Published November 6th, 2018
A leading social housing provider in Cornwall has welcomed a Government pledge to pump an extra £1-billion into the welfare system to help ease the transition to universal credit.
The cash was one of the measures unveiled by Chancellor Philip Hammond in his Budget statement last Tuesday. Mr Hammond will also increase universal credit work allowances by £1,000, leaving recipients up to £630-a-year better off.
Universal credit replaces six weekly and fortnightly benefits – including jobseekers’ allowance, tax credits, and housing benefit – with one monthly payment. A phased introduction started in 2013, but the new system, designed to simplify claims and provide clearer incentives to work, has been beset by problems.
St Austell-based Ocean Housing has welcomed the Government’s commitment to make the transition smoother and eradicate routine delays in payment.
“Universal credit is the biggest welfare reform we’ve seen in many years, but its introduction has been fraught with difficulties. It’s a huge change for people who aren’t used to living on a monthly budget, many of whom are already in a financially perilous position,” said Ocean’s chief executive, Mark Gardner.
“We’ve seen demand at food banks increase in areas where it’s has been introduced, partly due to delays between the traditional benefits finishing and universal credit kicking in.
“We’re concerned that these delays are causing real hardship and anxiety for people who are already under severe financial pressure.”
Ocean created a specialist welfare advice team in readiness for the rollout of the new benefit, aimed at supporting its customers through the application process.
“We’ve developed a strong working relationship with our local DWP colleagues, and together we’re supporting customers with their claims,” explained Gina Cutler, Ocean’s head of neighbourhood services.
“Our focus has been on raising awareness about universal credit and how our customers can prepare for the move across to the new system. This has included house calls, distributing information packs, and one-to-one support.”
