Citizens Advice response to the Welfare Reform Bill
18 February 2011
Citizens Advice Chief Executive Gillian Guy said:
“This Bill heralds the biggest change to the welfare state since it began. We support the principles behind the radical new Universal Credit, which aims to simplify the welfare benefits system and make work pay, but we are concerned that the details are still to come and a great opportunity for reform could be permanently lost if the government does not invest enough money from the start in making it work.
“Some people will undoubtedly be better off under the new system. However, if the Government doesn’t carefully consider the cumulative impact of their proposed changes, a number of people - particularly sick and disabled people, and parents needing formal childcare - are likely to suffer significant disadvantages.
“If the Universal Credit is to make work pay for everyone, it must include comprehensive support for childcare costs. Under the new system, manylone parents on the lowest incomes will not be able to work their way out of poverty as is possible under the present benefits and tax credits system.
“The proposal to cut contribution-based Employment and Support Allowance (ESA) after 12 months will betray people who have worked hard and paid national insurance contributions, only to find that they do not get the support they need if they become sick or disabled before pension age.
“And if the Government is serious about protecting the most vulnerable, people who suddenly become ill or disabled should not have to wait six months – double the current waiting time – before gettingthe new Personal Independence Payment due to replace Disability Living Allowance. The result will be enormous hardship and serious debt for many people at a time when they most need support.
“We are, however, delighted the government has listened to ours and others’ concerns and withdrawn proposals to impose a 10% cut in housing benefit on people who have been on Jobseekers Allowance (JSA) over a year, regardless of how hard the individual has tried to get work. This would have had a devastating impact on some of the most vulnerable people, who are at a disadvantage in the jobs market.”
Notes to editors:
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