DWP warns Universal Credit and Housing Benefit claimants could be 'worse off' under new rules
In a Parliamentary question concerns were raised if some people could fall foul of changes planned under the Get Britain Working White Paper.
The Department for Work and Pensions has warned some claimants will be "worse off" wen entering employment. In a Parliamentary question concerns were raised if some people could fall foul of changes planned under the Get Britain Working White Paper.
Labour Party MP Mike Reader reached out in the Commons "to ask the Secretary of State for Work and Pensions, with reference to the Get Britain Working White Paper, what assessment she has made of the potential implications for her policies of young people in supported housing becoming worse off when entering into employment because of benefit rules."
Sir Stephen Timms, pensions minister, replied: "The income taper in Housing Benefit ensures people in work are better off than someone wholly reliant on benefits. In addition to any financial advantage, there are important non-financial benefits of working."
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The Labour Party Cabinet member and minister went on, telling Mr Reader: "These benefits include learning new skills, improved confidence and independence as well as a positive effect on an individual's mental and physical health."
He commented: "Notwithstanding these positive outcomes from work, the Department acknowledges there is a challenge presented by the interaction between Universal Credit and Housing Benefit for those residing in Supported Housing and Temporary Accommodation and receiving their housing support through Housing Benefit.
"The department will consider the issue carefully in partnership with stakeholders." Sebrina McCullough, director of external relations at debt and benefit counselling service Money Wellness, said: "It is vital that before any agreements to recover money directly from bank accounts are made, affordability checks are completed. The details of a person’s account and what is on bank statements might not always be a true reflection of their financial situation."
Ms McCullough urged for other help to be offered to claimants before the DWP deducts the amount from their balance. She said: "We’d encourage the Government to first refer these people to free debt advice services, which can work with people to establish their full financial situation and then support them with a sustainable and workable repayment plan. Otherwise, we risk forcing vulnerable low-income households into crisis."