last week that four in ten people claiming universal credit have financial problems many months into their claim. Now we have an NAO report confirming just how miserable the experience of claiming universal credit is for hundreds of thousands of people who rely on it. Organisations working with claimants have been saying the same to the DWP for many, many months.

“The picture the NAO presents is justifiably bleak. On the ground, new claimants can’t even be sure they will be paid in full and on time. And how many people will be helped into work by the benefit is far from clear.

“There are clearly fundamental design and delivery problems in universal credit which must be fixed but it has also had its funding dramatically reduced so its capacity to deliver on the original aims has been compromised. The big work allowance cuts in particular have made it harder for claimants to increase the rewards from work.”

Joseph Rowntree Foundation Chief Executive Campbell Robb said: “We all want to live in a society where everyone receives support when they need it, and where there is an anchor to keep people from being swept into poverty. Universal Credit should, in principle, offer that support.

“The UK already has a problem with destitution, with more than one and a half million people in 2017 left unable to feed themselves, stay warm and dry, keep a roof over their heads and keep clean.

“There are major design flaws in the rollout of Universal Credit which have been left unfixed. Delays and sanctions leave people without enough to live on, and they struggle to pay off debt from advance payments. That’s not right. This system needs an urgent overhaul so that people’s essential needs are met without trapping them in long-term poverty.

“It is also concerning that the NAO can find no clear evidence that Universal Credit will help to boost the number of people finding work. The system needs to support people experiencing in-work poverty too, which is currently rising for families with children. By increasing work allowances, the Government can help 2.5 million working families and prevent a further 310,000 people from being pushed into poverty.”

As Labour MP, and veteran campaigner for the rationalisation of welfare benefits, Frank Field pointed out to Esther McVey in the House of Commons last week: ‘40% of claimants finding themselves in financial difficulty, 25% unable to make a claim online, and 20% overall, but two thirds of disabled claimants, not being paid on time and in full’.

Accusing Ms McVey of ‘dissembling’ to Parliament, further probing revealed that Ms McVey had not even bothered to read the NAO report which she had so assiduously rubbished and which had been signed off by her own Department.

News

Game of Thrones star urges voters to back anti-DARC parties

Published

5 hours ago

May 5, 2026

Tom Sinclair

ACTOR Jerome Flynn has urged voters in Wales to back parties opposed to the proposed DARC radar scheme at Cawdor Barracks, saying the issue could be decided by the next Welsh Government.

The Pembrokeshire-based Game of Thrones star, also known for Soldier Soldier and Robson & Jerome, made the appeal in a video released by PARC Against DARC on Tuesday (May 5), just two days before polling day in the Senedd election.

Radar row enters election campaign

Flynn urged voters in Ceredigion Penfro and across Wales to support Plaid Cymru or the Green Party, saying both parties had pledged to oppose the project.

The Ministry of Defence has submitted a planning application to Pembrokeshire County Council for 27 radar antennas and associated infrastructure at Cawdor Barracks, near Brawdy.

The scheme forms part of the Deep Space Advanced Radar Capability programme, linked to the AUKUS defence partnership between the UK, US and Australia.

The MOD says DARC would help detect, identify and track objects in Earth orbit, supporting military and civilian satellite security.

Opponents claim the radar would industrialise part of the Pembrokeshire countryside, damage the setting of the national park, and increase the area’s military significance.

Flynn says project ‘not a done deal’

In the video, Flynn described the election as “probably the most crucial vote we’ve made in 25 years”.

He claimed the next Senedd could play a decisive role in the future of the project, saying: “I’m here to say, it’s not a done deal because Plaid Cymru and the Greens have both made party-led decisions to say no to Westminster.

“We’re not having such a thing on our beloved coast.”

Flynn also described St Davids as “the spiritual home of Wales” and criticised what he called “the most unspeakably abominable planning application” on the edge of the Pembrokeshire Coast National Park.

Campaign steps up pressure

PARC Against DARC said it welcomed Flynn’s intervention and said it had distributed 22,000 leaflets around Pembrokeshire in recent weeks.

The campaign group said First Minister Eluned Morgan’s recent comments on the scheme did not go far enough.

A spokesperson said: “While Eluned Morgan has come out in the final hour to call for DARC to be halted, we fear this does not go nearly far enough.

“Plaid Cymru and the Green Party have both made it their national party policy to oppose and stop DARC, so we have no doubt of the authenticity of their commitment.”

The group is also urging residents to submit objections to Pembrokeshire County Council before the current publicity period ends on May 20.

Welsh Government role

Campaigners say the next Welsh Government could intervene by “calling in” the planning application, meaning Welsh ministers would take responsibility for deciding it rather than leaving the final decision with Pembrokeshire County Council.

That possibility has made DARC a significant local election issue in Ceredigion Penfro, where Eluned Morgan is Labour’s lead candidate, Elin Jones leads the Plaid Cymru list, and Amy Nicholass heads the Green Party list.

Under the new Senedd voting system, voters will elect six Members of the Senedd for the constituency using a proportional list system.

PARC Against DARC said this meant there was “far less need for tactical voting” and argued that voters opposed to the radar could support either Plaid Cymru or the Greens.

Wider concerns

Campaigners have repeatedly claimed that the radar would make Pembrokeshire a potential military target and draw Wales further into US military strategy.

They also say the project raises environmental, health, democratic and security concerns.

Supporters of the scheme argue that space monitoring is becoming increasingly important as satellites are used for communications, navigation, defence and emergency infrastructure.

Flynn ended his video by saying: “Vote with your heart because we can make a difference here, we could put in a government that cares about our land, our people and our environment.”

Whatever the outcome of Thursday’s election, the intervention by one of Pembrokeshire’s best-known residents is likely to keep the DARC controversy high on the political agenda.

News

Landlords in Wales face new anti-discrimination laws

Published

5 hours ago

May 5, 2026

Tom Sinclair

New rules from June 1 will make it unlawful to refuse renters because they have children or receive benefits

LANDLORDS in Wales are being warned to prepare for new anti-discrimination laws which come into force at the beginning of June.

From Monday, June 1, it will be unlawful for landlords and letting agents to discriminate against prospective contract-holders because they have children or receive benefits.

The change follows the Renters’ Rights Act 2025, which mainly reforms renting law in England, but also extends key anti-discrimination protections into Wales.

The Welsh provisions will be incorporated into the Renting Homes framework and will apply to occupation contracts. Unlike the civil penalty regime used in England, breaches in Wales may amount to a criminal offence, with enforcement handled by local authorities and cases dealt with through the courts.

What landlords cannot do

From June 1, landlords and agents must not deter people from applying for a property because they have children or receive benefits.

They must also not refuse or restrict access to viewings, prevent prospective tenants from receiving information about a property, or exclude them from entering into an occupation contract on those grounds.

The measures are aimed at ending blanket “no children” or “no benefits” policies, which campaigners have long argued unfairly shut families and low-income households out of the private rented sector.

Landlords will still be allowed to carry out affordability checks and assess whether a property is suitable. For example, a landlord may still decide that a particular room or property is physically unsuitable for children, but the decision must be based on the property itself rather than a blanket ban.

Paperwork deadline

Under the new rules, landlords will need to issue either a new occupation contract or a statement of variation to reflect the changes.

The statement can be served up to fourteen days after the rules take effect, meaning landlords should act by June 14.

Leading North Wales estate and lettings agent Cavendish, which has offices in Mold and Ruthin, says it has been advising landlords ahead of the deadline.

Nicola Blake, Operations Director at Cavendish, said: “While much of the focus in recent months has been on the introduction of the Renters’ Rights Act in England, some of the changes are also impacting Wales.

“As of June 1, landlords in Wales will be subject to stringent anti-discrimination laws and failure to adhere to the new legislation could result in a criminal prosecution.”

She added: “This is a significant change for landlords in Wales, and we are helping our clients to be ready well ahead of the deadline, completing the required paperwork and ensuring they are fully compliant.”

Landlord seminar

Cavendish will hold a seminar later this year for landlords in Wales, covering legislative changes and advice on managing and improving property portfolios.

The event will take place on Monday, October 26, at Theatr Clwyd. Cavendish recently became a Gold Member of the Mold arts venue.

Cavendish was established in 1993 by Julian Adams, the firm’s chairman, and his then business partner Robert Ikin.

The company now employs more than thirty people across estate agency and lettings, with offices in Mold, Ruthin and Chester. It says it helps more than 600 homeowners move each year and manages around 650 properties.

News

Academics warn voters need clear reporting ahead of historic Senedd election

Published

10 hours ago

May 5, 2026

Tom Sinclair

Cardiff University experts say misinformation, coalition arithmetic, public finances and devolved powers are among the key issues facing Wales

CARDIFF UNIVERSITY academics have warned that clear reporting and proper scrutiny will be vital as Wales prepares for one of the most significant Senedd elections since devolution.

The intervention comes ahead of polling day on Thursday (May 7), when voters will elect a larger 96-member Senedd under a new voting system.

Professor Stephen Cushion, from Cardiff University’s School of Journalism, Media and Culture, said UK-wide or English-produced news remained the main source of political information for many people in Wales.

He warned that reporting on devolved issues such as health, education and law and order did not always explain clearly which government was responsible.

Professor Cushion said this could leave people confused about what applies to Wales, particularly when audiences increasingly see political headlines on social media without reading the full context.

Dr Maxwell Modell, a research associate at the same school, said some political news items presented parties arguing with each other without enough independent assessment of their claims.

He said broadcasters sometimes set out several party positions side by side, leaving viewers to make sense of them without journalistic scrutiny.

Dr Keighley Perkins said turnout could be higher than at any point since devolution began, given the possibility of political change.

She said coverage should focus less on perceived disengagement and more on the issues facing the next Welsh Government and scrutiny of party policy positions.

Misinformation warning

Dr Bethan Davies, based in Cardiff University’s Security, Crime and Intelligence Innovation Institute, warned that there was significant scope for misinformation and disinformation to spread during the campaign, particularly with the rise of AI-generated content.

She said inauthentic accounts sometimes used the logos of reliable news outlets on videos to make audiences believe they were genuine.

Professor Martin Innes, co-director of the same institute, said foreign interests seeking to influence or interfere in politics remained a persistent problem.

He said there should be clear ministerial and senior official accountability for combating foreign online political interference, with resources matching the scale of the challenge.

Economy and public finances

Professor Melanie Jones, of Cardiff Business School, said the future performance of the Welsh economy should be a key focus for the next Welsh Government.

She said improving living standards depended on addressing Wales’ productivity gap with the rest of the UK, which would require long-term commitment and investment in people and infrastructure.

Professor Robert Huggins, of the School of Geography and Planning, said Cardiff was developing as a hub for creative and high-tech industries, but regeneration was less obvious in the South Wales Valleys.

He said the next Welsh Government would have “much work to do” to improve prospects for people living in those areas.

Guto Ifan, from the Wales Fiscal Analysis programme, said difficult choices over spending and taxation were likely after the election.

He warned that if the UK Government sticks to its current spending plans, growing NHS spending alongside manifesto commitments on childcare, education, transport, social care and taxation would require significant cuts to some public services or tax rises.

He said manifestos were largely silent on how those trade-offs would be managed.

Welsh identity and coalition arithmetic

Professor Richard Wyn Jones, of the Wales Governance Centre, said Wales was becoming “less British”, with younger voters increasingly identifying as Welsh only or moving away from national identity altogether.

He said those who felt Welsh but not British tended to be more left wing and socially liberal than those who felt both Welsh and British, which he said was good news for Plaid Cymru.

Professor Laura McAllister said the expanded Senedd would need sharper scrutiny and the ability to challenge government if the increase in members was to be justified.

She said Wales also needed to avoid a “race to the bottom” in political behaviour if public trust was to be rebuilt.

Dr Jac Larner said the general polling trend showed the race to be the largest party remained between Plaid Cymru and Reform UK, with other parties competing for third place or below.

However, he said finishing first could matter less than it appeared.

He said whichever party led on seats would face coalition arithmetic, adding that Plaid Cymru had more credible potential partners in Labour and the Greens, while Reform had fewer options.

The Herald has carried detailed election coverage in recent weeks, including candidate interviews, graphics, explainers on the new voting system, and analysis of the Ceredigion Penfro contest.

Cardiff University said the experts were available for further comment throughout the campaign.