Our social security system, like our NHS, should be there for us all, especially those who need it most. It needs updating, so it works in today’s world. By the time it is fully rolled out, half of all children in the UK will live in a household claiming universal credit (UC). With some financial investment and operational changes, UC can be the safety net that families need.
Since our last report was published, the DWP has brought forward the managed migration of 800,000 employment and support allowance (ESA) claimants who do not get tax credits, which had been delayed until 2028.
The proportion of tax credit claimants not moving to universal credit (UC) when required to – and losing all of their benefits as a result – has jumped to 39%, up from 25% in July, DWP figures published today show. That’s more than 180,000 people whose ‘legacy benefit’ claim has been terminated without safely making the move to UC.
The Prime Minister must know he can’t scare people into good health, but his words this morning will be chilling for low-income families up and down the country who rely on our social security system for help.
A change is coming to child benefit. This Saturday, more families will become eligible as the earnings threshold at which you start losing child benefit increases. The government has finally recognised that ‘the way we treat child benefit in the tax system is confusing and unfair’ and proposed two changes to try to simplify it. It’s ironic that this confusion and unfairness was introduced by the government in the first place.
There was very little in this Budget for children and families living in poverty. The Chancellor said yesterday that this government does not pass on its bills to the next generation, but the 4.2 million children living in poverty today are the next generation. Child poverty is scarring, and the decisions taken yesterday will leave a legacy of cold homes, empty tummies and crumbling classrooms. We are in urgent need of a plan to tackle child poverty.
For almost fifteen years, the four million kids from poor families have been at the bottom of the pile and today is no different. This was a Budget all but blind to buckling family budgets and broken public services and will leave a legacy of crumbling classrooms, cold homes, and empty tummies.
Court of Appeal upholds decision that universal credit payments can be backdated on revision, but claimants risk still being thwarted by DWP IT design flaws and those subject to managed migration face ‘double whammy’ loss of transitional protections and backdated payments.
Managed migration to universal credit is about to expand to DWP legacy benefit claimants. The stakes are high, and we're calling for the DWP to slow down and put more safeguards in place.