Hard times for equality EDF Research Network seminar series Note of seminar 2: Welfare reform – issues and impacts, Tuesday 12 February 2013, King’s College London 1. Welcome and introductions Fiona Glen, Director of Research and Information, Equality and Human Rights Commission. 2. Professor John Hills, Centre for Analysis of Social Exclusion, LSE ‘The distribution of economic outcomes in the UK and the context for welfare reform changes’ John gave an overview of the research currently being carried out by the Centre for Analysis of Social Exclusion, under the programme ‘Social Policy in a Cold Climate’. This project follows on from work completed as part of the National Equality Panel (NEP) which examined the relationships between economic outcomes (e.g. education, employment, hourly wages) and people’s characteristics and circumstances. All data is available here and continues to be a useful resource. The aim of this new research is to update the findings from the NEP report by giving an overall assessment of equality during the Labour administration and looking at changes over the first two years of the recession. John presented some early, approximate findings of the new research, covering areas such as employment and hourly wage differences between age groups, gender and ethnicity. The EDF Research Network will circulate details when the findings are released this summer. 3. Fran Bennett, Senior Research Fellow, University of Oxford and the Women’s Budget Group (speaking in a personal capacity) and Professor Susan Himmelweit, Open University and the Women’s Budget Group ‘Universal Credit: The Gender Impact’ Fran and Susan argued that contrary to the government’s stance, the Universal Credit (UC) policy is not gender neutral. The government says that ‘where men and women are in EDF Research Network c/o Equality and Diversity Forum, Tavis House, 1-6 Tavistock Square, London WC1H 9NA, Tel + 44 (0) 20 303 31454, email [email protected], website www.edfresearch.org.uk/ the same circumstances they are treated equally under Universal Credit’ (UC IA para.80). However, the Women’s Budget Group argues that: - Most second earners are in practice women and UC will not operate in any way to challenge this and will severely disincentivise some from entering employment and thus potentially make their access to joint UC income more difficult. - It is unfair to impose conditionality on many women (as potential second earners) but give them no earnings disregard. - Difficulties for women, as managers of household budget and shock absorbers of poverty, will be likely to be worsened due to monthly payments. - Within household inequalities may be reinforced or exacerbated by paying UC into a single account for couples. Click here to be redirected to the Women’s Budget Group website. Submissions and evidence on Universal Credit can be found in the briefings section of the site. 4. Stephen Glover, Universal Credit Policy Division, Department for Work and Pensions (DWP) Stephen explained that the coalition government has a bold vision and that his job is to examine new policies and present ministers with both sides of the argument, to make them aware of the implications and help them to (hopefully) make an informed decision. In developing the UC policy, the DWP has carried out a lot of engagement with stakeholders (academics, LA, charities, pressure groups) and has established a working group. Stephen told us he is very keen to learn from those who understand the reality on the ground. For example, Jigsaw did a lot of work with likely claimants of UC to try to understand the impacts as individuals and groups. Ministers have a firm view about how they want UC to be delivered. However, Stephen believes it is important to draw on as much relevant evidence as possible in designing this delivery. 5. Mike Daly, Analysis Directorate, DWP Mike assured delegates that UC will be a major part of their work in the next few years. He encouraged the audience to look at the DWP’s recently published Evaluation Framework for UC (available here). The DWP are serious in their request for comments and constructive feedback, and are committed to learning from the practical implications of UC. The framework is the first step in the development of the full evaluation programme of UC. It sets out the Department’s broad intentions for the evaluation, highlights the key aims and objectives and considers possible analytical approaches to areas including the development of a theory of change, impact measurement and the use of existing data sources and evidence bases to add up to a long-term, comprehensive narrative for UC. Page 2 of 4 6. Deiedre McGrath, Head of Civic Engagement, London Voluntary Service Council (LVSC) Unfortunately, Deiedre was unable to join us for this seminar. Instead Dr Moira Dustin (Coordinator of the EDF Research Network) explained that although this seminar has focussed mainly on facts and figures, the LVSC is working on more qualitative research on the impact of welfare reforms. Click here to be redirected to their website. Moira reiterated that the purpose of this event was to bring together researchers with policy people and NGOs, so she was very pleased that representatives of the DWP could be there. Moira drew the audience’s attention to the Research Network’s new ‘Hard Times for Equality’ Information Hub (currently in development) on the website (click here). It lists lots of relevant information, including publications, websites and blogs, on the equality impacts of austerity and recent government policy. Moira asked the audience to email the Research Network any items for publication in the Information Hub. 7. Plenary Discussion This discussion focussed primarily on the implementation of Universal Credit. As the majority of questions were directed to the DWP speakers, unless otherwise stated, it should be assumed that the responses are those of Mike and Stephen. What will be the impacts on disabled people? Particularly, how will they be supported in the claims process? The DWP have just published a claims framework. Accessibility for disabled people is priority for us, e.g. we will be keeping telephone channel and face to face support for those claimants unable to use online claiming. Concern that payment will not be split 50:50 between partners. It could leave some families vulnerable. Will this be the Council’s responsibility? Is there scope during policy development to change this? Both partners have joint responsibility. There will be the ability to look at payment exceptions. Payment of the element for housing costs will be to claimants, not landlords. Research is currently looking into the implications of this in the demonstration projects organised by the government. The Government wants to support committed couple relationships and thinks it is up to the household to manage their own money. Split payment exceptions could also lead to greater intervention by authorities – ‘a social response’ e.g. the police, social services, marriage counselling. The hope is that there will be more linkages between different services because couples are asking for an exception to be made. Page 3 of 4 An audience member pointed out that the DWP is considering concessions for Northern Ireland, re: timetable for payment, splitting of payments, etc. It has already made a concession in that the element for housing costs will be paid to the landlord rather than the claimant in social housing, unlike the rest of the UK. The change from weekly to monthly payments may be difficult for those not used to managing their money on a monthly basis. Consequently, will any adjustments be made for certain groups, e.g. disabled people? UC will be implemented gradually. As the policy is rolled out we will have data on how people are coping and will learn from our experience. We will also explore the possibility of providing training on budgeting. Recipients have access to an advance payment to tide them over when moving from their old benefit system to UC. The government feels monthly payment will encourage better personal financial management. According to the Women’s Budget Group, this is not necessarily the case. Support for unrecognised refugees? What data sharing, if any, have you explored with the UKBA? Would they be able to access interim support payments? For all UC claimants, if we think they will be entitled at the end of the month we can pay them up to 50% in advance. A new fund will be available for local authorities, instead of crisis loans, to support people, including potentially this group, in times of need. Each LA can use the money as they wish, and are therefore able to support particular groups most in need in their areas. An audience member pointed out that UC has the potential to improve the situation for new refugees. There is not enough information available about UC In the areas in which UC is being introduced, a lot of awareness-raising has taken place. It is vital that people understand how, when and where to make their claim. The Equality and Diversity Forum Research Network thanks King’s College London for providing the venue and catering for the seminar. We also thank the Joseph Rowntree Foundation for supporting the Network. Freya Lyte, EDF Research Network, March 2013 Page 4 of 4
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