White Paper on Universal Credit - Work and Pensions Committee Contents


Written evidence submitted by Catch22

Catch22 is a local charity with a national reach. We work with young people who find themselves in difficult situations.

We believe every young person deserves the chance to get on in life - no matter what.

Whatever the reason for their situation, we help them out. We work with their families and their communities wherever and whenever young people need us most. As young people become more positive, productive and independent, the whole community benefits.

INTRODUCTION

1.  Catch22 welcomes the opportunity to respond to this important inquiry. Our response is based on our expertise in working with young people with complex needs across England and Wales. We welcome many of the proposals from the White Paper on Universal Credit such as greater flexibility in undertaking part time work and reducing complexity in the system. Our key concerns focus on the unintended consequences of the legislation impacting vulnerable young people. This includes increased digital exclusion, difficulties arising from conditionality and sanctions, and lack of support for young people to access work and volunteering.

DIGITAL DIVIDE AND ACCESS TO SERVICES

2.  Catch22 understands the benefits of moving services online, for those that are digital natives it can increase ease and availability of access. Ensuring that access to Universal Credit is simple, secure, intuitive and attractive will support increase of use and reduce costs. However, for those who do not have access to the internet it could create further complications to the current welfare system and result in greater social exclusion.

3.  One in five of the young people Catch22 works with has no access to the internet.[114] Furthermore, Catch22's Digital Divide report showed that a quarter of young people thought that moving government services online was a bad idea; that figure rose to a third among those who did not have a computer in the home.

4.  An online banking approach to Universal Credit may be useful in simplifying benefit assessments and payments, and will allow people to report change in circumstance more easily. However, without access to the internet service improvement will be inconsistent, and people already experiencing social exclusion will be further disadvantaged.

5.  The White Paper states that face-to-face services will remain only for those who really need it. We need assurance of how the assessment of "need" will be made to ensure that those with complex needs, who may respond better to personal meetings, are not overlooked. Services by telephone are a second option, however many young people we work with only have "pay as you go" mobiles which can run out of credit. Young people sensibly chose these phones to prevent overspending and debt that can result from a contract. Running out of credit may prevent young people contacting DWP at key times. We therefore recommend a system where people can text DWP and receive a call back.

6.  Catch22 would like to see telephone and face-to-face services remain in place for young people who want this support and seek further clarity on the Government's approach to providing this.

CASE STUDY: SAM, AGE 20

"My Life is made more difficult by not having access to the internet or a PC. It seems that everything now requires the internet; often other organisations tell me to look online to find information. This includes the Job Centre, Housing Benefit, choice based lettings, Sure Start, health information.

On occasions when I have not had enough phone credit to contact an agency by phone, they have suggested that I email them. If I can't afford credit for my phone, what makes them think I can afford the internet?

I do not see how I will be able to save up to buy a PC in the foreseeable future as it is difficult to manage a home on benefits. I do want to better myself, but it is all a struggle."

CONDITIONALITY AND SANCTIONS

7.  We support the principle of helping more young people into work and the simplification of the benefits system through a single working age benefit. However, we are concerned that some elements of conditionality associated with the Universal Credit will result in unintended consequences - pushing vulnerable people further away from work.

8.  The introduction of a "claimant commitment" that requires people to report to their Jobcentre Plus centre more frequently or that expects young people to undertake Mandatory Work Activity may interfere with a volunteering or educational commitment that is in fact preparing young people for work. Volunteering enables young people to gain the experience, skills and aptitude for work as well as making a wider contribution. Catch22 runs intensive volunteering programmes (minimum 22 hours per week for 13 weeks) with young people who are not in education, employment or training. Our experience shows that this can contribute to preparing young people for work and should be recognised by Jobcentre Plus.

9.  Some young people drop out of the volunteering programme with Catch22 because they get forced by Job Centre onto an "activity plan" that is usually just going into the centre and searching for jobs all day, when the volunteering course they were previously on would have given real experience. A young person we spoke to in a recent focus group asked "Why do my job centre advisors still not recognise my volunteering as beneficial and make me do work trials which are nothing to do with my career goals and interfere with my volunteering?"

10.  Conditionality needs to be tailored to individual's personal circumstances and needs - for example taking account of young people with chaotic lives who are unable to meet more frequently because of complex and multiple problems. The White Paper states that "conditionality will be responsive to individual's circumstances" but goes onto describe a very formal set of sanctions that appear to leave little room for a tailored approach. We are particularly concerned that some young people with complex and multiple needs do not meet any specific criteria or "threshold" for services but nonetheless have needs that make accessing work difficult. These young people must not be overlooked.

11.  Financial sanctions could be a further reason young people are forced into debt, and in extreme cases left homeless. Increased financial pressure from penalties could exasperate a complex situation. It is stated that there will be a safeguard for vulnerable people and ensure that mental health and substance misuse problems are taken into consideration. Catch22 is seeking further detail on what safeguards will be put in place and how these needs will be taken into consideration with regard to sanctions.

12.  Catch22 is seeking further detail on what safeguards will be put in place for vulnerable groups and how these needs will be taken into consideration with regard to sanctions.

HOUSING

13.  The possibility of Local Authorities directly making rent payments to landlords raises some concerns. Current reforms are intended to move people into work and independence. We believe that offering support to enhance independence, including budget management skills, will be more effective at enabling young people to manage their own money and learn how to be independent adults. Furthermore, it is likely to be increasingly frequent that young people have to make up rent shortfalls from other benefits as they are given less Housing Benefit than other groups. If this money is lifted directly from the persons account they could be left short of money that is allocated for other needs, leading to possible recurrent increasing debt. This financial burden would prevent a move away from state dependence.

CHILD CARE COSTS

14.  The White Paper cites that changes to child care provision are still under review and that help with childcare will be focused on those in work. Catch22 recognises that this is an important time to highlight the need for child care support for parents in education. We welcome that for working parents in need of child care support it will be maintained, however we need to see provision in place for parents who are in education. Young people in education often financially struggle without needing to meet child care costs. We need assurance that those parents who are trying to move into independence by gaining qualifications to get into work will be recognised and supported.

PASSPORTED BENEFITS

15.  Catch22 is apprehensive that if benefit dependant thresholds for passported benefits are removed a national disparity of entitlement could occur. Young people meeting their own prescription costs from benefits designed for other means could be one more thing in their budget that they don't have room for. With the loss of EMA, and added insecurity around access to free school meals, access to education is likely to be reduced for vulnerable young people.

SOCIAL FUND

16.  Crisis loans are important for many Catch22 young people, they enable those in hardship to cope with unexpected expenses; if responsibility for these loans is devolved we are concerned this will be another area where young people could face a postcode lottery of support.

AGE BRACKETS FOR UNIVERSAL CREDIT

17.  There are currently lower rates of support for young people. The Government are currently looking to simplify the rules under which lower rates of benefits apply to some but not all of those under the age of 25. Young people in need of financial support will not necessarily have a support network to fall back on. The financial circumstances and need of a young person are unlikely to be different to someone over 25. If many children's services cut off at 18, why do over 18's not receive the same benefits as someone over 25? Catch22's current "Ready or Not"[115] campaign seeks to the change the current approach to young adulthood and services for young people.

December 2010



114   Catch22, Young People and the Digital divide, 2010

http://www.catch-22.org.uk/News/Detail/Young-people-and-the-digital-divide

 Back

115   http://catch-22.org.uk/Ready-or-Not-campaign Back


 
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