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Hammond ignores pleas to reverse Universal Credit changes in Spring Statement
TODAY Philip Hammond ignored pleas to reverse changes to Universal Credits as he updated the House of Commons on the nation's finances.
Top Tory MPs had been urging the Chancellor to use his £10bn windfall to return cash raided from the new benefits system's budget.
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It would cost £2bn a year to restore the “work allowance” — increasing the amount kept before claimants lose benefits.
Tory MP Iain Duncan Smith said: “The whole point of Universal Credit is to entice people back into work.
“The more money we’re able to offer people to do that, the more successful we will be.”
Universal Credit is a new benefit that is being rolled out across the UK, aimed at simplifying the welfare system.
How your pay date can affect your Universal Credit payments
SINGLE mum-of-two and NHS worker Joanne Gilbert, 41, from Peterborough said her Christmas was ruined this year and she had to borrow from her mum-and-dad because she didn't receive her £400 universal credit payment.
She said: "I have had an awful experience with universal credits whereby they zero'd the payment due on 30 December just because my employer paid me early.
"They won't move the calculation date and the only way I can do that is to cancel the claim altogether which will take eight weeks.
"Even though I get paid 12 times a year, I have to pay my mortgage 12 times a year and my bills 12 times a year, I will end up being paid universal credit only 10 times in the year just because of how my pay date falls.
"When it comes to Universal Credit I tend to just switch off because they annoy me. It's been quite hard.
"I think they need to make sure that people are aware that the date they apply is a set date that's going to affect them for the remainder of the claim.
"So what would work better is that if they dealt with it like they used to with tax-credit on a calendar monthly basis. People wouldn't be affected then.
"Currently it's really hard and confusing to know whether you are going to be paid or not. And they are not flexible at all on it."
It replaces different benefits like job seeker's allowance or housing benefit with a single payment.
Today in the House of Commons, Shadow Chancellor John McDonnell said that "11 million families are worse off" and the "harshest cuts fall on disabled people."
The Government had said that three million working households would see cash gains from Universal Credit.
But critics say that the poorest fifth of working households have barely benefited since the Tories came to power eight years ago.
Research by the Joseph Rowntree Foundation revealed that the poorer families are only £4 better off under the new system.
This is thanks to the cost of living plus welfare cuts that have actually left many worse off in real terms.
In contrast the middle fifth of earners are £16 a week better off.
Highlights from the Spring Statement 2018
TODAY Chancellor Philip Hammond updated the House of Commons on the health of the nation's economy. Here are the key points:
The economy is growing faster than expected - The Office for Budget Responsibility has upgraded its growth figures to 1.7 per cent in 2017 and 1.5 per cent this year – both higher than previously forecast in last November’s Budget.
Wages could rise above inflation - Inflation is forecast to fall this year, so by Autumn real incomes will be on the rise again.
Cut down on plastic waste - A consultation will be held to look into tackling Britain's huge plastic waste pile. This could mean more tax slapped on crisp packets or deposit returns schemes.
The end of the £50 note, 1p and 2p coins - A consultation has been launched to look into the future of cash and it could mean the end for some coins and notes.
Thousands more affordable homes - An extra £1.67billion for 27,000 affordable homes over the next five years and double the financial support for small house builders to £220million.
£80million boost for small businesses - Help for small businesses including bringing forward a rates revaluation.
Tax break for van drivers - Vehicle excise duty (VED) rates would be reviewed for commercial motors. Drivers who buy the “cleanest” new models are likely to be offered cheaper road tax rates in the future.
Here's how the Spring Statement affects you.
In the Autumn Budget, Mr Hammond announced a £1.5 billion boost for Universal Credit.
Last month, the Department for Work and Pensions slashed the six week waiting time for Universal Credit to five weeks.
The move follows action from campaigners who slammed the lengthy delays, with a third of families having to wait more than six weeks for their first instalment..
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What is Universal Credit and how does it work?
Universal Credit is a new benefit aimed at helping the three million families struggling to pay bills.
It was introduced in October last year in an attempt to simplify the welfare system by replacing different benefits like job seeker's allowance or housing benefit with a single monthly payment.
Latest on Universal Credit
The taper rate - the amount of money that's deducted from your benefits when you earn over a certain amount - was lowered in November from 65 per cent to 63 per cent.
Now, workers will lose just 63p - 2p less - for every pound they earn above their work allowance.
The work allowance is set at £192 a month - or £397 a month if you don't receive help with housing costs - meaning it amounts to either £2,304 or £4,764 a year.
Are you eligible for Universal Credit?
YOU'RE likely to be moved onto Universal Credit from 2019 onwards if you get any of the following benefits:
- Housing Benefit
- income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- Child Tax Credit
- Working Tax Credit
- Income Support
How have MPs reacted to the Universal Credit?
Iain Duncan-Smith, who lead the fight against the cuts after resigning from the Cabinet over them in March, welcomed the move.
The former Tory leader told The Sun: “Putting money back into Universal Credit is a very welcome U-turn, and I’m very pleased Theresa and Philip have listened to us.
“It is a very good start to make work pay again. In future, I hope we have a chance to go further and put the money back into it.”
But critics said the Universal Credit reform failed to compensate for the losses low-paid workers will face from previously-announced cuts.
In September 2017 as the plans were being rolled out Tory rebels called for a halt.
Latest on the Spring Statement
Twelve MPs wrote to the Work and Pensions Secretary David Gauke demanding a pause in the roll out of the welfare reform reported the Daily Telegraph.
Rebels feared the change could be as damaging to the party as the Poll Tax reporting concerns that claimants were missing out on money when they switched from their existing benefit to the new one.
But defiant Theresa May insisted the roll out of the credit would continue as it was the "right thing to do."
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