Recent alterations to UK benefit regulations have raised concerns that some individuals, particularly young people in supported housing, could face financial hardship when entering employment. Labour MP Mike Reader questioned the Government on the potential impact of these changes, highlighting the need for careful consideration of the interplay between Universal Credit and Housing Benefit for certain claimants.
Concerns have been raised that recent changes to Department for Work and Pensions (DWP) benefit regulations could leave some individuals worse off. Labour MP Mike Reader questioned the Government on whether ministers had assessed the potential impact of policy shifts, particularly on young people in supported housing entering employment.
He cited Labour's Get Britain Working white paper, outlining strategies to assist the unemployed in finding work and support benefit recipients in increasing their working hours. Pensions minister Sir Stephen Timms responded that the income taper for Housing Benefits ensures that those in work are better off than those solely reliant on benefits. He emphasized the non-financial benefits of working, such as skill acquisition, increased confidence and independence, and positive impacts on mental and physical health. However, Timms acknowledged a challenge with the interaction between Universal Credit and Housing Benefit for certain claimants, particularly those in Supported Housing and Temporary Accommodation receiving housing support through Housing Benefit. The Department, he stated, would carefully consider the issue in partnership with stakeholders.Approximately 2.8 million individuals are currently unemployed due to prolonged illness. The Get Britain Working initiative includes support for employers to hire more individuals with health conditions and disabilities. Labour also plans to reform the Work Capability Assessment, which evaluates a benefit claimant's ability to work and their potential to seek employment or increase working hours. The white paper outlines a commitment to reforming health and disability benefits to promote and enable employment, reduce poverty for disabled people, and support independent living. It also stresses the need for a financially sustainable system in the long term. Benefit payments, including Universal Credit and Housing Benefit, will increase by 4.1% in April. Separately, in an effort to combat benefit fraud, investigators will gain new powers to request bank statements from suspected fraudsters and directly deduct owed payments from their accounts. Critics express concerns that innocent individuals might be targeted and that direct deductions could lead to severe financial hardship. Sebrina McCullough, director of external relations at Money Wellness, advocates for affordability checks before direct deductions and suggests referring individuals to free debt advice services to establish their full financial situation and develop sustainable repayment plans. Otherwise, she warns, vulnerable low-income households could be pushed into crisis
Benefit Regulations Universal Credit Housing Benefit Employment Disability Benefits Government Policy Labour Party Social Welfare
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