A Roll-Out Of Universal Credit Begins Today

[jim360]

http://www.bbc.co.uk/news/business-22299580

Currently the scheme is only being trialed "in Ashton-under-Lyne in Greater Manchester, but will eventually affect nearly six million people". The main changeover process will start properly in October this year.

The aim is to "simplify" the Welfare system, as UC combines: Working Tax Credits, Jobseekers' Allowance, Employment and Support Allowance (formerly Incapacity Benefit), Income Support, Child Tax Credit and Housing Benefit.

Thoughts?

[ToraToraTora]

well the welfare system could certainly do with simplifaction.

[jim360]

Beings??? Begins -- sigh...

[Old_Geezer]

I think there will be issues with folk not managing budgets over a whole month. It's less difficult if one has a reserve in one's account, not easy when one is struggling to cover the bills.

[Connemmara]

I agree Old Geezer cos I know a lot of people who get their Housing Benefit automatically paid and separate ESA or JSA - and they cannot manage with the money they receive. Also know a few who when they get "double week" it (the money) is gone the first week. A lot of people just simply cannot budget.

[Connemmara]

Jim would you know if State Pension is included in Universal Credit - also DLA. Thanks

[Sharingan]

I was under the impression it was for people of working age Connemarra :)

[chelle7272]

But they would have to budget if they were working and earning a monthly salary so it may be an opportunity to learn.

When I was receiving benefits after my divorce I would have appreciated monthly pay as when there was a larger expense it would mean I didn't have to try and save some each week which was hard when on a low income anyway. When i first wnet back to work I was hardly any better off but did appreciate the monthly pay instead of weekly for this reason.

[jim360]

I believe the answer to both is no, Conne.

"DLA is to be replaced for adults by PIP – Personal Independence Payment."

(Source: someone who knows)

[Sharingan]

It'll be fine for some people and a complete disaster for other, the most vulnerable of which won't cope a ta all along with drug addicts and alcoholics who will simply use it to worsen their addiction if they hit a low patch. there needs to be an optional safety net for some people who know they can't manage like this and ask to opt out of monthly payments.

[Connemmara]

thanks Sharingan - didn't know that - there has been so much talk and bumph I was at a loss. You learn here everyday.

[Connemmara]

Jim thanks to you

[VHG]

Considering the UK borrowed 120 BILLION pounds in the last financial year one hopes the simplication of the benefits system (and a reduction of what we have to pay out) will stop us having to borrow so much in the future.

[jake-the-peg]

120 BILLION pounds ?

That's a coincidence

We had to pay 123 BILLION pounds to bail out the bankers

http://www.guardian.co.uk/news/datablog/2011/nov/12/bank-bailouts-uk-credit-crunch

[Sharingan]

Just realised what's a 'Universal Credit Being' Jim? Are they little 'Big Brother' entities that come round and swipe your dole money? ;-) xx

[jim360]

Yes, it's a nice image isn't it?

Begins*...

[AB Editor]

Fixed the title for you.

Simplification of this stuff is surely welcomed by almost everyone - but I don't think we should be pretending it's going to get us anywhere when it comes to saving the pennies.

[Haggisdj]

I can envisage quite a few landlords having to chase their rent in the future, along with some who will no longer rent to those on benefit...

[jim360]

Thanks for that, Ed.

I am extremely dubious that this simplification, or any, will work, because I feel it overlooks the reason the system got complicated in the first place. There are few administrators, if any, who enjoy systems being so complicated that it's nigh on impossible for even the administrators to follow what's going on. So it's not really someone's idea of a joke. No, the complexity in the system, to a great extent, has to be there to reflect the complexity of like and the people it is trying to help and provide for.

The reason, then, that the six benefits that will be combined into UC were separate is because they reflect separate reasons for needing the money -- and, so, separate tests are needed (if you means-test) to work out how much should go to each person. Amalgamating the benefits will mean combining the tests, but that is not at all easy to make happen in practice -- because of the very reason they were separate!

There is a fundamental problem, then, because people are I think missing the fact that complexity is sometimes necessary. Again, to quote (I hope correctly) Einstein: "Everything should be made as simple as possible, but not simpler." I think that UC will turn out to have been an attempt to make things simpler than they actually are, and will backfire rapidly once the Ministers realise this.