Councils ‘could face Universal Credit failure costs’

20 Apr 12
Unison has today warned UK local authorities that the government’s roll-out of the new Universal Credit benefit could increase the strain on council resources.
By Richard Johnstone | 20 April 2012

Unison has today warned UK local authorities that the government’s roll-out of the new Universal Credit benefit could increase the strain on council resources.

The union says that the coalition risks ‘botching’ the move to the new benefit by making it more difficult for low-income families to claim benefits and tax credits.

New claimants will start to receive Universal Credit in place of Jobseeker’s Allowance, Employment Support Allowance, Housing Benefit, Working Tax Credit and Child Tax Credit from October 2013.More than 1 million people will be moved on to it by April 2014, with all claimants receiving it by 2017.

However, Unison believes that the transfer is at risk because the government intends to combine the introduction with a shift to claimants accessing and administering the service online.

The Department for Work and Pensions has said the benefit will make ‘extensive use of online technology to allow people to better manage their claim and understand the benefits of entering paid work’.

The union says its analysis shows that the low-income people who rely on benefits and tax credits are the least likely to apply on the internet. This includes almost 4 million disabled adults who have never used the internet, along with 8.1% of adults earning less than £200 a week. They are also least likely to be able to afford the cost of calling an 0845 number if they can’t get online.

Unison has today emailed every councillor in England, Wales and Scotland calling on them to take action to ensure the transfer works, pointing out that if things go wrong people will turn to their local council for help.

General secretary Dave Prentis said that the move to online administration of benefits was ‘another outrageous policy the government has not thought through’. 

He added: ‘This Cabinet – stuffed full of millionaires with gadgets galore – thinks everyone can get on the internet. Back in reality, people on low incomes, those that need benefits and tax credits, are the least likely to have a computer. The coalition’s cuts are already hitting families hard without the government making it more difficult still to claim much-needed benefits and tax credits.’

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