Changes to benefit system could have far-reaching consequences
Sweeping changes to the benefits system, due to come into force next year, could see a rise in the number children being taken into care and more homeless people in Exeter, according to charities and welfare organisations in the city.
Earlier this year the Government announced a series of reforms designed to target those avoiding work because benefits are more lucrative for them.
However at a summit of Exeter groups last week, concerns were expressed that the some of the changes will affect the most vulnerable.
Devon County Councillor Saxon Spence said: “I am concerned that there are going to be some unintended consequences. If you are poor and you have children to feed, losing £5 or £10 can be a disaster. Is this going to be a sink or swim system?
“One of the unintended consequences could be more children being taken into care – that would have a terrible impact on the child and destroy people’s lives.”
The Department of Work and Pensions estimates that the average household on benefits in the UK will lose up to £93 a week under the new scheme. It could mean pensioners with working age partners losing up to £100 a week and families on benefits will face a cap on the total amount of benefits they can receive of £500 per week.
The new 'get tough approach' will also mean that those supplying incorrect information, even in genuine error, will get a £50 fine. In addition those some people, such as older people or those with learning difficulties, may have difficulties using an “online” system.
Diana Crump of Living Options Devon, a charity that promotes equal opportunities for Deaf people and those with disabilities, added: “There’s going to be a lot of things that are going to hit people very quickly. I think we need to be ready with some immediate support for crisis.
“I’m particularly concerned about people who may have mental health issues. There does not seem to be any thought to resourcing the digital changes .That is a huge, huge area.”
The summit, held at Belmont Chapel in Exeter, was organised by Exeter Community Initiatives, a charity which runs a range of projects around the city to support vulnerable people.
Chief Executive, Matt Bell, said: “I don’t think people appreciate the huge impact these changes are going to have. The principle of simplifying what is a very complicated system is a good thing, but there seems to be a significant number of gaps in thinking, such as access to IT facilities. I’m very worried it will leave some people in terrible poverty.”
The Government plans for many benefits to be grouped together and termed Universal Credit, and which will then be paid monthly in a lump sum. However this will not help those who are unable to budget. In addition, housing benefit, which is currently paid directly to landlords, will now be paid directly to claimants.
According to Hans Zebrowski of Service User Representation and Recovery Forum (SURRF), which helps people recovering from drug and alcohol addiction, this could lead to an increase in the number of people with addictions becoming homeless.
“I suggest that we should consider asking for some people with drug and alcohol issues to not be paid a lump sum – as they will not be able to save appropriately. Budgeting will not help them as their addictions mean they will never be able to budget. At least if we can do this it would stop their chaotic lifestyles getting worse.”
The first pilot schemes for the new benefits system will begin in April 2013 but national roll out for new claimants including those in Devon and Cornwall begins in October 2013. A phased four-year programme will transfer all existing claimants.
If you would like more information, contact Andrea Hibbard on 01392 205800.
