Deven Ghelani leads a team of experts on
He has worked on Universal Credit since its inception and has written
News releases
Wednesday 17 June 2020
New research by Policy in Practice shows that people on low incomes could lose £100’s of pounds if they are asked to self isolate due to Test and Trace.
Some households who are asked to self isolate will struggle to bear the immediate financial costs of relying on Statutory Sick Pay. If their loss of earnings is too great, they may feel they need to return to work, and thereby risk spreading COVID-19.
- New research suggests low-income households could face a hefty financial penalty if they are asked to self-isolate. The need to rely on very low levels of Sick Pay may discourage households from self-isolating when requested to.
- Sick Pay of just £95 per week could mean 155,000 low-income households across England and Wales feel unable to self-isolate without entering debt, and higher earners could potentially face even bigger losses.
- Over 450,000 low-income households would not even be eligible for Statutory Sick Pay if asked to self-isolate because neither main worker earns over £120 per week. These households would therefore lose all of their usual earnings. Though Universal Credit might make some of this up, many would already be earning under their work allowance, and so may receive no increase in benefits to compensate their lost earnings.
- Given these losses, many households may feel unable to safely self-isolate and instead feel the need to return to work, where they may spread the virus.
- If asked to self-isolate, current sick pay levels mean the average low-income household stands to lose £176 in earnings over two weeks, more than half of their take home pay (58%). There may be over 47,000 households in England and Wales who would lose more than £400 in earnings.
- 1.3 million low-income households could stand to lose at least some of their earnings.
- Although Universal Credit could replace up to two-thirds of lost earnings for some households, households who are asked to self-isolate will inevitably face a financial penalty for trying to protect their community from COVID-19, unless Sick Pay is increased.
Deven Ghelani, Director and founder of Policy in Practice, said:
“As we emerge from lockdown we all want to do the right thing by self-isolating to protect the health of ourselves and our families. Low sick pay may make some of us choose between our health or our finances. Given the impact of COVID-19 on the wider economy, government should raise Sick Pay levels until we are out of the woods.”
For full release click here
Sunday 24 May 2020
Policy in Practice was commissioned by the Greater London Authority to analyse the interaction between the COVID-19 increase in benefits introduced in April 2020 as part of the COVID-19 response and the benefit cap. Our findings show that benefit capped households are set to double.
- The April 2020 COVID-19 increases in benefit awards have not fully reached the households who should benefit the most because of the benefit cap. Private sector renters with children who have become capped will not receive increases worth £400 per month, on average.
- 22,300 existing claimants in London will not see an increase in income as a result of the new measures introduced from April 2020. 11,700 are on legacy benefits, 10,600 are on Universal Credit.
- 22,000 existing claimants became capped as a result of April 2020 COVID-19 increases.
For full release click here
Wednesday 5 February 2020
Policy in Practice was commissioned by the Local Government Association to examine the relationship between the freeze in Local Housing Allowance (LHA) rates and the costs of homelessness to local authorities.
Our research found that:
- Housing benefit doesn’t cover the rent of most private sector tenants who get it
- The gap between LHA and rent is proven to drive homelessness
- Restoring the LHA rate to 2016 levels would reduce homelessness
- Spending savings from reduced temporary accommodation costs on prevention would see nearly 1,000 families avoid homelessness
For the full release, click here.
Saturday 11 May 2019
A study by Policy in Practice for the Office of the Children’s Commissioner showed a dramatic increase in child vulnerability as a result of welfare reforms.
The research shows that the introduction of Universal Credit, the two child limit to benefits and the Benefit Cap combined has meant that the number of low-income families who are struggling to make ends meet has jumped from 13% to 25%. Further, the cumulative impact of welfare reforms is considerably greater than the impact of each reform in isolation, affecting 48% of households who lose £3,441 on average per year.
For full release click here
Monday 15 April 2019
- Study of 550,000 families shows 15% of London’s low-income households can’t pay the bills week to week
- The biggest growth in cash-strapped families since 2016 was in Sutton (79%), Southwark (43%) and Camden (40%)
- The number of London families who can’t pay the bills is expected to triple to 238,000 by 2021 if nothing changes
A new Living Standards Index for London tracks the financial security of 550,000 low-income families to reveal the pockets of poverty in our nation’s capital. Policy in Practice, the socially-minded software company behind the nation’s leading benefits calculator, has built the tool using data drawn from 18 London councils. The latest findings, released today, show that 1 in 7 (15%) of the London low-income families studied can’t pay the bills. The tool makes it possible for anyone to analyse one of the largest data samples about low-income Londoners which will be regularly updated with new information.
For full release click here
Wednesday 10 October 2018
New analysis of over ten thousand benefit capped households by Policy in Practice finds that for every child whose parents move into work as a result of the cap, eight will grow up in families whose financial circumstances have worsened following the introduction of this policy.
- For every claimant who managed to move off the cap, there is more than one household who is stuck under the cap for six months or longer
- Those ‘stuck’ households are disproportionately made up of single households (25% vs 9% among those who moved off cap), and by ESA claimants (15% vs 8%)
- Single claimants on ESA appear to be a group who are particularly unresponsive to the work incentives introduced by the cap
- Two thirds of these households are estimated to be facing a cash shortfall between their monthly income and estimated costs, against only one in five of all other working age housing benefits claimants in the sample
- 37% of people that escaped the cap did so due to an increase income. Policy in Practice analysis against a control group found that the policy has increased the likelihood of moving into work by 21%.
- The average gap between rent and housing benefit for families ‘stuck’ on the cap is £3,750 per annum.
For full release click here
Monday 26 March 2018
New analysis by Policy in Practice finds that households affected by the Benefit Cap are 3.5% more times likely to move into work when compared to a similar cohort of uncapped households.
- The analysis found no correlation between the cap and movement into temporary accommodation
- Local support has emerged as key to plugging the gap created by changes to the benefit rule
- Policy in Practice used local authority data to track the living standards of 574,000 Londoners over two years
They found that 11,413 families affected across 19 London Boroughs were affected by this policy when it was fully rolled out across London in February 2017. This fell by 23% over the first six months to 8,828:
- 37% of households moved off the cap by taking a job or increasing hours worked
- 29% avoided a reduction in benefit entitlement by moving property
- 28% are no longer present in the dataset, partly due to moving out of their borough.
For full release click here
Read How has the Benefit Cap affected Londoners? blog post here
Sunday 25 March 2018
Using administrative data collected from 19 London Boroughs, and following their incomes over two years, Policy in Practice have found that:
- 78% of self-employed households on low-income in London report earnings below the National Living Wage, and are set to become £344 per month worse off under Universal Credit’s MIF
- 91% of London households currently report earnings below the MIF. 78% have been reporting earnings from self-employment for 13 months or more – longer than the proposed grace period – and would thus be affected by the MIF should UC be rolled out today
- The average gap between their level of earnings and the MIF threshold is £845 per month, the equivalent of an additional 26 hours per week, at the hourly rate of £7.50. (NLW)
Current benefit system rules compensate for reported earnings below the national minimum wage through Tax Credits and/or Housing Benefit. Under Universal Credit’s MIF, earnings are assumed to be at the National Living Wage or above. This means that self-employed people who report earnings below the minimum wage will lose out.
For full release click here
Wednesday 20 September 2017
A new report launched today finds that lenders could consider lower income families for a loan if they had access to additional information on earnings and payment history, collected by government. Lowering the income threshold for a loan from £15,000 to £12,000 could then open up 4.8m consumers to mainstream credit.
There are over 6m families in the UK without access to mainstream credit, who often then resort to doorstep or payday lenders, at high interest rates.
The research, presented to the Financial Inclusion Commission, shows that 76% of social tenants have an improved credit score when their rental payment data is shared, which could make them eligible for mainstream credit.
The report, Credit where it’s due: Overcoming the barriers to mainstream credit with data, investigates how benefits data held by local authorities can help families with ‘thin’ or no credit files to access mainstream credit. It finds that publicly held data can improve the credit-scoring process in three ways: verifying the identity of the consumer; assessing credit-worthiness; and establishing if the loan is affordable.
For full release click here
Monday 3 April 2017
New child tax credit rule means a third child born to low income families will miss out on up to £2,780 of tax credit support in April, affecting 8,000 families each month.
From Thursday 6 April 2017 the amount of Child Tax Credit support available to families across the UK will be limited to two children. The measure will affect all households with two or more children that have an additional baby after this date.
New independent analysis by Policy in Practice finds that more than 2 million low-income families are at risk of being hit if they have a third child, 70% of whom are in work.
The measure is set to save the government £1bn per year by 2020, helping it to meet its stated objective to reduce the public deficit and rebalance the finances of the welfare state.
There is no evidence that the policy will have any impact on birth rates. Policy in Practice will track the impact on birth rates in the coming months but find that many potential parents are unaware of the changes.
104,000 third or additional children will be born to these families in the next twelve months. The 8,000 babies born in April will miss out on up to £2,780 of tax credit support.
For full release click here
Monday 21 November 2016
New analysis finds the cumulative impact of welfare cuts will hit low income families both in and out of work on average by £41.45 per week by 2020. Working households are hit hardest at £48.90 per week, with families and local authorities left struggling to plug the gap.
Fresh analysis on the cumulative impacts of reforms announced by the Cameron and Osborne administrations on over 180,000 low income households shows exactly how hard these families will be hit.
Policy in Practice analysis shows how the freezing of benefit rates from 2015 will hit the pockets of low-income households hardest by 2020, even more if inflation increases as expected due to Brexit.
Low income households in work, those who are ‘Just About Managing’, will lose even more on average – £48.90. This is mainly due to cuts in Universal Credit and the rising cost of private rents.
For full release click here
Friday 4 September 2015
Universal Credit Software Specialist, Policy in Practice, today announces that is has secured follow on investment to enable further growth.
Already backed by Telefonica’s Wayra, investment has now been secured from tech entrepreneur Martin Leuw, welfare to work industry expert Sean Williams and public sector advisor and author Alexander Stevenson. The latest funding has been matched by social investment from the Big Venture Challenge, Unltd and the Big Lottery.
For full release click here >
Thursday 9 July 2015
New analysis from Policy in Practice looks at the combined impact of measures in the budget, and finds that many low earning households will be worse off in 2020.
For full release click here
Media coverage
Monday 29 July, TalkRADIO
Deven Ghelani discusses the findings of the Social Metrics Commission’s 2019 report on povery in the UK with Alastair Stewart.
He said “I don’t think we should ever take a deterministic view of poverty, you can defintely help people move out of poverty.”
Friday 11 May, RT.UK
Giovanni Tonutti appears on RT.UK to discuss government policy on free school meals. He said “Effectively it means that if parents don’t have a permanent leave to remain or access to welfare support then their kids don’t have free school meals.”
Tuesday 8 May, Talk Radio
Deven Ghelani spoke on The Independent Republic of Mike Graham about making the welfare system simple to understand. In particular he spoke about Universal Credit, the Benefit Cap and working tax credits.
Tuesday 24 April, Sky News
Deven Ghelani spoke about the implementation of Universal Credit, as part of Sky News’ Line 18 work which examines the state of Modern Britain in 2018. He answered questions about figures showing rises in rent arrears, evictions and food back use in areas where Universal Credit has rolled out, and highlighted the cuts made to incomes as a result of the wider welfare reform programme.
Sunday 25 March, The Observer
Coverage by Michael Savage, Policy Editor, of our analysis on the impact of Universal Credit on self employed low-earners who are set to lose £344 a month.
Sunday 25 March, The Mirror
Article by Dan Bloom about our analysis of Universal Credit and self employed earners.
Wednesday 21 March, 24housing
Article by Bill Tanner about the analysis we’ve been commissioned to do by Riverside, St Mungo’s, YMCA and The Salvation Army. We will identify practical solutions to make Universal Credit (UC) work more effectively for vulnerable people who depend on supported housing.
Wednesday 15 November, Talk Radio
Deven speaks to Julia Hartley-Brewer about the impact of Universal Credit on families with children, ahead of the budget on 22 November.
Listen back here
Wednesday 25 October, Sky News
Deven speaks to Dermot Murnaghan following the vote in Parliament to pause the implementation of Universal Credit.
View here
Thursday 12 October, Talk Radio
Deven Ghelani speaks to Julia Hartley-Brewer about Universal Credit in the wake of several criticisms directed at it
Listen back here
Sunday 8 October, BBC Radio 4, MoneyBox Live
Deven speaks to Paul Lewis about Universal Credit, following the announcement about advances at the Conservative Party conference 2017.
Listen back here
Friday 29 September, BBC Radio 4, PM
Deven Ghelani responded to Louse Casey’s call to pause Universal Credit by recommending specific and immediate action the government could take to support households struggling with the six-week wait.
Listen back here
Monday 18 September, BBC Radio 5
Deven Ghelani spoke to Adrian Chiles and outlined the original intent behind Universal Credit and the challenges faced in its implementation. He called for properly funded local support to help households that are struggling.
Listen back here
Sunday 10 September, The Observer frontpage
Coverage of our analysis on the cumulative impacts of welfare reform for the LGA highlighted the additional squeeze on low income households, caused mainly by the benefits freeze.
Read here
Sunday 2 April 2017
Policy in Practice analysis was featured on the front page of The Guardian, ahead of new changes to the benefit system taking effect.
Our analysis of the impact of the new child tax credit rule shows that a third child born to low income families will miss out on up to £2,780 of tax credit support in April, affecting 8,000 families each month. Furthermore, out analysis finds that more than 2 million low-income families are at risk of being hit if they have a third child, 70% of whom are in work.
The measure is set to save the government £1bn per year by 2020, helping it to meet its stated objective to reduce the public deficit and rebalance the finances of the welfare state. There is no evidence that the policy will have any impact on birth rates.
Read Welfare shake up to hit children and the bereaved
Tuesday 4 April 2017
Deven Ghelani was interviewed on Russia Today, talking about how families with over 3 children will bear the brunt of austerity burden.
View Families with over 3 children will bear the brunt of austerity burden
Sunday 30 April 2017
Deven Ghelani guested on BBC One’s The Big Questions to discuss Is Welfare Reform Working?
Click to watch here (until Sun 28 May 2017)
Monday 21 November
Policy in Practice analysis was featured on the front page of The Guardian, ahead of the Autumn Statement.
Our analysis of 187,000 households across the UK found that policies including cuts to universal credit and the four-year benefit rate freeze, coupled with rising rents and higher inflation, would see low-income working families typically lose £48.90 a week by the end of the decade.
Read ‘Just about managing’ families to be £2,500 a year worse off by 2020 – study
Tuesday 22 November
Deven Ghelani was quoted in Millions affected by universal credit cuts to be partly compensated by chancellor in The Guardian.
He said: “£3bn would make universal credit broadly as generous as the tax credit system is today – essential for a government that wants to make work pay.
“Investing in the work allowance puts more money in the pockets of lower earning households, while a lower withdrawal rate may help the prospects of those looking to progress in work.”
Read Millions affected by universal credit cuts to be partly compensated by chancellor
Wednesday 21 September
Deven Ghelani guested on BBC Radio 4’s Money Box programme talking about Universal Credit in the gig economy.
Money Box Live: Tax and benefits – keeping up with the way we work now? Click here
Monday 11 November
BBC Radio 4’s World at One: Deven Ghelani interviewed about tax credits by Martha Kearney Click here (interview starts at 10:50)
Monday 26 October
The Guardian: Working tax credits: two-thirds will be worse off in 2020, research says Click here
The Telegraph: Tax credits: George Osborne waters down tax credit reforms after Lord defeat Click here
The Independent: Tax credit cuts will leave the low-paid facing a 93 per cent effective tax rate Click here
The Sun: Osborne’s reforms will leave two thirds of tax credit claimants worse off, research reveals Click here
Radio 4’s World at One: Deven Ghelani: Government was brought in to ‘make work pay’ by The Spectator Click here
BBC News: Policy in Practice on the tax credit vote for the BBC News Channel – Deven Ghelani Click here
RT Question More: Policy in Practice on tax credit vote Click here
September 2015
Monday 14 September
Government Computing: Wayra start-ups bid to increase Whitehall traction Click here
Tuesday 11 August
BBC London Radio: Deven Ghelani spoke to Penny Smith and Paul Ross about proposed changes to the welfare system Click here
Saturday 1 August
UK Housing Online: Policy in Practice Launches the First Integrated Benefit and Budgeting Toolkit for Housing Associations & Local Authorities Click here
Wednesday 29 July
IT Director: Policy in Practice Launches the First Integrated Benefit and Budgeting Toolkit for Housing Associations & Local Authorities Click here
Virtual-Strategy Magazine: Policy in Practice Launches the First Integrated Benefit and Budgeting Toolkit for Housing Associations & Local Authorities Click here
Thursday 13 July
LBC 97.3: Deven Ghelani spoke to Nick Ferrari about the Labour leadership contest Click here
Friday 10 July
The Telegraph: The Living Wage sounds good but tax cuts are better Click here
Friday 10 July
The Spectator: Thanks to George Osborne work is about to pay less Click here
Tuesday 7 July
The Spectator: Five tricks that George Osborne may pull in his Budget tomorrow Click here