Solutions for Britain’s 12.4 billion pounds’ worth of unclaimed benefits

And what do we do about that? (See this for more info.)

I don’t know. British government is utterly useless in this respect. Everybody knows that.

Could local government be better? Instead of city councils sending out e-mails that encourage people to buy lottery tickets (!!), could they include a list of potential benefits people may qualify for? It might even stop those people from getting into arrears with their council tax, for example.

Other than that, I have no solutions. Anyone?

 

I got that in response to this:

Ladies, gentlemen,

Some time ago, the tone of your council tax payment reminders changed considerably. The letters can now be seen as condescending toward socioeconomic minorities.

Most people do not choose to ignore their council tax bills, after all. They are forced to.

You know as well as I do that people who are on any kind of benefit to do with the DWP often suffer from delays, sanctions and errors in their payments. Their income is not such that it can bridge those income gaps and the income gaps usually mean that people are not able to carry out bill payments.

This situation is going to get worse as a result of the roll-out of the universal credit system which currently results in payment gaps of 6 to 8 weeks.

May I suggest that instead of chiding people for being of the wrong class, you offer support and solutions?

One solution for bridging income gaps caused by the DWP could be to set up small local networks that offer peer-to-peer interest-free lending. Each individual might for example lend £5 or £10 to the person left in the lurch by the DWP, which would limit each individual’s risk. This could enable people to continue paying their bills instead of getting in arrears. When the delayed DWP payment finally arrives, they would have to return the loaned money. If they don’t, they’d be kicked out of the network. Any new delays would have to be covered through a new loan.

I know that Britain distinguishes between lesser and higher human beings, but that is against the law, even in Britain, and your letters could be perceived as discriminatory in nature.

Thank you for your consideration.

Kind regards,

Angelina Souren

Of course, the above also holds for other situations, such as cleaners whose get their wages late or whose paid wage amount was incorrect. Benefit payments have been in the news a lot lately, however.

Britain’s unclaimed benefits: four million families miss out on £12.4 billion


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Why aren’t people entitled to benefits claiming them?
via shutterstock.com

Dan Finn, University of Portsmouth

Up to £12.4 billion of means-tested benefits – including pension credit, housing benefit and jobseekers and employment support allowance – were left unclaimed in 2015-16, according to new data released by the UK’s Department for Work and Pensions.

Means-tested benefits are designed to ensure a minimum standard of living for Britain’s poorest families. But not all those people eligible are claiming them – in comparison to the near universal take-up rate of the basic state pension and widespread take-up of child benefit (which is taxable only for high earners).

Annual average amounts unclaimed by eligible families vary from an estimated £5,000 per year for those eligible for employment support allowance (for those with a disability or long-term illness), to £2,000 per year for those eligible for pension credit. In a parallel data series HM Revenue & Customs estimates take-up rates for tax credits – which are paid directly to qualifying low paid workers.

The latest data for 2014-15 adds further to the scale of unclaimed entitlements. The central estimate is that £2.3 billion of child tax credit and £3 billion of working tax credit went unclaimed by 640,000 families and 1.2m families respectively.

Improving take-up rates of means-tested benefits directly reduces poverty. Research also suggests that families who top up their income with benefits also have higher levels of health, family well-being, and employment participation and retention.

Why people don’t claim

The failure to claim benefits stems from a mix of social and economic circumstances, administrative structures, and complex eligibility rules. It may, for example, reflect a lack of awareness about the availability of the benefit or a potential claimant’s expectation that the costs involved in applying for the benefit outweigh the value of any payment.

But there is much evidence that a key factor undermining take-up is the poor design and delivery of the benefits system. Take-up has also been implicitly discouraged by policy changes targeted at some working age groups, especially the short-term unemployed. An increase in conditions and related sanctions are designed to get people into work as quickly as possible and, as a result, make their claims to benefits relatively short-lived.

Plus, the tenor of contemporary media narratives on welfare dependency has increased the stigma attached to claimants, especially people of working age. Research suggests this stigmatisation is linked to reductions in take-up and a reluctance to claim among potential beneficiaries, notably among pensioners.

The British government is unique in Europe in publishing robust annual estimates of benefit and tax credit take-up. The data for 2015-16 gives an insight into which families are at risk of poverty and claim the help from the state that they are entitled to, as the graph below shows.

https://datawrapper.dwcdn.net/aa2BQ/1/

Take-up rates vary depending on the type of household. For example, while the overall take-up of housing benefit was 77%, it ranged from over 90% for singles with children to only 64% for those eligible in private rented accommodation. And while the main estimate for working tax credit was 65%, only 33% of eligible households without children were claiming it.

The data implies that those with greater entitlements are more likely to claim. A significant change since 2012-13 was a decrease of 11% in means-tested jobseekers allowance caseload take-up – people who are entitled to a benefit but who do not claim it. This may have been due to high employment rates, more stringent conditions attached to claiming unemployment benefit and the early impact of the new universal credit, which for working age people rolls most means-tested benefit entitlements into a single monthly payment.

Universal credit take-up must be measured

There are no estimates or commitment yet given to publish take-up data for universal credit, even though it is now claimed by 1.5m people and will, it is estimated, be claimed by nearly 6m households in 2021. One of the supposed principal benefits of universal credit is that it will improve take-up rates by making the system less complicated and easier to deliver.

The evidence on take-up suggests these assumptions are over optimistic. It will take time for awareness to develop about the new rules and regulations involved.

It is unlikely that public and voluntary sector organisations will be able to invest in the additional effort needed to inform potential claimants, front line delivery staff, and related intermediary organisations that assist more disadvantaged groups and communities. There is also a risk that the “default digital delivery” (which means that most universal credit claimants must apply and self-manage their claims online) may reduce and deter take-up among people without access to computers or the skills to navigate digital channels.

Means-tested entitlements will likely remain at the centre of the British welfare system, including for many pensioners. And measures to improve take-up will remain central to national and local poverty-reduction strategies. It’s therefore vital to continue publishing take-up data to gauge the future impact of universal credit and related welfare and pension reforms.

The ConversationIf universal credit take-up rates do not improve as anticipated, the government should establish and state what percentage of eligible people eligible it expects to take it up. Measuring take-up rates would provide an important way to assess the impact of universal credit and help establish a transparent benchmark to measure whether the new system is achieving its objectives of reducing poverty and incentivising work. The government might also consider investing some of the £12.4 billion unspent means-tested benefits to develop new ways to increase take-up.

Dan Finn, Emeritus Professor of Social Inclusion, University of Portsmouth

This article was originally published on The Conversation. Read the original article.

Underpaid, overworked and drowning in debt: you wonder why young people are voting again?

Paul Whiteley, University of Essex

The 2017 general election was highly unusual as far as the youth vote was concerned. The Labour party won 65% – the lion’s share – of the youth vote. The nearest comparisons are with 1964 and 1997. In both those years, Labour took 53% of the youth vote. In the 2015 election, just two years earlier, the party had won just 38% of the youth vote.

How the under-30s vote

Tracking the youth vote between 1964 and 2017.
Paul Whiteley, Author provided

The contrast between the youth vote in the 2010 and 2017 shows how radically youth voting patterns have changed. During this period, their turnout rose by 19%. This change in youth participation, combined with a massive swing to Labour, has unsurprisingly led some to talk of a “youthquake”.

What could have brought this about? Political and cultural drivers are clearly at work. That includes youth support for remaining in the EU and their preference for Jeremy Corbyn over Theresa May. Only a quarter of 18-to-25s voted to leave in the EU referendum compared with two-thirds of those over 65.

But economic drivers also played a crucial role. Young people, put simply, have lost out both in the economy and government policy making. Since 2010 the British government has been preoccupied with shoring up its political support among middle aged and retired voters. It has largely ignored the concerns of the young, very often dismissing them because, in the past, most young people did not vote. That all changed in 2017.

Paying for education

One obvious driver of youth voting is the rapid increase in student debt imposed by a government which sought to privatise higher education during the austerity years. Tuition fees were originally introduced in 1998 and had reached £3,000 per year by 2006-7. At the time, it was widely accepted that the considerable graduate premium which existed in lifetime earnings justified a contribution to the costs of higher education by the beneficiaries.

But things radically changed in 2010 when the coalition government introduced a fees cap of £9,000. Ironically, this increased privatisation of the costs of higher education was accompanied by ever-increasing regulation, so that the less the state supports higher education the more it wants to control it. This trend culminated in a 2016 proposal to scrap maintenance grants and raise fees to £9,250 while at the same time charging interest rates of 6.1% on student loans at a time when the Bank of England base rate was 0.25%.

Such a reckless disregard for the interests of more than 40% of the under-25s is quite hard to understand, particularly in light of the fate of the Liberal Democrats following their u-turn on tuition fees after they joined the coalition in 2010.

The bias against youth was not confined to university students. In April 2016, the minimum wage was raised to £7.50 an hour, but this change only applied to employed workers over the age of 25. The minimum wage for apprentices under the age of 19 was a meagre £3.50 and hour and this did not change. Young people were essentially ignored.

Another aspect of the same issue relates to the self-employed, none of whom receive the minimum wage. Historically, self-employed workers have been older than the workforce average age – but, in recent years, self-employment has grown faster among the under 25s than any other group with the exception of 40-year-olds. Between 2008 and 2015 the number of self-employed people in the UK increased from 3.8 million to 4.6 million people with part-time self-employment, often synonymous with under-employment, increasing by 88%. Thus young people have lost out on the increases in minimum wages, with many of them being underemployed and working part-time for wages that are well below average.

Are you even listening?

It was, therefore, no surprise that when the pollsters YouGov recently asked citizens to rank their priorities for the country, 46% of 18-24 year olds selected increasing the minimum wage to approximately £9 per hour. That compared to a national figure of 28% (and 19% among pensioners).

In our panel survey of the electorate conducted immediately before the 2017 general election, we asked respondents if they agreed or disagreed with the following statement: “The government treats people like yourself fairly”. We found that 18% of the under-25s agreed with this statement compared with 28% of the over-65s. In contrast, 49% of the under-25s disagreed with it compared with 32% of the over-65s. Youth have not only been left behind but many of them are aware of this fact and have a sense of grievance arising from it. The stark difference in the responses of youth and pensioners to this statement is related to the differences in the government’s treatment of them.

The so called “triple lock” on pensions was introduced by the coalition government in 2010. It was a guarantee to increase the state pension every year by the rate of inflation, average earnings or by a minimum of 2.5% whichever was the highest. By 2016 it produced a situation in which retired people had average incomes £2,500 higher than in 2007/8, while those who were not retired earned an average of £300 less over this period. The latter reflects the fact that real wages have been flat-lining for more than a decade.

Given all this it is no surprise that the 2017 election was a case of youth striking back.

The ConversationThis article is based on research by Paul Whiteley, Harold Clarke, Matthew Goodwin and Marianne Stewart. Paul Whiteley is speaking at Youthquake 2017! Can young voters transform the UK’s political landscape? a joint event between The Conversation and The British Academy on October 9, 2017.

Paul Whiteley, Professor, Department of Government, University of Essex

This article was originally published on The Conversation. Read the original article.

Bare cupboards and nobody to help buy food: the forgotten welfare gap in older age


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Poverty and isolation is leading to nutritional problems for older people.
via shutterstock.com

Kingsley Purdam, University of Manchester

Welfare reform and austerity in the UK has led to reductions in public spending on services that support older people. Age UK has highlighted how nearly one million older people have unmet social care needs. This is of particular concern as the winter months approach.

In ongoing research on food insecurity in older age, my colleagues and I have analysed survey data and interviewed older people who use foodbanks. We’re finding that many older people are at risk of under-nutrition because of poverty, or because they don’t get the support they need to shop, cook and eat.

While many older people have been less affected by the recent recession than other age groups, in part because of the triple lock protection for pensions, poverty can persist in old age. Data from 2015 shows that 1.6m pensioners live below the relative poverty line, and 8% of pensioners are in persistent poverty – defined as having spent three years out of any four-year period in a household with below 60% of median income.

Poverty and social isolation

Around 20% of older people have little or no private pension, housing or material wealth and retiring with debt is also a growing problem. There are 3.8m people aged 65 and older living alone in the UK and evidence from Age UK suggests that nearly one million people in this age group always or often feel lonely.

Older people living alone tend to eat less. This can lead to under-nutrition – a major cause of functional decline among older people. It can lead to poorer health outcomes, falls, delays in recovery from illness and longer periods in hospital, including delayed operations.

Evidence from the National Nutrition Screening Survey suggests that an estimated 1.3m people aged over 65 in the UK are not getting adequate protein or energy in their diet. On admission to hospital, 33% of people in this age group are identified as being at risk of under-nutrition.


Read more: Huge cuts have made elder care today look like a relic of the Poor Law


Data we are analysing from the 2014 English Longitudinal Study of Ageing suggests that for around 10% of people aged 50 and over “too little money stops them buying their first choice of food items” and this has increased consistently since 2004. Evidence from the Poverty and Social Exclusion Survey in 2012 found that 12% of people aged over 65 had often or sometimes: “skimped on food so others in the household would have enough to eat”.

Embarrassment and stigma

The Health Survey of England consistently highlights the issue of unmet need among some older people. For example, 6% of people aged over 65 reported that they had not received help from anyone with shopping for food in the last month. In addition, 19% of this age group reported needing help to leave their home.

Evidence suggests that as food insecurity has increased in the UK, many older people have become reliant on food banks. In 2016, the food redistribution charity FareShare said that 13% of its clients were aged over 65.

Our interviews with older people using food banks have highlighted the challenges many older people can face. Some were having food parcels delivered by the food banks as they were unable to go themselves or did not want to be seen going.

Embarrassment and stigma were also a concern for one 69-year-old man who told us how he preferred coming to the food bank than asking family or friends for help. “I don’t believe in asking others, I don’t want to upset people,” he said. Another 65-year-old man told us: “My family would help but I don’t like to ask them, they have their own families to look after.” Others, however are either unable or too embarrassed to visit a food bank.

Food or warmth

One 54-year-old man said: “I can go for a couple of days without food… the gas is cut off and I get hot water from the kettle to wash.” There was also evidence that some older people were not fully recognising their nutritional needs. As one 60-year-old woman said: “When you are on your own… sometimes I don’t cook, depends how I feel.” Another 65-year-old man revealed his poor diet, stating how when he had no food he would: “Just eat cornflakes.”

Counting the pennies.
Kingsley Purdam, Author provided

Other people chose to cut back on food during the winter due to the costs of heating their home – suffering the cold as a result. As one 72-year-old woman stated: “Sometimes I just go without putting the heating on.”

An increasing number of older people are constrained in their spending on food, many are skipping meals and are not getting the social care support they need. Emergency food parcels are an inadequate and unsustainable way of addressing the issue of food insecurity.

There are currently 10m people in the UK aged over 65, but this is expected to increase to 19m by 2050 – that’s one in every four people.

The ConversationAs the size of the older population continues to grow, the reductions in local authority spending on social care raise concerns about their long-term welfare. Given the follow-on costs to the public purse, including in terms of healthcare, the government must do more to combat food insecurity amongst older people.

Kingsley Purdam, Senior Lecturer, University of Manchester

This article was originally published on The Conversation. Read the original article.