Very Depressing – Over £200 worse off… Tory Crap!

| posted in: Welfare Reform | 3 Comments

Hi

Like Kay, I am a single mother.  I have three children and work part-time as a teacher.  I qualified late in life so have many student loans.  Under the new UC I will be at least £215 per month worse off.  I am assuming at this point that maintenance is not taken into account when working out entitlement… If maintenance is then I will be homeless within months.

If I was to increase my hours in a very tough jobs market, I would lose any UC that I was entitled to and pay up to £300 per month in student loans repayments.  Either way my children and I are trapped.  We live on the bear essentials as it is, I dont have anything on credit, if we dont save for what we need we dont have it.. just mortgage and bills and food.

I think the Government need to revisit their calculations as this, like the initial child benefit blunder, seems ill thought out and doesnt seem to have all scenarios covered.

Ruth

3 Responses

  1. Hi Ruth, 
    It’s a shame that you think UC will make you worse off – just a couple of points I want to make that might ease some of your concerns.
    1. The Universal Credit calculator provides an estimate of entitlement, it cannot be accurate because the regulations around UC have not yet been set, and it does not try to be comprehensive.
    2. The government has committed to cash protecting those that may lose out as a result of the introduction of Universal Credit, so in cash terms you won’t be any worse off.
    3. UC is still some way off, it won’t affect existing claimants until 2014 and possibly later.
    If you want to share a little more of your circumstances, I will look into the impact of UC and try to find out what you can do mitigate any negative impacts. 
    Hope this helps. Deven 

  2. Deven

    That’s a little misleading. Its not that people *think* they will be worse off. Many will be. Recent analysis by Donald Hirsch for example (http://www.gingerbread.org.uk/news/176/Hirsch-report). The problem is that too many changes are being made at the same time with no consideration of the evidence on what these changes might mean. Whilst simplification is something that is needed, it is a real shame that the principle of no losers at the point of change is being ignored here – this supporting the case that UC is actually a smokescreen for ideologically driven cuts targetted at the poorest in our society.

    • Hello Graham,

      Thanks for the comment. I’m not intending to mislead! Transitional protection should allay concerns that people will be worse off when Universal Credit is introduced. A lower withdrawal rate in UC would virtually eliminate the need for transitional protection, leaving everyone better off. It is also something I argue strongly for!

      This is of course separate to other changes to welfare happening in April, (eg. underoccupation, benefit cap, council tax changes) through which some people lose out and the calculator seeks to highlight some of that.

      Hope that clears things up. Thanks for the comment.

      Deven

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