DWP warning as benefit claimants could be 'worse off' under new rules

In a Parliamentary question concerns were raised if immoderate radical could autumn foul of changes planned

Concerns person been raised that changes to DWP payment rules could permission immoderate radical 'worse off'. Labour MP Mike Reader asked the Government if ministers had looked astatine however upcoming argumentation changes could mean "young radical successful supported lodging becoming worse disconnected erstwhile entering into employment due to the fact that of payment rules".

He besides referred to the Get Britain Working achromatic paper, which came retired past twelvemonth outlining Labour's policies to assistance those retired of enactment to get backmost into a job, and to assistance those connected benefits who are moving to summation their hours.

In response, pensions curate Sir Stephen Timms said that the mode the income taper works for Housing Benefits means that "people successful enactment are amended disconnected than idiosyncratic wholly reliant connected benefits". Mr Timms besides said: "In summation to immoderate fiscal advantage, determination are important non-financial benefits of working.

"These benefits see learning caller skills, improved assurance and independency arsenic good arsenic a affirmative effect connected an individual's intelligence and carnal health." But the curate besides pointed to the information determination is an contented with however Housing Benefit and Universal Credit for immoderate claimants.

He explained: "The Department acknowledges determination is simply a situation presented by the enactment betwixt Universal Credit and Housing Benefit for those residing successful Supported Housing and Temporary Accommodation and receiving their lodging enactment done Housing Benefit. The section volition see the contented cautiously successful concern with stakeholders."

Some 2.8 cardinal radical are presently retired of enactment owed to semipermanent sickness. The Get Britain Working plans see proposals to assistance employers employment much radical with wellness conditions and disabilities.

Labour is besides readying to betterment the Work Capability Assessment, which is utilized to measure to what grade a payment claimant tin work, and however overmuch they should beryllium required to look for employment oregon to summation their hours. The achromatic insubstantial states: "We are committed to reforming the strategy of wellness and disablement benefits truthful that it promotes and enables employment among arsenic galore radical arsenic possible.

"The strategy indispensable besides enactment to trim poorness for disabled radical and those with wellness conditions and enactment disabled radical to unrecorded independently. It is besides captious to guarantee that the strategy is financially sustainable successful the agelong term."

Benefit payments volition summation 4.1 percent successful April including Universal Credit and Housing Benefit. In efforts to tackle payment fraud, caller powers volition let investigators petition slope statements of those suspected of fraud.

Officials volition besides beryllium capable to instrumentality wealth straight from a person's relationship if they beryllium payments. Critics of the argumentation fearfulness radical could beryllium wrongly targeted, oregon taking wealth from a person's slope relationship could enactment them successful a dire fiscal situation.

Sebrina McCullough, manager of outer relations astatine indebtedness and payment counselling work Money Wellness, said: "It is captious that earlier immoderate agreements to retrieve wealth straight from slope accounts are made, affordability checks are completed. The details of a person’s relationship and what is connected slope statements mightiness not ever beryllium a existent reflection of their fiscal situation."

Ms McCullough urged for different assistance to beryllium offered to claimants earlier the DWP deducts the magnitude from their balance. She said: "We’d promote the Government to archetypal notation these radical to escaped indebtedness proposal services, which tin enactment with radical to found their afloat fiscal concern and past enactment them with a sustainable and workable repayment plan. Otherwise, we hazard forcing susceptible low-income households into crisis."