Revealed: The £200,000 food bank warehouse in Amber Rudd’s Hastings constituency caused by the Universal Credit debacle

amber rudd

Amber Rudd- former home secretary and MP for Hastings as the Universal Credit debacle rolls out in her constituency

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The  billion pound plus failure of the implementation of Universal Credit is rightly condemned by the National Audit Office in a report published today.

Aimed to save money, get everybody back to work, simplify a complex benefit system and to be easily implemented.  Instead it is going to cost more, is years behind schedule, discriminates against disabled and poorly educated people, and the government has plans to force the elderly not entitled to a pension to have to use it when it  changes entitlement to pension credit ( see my earlier blog here)

But it is also having appalling consequences for food banks, landlords, council and housing association tenants – as the example in Amber Rudd’s constituency ( details down below show).

In the meantime ministers today were patting themselves on the back today how successful it is while senior civil servants behind  it were awarded  bonuses worth up to £20,000 each for its botched introduction ( see an earlier blog  here and  an article in the Sunday Mirror).

The statistics are appalling. According to the NAO :

“In 2017, around one quarter (113,000) of new claims were not paid in full on time. Late payments were delayed on average by four weeks, but from January to October 2017, 40% of those affected by late payments waited in total around 11 weeks or more, and 20% waited almost five months. Despite improvements in payment timeliness, in March 2018 21% of new claimants did not receive their full entitlement on time with 13% receiving no payment on time.

The Department does not anticipate payment timeliness to improve significantly in 2018. On this basis, the NAO estimates that between 270,000 and 338,000 new claimants will not be paid in full at the end of their first assessment period throughout 2018. Those with more complex cases are more likely to be paid late.

The Department expected most claimants would have enough money to cope over the initial waiting period after their claim is submitted (previously six weeks, now five). In reality, nearly 60% of new claimants (around 56,000 a month) receive a Universal Credit advance to help them manage before receiving their first payment.But they have to pay it back which means deducting an average £43 a month from their benefit. 

But while the statistics are bad, the examples are worse.

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Hastings Foodbank

Appendix 5 of the report  reveals In  Amber Rudd’s Hastings  constituency for example, according to the NAO Hastings foodbank has increased its opening hours, needs around two tonnes of stock each week to meet demand, and is considering building more storage space, costing £200,000.”

Hastings Citizens Advice pays staff to deliver Universal Support delivered locally. It therefore needs to pay providers regardless of the number of people
that are referred for support. But its income from the Department is not guaranteed so it can’t plan

Hastings Citizens Advice is considering scaling back on what it does in order to cope with increased demand.

Similarly NHS Hastings and Rother Clinical Commissioning Group funds its local advisory services. But this takes time to identify and secure. This hampers the ability of organisations to employ high-quality advocates because of the uncertainty of future funding.

.Hastings and Rother Credit Union no longer accepts Universal Credit claimant because of the complications in dealing with the new benefit and the long time waiting for people to be paid it.

Other areas have also got problems.Landlords are carrying extra debt – Croydon’s rent
collection rate has fallen from 92% to 58%, and its bad debt provision has doubled to £8 million.
Sedgemoor Council  in County Durham reported an increasing unwillingness, even with social landlords, to take on low-income tenants or those claiming Universal Credit.

So the government has piled on misery upon misery for the claimants,. voluntary organisations, food banks, landlords, credit unions, local authorities and health services. Meanwhile ministers on excess of £100,000 a year go home to expensive houses, enjoy fine wines, expensive meals out and luxury holidays while boasting how they are helping the poor. Some sick joke. As Amyas Morse, head of the National Audit Office, said today:

“The Department has pushed ahead with Universal Credit in the face of a number of problems, but has shown a lack of regard in failing to understand the hardship faced by some claimants.

“The benefits that it set out to achieve through Universal Credit, such as increased employment and lower administration costs, are unlikely to be achieved, yet the Department has little realistic alternative but to continue with the programme and hopefully learn from past mistakes.”

 

Department for Work and Pensions postpones new nasty for poverty stricken pensioners until 2019

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Guy Opperman, pensions minster and MP for Hexham pic credit: guy opperman website

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The Department of Work and Pensions has put back harsh plans to change the rules for new claimants for pension credit from next June to sometime next year.

The decision not to implement savings that could lead to  tens of thousands of elderly people having to live on half the money paid out by pensioner credit is not motivated by a change of heart on a heartless measure.

It is because of incompetence and failure by the ministry itself to roll out another major benefit called universal credit – which replaces a whole series of benefits – on time. This was supposed to be nationwide by June this year. But the civil servants who planned it failed in their job – despite collecting bonuses worth £20,000 on top of six figure salaries for introducing the new benefit. You can read all about it in my blog last year here.

So now instead the benefit will not be rolled out across the country until the end of December 2018. The proposed timetable is here– and you can see which local area changes when.

Of course the department has not announced the delay to the new pension credit cuts until I contacted them to check the date. Rather like they forgot tell 3.9 million  women pensioners about the rise in the pension age until some 14 years later.

A spokesman told me:

“The timetable for the introduction of any policy changes will be determined by the roll out of universal credit – this change will not now be implemented this year.”

The measure as I reported earlier is particularly harsh if there is a big age difference between pensioner couples – with one say years younger than the other.

Previously the law said when the oldest person in a relationship reached pension age  they qualified for pension credit. Now it is being changed to the youngest person in the relationship reaching pension age. This means if there were a 10 year difference – the oldest person could get no pension credit payment until they were 76 – ten years after the raised retirement age. On person has told me of a 17 year difference – meaning one of them would wait until they were 83.

What is as shocking is the department’s disclosure to me on how the new system is planning to work. When it comes in they are proposing both people in a couple apply for universal credit when there is an age difference between the two- and only one is over 65. The change is devastating.

If you are on pension credit these are the rates (per week) for 2017 – 18 and the proposed rate for 2018-19

PENSION CREDIT
Standard minimum guarantee
single £159.35  rising to £163.00
couple £243.25   rising to £248.80
Additional amount for severe disability
single £62.45  rising to£64.30
couple (one qualifies) £62.45 rising to £64.30
couple (both qualify) £124.90 rising to  £28.60

But when you switch to Universal Credit these are the rates for 2018-19 per month:

Single claimant 25 and over £317.82
Joint claimants, either/both 25 and over £498.89

This means a couple instead of receiving £995.20 for 4 weeks would see their income halved to £498.89 a month until both of them were over, by then, 66.

Furthermore the younger person in the marriage will be subject to benefit sanctions if they fail to continually seek work. This would cut their benefit compared to pension credit by two thirds to just £313.82 a month.

Notice there are no new rates for universal credit for 2018-19 as the benefit is frozen unlike pensioner credit which rises in line with pensions. This in theory could mean the people deprived of pension credit could be forced to live on a frozen benefit for years and see their living standards fall every year.

The DWP is being generous enough to say they would not force a person over 65 to seek work and sanction them if they don’t succeed. Presumably even Mr Opperman, the pensions minister, would not want to be seen trying to force a 77 year old into a job while he or she waits for pension credit.

Frankly  this is an appalling situation and I hope Backto60 people take this up as well as demanding their pension and try and put pressure on MPs to tell the government not to go ahead next year. This is a real and sustained attack on the poorest pensioners in the country and ministers should be ashamed of thinking of implementing it.

 

 

 

The £20,000 benefit bonus rewards for the metropolitan elite at the Department of Work and Pensions

neil couling

Neil Couling – £145,000 a year

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Last week I had a story in the Sunday Mirror about top bonuses and pay rises for five of the most senior  and well paid civil servants at the Department of Work and Pensions over the last two years.

The information was published in the annual report and accounts  of the DWP released last month. These same accounts were qualified for the 29th year  running according to the the National Audit Office – because of fraud and error in payouts to claimants rendered them inaccurate and wrong.

 

 

Sir Robert Devereux pic credit Twitter

Sir Robert Devereux – £190,000 a year Pic credit : Twitter

The bonuses announcement came at the same time as 31 Labour MPs had called for a pause in the roll out of the ministry’s new Universal Credit  programme – which replaces five benefits – because of reported chaos in its administration leaving some claimants without money for up to six weeks. One of those 31 MPs, Kevan Jones, who represents Durham North said the bonuses were a ” reward for failure”.

He described them as “an insult to many of my constituents who are already living on the breadline. In my constituency they plan to introduce this in November which could leave thousands of people without money in the run up to Christmas.”

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Mayank Prakash £220,000 a year including £20,00 bonus Pic credit: DWP Digital

Within days of the publication of the story the FDA ( the First Division Association) which represents the top civil servants attacked the article in a report in Civil Service World.

Jawad Raza, FDA national officer for DWP, said officials should not be used as targets by political opponents of the system simply for doing their jobs.

“The suggestion that these civil servants have been ‘rewarded for failure’ shows a blatant disregard for the facts regarding their pay and

Jeremy Moore pic credit

jeremy moore – £135,000 plus £20,000 bonus

wilfully misrepresents the true complexity of their roles,” he said.

“Senior civil servants have delivered billions of pounds worth of savings since 2010 with an ever reducing workforce. These are highly skilled professionals working in challenging circumstances and they deserve to be adequately remunerated without having their names and faces spread across news pages.”

Sorry Jawad I think there is more to this.

The five civil servants are Sir Robert Devereux, permanent secretary at the Department of Work and Pensions; Neil

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Andrew Rhodes – £140,000 a year plus £15,000 bonus

Couling, director general of universal credit; Jeremy Moore, director of strategy; Mayank Prakash, director general of digital technology and Andrew Rhodes, director of operations have received between £10,000 and £20,000 each .They are nearly all paid more than Theresa May, the PM.

The bonuses were awarded for “ top performance “ and “ leadership “when the rest of Whitehall is limited to one per cent pay rises and many benefits have been frozen.

Sir Robert last year received up to £20,000 extra on a salary of up to £185,000 a year. This year he hasn’t received any bonus but his basic salary has moved to £190,000 a year.

Neil Couling, who is directly responsible for universal credit, got a bonus of up to £20,000 last year on a salary of £125,000 a year. This year instead of a bonus his salary has jumped by £20,000 to £145,000 a year.

Mayank Prakash, director of digital strategy has received a bonus of up to £20,000  this yearon top of salary of £200,000 taking his annual salary to £220,000 .

Jeremy Moore, director of strategy, has received bonuses two years running –  totalling up to £40,000 over the two years – taking his total salary to £155,000 a year.

Andrew Rhodes, director of operations has received a £10-15,000 bonus this year, taking his salary to £155,000 a year. He also claimed £37,600 in travel expenses.

The ministry insist that all these pay rises were decided objectively by line managers.

In a statement it said:

Line managers are required to make an evidence-based and objective assessment over whether objectives have been met, not met or exceeded. 

 Individual performance is assessed by the individual’s line manager through an appraisal discussion, with supporting evidence from a range of stakeholders.

But apart from Sir Robert – whose bonus was decided by Sir Jeremy Heywood, the Cabinet Secretary – the Department declined to say who these line managers are and which outside organisations and people recommended they should get bonuses. The bad news for the DWP is that Kevan Jones plans to table a Parliamentary Question next month to find out who.

Now the FDA has a point that compared to the top of the  private sector they are badly paid. A report put out by the House of Commons library revealed that the top 3000 bankers are ALL earning over £884,000 a year – which makes £20,000 sound small beer. But if anything that reflects that huge growth of inequality in Britain.

At other end of society how effective are these five top men ( note they are all men) in delivering what they are supposed to do. All are responsible in one way or another for the delivery of Universal Credit.

At present they are using Newcastle-upon-Tyne – to roll out the full effect of Universial Credit.

Catherine McKinnell , Labour MP for Newcastle North, said:“ My office has been deluged with complaints from constituents about a Universal Credit system that is clearly struggling to cope and failing to deliver the support that claimants need in anything like an orderly or timely fashion.”

Her debate can be read here.  Suffice to say it reveals a very sorry picture. The  new IT system means people can’t talk to a human. It has  a verification process that requires claimants to produce photographic identification such as a passport or driving licence, “which many simply do not possess and certainly cannot afford, even though some have been in receipt of benefits for several years.”

“I also have numerous examples of Universal Credit claims being shut down before they should be; of documentation being provided to the DWP, at the constituent’s cost, and repeatedly being lost or even destroyed; and of totally conflicting, often incorrect, information being provided to constituents about their claims.”

For a time the ministry effectively banned MPs from taking up cases by making impossible verification demands before they would talk about it.

What this shows to me is a growing disconnect between the people at the top – who are computer savvy, have nice centrally heated homes, no problems with bills, can afford expensive holidays, and can’t conceive of anyone not having a passport – designing a system for poor, dispossessed, desperate people without any understanding of how the world works for them.

It was this disconnect between the elite and the poor  in the USA that led to the rise of Donald Trump and I suspect this huge gulf between the Metropolitan elite – whom top Whitehall civil servants are part – and the provincial poor is in the end going to propel Jeremy Corbyn into Downing Street.

 

Lies, Damned Lies and Tory Jobless Statistics

Misleading statistics for the dole queue.

Misleading statistics for the dole queue.

I see from the excellent Vox Political blog that a row has broken out over claims  by Conservative Central Office of big reductions in the number of jobless claiming benefit under the last coalition government.

The BBC reports a row over the way Essex Tory MPs are presenting falls in unemployment figures. The row concentrates on them using the claimant count. ( Jobseekers Allowance only) rather than the number of people seeking work who are not on benefit. This makes a huge difference to the numbers unemployed in constituencies.

Central Office defended their stance by saying : “This  (questions surrounding the use of JSA figures) is nonsense. This unemployment measure is provided by the independent House of Commons Library – and for constituencies they are the most up to date and most reliable numbers to use.They are used by MPs and candidates across the country, regardless of political party.”

However as readers of this blog will know this is not the true and accurate picture because since Iain Duncan Smith, the work and pensions secretary, introduced universal credit – those transferred from JSA and still on the dole  were no longer counted in the JSA figures. So where there are jobcentres already implementing universal credit in constituencies these figures were  much less.

So it is rather outrageous for Tory Central Office to quote the very House of Commons reports that reveal this as the correct interpretation of the claimant count particularly if they only use JSA..

The very latest statistics available have for the first time started showing both but the situation is a mess as this report  from the Commons library covering unemployment in February 2015 shows. For the first time it does try to show those on Universal Credit and those on JSA who are the dole – adding about 27,900 to the JSA total.

As  the report says : “From April 2013, some unemployed people attending certain jobcentres are claiming Universal Credit rather than JSA. Consequently, simply looking at the number of JSA claimants in the areas affected may not give an accurate reflection of the number of people looking for work. At the national level, the effect of Universal Credit on the total claimant count remains minor.”

But given the distortion between those on the dole in the prosperous South and less prosperous North these figures are still significant. In the North West of England it accounts for another 25,000 on the dole. In London it is just 400.

To make matters worse trying to breakdown accurate figures for the long-term employed and by age group is impossible at the moment. The figures are just not available.

As the report says: “Data on the number of Universal Credit claimants who are out-of-work by age are currently not published at the constituency level. However, data are available on JSA claimants by age.
In constituencies where Universal Credit has been introduced, the number of JSA claimants may not reflect the actual number of unemployed claimants in a particular age group.”

It adds: “Similarly, data on the number of Universal Credit claimants who are out-of-work by duration of claim are currently not published at the constituency level.”

So beware of false claims and people quoting official House of Commons documents to back them up. They are not necessarily giving the full picture.