Our interviews show that claimants did not have the information they needed or wanted to understand how moving to UC would affect them. Such misinformation and misunderstanding are likely to be reasons some people are not moving to UC despite having a strong financial incentive to do so.
The chancellor has done the bare minimum that is needed to prevent faster rises in child poverty. There are 4.2 million children living in poverty in the UK today. Ensuring benefits catch up with inflation, and increasing local housing allowance (LHA), will come as welcome news to the millions of families on the lowest incomes who have been left worried sick as speculation about benefit cuts and freezes played out in the news. Increasing these benefits should never have been in doubt, and we urge the government to ensure benefit uprating is placed on a statutory footing to avoid this process being repeated in future years.
The Chancellor’s decisions to uprate benefits in line with inflation and to restore local housing allowance rates to the 30th percentile of rents were welcome, despite coming wrapped in punitive rhetoric, and accompanied by yet another ramping up of benefit sanctions. Increasing benefit rates and support with rent costs will make a difference to many families continuing to struggle with rising prices, who approach this winter terrified about how they will get by. But, sadly, these changes will provide absolutely no help to the over 85,000 households affected by the benefit cap, who will receive not one penny more.
Today the DWP published the latest data on the outcomes of tax credit claimants who have been sent their ‘migration notice’. This is a letter informing people that they have three months to make a claim for universal credit (UC), at which point their tax credit payments will be terminated. The data reveals that 16,000 people sent a migration notice did not make the transition to UC and had their legacy benefits terminated. This equates to 27 per cent of those who have been sent a migration notice and reached their deadline (based on those sent a migration notice in the first half of 2023).
In his Autumn Statement, the chancellor should invest in children by increasing social security benefits – reducing child poverty immediately and leading to higher long-term economic growth, as well as improved education and health outcomes, including life expectancy.
CPAG in Scotland’s Early Warning System has been operating for ten years! Over Challenge Poverty Week we are looking back at some of the social security events in this period, key findings from the Early Warning System and how they have influenced policy and practise. Today we are looking back at universal credit and how Early Warning System evidence can influence its future.