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Welfare system ‘too important to be a political football’

28 January 2015

Citizens Advice has called for radical changes to welfare to restore faith in a system which has become ‘a political football’.

The national charity says the political focus on the welfare budget should shift to how to deliver a system which works for people and offers value for money.

In its new Responsive welfare report out today Citizens Advice argues that the welfare system has not kept pace with changes in our economy and society. It highlights that the labour market has fundamentally changed since the recession, including more people who work part time, are self-employed or on zero hours contracts.

Every day Citizens Advice sees the human impact of the current problems in the welfare system. A third of all problems people come to Citizens Advice Bureaux for help with relate to welfare, and in 2014 the national charity helped people with almost 1.8 million benefit issues.

Responsive welfare suggests three key areas for debate which could drive forward a more responsive welfare system:

  • Bringing the system into the digital age: Policy-makers should build open, responsive digital services which transform lives because they are rooted in how people really think, and which fit around their lives. One idea is for cross platform tools which match local skills with local employers or help self-employed people to avoid debt.
  • A responsive front line: Policy-makers should restore flexibility and initiative at the front line, especially for those who deal with complex cases. For example an employment support career path based on the social work or nursing model could be developed.
  • More local differentiation: Policy-makers should think about welfare in terms of the social and economic development of places, so that local leaders can fix the problems that matter. This could potentially include varying some benefit rates around England and merging budgets for other benefits with local public services spend.

The report identifies that the rapid development of digital technology has major implications for the way public services are run. But the welfare system is held back by systems set up to run on main frame computers 30 years ago.

Responsive welfare finds Britain is not making the most of its expertise in digital development when it comes to creating a modern welfare system which works. Citizens Advice evidence shows debt is a problem for self-employed people, and labour market figures show a growing number of people are now working for themselves. Self-employed people who want to claim Universal Credit have to report income both annually and monthly. The new report suggests developing an app which people can use to track incomings and outgoings, and calculate what figures they need to report for their Universal Credit claim.

Gillian Guy, Chief Executive of Citizens Advice, said:

"The welfare system is too important to be a political football.  The state safety net, which supports people when they fall on hard times and helps them back on their feet, should be cherished like the NHS.  We help with almost two million benefit issues each year and know that this financial help can be a lifeline for those who lose their job or suddenly become ill.

"Politicians of all parties should be looking at how to make the most of the welfare budget and use technology to solve some of the economic and social problems.

"There is real scope to use the expertise of Britain’s technology industry to transform the welfare system.  Simple apps to help people find works or manage their income and expenditure could shift an old system towards a modern one.  

"This government has introduced huge welfare reforms but a radical next step is needed to ensure that services respond to local need, utilise technology and empower those on the front line."

Notes to editors:

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.