Universal Credit – “forcing many into debt”

Jul 07 Dealing With Debt - Magnifying Glass

By Heather Cameron

“The biggest change ever made to the benefits system… is currently failing too many people and forcing many into debt.”

This is the conclusion of a new report from Citizens Advice on Universal Credit (UC). It warns that the roll-out should be paused to allow ‘significant problems’ to be fixed.

What is Universal Credit?

UC was introduced in 2013, with the aim of simplifying the benefits system, making transitions into work easier and making every hour of work pay. UC replaces six means-tested benefits and tax credits with one benefit, to be paid in arrears, as a single household payment, on a monthly basis.

The objective of UC is to help people on low incomes or not in work to meet their living costs. It affects a range of people, both employed and unemployed, disabled people with health conditions, single people, families, homeowners and renters.

Roll-out so far has been gradual but the process is to speed up considerably from October. By the end of roll-out in 2022, it is expected around 7.2 million households will receive UC, over half of which will be in work.

With such a significant number of people affected, it is imperative that the system works in their interests. But evidence from Citizens Advice suggests the system has a number of flaws that need addressing to prevent 7 million households from facing serious financial risk.

And this isn’t the first time similar conclusions have been reached.

Flaws

Back in February, a Guardian investigation found that policy design flaws in UC are pushing thousands of benefit claimants into debt. Former welfare minister Lord Freud also admitted to MPs that administrative problems and design issues with UC are causing around one in four low-income tenants to run up rent arrears, putting them at risk of eviction.

In 2016, an inquiry into UC and its implementation by the Public Accounts Committee highlighted the inflexibility of the payment systems which may cause financial hardship for some claimants.

Citizens Advice highlight three “significant problems” with UC:

  • people are waiting up to 12 weeks for their first payment without any income;
  • UC is too complicated and people are struggling to use it; and
  • people aren’t getting help when the system fails them.

The data shows that:

  • more than one in three people helped on UC by Citizens Advice are waiting more than six weeks to receive any income, with 11% waiting over 10 weeks;
  • nearly a third of people helped have to make more than 10 calls to the helpline to sort out their claim;
  • 40% of people helped said they were not aware they could get an advance payment to help with the initial waiting period for their first payment;
  • over half of the people helped borrowed money while waiting for their first payment; and
  • UC clients are nearly one-and-a-half times as likely to seek advice on debt issues as those on other benefits.

A recent report from the Joseph Rowntree Foundation similarly highlighted the issue of waiting time, arguing that it required immediate action.

While Citizens Advice support the principles of UC, it argues that pushing ahead with roll-out while these problems remain will only put thousands more families at financial risk.

Recommendations

In response to these findings, a number of short and longer term considerations were highlighted where action will be needed to help secure the aims of UC by the end of roll-out. These include reducing the six week wait for initial payment, improving the support available for those moving onto UC, and helping people achieve financial stability on UC.

The charity recommends that the roll-out is paused while the government addresses the significant issues that have been highlighted. If improvements are not made, it is argued that both UC claimants and the government will face significant financial risks, which will increase rapidly if thousands more households move onto the benefit later this year.


If you enjoyed reading this, you may also like our previous article on in-work poverty.

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Celebrating 1,000 issues of the Idox Information Service Weekly Bulletin

blog

by Stacey Dingwall

After turning 40 last year, the Idox Information Service today reaches another milestone: the 1,000th edition of our Weekly Bulletin.

The Bulletin is circulated to our members every week, as part of their subscription to our service. It contains a selection of abstracts of some of the 100+ articles and documents added to our database each week. The Bulletin highlights the publications that our team of Research Officers think will be of the most interest or importance to our members, across our core subject areas:

  • Government, politics and public administration.
  • Business and economy.
  • Management and organisational development.
  • Equalities and diversity.
  • Employment, jobs and careers.
  • Education and skills.
  • Planning and development.
  • Transport, infrastructure and communications.
  • Regeneration and community development.
  • Arts, culture and leisure.
  • Health and social care
  • Crime, justice and rights.

Also included is a section of new government publications, which features any consultations, guidance and announcements the UK government and the devolved administrations have published that week.

The Bulletin was first published in 1975, back when the Information Service was known as the Planning Exchange. In his book on the early days of the Planning Exchange, Barry Cullingworth notes that at the time, “neither central nor local government [was] adequately organised to provide information”. According to founder Tony Burton, the Planning Exchange had therefore found itself dealing with an unexpected volume of requests for information, “not only from the general public, voluntary organisations and elected members, but also from academics, professionals and officers of local and central government”.

This resulted in the Planning Exchange gaining funding from the Leverhulme Trust to provide a weekly roundup of abstracts of articles and research on planning and housing-related matters to elected members in a couple of local authorities in Scotland. While this was intended to be a limited service, at the end of its trial period several local planning officers asked the Planning Exchange to continue sending the Bulletin, as they found it so useful.

Today, the Bulletin is sent to our members in local authorities across the country, central government, planning consultancies, universities and commercial organisations, among others. It forms part of the key current awareness service provided by the Idox Information Service for our members, alongside separate subject specific updates, personalised alerts and our recently launched election updates.

You can read more about the many benefits our customers enjoy from their membership of the Idox Information Service in our previous blog post here. We have also been recognised by the Alliance for Useful Evidence for our work in making research relevant and accessible to practitioners – not just researchers.


Organisations that join the Idox Information Service are committed to using a sound evidence base for decision-making and policy formulation. They also support the professional development of their staff. Being part of our community gives them the knowledge and tools to improve both frontline services and forward planning and strategy.

Membership packages can cover an entire organisation or a specific department or team. We also offer subscriptions to our current awareness services to individuals who are not affiliated with a suitable organisation.

To find out more please contact our team on 0870 333 7101 or contact us online.

Rise of the Datavores … showing no fear of data, it takes skills

Datavores infographicPrevious work by NESTA highlighted companies with apparently no fear of data. They called them ‘datavores’. When making decisions about how to grow their sales, they rely on data and analysis over experience and intuition.

Does being data active have an impact?

According to a new NESTA report published this week Skills of the datavores: talent and the data revolution, those organisations which are more ‘data-active’ perform better than those that are not, as the infographic above illustrates:

  • Datavores are 10% more productive
  • But, only 18% of companies are datavores
  • If all “dataphobes” became “datavores” it would add a 3% uplift in productivity
  • Data-driven firms are 40% more likely to launch new products and services.

What does a skilled data workforce look like?

The research suggests that the biggest issue facing the industry is the lack of skilled data analysts/scientists, where demand has grown 41%. Businesses are using a combination of actions to solve this lack of supply of skilled people, including off-shoring the roles, recruiting best fit and using a combination of inhouse, on the job and external training to grow their own.

Many organisations are also developing inter-disciplinary teams to create a data literate workforce because the skills needed within a data scientist are so rare; as the report says, as rare as “unicorns”. Our own experience of recruiting a data scientist would support this.

The workforce which is emerging is one focussed on adaption and flexibility, based on data sciences across the board, such as qualitative researchers, mathematicians, statisticians, developers and business analysts. Within this mix of skills, the new workforce also needs to have a creative flair and business knowledge that enables them to use the data in the organisation’s best interest and to add value.

What does it mean for skills suppliers?

As an emerging profession, it is difficult to pin down the exact skills an employer needs which in turn makes it difficult for schools, colleges and universities to supply the right type of education. The accompanying policy briefing from NESTA and Universities UK, Analytic Britain: securing the right skills for the data-driven economy, makes a number of recommendations, highlighted in the infographic above, many of which focus on the skills suppliers.

Universities are both a supplier and user of these skills and have a unique opportunity to really enage with the market. The focus on metrics in both the proposed Teaching Excellence Framework and Research Excellence Framework means that universities themselves are in need of the same skills and have an opportunity to supply based on experience.

For universities these recommendations have a number of impacts, and data issues are increasingly at the forefront of policy thinking. Universities UK has reviewed how data analytics are taught across disciplines and reflects on the shortage of academic staff who are confident in teaching data analytics in this way and the varying skills of students entering higher education.

The pervasive nature of the data revolution explains why a variety of disciplines and skills are being brought together. No one can argue against the need for more and better data to improve policy making and business planning. Plenty of data is now being captured but not used, and in the words of John Lennon “you say you want a revolution” and “we all want to change the world” … data is changing our world significantly but are you equipped for it?


The Idox Information Service can help you access further information on the use of data science, and the skills needed. To find out more on how to become a member, contact us.

Download the Datavores Infographic.

Further reading on the topics covered in this blog and infographic*:

Skills of the datavores: talent and the data revolution

Are you a Datavore? Insights on the use of online customer data in decision-making

UK data capability strategy: seizing the data opportunity

Information economy strategy

Inside the Datavores: how data and online analytics affect business performance

Employer insights: skills survey 2015

Big data analytics: assessment of demand for labour and skills 2013–2020

UK corporate perspectives: new technologies – where next?

*Some resources may only be available to members of the Idox Information Service

Evidence for the world we want – International Year of Evaluation

evaluation cycle 2015 has been declared the International Year of Evaluation, by a global movement of international partners seeking to enhance the capacity of Civil Society Organisations to influence policymakers and public opinion, and ensure public policies are based on evidence.

Our latest In Focus briefing considers the role of evaluation; the role of evaluation in programme planning; value for money; social return on investment; international experience; UK approaches; and the ethics of evaluation.

The primary purpose of evaluation is offering a way of determining whether a programme, project or initiative has been a worthwhile investment. It can help to shape and improve current initiatives as a means of reflection, correcting problems and finding what works.

However, there are many challenges to be overcome in carrying out evaluation such as:

  • engagement
  • bias
  • prejudice
  • setting realistic expectations
  • clear purpose and audience
  • lack of information and evidence

To find out more download the briefing here.

Find out more about the 2015 International Year of Evaluation here.

Read our recent blog on why using UK-sourced evidence when making policy or practice decisions is important.


Become a member of the Idox Information Service now, to access a wealth of further information on evaluation including government guidelines, best practice and examples of evaluations. Contact us for more details.

 

The Burstow Commission report – is this the turning point for home care workers?

By Steven McGinty

“If home care is not in crisis yet, it soon will be.“

These are the words of report author, Ingrid Koehler, Senior Policy Researcher at the Local Government information Unit (LGiU). She describes the current home care system as not fit for purpose and explains that this crisis is the reason why the Burstow Commission was formed.

‘Key to care: report of the Burstow Commission on the future of the home care workforce’ was launched last week and considers how the home care workforce might look in the future. Continue reading