Q&A: Universal Credit

Today the Government will trial Universal Credit for the first time. Here we look at how the changes will eventually affect you.

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Report: 'Half of adults in welfare ghettos on benefits'

Britain is rife with welfare ghettos where more than half of its working age population is dependent on unemployment benefits, a new report claims.

In a study entitled Signed Off, Written Off, the Centre for Social Justice (CSJ) says that as many as 6.8 million people and 1.8 million children in the UK have been trapped into long-term poverty.

The welfare ghettos trapping as many as 6.8 million people are a national disgrace.They represent years of tragic failure and indifference from the political class. People in these neighbourhoods have been consistently written off as incapable and their poverty plight inevitable.Their lives have been limited by a fatalistic assumption that they have little prospect of anything better.

– Christian Guy, CSJ managing director

Some British towns and cities contain welfare ghettos where more than half of working age residents depend on out-of-work benefits, according to the report.

Court told 'bedroom tax' regulations flawed

Martin Westgate QC, appearing for the 10 test cases, told two judges the regulations were flawed as they failed to deal with the needs of the disabled and the amount of space and the number of rooms they realistically needed if they were not to suffer discrimination because of their disabilities.

Each of the claimants has a need, because of disability, to occupy accommodation larger than that which would be allowed to them under the size criteria.

The key point is that benefit must match need for accommodation size where that need has been identified.

– Martin Westgate QC

In a three-day hearing, he is asking the court to rule that the new regulations breach Article 14 of the European Convention on Human Rights, which protects against discrimination.

He also argues that the Work and Pensions Secretary, has failed to comply with his public equality duty under the 2010 Equality Act and the discriminatory element in the regulations must be quashed.

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'Bedroom tax' protesters at the High Court

Disabled adults and families with disabled children are challenging the legality of the Government's so-called "bedroom tax", arguing that it unlawfully discriminates against them.

Protesters against the 'bedroom tax' gather outside the Royal Courts of Justice in London.
Protesters against the 'bedroom tax' gather outside the Royal Courts of Justice in London. Credit: Lewis Whyld/PA Wire

Lawyers in 10 cases at London's High Court are seeking a ruling that the regulations, introduced on 1st April, "unjustifiably discriminate against housing benefit claimants who are disabled or care for disabled family members".

Outside court protesters gathered in support of the families.

Protesters against the 'bedroom tax' gather outside the Royal Courts of Justice in London.
Protesters against the 'bedroom tax' gather outside the Royal Courts of Justice in London. Credit: Lewis Whyld/PA Wire

DWP insists 'spare room subsidy' is lawful

The Department for Work and Pensions (DWP) rejects the "bedroom tax" tag and says the reality is that "a spare room subsidy" has been removed from social sector tenants.

A DWP spokesman said the new regulations are lawful and adequate steps have been taken to safeguard people with disabilities.

What is the Government's so-called 'Bedroom Tax'?

Tenants with one spare bedroom have had a payment reduction of 14% and those deemed to have two or more spare a reduction of 25%.

Lawyers for the 10 cases say that, unless the families move from their homes into smaller properties, they face building up rent arrears and being forced out any way.

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Government: Welfare reforms simplify complexities

The Department for Work and Pensions has responded to claims that families will not gain from Universal Credit.

It said that welfare reforms "improve the lives of some of the poorest families", and that Universal Credit simplified the "complex myriad of benefits".

The benefits system this Government inherited was broken, trapping the very people it was designed to help into cycles of worklessness and welfare dependency. The simpler Universal Credit will make it easier for people to move off benefits and into work and will ensure work always pays.

– Department for Work and Pensions spokesperson

'Nine out of ten' will gain nothing from Universal Credit

Nine out of ten families will gain nothing overall from the introduction of Universal Credit, with any benefits offset by recent social security cuts, a report has found.

It said that the process will be made more complicated by requiring people to claim online and make joint claims with their partners.

Universal Credit is not bad in principle, but taken together with the other benefit changes introduced by the Government, it will make most people worse off.

For all the claims of simplicity, in practice it is such a complex system that the Government has been forced to delay its roll-out.

We are also concerned at the impact Universal Credit will have on disabled workers, as well as its plans to take away benefits from second earners as soon as they find work.

– Frances O'Grady, TUC General Secretary

Watch: Universal Credit trial begins amid controversy

Ministers 'overstate' generosity of Universal Credit

Ministers are overstating the generosity of Universal Credit, with most families gaining nothing from the benefit, a new report has claimed.

The new single benefit payment, now being trialled in parts of the country before being introduced across the UK, is in danger of failing to deliver on its key objectives, the TUC and Child Poverty Action Group said.

Read: Universal Credit - what are the differences?

Universal Credit will replace other benefits such as jobseeker's allowance and income support Credit: Owen Humphreys/PA Wire

The two groups admitted that Universal Credit will improve some aspects of the benefits system.

However it added that its ability to lift families out of poverty and remove barriers to working will be "severely undermined" by the Government's wider tax credit and benefit changes.

Read: Universal Credit begins with a whimper and not a bang

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