Universal Credit in the UK: Fear of Poor Families

Initially, the idea was good. In 2013, the British government wanted to reduce the rate of non-acceptance, modernize the social assistance system and increase the incentive to work. It was therefore decided to combine the six services (unemployment benefit, tax credit for return to work, tax credit for family responsibilities, housing assistance, disability allowance and income support benefit for those exempt from research) into a single service: global credit.

This is an allowance for everyone over the age of 18 who is unemployed or low income and who has to apply online. At that time, this great reform of the social minima was welcomed by all parties.

Serial quacks

But very soon, nothing happens as planned. First, management faces unexpected IT problems, forcing the government to postpone the generalization of the new service annually. Then there are the beneficiaries, for whom this new single payment soon becomes a dream come true.

Questionable, first is the amount of assistance. Following the 2015 elections, the new Conservative government decided to make budget cuts that would have an impact on global debt. Nearly billion 3 billion is saved, Or 3.41 billion euros.

For many families, this equates to significant cash loss. Today, the standard allowance for a person over the age of 25 is 9 409 (4 464) per month, which can be included in certain housing or family payments.

The standard allowance for a person over the age of 25 is 9 409 (4 464) per month, which can be included in certain housing or family allowances.

Once it is set up, associations for the fight against poverty warn of inconvenience, and those without a computer or visually impaired must make their request online. But the harassment does not end there. When they complete the registration, families applying for a global loan will have to wait five weeks to receive the first payment.

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For some recipients it is used for a very long time, to get help every two weeks. For these people who are financially weak, the government empowers them to get “in advance”, which is a debt that has spread for months. By the end, families dive. In the first pilot areas, we notice an increase in the use of food banks.

Winners but more losers

This includes strengthening the sanctions that are the cornerstone of the single allocation plan.

“The Conservatives’ plan is not to make sure people claim ownership when they receive their paychecks, but to motivate them to look for a job as soon as possible.”, Emphasizes Donald Hirsch, a social science researcher at the University of La Loughborough.

Therefore, every time a person seeks a global loan, he or she must sign an “engagement agreement,” which forces him or her to prove that he or she is truly seeking employment. It is also stated that the beneficiaries should devote 35 hours per week to work. In practice, this means being compelled to visit the local employment center regularly to report on the progress of one’s research and acceptance of the jobs offered. If they do not comply with these obligations, their payment may be reduced or suspended, sometimes for several months.

However, to make employment more attractive, the government uses not only the stick but also a little carrot. Therefore, global credit is an aid to offset income for those already employed. This system is designed to allow you to earn a little more than just the benefits of hard work. For individuals with irregular incomes, this is an advantage because global debt is appropriate for their income almost in real time.

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Rob Gormack, a 50-year-old construction worker in Edinburgh, saw the transition to global debt as a relief:

“In our field, with short contracts, we have to resort to agencies to work with. Before, I used to get unemployment benefits and housing benefits, but I had to constantly ask for them and then have to stop them depending on the situation. It was tiring. Today it was so much easier for me.”

But not everyone is happy about it, far from it. In 2019, a ReportInstitute for Financial Studies (IFS), Thought tank Respected throughout the channel, in financial terms, the reform showed that it failed significantly more than the winners. According to researchers, nearly 1.6 million people have gained at least 1,000 pounds (1,142.20 euros) a year, while 1.9 million have seen them lose at least 1000 1,000 a year. Reform has a particularly negative effect on the quality of life of some poor families, i.e. single parents or those with disabilities.

Not suitable for dealing with crisis

Despite the British example, the French government, for its part, has repeatedly stated that future reform of global operating income (RUA) is not intended to save money. As it was supposed to be created in 2020, the single payment – RSA merger, operational bonus and housing allowance – was postponed due to health crisis.

Does the President want to bring it up to date as the situation improves? Of course not: “Emmanuel Macron already has to manage the pension file. I don’t see him getting into it.”, Says Iris and researcher Jack Friesinet Author of a study To the question of.

The crisis has pushed millions of Britons to apply for global credit. Although they were only 2.6 million in February 2020, they are now 6 million

The crisis has, in fact, pushed millions of Britons into global debt. Although they were only 2.6 million in February 2020, they are now almost 6 million! An explosion of high demand, especially among young people under the age of 25, but not only.

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Lena, a 35-year-old nurse, works for the UK National Health Service (NHS) on a zero-time contract (minimum non-working contract). In March 2020, an epidemic in the United Kingdom and a young woman suffering from health problems should avoid contact with covit patients. Her continued work becomes complicated, and then she is forced to apply for a global loan.

In the first month, he gets 550 pounds (623 euros) and in the second 650 pounds (736 euros). Not Enough to Live:

“It didn’t pay my rent and bills. I had to ask my mom to support me.”.

Eventually, Lena will eventually find work in a mental health department.

In Scotland, the crisis has finally promised Prime Minister Nicola Sturgeon to establish a global income of, 5,200 a year (100 100 a week), which is paid to all citizens. But for Donald Hirsch, it was a pipe dream: “To put this in perspective, the population must be willing to pay at least twice as much tax. I do not see how that will be accepted.”

In addition, the project comes against another major difficulty, namely that Scotland needs London’s cooperation to launch a national experiment. However, British Finance Minister Rishi Sunak has already expressed his opposition. But this small nation, as everyone knows, can claim its independence in the not-so-distant future. Then, perhaps, a global Scottish income would appear.

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