Article Index

Page 4 of 5

Fixing Universal Credit

Why Universal Credit matters

By 2022, 7 million families in the UK will be on Universal Credit. Over half of those will be in work.

The aim – to simplify our benefits system – is right. But Universal Credit is already failing many people.

It is forcing people into debt and leaving them without the means to make ends meet.

At Citizens Advice across the country we’re already helping thousands of people who are claiming Universal Credit.

If the problems with Universal Credit aren’t fixed they will escalate. That’s why we’ve been campaigning for the Government to address the issues with Universal Credit before this happens.

If they don’t, 7 million households will face serious financial risk.

Campaigning to fix problems with Universal Credit

Since Universal Credit was introduced we’ve used our clients’ evidence to help us persuade the Government to make changes that ensure UC works for the people who need it.

Locally and nationally Citizens Advice have been campaigning since July 2017 for the government to pause and fix Universal Credit.

This is because our evidence shows that Universal Credit can leave people unable to pay essential bills and can risk pushing them into debt and hardship whilst they wait for their first payment.

Campaign successes

In November’s Budget, the Government announced a number of changes, including a £1.5 billion package of support for UC. These changes should make a significant difference to the millions of people who will be claiming UC by the time it’s fully implemented. We will continue to keep a close eye on the roll-out of UC and make sure they do.

The changes include:

Removing the 7 waiting days
Introducing an additional non-repayable financial payment for those moving from Housing Benefit to UC to help people pay their rent.
Changes to Advance Payments so claimants can receive 100% of their payment as an advance, and pay it back over 12 months. All claimants should be told they can get an Advance Payment
Making the UC helpline free
A slowdown in the roll out of full service UC
Closure of new claims to the ‘live service’

The Government will be looking again at Universal Support to ensure those who need it are helped to get onto UC and to adapt to the changes involved, and wider changes to UC and the taper rate are under review.

We’ve called for all these changes in recent months and believe they will make a real difference to the people we help.

Past research

Housing: There's no place like home

What’s it like trying to make a home in Wiltshire and how does the national housing crisis present itself in our county?

Wiltshire Citizens Advice has been addressing this question over the past two years in a research study based on actual feelings and experiences. This briefing (available to download below) is not a detailed report on our research, largely because many of the issues identified remain unresolved and therefore our research must be ongoing. Rather, it constitutes the key messages and recommendations from our findings to date.

This briefing is intended for those who would like greater understanding of people's broad and inclusive housing needs, together with how these work alongside the provision available in Wiltshire.

Our contributors; including clients coping with housing issues, interested members of the public, staff and professionals whose daily work involves advising, representing or helping them; offer both operational and strategic housing insights that should be useful to all working in housing across Wiltshire.

We recognise that our ‘client-eye-view of Wiltshire’s housing’ may be coloured by impending loss of a home or the threat of homelessness, but argue its relevance to any county-wide housing policy. We also interviewed people who had voluntarily walked into our offices from ‘street-level’ to talk to us about what they thought made a successful and sustainable home.

We have archived a more than 30,000 recorded words, in response to +80 different interview questions and a broad range of interviewees also included people working in legal representation, Local Authority, social housing allocation and clients struggling with the threat of eviction, or trying to gain a foothold in the rented sector (both social and private). All Wiltshire Citizens Advice staff have had an opportunity to contribute ideas from their first-hand experience. The rich data collected through our research study will be utilised in taking forward the recommendations contained within this briefing.

The conclusions and recommendations which follow, are a result of this effort. As a strategy to simplify matters, and help eliminate any confusion, the conclusions are divided into the strategic and operational.

There's No Place Like Home

Need housing advice?

Whether you are looking for a place to live, or already renting home, housing issues will always arise and therefore you need to know your rights and responsibilities.

You could also find yourself threatened with eviction if you can't cope with your mortgage payments.

We can help. We've information about how to go about renting or buying a home or just finding somewhere to live. You can also find advice on handling problems with your landlord and help to avoid losing your home.

Other past campaign successes

Over the years we have campaigned on a range of different issues in order to improve the policies and services that affect our clients. These are just a handful of the campaigns we are most proud of.

Making Employment and Support Allowance (ESA) #FitforWork

What was the problem?

Ill and disabled people were being let down by Employment and Support Allowance (ESA) – the benefit that is intended to support people while they are too ill for work. Many people were facing charges for the medical evidence they needed to support their claim, enduring poor customer service and low quality decision making, and then being left without any financial support if they decided to challenge poor decisions made as a result of this flawed process.

What happened?

Now, if an ill or disabled person needs to apply for ESA, changes to the form they fill in and the guidance provided around medical evidence should help them get the supporting information they need – for free. The Department for Work and Pensions and a new assessment provider have committed to further training and support to improve the assessment experience and decision making, so claimants should have a better experience and more decisions should be right first time.

Payday loans campaign

What was the problem?

Payday loan companies were not treating their customers fairly. The payday loan industry was breaking its promise to clean up its behaviour. Citizens Advice called for payday lenders to be properly regulated and to stop irresponsible advertising.

In the last four years the Citizens Advice service saw a ten-fold increase in the number of debt clients with payday loans, while our evidence showed that payday loan companies were not treating their customers fairly - and were even breaking regulations and guidance regarding responsible lending.

Most of the problems we were hearing about related to payday lenders not checking that customers could afford the loan, and pressuring them to ‘roll over’ the loan when they struggled to pay it back on time, as well as the way in which lenders took payments from their customers’ accounts – leaving them with no money for essentials.

We were also concerned about the glossy advertising practices of payday lenders, which were often irresponsible and misleading, masking the reality of debt. Finally, we wanted to make sure people knew about the alternatives and where to go for help.

How we got involved

Wiltshire Citizens Advice took an active part in raising awareness about this campaign and collected clients’ stories of their experience of pay day lenders as evidence. We wrote to the Wiltshire MPs to ask them to attend the High Cost Credit Bill vote in Parliament last July. The Bill would: restrict the advertising of payday loans; restrict the use of the continuous payment authority by payday lenders; and require payday lenders to signpost customers in financial difficulty to sources of free and impartial debt advice. We also asked our supporters to get ‘mad about the ad’ and report irresponsible or misleading payday loan adverts to the Advertising Standards Authority (ASA).

What happened?

From the 1 April 2014, the Financial Conduct Authority introduced tough new rules on payday lenders.

Cap on the cost of credit: The Government announced that there will be a cap on the amount of money a loan can cost you in 2015.

Advertising practices under the microscope: Complaints were made about several payday loan ads and a number have already been banned.

Read more about how our clients and the wider public have benefitted from our successful campaigns - campaign successes.

Campaigning for change - Past campaigns