Quids in! guide
UNIVERSAL
www.quidsinmagazine.com
CREDIT
INSIDE!
Advice on:
✔ Applying for
Universal Credit
✔ Getting your
budget sorted
✔ Finding the
right account
EXPERT ADVICE
Martin Lewis
Our money saving expert
!
Jack Monroe
Internet food blogger
G
N
I
K
N
BA
BUDGETING
BROADB
u
o
y
Are
AND
?
Y
D
A
E
R
YOUR MONEY
BE INFORMED
Jessie Pavelka
Motivation can be the key
Winsome Duncan
The budgeting queen bee
TAKE CONTROL
UNIVERSAL CREDIT
After working your way through this magazine we hope you
will be ready to make a claim for Universal Credit, good luck!
Keep track of your progress by ticking off the boxes...
Banking
Budget
I have a current account (or
similar) that can make and receive
automated payments (pages 9-13)
I have worked out my monthly
budget (pages 14-21)
Broadband
Email Address
I have access to broadband
internet so I can make my
claim (pages 22-27)
I have an email address
(pages 7-8)
Documents
I have all the documents and
informaton ready that I will
need (pages 7-8)
Okay, so now you’re ready to apply.
If you’ve already been told to
apply go to www.gov.uk/applyuniversal-credit and get started!
w
o
n
k
s
u
t
e
L
n
o
t
e
g
u
how yo
Quids in! | 2
GETTING DOWN TO
BEES-NESS ON BENEFITS
A
lmost everyone on low incomes is entitled to support from the government and soon most
benefits will be swallowed up by a new system called Universal Credit. It is huge and complex so
we’ve made the details simpler and offered some advice about ways to avoid the pitfalls.
Some people have already moved onto Universal Credit, (UC), and we’ve been talking to them about
the advice they would give to those who follow them. This will include people claiming housing
benefit, working or child tax credits, as well as those on income support, employment support
allowance and jobseekers allowance. Millions will be affected. It’s time to introduce the 3 Bs, or the
three bees, as you’ll see them throughout this guide:
G
BUDGit’Es paTidIN
, we need
Due to how
to plan ahead so payments
cover day-to-day
expenses as well
as essential bills
and rent. Many
claimants
have found
themselves in
debt from the
start and we could
all do without that
hassle
BANKING
Bankers have joined the
ranks of estate agents and
double glazing salesmen as
the people we love to hate.
UC claimants, however, will
need them – or something
like a credit union account
– like we need landlords
and dustmen, and knowing
one account from another
could mean the difference
between our bills getting
paid or us falling into arrears
BEING
ONLINE
Alright,
that’s a bit
of a cheat, but ‘bee’
online... Claims will be
made and managed
there but while we’re a
t it,
we can check we’re cla
iming
all we’re entitled to and
shop
around to bag some ba
rgains
and get ourselves, ahe
m,
quids in!
In this issue…
You might not have seen Quids in! before but so you know,
we’re a group of journalists who came together in 2008
to help householders on a budget stretch their money.
Quids in! is owned by a not for profit enterprise and in
2014, we reached 300,000 lower income households.
If you’re moving onto Universal Credit, good luck. We’d
love to know how you get on, so why not drop us a line at
[email protected] or write to The Editor,
Quids in!, 3 Monmouth Place, Bath, BA1 2AT. Your
feedback could appear in future editions of this guide –
and the best one will win £50.
Quids in! | 3
BANKING
p9
BUDGETING
p14
BROADBAND
p22
HELP
p28
Z
Z
U
B
E
H
T
Universal Credit special
WHAT IS
UNIVERSAL
CREDIT?
Government’s new benefit’s
system introduced in UK
Universal Credit is a new benefits system.
we currently get merged in to one single, monthly
payment. Unless we have a budget in place, chances
Credit, Child Tax Credit, Income Support,
are we might really be struggling to make ends meet
Employment and Support Allowance and
by the end of the month.
Jobseekers Allowance @quidsinmagazine
The good news is that UC will make us better off
in work. UC is designed so that whatever work we
do, we’ll lose less benefit than the money we earn,
Universal Credit (UC) is coming. It’s being rolled out
and be better off. This system is sometimes known
across the UK, and is the single biggest change to
as ‘tapering’. And before tapering starts we all have
the welfare system since it began.
a ‘work allowance’, a sum of money we can earn
There are two key ideas behind UC; it
before any benefits are taken away (see
replaces lots of other benefits with
page 35).
“UC is
a single monthly payment, and it’s
UC is being introduced one area at a
designed so that we’ll feel better off
time, and the rollout has already seen
designed
in work.
serious delays. UC is being introduced
so that we’ll
The biggest challenge facing
in different parts of the country at
be better off
‘migrants’ to UC (that’s people moving
different times. Your local Jobcentre
in work”
from other benefits to UC) is going
Plus will be the first place to know, so
to be having all the different payments
check there.
It replaces Housing Benefit, Working Tax
NUMBER
CRUNCHED
UNIVERSAL
CREDIT
2020
Target for Universal
Credit to be in
place for all benefit
claimants
5.4M
Number of benefit
claimants in the
UK estimated to be
affected by Universal
Credit
Quids in! | 4
141,000
Number of people
who were claiming
Universal Credit as of
8th October 2015
Z
Z
U
B
E
H
T
Universal Credit special
PASSPORTED
BENEFITS
Will you still get free school
dinners or NHS treatment?
Unbelievably, there seems to be no clear
definition of who will get what under UC
@quidsinmagazine
There are some benefits, known as ‘passported’
benefits, that you can only receive if you get
a qualifying benefit. These are things such as
free school meals, free NHS treatment and
prescriptions and the Warm Home Discount.
The situation with these passported benefits
and Universal Credit is still not entirely clear, but
if you were getting them before, you should still be
entitled to them – though you may have to insist
and even appeal any decision you don’t feel is right
if you are told otherwise. There are plenty of stories
of people losing these benefits and then having
them given back on appeal, so it is worth trying.
If you’re already receiving any of these benefits
and you are being moved to Universal Credit make
sure you mention them at your initial Jobcentre Plus
appointment (see over) and ask what will happen to
them.
UC KEY FACTS
The following benefits
will come under UC
✔ Housing Benefit
✔ Working Tax Credit
✔ Child Tax Credit
✔ Income Support
✔ Employment and Support Allowance
✔ Jobseekers Allowance
Key changes to the system
¬ Monthly payments in arrears
¬O
ne payment per couple,
if partners are claiming
¬A
bank account or similar is required
¬ Housing Benefit paid to claimant,
not landlord
¬ Online management of claim
Quids in! | 5
Z
Z
U
B
E
H
T
Universal Credit special
T
I
D
E
R
C
L
A
S
R
E
V
I
N
U
5
P
TO
R
O
F
TIPS
G
N
I
T
T
E
G
Y
D
A
RE
1
BUILD UP A WAR CHEST. Waiting times for
are still there when we need to pay them (see
Universal Credit average around 6-7 weeks
page 14)
from making a claim to getting a first payment,
so any money we can put aside now will come
in very handy while we wait. Though paying off
debt remains a priority (see page 13)
2
made online, so we need to either be
online, or make sure we have access to being
online, in advance (see page 22)
MAKE SURE WE HAVE A BANK OR CREDIT
UNION ACCOUNT THAT WORKS. Turn to
page 9 for more details
3
4
GET BROADBAND. UC claims must be
5
DON’T PANIC. UC seems pretty
overwhelming and involves lots of changes,
but there are people ready to help us. From
MAKE A BUDGET. If we don’t have a budget
Quids in! to your landlord, Citizens Advice and
in place we’re going to really struggle with
local agencies, there are plenty of people to
UC. The switch to monthly payments means that
talk to and get help from. And we must never be
we have to be more careful where we spend our
afraid to ask for help if we need it (see page 28)
money to make sure that essentials such as rent
Quids in! | 6
APPLYING FOR
UNIVERSAL CREDIT
Applying for Universal Credit is not always easy.
We need to be prepared, and ready to face a few setbacks
U
niversal Credit is
designed to make
benefit payments more
like the way wages are
paid. So the biggest challenge we’ll
face as we’re ‘migrated’ (moved to)
UC is that we’ll have to go several
weeks without any money, before
suddenly getting a large amount.
The only way to successfully go
through this is to be prepared.
The whole of this magazine
is about getting ready for UC, and
as you’ve probably already picked
up, it focuses on three key things
that we need to have in place; A
bank account, broadband internet
access and a budget. Without any
one of those three things we’re
going to really struggle to cope
with the change.
As with claiming any other
benefit, there’s a seven day waiting
period after we first make a claim
when we’ll get no benefits. After
that Jobcentre Plus will usually
make an appointment to see us a
week later, and assuming that goes
well we’ll get our first Universal
Credit payment four weeks after
that. That payment will only be for
one month’s money. Then every
calendar month after that we’ll
get a payment on the same day for
that calendar month.
IMPORTA
NT INFO:
At the mom
ent only
new claim
ants are
being sign
ed on to
Universal
Credit,
not people
who are
already cla
iming
benefits
THE INFORMATION WE
NEED TO MAKE A CLAIM
Before we sit down at a computer
to make our claim, we’ll need
to make sure we have the followin
g information to hand. Don’t
start until you do, as you can’t save
and come back later.
¬ National Insurance Number ¬
O
ur email address
¬O
ur phone number ¬ O
ur address ¬ O
ur landlord’s address
¬ Our bank details ¬ D
etails of any savings we have
¬ How much rent we pay (proof m
ay be required, such as a
tenancy agreement) ¬ Full deta
ils of our salary or any other
income (including other benefits
)
If we have children
¬ Their details, Child Benefit nu
mber
¬C
hildcare Provider’s address and
registration number
CONTINUED
Quids in! | 7
NEW CLAIMANT APPLICATION TIMELINE
1
Make UC
claim
2
New
claimants
wait 7 days
(with some
exemptions)
Week 1
3
Jobcentre
Plus
make an
appointment
for a week’s
time
4
UC Claim
started
Week 2
6
5
First UC
payment
(can take
7 days to
clear)
Go to an
appointment with
Jobcentre
Plus
6
After
interview,
four weeks till
first payment
Week 3
Week 4
Week 5
Week6
“It could take even
longer than 6 weeks
to get your money”
E
R
T
N
E
C
B
O
J
THE
T
N
E
M
T
N
I
O
P
AP
At your appointment with
Jobcentre Plus you will be
interviewed. Your interview
will be conducted by your
‘Work Coach’, the person
assigned by Jobcentre Plus to
look after you. At the interview
you will be required to sign a
claimant commitment. This official
document outlines what you are expected to do to
find a job if you’re unemployed. If you’re working
but on a low income, you may be encouraged to
find a better paid job or work more hours. If you
are unhappy with your Work Coach
you can ask to be assigned a new one.
If you don’t keep to your claimant
commitment you may be sanctioned.
GOT THE
T-SHIRT
We asked some people who had
already migrated to Universal
Credit what their advice would
be for us – they told us:
“Don’t be embarrassed to
inform people around you”
“If you live in social housing it
is essential you should inform
your landlord”
“Try to negotiate payment
breaks for lower payments catalogues, insurance etc”
“To tide you over in the
first few weeks, stockpile
dried food, tins, frozen
food, etc”
“It’s easy to get an email
address. Go to https://
accounts.google.com
to signup for a free Google
email account”
“I saved a few quid in the bank
in case the car broke down”
Quids in! | 8
BANKING
CHOOSING THE
RIGHT ACCOUNT
To receive Universal Credit, you’ll need to have a
bank account or something similar that can receive
automated payments, as this is how UC is paid to you
A bank account
is vital if we’re to
receive Universal
Credit, as it will
get paid straight
into our account
electronically. So it’s
important to make
sure that we get the
right kind…
10
Bank accounts
and budgeting
accounts
11
Credit Unions,
Post Office and
prepaid cards
13
Martin Lewis’s
advice on saving
and debt
:
E
R
A
S
N
O
I
T
P
O
THE DIFFERENT
¬ Current account
¬ Basic bank account
count)
ac
g
n
ti
ge
d
bu
a
or
t
n
u
co
o called a rent ac
ls
(a
t
n
u
o
cc
a
r’
ja
m
a
J
‘
¬
account
n
io
n
u
it
d
e
cr
f
o
s
e
p
ty
e
¬ Som
t, and
n
u
o
cc
a
rd
ca
ce
ffi
O
st
o
P
¬
repaid cards
¬P
er they
th
he
w
ck
e
ch
,
rd
lo
nd
la
al
ci
If you are renting from a so
use it, but
to
ve
ha
t
n’
o
d
u
yo
,
so
if
–
t
coun
recommend a particular ac
you do.
if
e
iv
nt
ce
in
an
u
yo
ay
p
ill
w
some landlords
CONTINUED
Quids in! | 9
S
T
N
U
O
C
C
A
T
N
E
R
R
U
C
BANKING
≥
Most people use a current account
with a bank or building society to
manage their day-to-day money. Because
you can go overdrawn with a current account
you have to pass a credit check to get one, so
if you’ve had problems with money this may
not be the best account for you.
✔Current accounts have all the features
you might need, such as automated
payments, cash cards, debit cards, Direct
Debits and cheques.
✔You can access most current accounts
through a high street branch, online,
using mobile banking or over the phone.
✔You can get regular statements to help
you keep track of your money.
✖Some accounts charge high fees and
interest if you go overdrawn, and most
have bank charges if there’s not enough
in your account to cover a Direct Debit or
standing order.
“Current accounts are
the most common
”
t
n
u
o
c
c
a
k
n
a
b
f
o
d
kin
JOINT OR SINGLE
ACCOUNT?
If you’re married or living together
, you
will get a single Universal Credit pa
yment
for your household. You will be aske
d to
nominate which bank account you
want to
have your money paid into and this
can be:
¬A
single account in either your na
me or
your partner’s name
¬A
joint account in both of your na
mes
BASIC BANK ACC
OUNTS
≥
Basic bank accounts have most of the same
features as a current account, such as a card
to
withdraw cash, and Direct Debits. The main
difference
is that they don’t provide an overdraft facility
. This
makes them an option if you’ve got a poor cre
dit history
because the bank doesn’t need to carry out a
credit
check on you
✔No overdraft also means you can’t acciden
tally
spend too much and get into debt.
✔You may be able to arrange for regular st
atements
(eg monthly) to help you keep track, but not all
accounts offer this.
✖You may still be charged if there’s not enou
gh in your
account to cover a standing order or Direct De
bit.
CONTINUED
Quids in! | 10
BANKING
S
BUDGETING ACCOUNT
ts)
(also called rent accounts and jam jar accoun
vide your
With a budgeting account, you di
rs’. Typically,
account into different ‘pots’ or ‘ja
ng and there
di
en
sp
d
an
lls
bi
r
fo
ts
po
t
en
er
ff
there are di
oney
m
h
uc
m
w
ho
de
ci
de
u
Yo
o.
to
ng
vi
may be a pot for sa
you need
h
uc
m
w
ho
t
ou
ng
ki
or
w
by
t
po
ch
goes into ea
for spending or
er
ov
ft
le
is
h
uc
m
w
ho
d
an
lls
bi
ur
for yo
saving.
of a basic bank
t
is
ns
co
ts
un
co
ac
g
in
et
dg
bu
e
m
So
es and
ag
w
ur
yo
So
.
rd
ca
d
ai
ep
pr
a
to
d
account linke
w much
ho
de
ci
de
u
Yo
t.
un
co
ac
e
th
to
in
benefits are paid
put the
en
th
ts
en
ym
pa
ll
bi
r
fo
e
id
as
t
se
you need to
for spending.
rd
ca
d
ai
ep
pr
e
th
to
on
ey
on
m
ng
ni
remai
and
ce
vi
ad
h
it
w
e
m
co
ts
un
co
ac
g
in
et
Most budg
lp you
he
ey
Th
e.
on
ph
e
th
er
ov
or
e
lin
on
support provided
ey you need
on
m
h
uc
m
w
ho
de
ci
de
d
an
t
un
co
set up the ac
ngs each month.
oi
tg
ou
r
he
ot
d
an
lls
bi
r
fo
e
id
as
t
to se
that you can
is
t
un
co
ac
g
in
et
dg
bu
a
of
e
ag
nt
✔The adva
day) comes, the
ll
bi
r
(o
y
da
nt
re
n
he
w
at
th
re
su
be
yment.
money will be there to cover the pa
you if
n
ar
w
to
ts
er
al
xt
te
e
ng
ra
ar
to
le
✔You may be ab
your balance is running low.
managing your
on
ce
vi
ad
to
ss
ce
ac
ve
ha
ht
ig
m
✔You
money
a fee
ge
ar
ch
ts
un
co
ac
e
es
th
at
th
is
ge
✖The disadvanta
might decide
u
yo
,
er
ev
w
ho
–
th
on
m
a
15
-£
£5
– usually
avoid
n
ca
u
yo
ns
ea
m
it
if
ng
yi
pa
th
or
w
that it’s a price
draft fees.
missed payment charges and over
t, and
un
co
ac
g
in
et
dg
bu
a
g
in
en
op
in
ed
If you’re interest
operty, it’s
pr
n
io
at
ci
so
as
g
in
us
ho
or
l
ci
un
co
you rent a
Some
l.
ci
un
co
or
rd
lo
nd
la
ur
yo
to
k
ea
a good idea to sp
ies are making
it
or
th
au
l
ca
lo
d
an
s
rd
lo
nd
la
g
in
social hous
credit
l
ca
lo
ur
yo
as
h
uc
(s
s
er
id
ov
pr
h
it
arrangements w
unt and
union) to offer these types of acco
pay the
ey
th
or
es
fe
er
w
lo
ve
ha
n
te
of
e
thes
fees for you.
cal
Alternatively, you could try your lo
e if they
credit union – see opposite – to se
internet
an
n
ru
r
O
t.
un
co
ac
g
in
et
dg
bu
a
r
offe
what’s
search for ‘jam jar accounts’ to see
ices.
rv
se
d
an
es
fe
re
pa
m
co
d
an
e
bl
la
avai
≥
CREDIT UNION
ACCOUNTS
≥
Credit unions are ‘notfor-profit’ community
organisations that are mainly set up
to offer savings accounts and loans
to their members. Some of them also
offer current accounts that allow you
to receive electronic payments and
set up Direct Debits and standing
orders. Some credit unions are also
developing budgeting accounts.
✔Credit unions can be an option if
you’ve had difficulty opening an
account with a bank or building
society
✔They don’t offer overdrafts, but you
might be able to apply for a loan.
They encourage you to only borrow
what you can afford to repay
✖Not all credit unions offer bank
account facilities, and there may
not be a credit union where you
live – so this is not an option for
everyone
✖Credit union budgeting accounts
usually have a monthly fee but this is
often fairly low
“Budgeting accounts
really help to manage
our money. Shame not
everyone can get one”
CONTINUED
Quids in! | 11
BANKING
PREPAID CARDS
ur
Although it is possible to have yo
aid
benefits transferred onto a prep
ed to be
card, there are a few things you ne
aware of before going ahead.
ty of
✖Prepaid cards come with a varie
h the
it
w
k
ec
ch
to
ed
ne
ill
w
u
Yo
s.
ge
ar
ch
provider before you buy.
doesn’t
rd
ca
e
on
on
ey
on
m
ur
yo
l
al
g
in
av
✖H
bills
allow you to keep your money for
ding.
en
sp
r
fo
ey
on
m
ur
yo
om
fr
te
ra
pa
se
to set up
✖Not all prepaid cards allow you
rent,
ur
yo
r
fo
ts
en
ym
pa
ll
bi
ed
at
m
to
au
ving to
gas or electricity. This can mean ha
time a bill
ch
ea
sh
ca
of
s
m
su
e
rg
la
w
ra
hd
it
w
needs to be paid.
ages:
nt
va
ad
e
m
so
ve
ha
do
ey
th
,
er
ev
How
is no
✔You can’t get into debt as there
.
overdraft facility on a prepaid card
ectronic bill
✔It’s possible to make one-off el
s, giving
rd
ca
d
ai
ep
pr
e
m
so
h
it
w
ts
en
ym
pa
t is made.
you control over when the paymen
operate
to
is
rd
ca
d
ai
ep
pr
a
g
in
us
of
ay
w
One
ave enough
it alongside a bank account. You le
bills in your
r
he
ot
d
an
nt
re
ur
yo
r
ve
co
to
ey
mon
ng money
account and load all of your spendi
control
u
yo
s
ve
gi
is
Th
.
rd
ca
d
ai
ep
pr
e
th
onto
avoid
u
yo
ns
ea
m
d
an
d
en
sp
u
yo
h
uc
m
over how
count
ac
ur
yo
on
s
ie
lt
na
pe
d
an
s
ge
ar
ch
bank
irect Debits.
for returned standing orders or D
POST OFFICE
CARD ACCOUNTS
≥
SETTING UP PAYMENTS FOR
≥
Post Office card accounts will re
ceive
Universal Credit but are very lim
ited
otherwise.
✔Once the account is open, your
benefit
payments are credited directly to
your
account
✔You can’t get into debt as there
is no
overdraft facility on the card acco
unt
✖You can only withdraw cash or
check your
balance at a Post Office branch –
not at any
other cashpoint
✖You can’t use the account to re
ceive wages
from work or other payments
✖You can’t use these accounts to
set up
automated bill payments such as
Direct
Debits and standing orders.
“Without automated
payments I might forget
when to pay my rent”
RENT AND OTHER BILLS
Ideally your account should allow
you to make automated payments
– such as Direct Debits or standing
orders – for bills such as rent, gas
and electricity.
Only these accounts allow you to m
ake outgoing automated payments
:
¬C
urrent account ¬ Basic bank ac
count ¬ B
udgeting account ¬ S
ome Credit Union accounts
The Post Office card account and
some prepaid cards do not allow yo
u to make outgoing automated
payments. Others do, so it’s worth
checking.
Quids in! | 12
BANKING
T
R
E
P
X
E
G
N
I
K
N
A
B
S
P
TI
MARTIN LEWIS
Money Saving Expert’s head h
oncho offers some nuggets
of advice on banking and savin
gs. For more of
his advice visit www.moneysa
vingexpert.com
APPLYING FOR A BANK ACCOUNT
All the top bank accounts require you to pass a
credit check
Most of these accounts offer overdraft facilities,
which means that the bank will credit-check you
when you apply for the account to see if you’re
someone it’d lend to, and if you did go into your
overdraft, that you’ve a track history of repaying
what you owe.
Banks will use this credit check, plus data on your
application form, to decide whether to accept or
reject you for the account you applied for.
Could you be rejected when applying for a bank
account?
It could happen. If you’re rejected, it may be for one
of many reasons, such as you’ve got a poor credit
record, you’ve had past dealings with that bank
where you’ve missed payments, or the bank doesn’t
think you’ll be a profitable customer.
But don’t assume because one bank doesn’t want
you, none of the others will. All the same, don’t just
apply everywhere as it can do more damage to your
credit record.
If you’re rejected, you need to do two things – first,
ask the bank why it rejected you. Its answer may
be vague, but it should tell you if you were rejected
because of your credit record.
The second thing you need to do is to check your
credit files with the three credit reference agencies
(Experian, Call Credit and Equifax) to spot any
problems or possible errors.
SHOULD I HAVE AN EMERGENCY FUND
Emotionally, many will find what I’m about to say
difficult to deal with. The idea of having some cash
in a savings pot feels safe, especially as traditional
budgeting logic berates us to always have an
‘emergency cash fund’.
I disagree. It’s a must-do aim for the debt-free, but
for anyone with expensive debts – particularly on
credit cards – it’s silly.
The right thing to do is still pay off your debts with
savings, including your emergency fund. Yet don’t
cut up your credit cards, it’s important to keep the
credit available in case of a substantial
emergency (and substantial means
just that, your roof falls in or you
can’t feed the kids; not a new
plasma TV).
So overall, whether an emergency
happens or not, the best result is to
pay off your debts with your savings.
The only time to beware of this is if
you’re not assured of being able to
reborrow the cash.
If you have a credit card
and pay off your debt you’ll
be fine, as you can always
borrow again on the card if
you need to, but if your debt
is a personal loan, there’s no
guarantee you will be able to
get another – in which case an
emergency fund is sensible.
Quids in! | 13
BUDGETING
For most of us,
moving to Universal
Credit will mean
switching from
weekly or fortnightly
payments to
monthly ones, and
that makes a good
budget vital…
14
Winsome Duncan
talks money
sense to us
17
The Quids in!
budgeting
pyramid
19
Fill this in and
create your
own budget
S
’
E
M
O
WINS
SAVIN G
S
E
C
A
GR
Winsome Duncan is an award-winning business
leader, author of ‘100 Ways to Save Money’ and runs
Mployme, a training project helping people find work.
What she doesn’t have to say on watching the pennies
is not worth hearing, so we asked her for her top tips
QI: Why is it important to budget?
WD: If we are serious about becoming
debt free, we need a process. To make
sure our accounts stay out of the red,
we need to know our numbers and know
where we are. Then we must stick to a
budget – there’s no point otherwise.
QI: Universal Credit means most
claimants will receive their
rent money, it won’t go to
their landlord any more.
What challenges does this
present and what is the
best way to overcome
them?
WD: Let’s get real for a
moment. Do not underestimate what a huge temptation
having large sums of money credited
to your account is going to be if we are
unemployed or a low income earner. I
know someone who ran up a £10,000
arrears on their rent because of this.
Quids in! | 14
CONTINUED
BUDGETING
The easiest and smartest option here is to set up
a direct debt or standing order that will take out
your rent money automatically. This way we can be
sure to be disciplined and not get into arrears and
face eviction. The current government wants the
majority of people in employment.
Winsome says:
If you are evicted or sanctioned by Jobcentre Plus,
you may be forced to find housing much cheaper
than you’re used to. This could mean moving
somewhere where you have no family or friends
living close by. If you live in London, being forced
out of the city is a real possibility.
QI: How important is it to resist temptation?
What’s at stake, if we don’t?
WD: Simply put, we must resist overspending
because we are setting ourselves up for heartache,
otherwise. When we live a lifestyle that requires
us to go into debt to maintain it, we are the ones
that will pay the price. Peace of mind is everything.
People who owe large amounts of money but have
little of their income left over after essentials
should contact their local CAB or debt charity
StepChange (www.stepchange.org or 0800 138
1111) and get a debt management plan put in place.
Continuing to splurge puts us at risk of high blood
pressure and other real problems because of stress
overload. Remember, your health is your wealth.
QI: Where should someone start, once they’ve
realised they need to organise a budget?
WD: First of all, we need to be realistic. Get up
close and personal with the finances. List all of the
priority bills which will need paying first, like rent,
gas, electric, water and TV licence. Then we need to
get an exact figure of all our debts, loans or credit
cards, etc. Once we have an overall total, we can
create a plan of payments and work out how long
it will take to pay off any debt. Always pay larger
amounts to the high interest debts first.
TOP THREE
REASONS TO BUDGET
1
We are reviewing the blueprint of
our
finances and creating a new maste
rplan for
success. Unless we fancy living in
debt, more
must come in than goes out. We ne
ed to keep
rewriting the budget until that’s w
hat we see.
2
Even seeing how we have more go
ing out
than coming in will be a relief. It’s
the not
knowing that keeps us awake at ni
ght. Once we
know what we’re dealing with, we
can reduce the
stress further by planning our way
out of a hole.
3
Budgeting is a worthwhile skill to
have
anyway – it’s basic bookkeeping an
d could
come in handy, especially in a job.
WINSOME’S TIP:
It may be helpful to purcha
se a small
notebook from the pound sh
op and
write down your daily spen
ding,
everything, even if it’s 40 p
ence for a
newspaper. Do this for a wh
ole month
and you’ll see where your m
oney is
going. Work out which expe
nses are
treats and which are essen
tials and if
you’re short each month, st
art training
yourself with better habits.
CONTINUED
Quids in! | 15
BUDGETING
t
e
g
r
o
f
t
’
n
o
“D
e
b
n
a
c
s
t
a
e
tr
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h
t
t
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b
e
e
r
f
o
s
l
a
l
l
i
t
s
n
ca
be rationed
to reward
ourselves for
being good.”
WINSOME’S TOP THREE
TIPS IF WE SPEND MORE
THAN WE EARN…
1
LEARN TO USE THE WORD ‘NO’.
2
LET’S GET DOWN TO BASICS, when I was on a low
3
EARNINGS: Try to create what I call a ‘passive income’.
It begins with
an ‘n’ and ends in an ‘o’. Set your boundaries when it comes to
spending your money socially. Do not let people pressure you into
extravagant nights out, instead spend time or have dinner with
family and friends who won’t charge you.
budget I was on the no frills, no budget, smart price aisles in
the cheapest supermarket. I was purchasing bread, cereal, beans,
sweetcorn and toilet rolls that were not branded.
If you are good at graphic design, drawing or making things,
then try to earn a little on the side from it. You can even create
an account on www.fiverr.com and get paid for your services.
Look for higher paying or second jobs. A lot of people
settle for the job they have but it’s good to have goals
for bigger and better things, especially if your current
work is not providing the lifestyle you want.
“Websites
such as
Groupon can
be a great
place to find
affordable
treats!”
Quids in! | 16
BUDGETING
t
e
g
d
u
b
a
g
n
i
k
a
M
There’s a pecking order when it comes to the cash we have to keep safe,
what we have to manage and what we have left to make life easier
W
ith Universal Credit our payments will only come
monthly, so we’ll need to get on top of a budget to
make sure there’s still some cash left come rent
day, or the end of the month.
There’s a secret to juggling a limited budget. It’s about
dividing those expenses into costs we cannot avoid, bills we
must pay but can control, essentials we could get cheaper,
and things we want to make life easier. We have to think
long-term as well as short-term. It only works if we promise
not to stick our heads in the sand and live for today.
And we have to make sure we pay the important bills first,
which is where the Quids in! Payment Pyramid comes in.
“Once you
understand your
priorities you
can budget”
CONTINUED
Quids in! | 17
The Quids in!
PAYMENT PYRAMID
Start at the foundations and work your way
up through the Quids in! Payment Pyramid.
Consider what Makes Life Easier the icing
on the cake
2
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Quids in! | 18
4
MAKES LIFE EA
SIER
It’s up to you ho
w you spend an
y money left
over. Many of us
fancy a SMOKE
, a PINT or a
night of TV to h
elp us cope with
strife. And
it’s not just the
unhealthy stuff
that goes
here. A gym me
mbership might
be here, as
might the car, o
r trips out with
the kids. If the
money’s not the
re, it’s not there
, and no-one’s
going to die and
nobody’s going
to come
after us if the c
utting back star
ts here.
NOW MAKE
YOUR BUDGET
THE GREAT
BUDGETING
BALANCING ACT
MONTHLY
BUDGET
PLANNER
It might not be fun
exactly, but a simple
monthly household
budget is the bedrock
of good finances.
Print out your
planner and complete
your own budget…
Monthly Total = £
1. INCOME
Per month
Per month
Job Earnings
£
Other Benefits
£
Partner’s Job Earnings
£
Rental income (lodger etc)
£
Universal Credit*
£
Pension
£
Child Benefit
£
Other
£
*or total of Housing Benefit, Working Tax Credit, Child Tax Credit, Income Support,
Employment Support Allowance and Job Seeker’s Allowance
2. CANNOT AVOID
Monthly Total = £
Per month
Per month
Rent/Mortgage
£
TV Licence
£
Council Tax
£
Water Rates
£
CONTINUED
Quids in! | 19
MONTHLY
BUDGET
PLANNER
BUDGETING
Monthly Total = £
3. CAN CONTROL
Per month
Per month
Home Contents Insurance
£
Fuel
£
Electricity
£
Bus/Taxi/Train Fare
£
Gas/Oil
£
Car repairs
£
Phone
£
Car Tax
£
Broadband
£
Other travel
£
Furnishings/Appliances
£
Bank Fees
£
Maintenance/Supplies
£
Postage
£
Other home stuff
£
Child Care
£
Car payments
£
Health Insurance
£
Car Insurance
£
Life Insurance
£
Doctor/Dentist
£
Other Loan(s)
£
Medicine/Drugs
£
Credit Cards
£
Vet/Pet Care
£
Arrears
£
Other health items
£
Other debts
£
Student Loan
£
Other
£
4. MAKES LIFE EASIER
Monthly Total = £
Per month
Per month
Videos/DVDs
£
Hobbies
£
Music
£
Film/Photos
£
Games
£
Sports
£
Takeaways
£
Outdoor trips
£
Movies/Theatre/Concerts
£
Toys/Gadgets
£
Cigarettes/Tobacco
£
Holiday/Travel
£
Books
£
Alcohol
£
Quids in! | 20
CONTINUED
MONTHLY
BUDGET
PLANNER
BUDGETING
5. CAN CUT BACK
Monthly Total = £
Per month
Per month
Groceries
£
Pension
£
Clothing
£
Investments
£
Cleaning
£
Other savings
£
Education/Lessons
£
Newspaper
£
Hairdresser
£
Magazines
£
Pet Food
£
Dues/Memberships
£
School Lunches
£
Charity Donations
£
Other
£
Religious Donations
£
Transfer to Savings
£
Other gifts, etc
£
MONTHLY BUDGET SUMMARY
Per month
Total
Income
Per month
Total
Expenses
£
£
Balance = £
DOES IT STACK UP?
You need to try to achieve a positive balance with more income
than expenses. If you have a negative balance, try to cut more
expenses. If you can’t, visit a free debt advice service.
Quids in! | 21
BEING ONLINE
Broadband, or
Being Online, is a
key part of getting
Universal Credit.
If you don’t have
access at home, you
may need to go to
your Jobcentre Plus,
council offices or
library to complete
your UC application
23
Quids in! guide
to buying
broadband
24
The best of the
internet – it’s
worth joining
26
Get online, save
money – we
show you how
BROADBAND
The essential Quids in! guide to getting online
I
t’s getting to the point where
broadband is seen as a must-have.
Leading online skills charity
Go On calculates that having
broadband has a value to a
new user of over £1,000 per year.
Having broadband increases our
earning power, reduces our chance
of dying and makes us feel part of a
modern society. Not only that, but with
the introduction of Universal Credit
everyone of working age will have to be
Quids in! s
ays…
If you onl
y watch te
levision
using cat
ch up ser
vices such
as BBC iP
layer you
don’t nee
to buy a T
d
V
l
i
c
e
n
ce. The
governm
ent is mo
ving to cl
this ‘loop
ose
hole’, but
it will take
them som
e time to
do it. In th
meantim
e
e if you’re
strugglin
to afford b
g
roadband
why not
ditch the
TV licenc
e
to pay for
it?
CONTINUED
Quids in! | 22
BEING ONLINE
online if we need to claim any benefits. So here’s
Quids in!’s quick guide to broadband, to help us get
online, or save us money if we already are.
Getting online isn’t difficult, but it can seem
expensive. Like other major utilities today such as
gas and electric, you’ll need to shop around to get
the best deal.
Packages
ith
There are good deals to be had w
lk and
Ta
lk
Ta
n,
gi
ir
V
as
ch
su
es
ni
pa
m
co
d
Sky with line rental, broadband an
ake
TV all in one monthly payment. M
hile
w
th
or
w
e
ar
ey
th
at
th
k
ec
ch
to
sure
ct
before signing up to a long contra
and remember you can haggle..
If you don’t you can easily find yourself paying
over the odds, with some standard broadband
deals coming to over £400/year by the time you’ve
counted line rental. We say that’s too much. With
a bit of effort and some time you can easily halve
that.
And once you’ve signed up to a deal you’ll need
to keep a careful eye on when it runs out, and
remember to switch before the price goes up.
Boring and unfair, but it’s the way the world works
at the moment. At least until the government
passes laws with teeth to stop companies
tempting us with great deals then sneakily putting
the price up when they run out. So put it in your
diary, and make a switch when you need to.
“You could always ask
your neighbour if
you can share their
broadband, if their
wifi signal reaches”
TOP 5 WAYS BROADBAND
SAVES YOU MONEY…
1
Shopping Around
It’s really easy to check online to see
which shop has the item we want at the best
price. And it works for holidays too! And
utilities!
2
Long Distance calls
Programs such as Skype make it free and
easy to stay in touch with our loved ones far
away.
3
You switch
It’s easy to set up a diary and switch gas,
electricity, broadband and mobile phone deals
when we’re online.
4
Work from home
5
You benefit
It’s so much easier to apply for benefits,
and check which ones we should be getting.
No commuting, no pricey lunches, even if
we can only do it from time to time it’ll save us
cash.
Quids in! | 23
BEST
T
E
N
E
OF TH
BEING ONLINE
r
u
o
r
fo
e
n
li
n
o
t
e
g
to
We may need
ere
th
t
u
b
,
im
la
c
it
d
e
r
C
l
a
Univers
get
to
s
n
o
s
a
e
r
d
o
o
g
r
e
are lots of oth
ne
li
n
o
y
d
a
e
lr
a
t
o
n
e
’r
u
involved if yo
#1
QUIDS IN!’S
OFFICIAL TOP 5
FUNNIEST
INTERNET
VIDEOS EVER
#3
FENTON THE DOG
Another simple premise – this
time Fenton the dog chases deer
in Richmond Park. But it’s his
owner’s forlorn and desperate
reaction that creates the laughs
here. John Cleese couldn’t have
played it better.
qimag.uk/youtubefenton
NINJA CAT
We could fill a whole magazine
with funny cat videos, but
with over 40 million views
this remains the best ever.
It’s beautifully simple: the cat
stalks the camera, but you
can watch it a hundred times
and never tire of it. qimag.uk/
youtubestalkingcat
#4
BABY MONKEY
Okay, so it turns out that four
of our five top videos feature
animals, but if you’ve never seen
a baby monkey riding backwards
on a pig there is no better reason
to get internet access.
qimag.uk/youtubebabymonkey
#2
SINGING
POLICEMAN
Dover Police Department
Master Cpl. Jeff Davis is on a
routine patrol, listening to Taylor
Swift’s Shake it Off. As the song
builds, he gets carried away,
and it’s all on dashcam. It gets
funnier and funnier. qimag.uk/
youtubesingingpoliceman
#5
CAT VS PRINTER
THE TRANSLATION
Warning Strong language. Genius
from comedian Chris Cohen as
he voices the frustration anyone
who’s ever had to connect a printer
to a PC has felt. Via the medium of
a household cat, of course.
qimag.uk/youtubecatvsprinter
CONTINUED
Quids in! | 24
Jack at a pinch
J
ack Monroe is a food
writer and single parent.
After leaving a job as a
firefighter and having a
baby Jack was living on
benefits and struggling to get by.
In February 2012 Jack started to
post an online diary about their
life and local politics, and the blog
grew from there. A keen cook,
Jack soon developed a following
by starting to post budget
recipe ideas and talking about
the challenges we all would face
bringing up a child on benefits.
Jack told Quids in! “I’ve cooked
for years, I left home in my late
teens and started to teach myself
to cook and I suppose it just grew
from there.”
In the blog Jack describes how
difficult it was caring for a child
on a budget, and how sometimes
it would be possible to feed him
by not eating. Here’s an entry from
RECIPE
BEING ONLINE
July 2012: “This morning, small
boy had one of the last Weetabix,
mashed with water, with a glass
of tap water to wash it down with.
‘Where’s Mummy’s breakfast?’ he
asks, big blue eyes and two year
old concern. I tell him I’m not
INTERNET
hungry, but the rumblings of
my stomach call me a liar.”
Quids in! asked what Jack’s
fears were back then: “At my
lowest point my main worry was
losing my home and losing my son.
I could see that by struggling for
money and struggling to keep a
roof over our heads that I wasn’t
fulfilling my role as a parent
adequately. I think I managed to
keep my head just above water –
keep myself fed, clothed, clean,
happy and we’ve done alright.”
Jack’s recipes are amazing –
and really cheap. Now Jack has
released two bestselling
cookery books.
STAR
MUMMA JACK’S BEST-EVER CHILLI
“This chilli is adapted from a
beef chilli recipe by Gordon
Ramsay. I simply left out the
beef and halved the wine to
make it cheaper – plus, of
course, Mr Ramsay doesn’t
use a tin of cheap baked
beans in his version! I’ve
tweaked and fiddled with it
so much over the years that
now it’s not Gordon’s chilli,
it’s Mumma Jack’s.” Serves 4
INGREDIENTS
• 1 x 400g tin of kidney beans
• 1 x 400g tin of baked
beans in tomato sauce or
plain haricot beans
• 1 onion
• 1 small chilli, chopped
• a shake of paprika
• a shake of ground cumin
• a splash of oil
• 75ml red table wine
• 1 x 400g carton or tin of
chopped tomatoes
• 1 vegetable stock cube
• 3 squares dark chocolate
METHOD
1 Tip both tins of beans
into a colander and rinse
thoroughly. If you are using
baked beans in tomato
sauce, make sure to rinse it
all off. Pop the beans into a
saucepan, cover with water
and bring to the boil. Boil
rapidly for 10 minutes, then
reduce to a gentle simmer.
2 Peel and dice the onion
and put into a large pan
along with the chopped
chilli, paprika and cumin.
Add the oil and cook on a
low heat until the onion
softens into a spicy
sweetness. Pour in the wine,
add the chopped tomatoes
and crumble in the stock
cube, then simmer all
together on a low heat.
3 When the beans have
softened, drain and tip
into the sauce. Add the
chocolate and stir until the
beans are mixed through
and the chocolate is melted.
CONTINUED
Quids in! | 25
R
O
F
G
N
I
TRAWL
BEING ONLINE
G
N
I
S
V
A
S
et
n
e
iv
s
s
a
m
a
e
k
li
is
b
e
the w
,
s
g
in
th
r
e
th
o
g
n
o
m
A
ls
a
e
d
t
s
e
b
e
th
r
fo
l
w
a
ers tr
p
p
o
h
s
lp
e
h
to
d
e
n
ig
s
de
As we’ve mentioned over the page, a quarter of our
readers are not online. And among those who are,
just 43% of you would shop online. Yet the same
survey also revealed that people using computers
were clearly better off. So how can we all share
the riches that the web can bring?
1
IN JUST TEN
MINUTES ON THE
NET WE SAVED
OURSELVES…
SAVED
£12.85
MINE IS BIGGER THAN YOURS
Compare online bargains with what’s in the
local shops. Looking for a TV or something small
like a CD? Type what you’re looking for into the
search bar on google.com or yahoo.com and see
who’s selling it cheapest.
2
DEAL ME IN
There are hundreds of special offers online.
Vouchercloud.com, for example, will tempt you
with online offers and deals you can claim locally.
It’s only a saving if you were going to splash out
anyway, though.
3
FREE FOR ALL
4
FREE YOURSELF
You can pick up a load of stuff for free or
cheap with websites like freegle.org, myskip.
com and gumtree.com. Anything from carpets to
cardigans are out there, with a little virtual digging.
We signed up to
Spotify for free and
saved ourselves £12.85
on the latest Now! CD
We landed a smart shoe
storage cabinet
worth £31.99 for
VED
A
S
free from Freegle
£31.99
And got ourselves a swanky
haircut and condition for just £15
instead of £55 on Vouchercloud
TOTA
L
SAVIN
GS
£79.84
!
Sometimes it costs a bomb just to rid yourself
of old kit but if it could be new to someone else,
CONTINUED
Quids in! | 26
SAVED
£40
BEING ONLINE
post it on freegle.org or Google search ‘charity
donation pick up’ or try qimag.uk/re-use1.
5
BILLS, BILLS, BILLS
6
GET WIRED
Many are sceptical about comparison sites.
More regulation is needed but in the meantime,
using a couple at a time will maximise your chance
of finding the cheapest gas, electric, insurance and
more. Try our new service at quidsinmagazine.com/
switch for gas and electricity.
Buying DVDs? Subscribing to Netflix or
Amazon (even if you buy a cable linking your
computer and TV) could save money, or check out
what’s on YouTube for free. Love CDs? Listen to
almost any music on Spotify. Quids in! has just
launched a YouTube Channel with a free music
playlist for readers – save yourself the cost of the
latest Now! CD: qimag.uk/qipop1.
7
LOOKS TOO GOOD?…
Most things that look too good to be true
usually are but if you want to know for sure, check
it out online. Search for reviews or check out the
small print.
One word of caution ...
Good websites are about helping their
visitors. They recognise they’ll make money in
the end if people feel good about their brand.
But everyone is trying to make money, so
watch out for the ads, requests for your email
(unless you can clearly turn down spam), and
‘in app purchases’ where parents have been
caught out letting their kids play games.
GREAT ONLINE
RESOURCES
Five amazing websites that will
change your life
www.bbc.co.uk
Not only great free news and sport, but also
an incredible archive of recipes and features
on almost everything you could ever want
to know more about. Plus BBC iPlayer, of
course.
en.wikipedia.org
The online encyclopedia that’s created by
its readers, wikipedia is an amazing source
of information on everything from your
favourite television shows to the solar
system.
www.quidsinmagazine.com
Lots of help, support and information for
anyone who’s living on a low income, with top
tips on how to make your money go further
and links to lots of other great resources on
the net.
moneysavingexpert.com Campaigning
money guru Martin Lewis’s website is
stuffed full of top financial advice, from
claiming compensation to opening a basic
bank account Martin has tips for everything
financial.
www.entitledto.co.uk
A free online calculator that helps you find
any benefits you are, well, entitled to. Just
tap in your details and let it do its wizarding
work for you.
Quids in! | 27
HELP
H ELP!
Where to go and what to do if your
Universal Credit journey turns a bit rough
T
he new benefits system has been called the biggest social
experiment since the welfare state was created. It is hugely
ambitious and many of the principles behind it are untested.
People moving over to Universal Credit now really are the guinea pigs.
It has been piloted in some areas and the fall out was not good.
Unlike with a proper science project though, seeing poor results has
not prevented it from being rolled out regardless.
Our transition to
Universal Credit
might not go as
smoothly as we’d
hoped, so it’s good to
know that there are
lots of places to go
for help and support
29
All the schemes
available from
Jobcentre Plus
31
The council and
other places to
look for help
33
Universal Credit
is designed to
help us into work
38
Last resorts, food
banks and more
CONTINUED
Quids in! | 28
S
U
L
P
E
R
T
N
E
C
B
O
J
/
P
DW
HELP
Part of what has not gone so well in the pilot areas is the help the
government has said would be available to new UC claimants. In
some instances, it will take support from a third party like Citizens
Advice or an employment support agency to get us the help needed.
Need help getting through the
first six weeks?
Need help with
making ends meet ?
Advance Payments could help if you can
prove you will be in hardship while waiting for
your first UC payment. You should ask for this
as early as possible, preferably at your first
UC interview once your online application
has gone through, otherwise by phone (see
numbers on p32).
You should prepare a budget to show what
your outgoings will be and how not having an
income will threaten your and your family’s
health, like not being able to heat your home
or eat. It is an advance so is a loan, and usually
repayable over three months. qimag.uk/
qiucadv2
A Budgeting Advance may be available. Your
claim has to have been accepted already.
You should be able to request a ‘short-term
advance’ while waiting for your first payment
to help avoid getting into debt or arrears with
bills, although it’s not usually for rent.
An advance is a loan, paid back through
deductions from your UC payments usually
over 12 months but, as the name suggests,
the short-term advance has to be repaid
more quickly, usually over six months. To
apply, contact your local Jobcentre Plus,
although Citizens Advice recommends
speaking to them first. See Shelter’s advice
page: qimag.uk/qiucadv
ADVANCE
PAYMENTS
BUDGETING
ADVANCE
Need help with bills, budgets or funerals?
THE SOCIAL FUND
The Social Fund incorporates a number of different types of support for
people on low incomes and includes Budgeting Loans but also help with
bills in cold weather and funeral expenses. It is accessed through Jobcentre
Plus and different rules apply, so you’ll need to ask if any of the Social Fund
might be able to help you. If you’re turned down, you might want to seek a
second opinion from an advice agency. qimag.uk/qisocfund
CONTINUED
Quids in! | 29
S
U
L
P
E
R
T
N
E
C
B
O
J
/
P
DW
HELP
Need help with emergencies?
SCOTTISH
WELFARE FUND
Local councils in Scotland operate the
Scottish Welfare Fund, which provides crisis
grants and community care grants, which do
not need to be paid back. Each authority has
its own form to apply for help. Crisis grants
are not usually for difficulties caused by
awaiting benefit payments unless you have
had to spend out on a family emergency, like
visiting a child in hospital. Community care
grants are more for people who are setting up
a home after a period of difficulty. qimag.uk/
qiscotwf
Need help with basic needs?
HARDSHIP
PAYMENT
UC claimants who receive a sanction may be
able to apply for a Hardship Payment, which
is a loan and has to be paid back once benefit
payments resume. To apply, claimants have
to call the UC helpline (page 32) and prove
they cannot meet their ‘basic needs’ such as
accommodation, heating, food and hygiene
and Jobcentre Plus will expect you to cut out
luxuries. It is also seen to be a last resort
for people who haven’t been able to access
any of the other help listed here. qimag.uk/
uchardship
Need help with paying your rent?
ALTERNATIVE
PAYMENTS
You may wish to ask for Alternative Payment
Arrangements to help you manage your budget.
These can include direct rent payments to
landlords, weekly or fortnightly payments
(rather than monthly), or payments to
individuals (rather than one payment for
the whole household). These are really only
considered for people who are disadvantaged
in some way but includes people in debt or rent
arrears, which might be many people moving
onto UC! There is a long list of people who
could apply, so it’s worth checking – see qimag.
uk/ucapaa. The best time to
apply is at your first UC interview,
otherwise call the number on
page 32.
“Citizen’s Advice may
be able to help you
apply for any of these”
CONTINUED
Quids in! | 30
Y
T
I
R
O
H
T
U
LOCAL A
≥
Whichever department at your local
council deals with Housing Benefit
or Council Tax should have some help on
offer for new UC claimants. This is often
the ‘Revenues and Benefits department’ but
different authorities have different names
for these teams. If Housing Benefit is one
element of your Universal Credit claim, ask if
there is any help
Your local council may consider you for
a Discretionary Housing Payment (DHP) if
it is rent you’re struggling to pay. Different
authorities have different rules, so ask
the housing department if you can apply.
Shelter advise that you should make clear the
hardship you’re facing, especially if you feel
you may be made homeless.
DHP can also cover tenancy deposits,
advance rent payment and the cost of
removals. You cannot claim DHP if you’re
behind because you have been
sanctioned by Jobcentre Plus.
Shelter’s advice page: qimag.uk/
qidhp2
HELP
WH ERE TO GO
¬ If you’re worried about UC, speak to your
landlord or Housing Benefit office at the
council
¬ The Money Advice Service has clear
information about the changes, especially
on YouTube. Search for ‘universal credit
youtube’
¬ Turn2us have a good guide, including how to
challenge a decision. qimag.uk/qi27uc2
¬ Citizens Advice has an online guide but
local offices are also likely to be the first
port of call for many struggling with UC.
qimag.uk/qi27uc3
¬ Keep visiting our website www.
quidsinmagazine.com for tips and links to
specialist advice
“DHP may be backdated and you don’t
need to repay it”
?
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Quids in! | 31
CONTINUED
HELP
S
U
L
P
E
R
T
N
E
JOBC
LANDLORD
For Universal Credit enquiries, Monday to
Friday, 8am to 6pm:
General: Textphone: Welsh Language:
0345 600 0723
0345 600 0743
0345 600 3018
REMEMBER:
You’ll need your National Insurance number
to hand. (If you don’t know your NI number,
it’s worth looking it up. See http://qimag.uk/
qinino)
From landlines, calls cost up to 9p per minute.
From mobiles, calls cost from 8p to 40p per
minute, depending on your network.
CASE STUDY: KERRY
jobseekers
ed
oy
pl
em
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Your landlord will be sympathetic if
you’re moving onto Universal Credit. If
you think you are going to struggle to manage
a budget, it’s worth seeing if they have any
schemes to help or can point you in the
right direction. If you feel yourself slipping
into debt, talk to them. Landlords will play
hardball with people who don’t keep on top of
their rent but if you have a good relationship
with them, they will try to keep the pressure
off while you work things through. Don’t bury
your head in the sand.
Quids in! says…
¬ You may need to keep trying the helpline
numbers as it has been reported that they are
difficult to get through to. Plan what you need
to say and have everything ready to argue your
case, as you won’t want to keep calling back.
If you’re not successful, try to get help from
an advice agency such as Citizen’s Advice, as
many decisions are overturned on appeal.
¬ It’s worth doing all you can to ensure you’re
not in debt by the time your first UC payment
comes through, which can be six weeks or
longer. Once you’re behind with the bills, it will
be difficult to keep the money you need for rent
and other essentials safe. You will get one large
monthly payment, possibly one for your whole
household, so staying in the black keeps the
pressure and temptation at bay. Demand the
help you’re entitled to.
Quids in! | 32
WORKING
HELP
TO FIND THE SILVER LINING
For all that’s challenging about Universal Credit, for unemployed people it
should mean they’re always better off in work. But it doesn’t stop there as
Quids in! editor and employment enterprise founder, Jeff Mitchell, explains
QI: So, first Quids in! and now a project to help
unemployed people… You’ve been busy!
JM: Actually, it was the other way round. I’ve been
working on Clean Slate Training & Employment
since 2005. Quids in! came about three years later
after I was at a meeting with credit unions and debt
advice agencies, lobbying them to promote work
options as a way for people to escape poverty.
That’s when I heard how high interest lenders were
targeting the poorest estates and when I came up
with the idea of a magazine to help people help
themselves.
QI: So, how does Clean Slate work?
JM: Crucially, we employ jobseekers themselves.
They know what other jobseekers want and don’t
talk down to people. This is a fast track to getting
to grips with what people want and what’s holding
them back.
We are more an employer and less a support
agency. Clean Slate has a couple of enterprises
offering paid work, although they’re small and can’t
employ everyone. Jobseekers have something to
sell and we are looking to buy, so it’s a straight
relationship.
the jobseekers we see barely know how to work a
computer mouse, so I don’t know who’s bright idea
it was to make UC ‘digital by default’. We’ve seen
people try to apply six times before completing
the claim because the UC system times out before
they can finish. At least one person decided to work
cash in hand and ditch benefits altogether. Another
waited over 10 weeks for payments to start and
nearly lost his home. Another had to live off mum
and dad for six weeks and couldn’t afford to travel
to find work. Another went self-employed and was
then told he had one year to make the business work
or benefits would be stopped – and then he started
receiving threatening letters from the tax people.
QI: Have you seen many people affected by
Universal Credit yet?
JM: Quite a few. It’s not been great, to be honest.
The system is flipping complicated and some of
QI: Wow. What can people do about it?
JM: On the frontline, I’m a pragmatist. I say: ‘Accept
the things you cannot change.’ Behind the scenes,
the Quids in! team has been busy sharing what
CONTINUED
Quids in! | 33
HELP
we’re learning with policy makers, hoping someone
will put the brakes on. But people moving onto UC
cannot afford to wait for change so we have to try
to make sure they have the support they need and
crack on. I honestly think the only way out, for those
who can, is to find work – well-paid enough work to
escape benefits altogether.
QI: So where do people who want to advance onto
or up the jobs ladder start?
JM: For unemployed people, I’d recommend just
getting started. There’s a barrier people don’t see,
like a mental block, and the only way through it is to
step forward. The difference we’ve seen in people
after just a few half days of work has to be seen to
be believed. It’s like a light has come on that they
never knew was switched off. They feel good. They
feel capable. They feel employable. It may be three
hours just stuffing envelopes but they pick up their
wages and say to us: ‘Can you help me find work as a
fork lift truck driver?’
QI: Doesn’t that mess up their benefits?
JM: No. That’s a myth. Before moving onto Universal
Credit, most people can work for up to 15.5 hours a
week before they have to sign off. However, under
the old regime, after the first five pounds, every
penny earned is deducted from benefits. What
screws up benefits is not declaring those earnings.
JCP almost always find out. Whatever the penalties,
no-one wants to be treated as a criminal.
Personally, I’d want to sign off as soon as I had
permanent work that paid at least as much as
Jobseekers Allowance. I would want Jobcentre Plus
off my back as soon as possible. The jobseekers
that Clean Slate employs recognise that it’s not the
pay but breaking out of unemployment
that matters.
The fantastic news about UC is that the 16 hour
threshold is gone and you keep the majority of your
earnings AND benefits when you start. It’s how the
government promises to ensure everyone is better
off in work. There is some small print to look at, but
UC should take away the sense of having to work to
sustain the same income as on benefits.
QI: And what about people on low wages?
JM: Universal Credit brings out of work people and
those on low wages under one roof. Everyone will be
expected to increase their earnings until they don’t
qualify for benefits any more. That includes people
who only claim Housing Benefit, for example. We
are just looking at ways to help working people on
low incomes.
“UC should take away the
sense of having to work
to sustain the same
income as on benefits”
CONTINUED
Quids in! | 34
HELP
How much better off would I be
Universal Credit is designed to make you
better off in work. To see how much
better off you would be you can look
at the work allowance table. This is
the amount of extra money on top
of Universal Credit you can earn each
month without any deductions to your
Universal Credit. Any money you earn on
top of that you will get to keep 35p in every
pound.
If your Universal Credit award does
contain a Housing Costs element, your
work allowance will be the lower work
allowance in the table below. If it doesn’t,
your work allowance will be the higher work
allowance.
£600
PER MONTH
BETTER OFF!
HIGHER WORK ALLOWANCE
– FOR THOSE WITH HOUSING COSTS
(taking the highest of whichever of
the following amounts is applicable)
Single
claimant
Joint
claimants
in work?
EXAMPLE A typical single parent with
two kids might get £1,500 per month
Universal Credit to cover everything
including rent. If that person got a job, the
first £263 earned per month would be kept
(getting rent, so lower work allowance).
And if that parent earned £1,200 per
month he or she would keep £590.95 of
it (that’s the £263 allowance plus 35p
of every £1 earned above it, in this case
£1200-£263=£937. £937x.35=£327.95)
LOWER WORK ALLOWANCE
– THOSE WITH NO HOUSING COSTS
(taking the highest of whichever of
the following amounts is applicable)
- not responsible for a
child or qualifying young
person
£111
- responsible for one
or more children or
qualifying young
persons
Single
claimant
- not responsible for a
child or qualifying young
person
£111
£734
- responsible for one
or more children or
qualifying young
persons
£263
- has limited capability
for work
£647
- has limited capability
for work
£192
- neither responsible
for a child or qualifying
young person
£111
- neither responsible
for a child or qualifying
young person
£111
- responsible for one
or more children or
qualifying young
persons
£536
- responsible for one
or more children or
qualifying young
persons
£222
- one or both have limited
capability for work
£647
- one or both have limited
capability for work
£192
Joint
claimants
Quids in! | 35
GET MOTIVATED
FOR CHANGE
HELP
Whatever the reason, sometimes we just need
to make some changes. But if it were easy, we’d
have made the break already. So why do some
people succeed while others stay stuck in a rut?
“A
t the end of the day it’s a choice and
it’s up to you to make the choice
that’s going to serve you best.1” Jessie
Pavelka is a familiar face to many Good
Morning Britain viewers, motivating the nation to
lose the pounds and get fit. He’s a Texan fittie with
a disarming charm and a mission to give people
the means to shed the pounds. He’s found quite a
following in the UK and although his arena is health
and fitness, his outlook applies to many of life’s
challenges where it can just seem too hard to make
the changes.
We could be forgiven for hating people like Jessie
Pavelka, shouting back at the TV screen: ‘It’s alright
for you’. But deep down we know he’s right. Change
is never easy. We have to be ready for some tough
love, even from ourselves.
As Jessie says: “It’s pretty easy to make the
wrong choices, to make the right choices you have
to wake up and commit. You have to wake up and
be excited, excited about the struggle, excited
about the things that are going to be put in front of
you and appreciate the hard times.”
1
SHUT OUT THE NOISE AND KEEP THINGS
SIMPLE. When thinking about money, it’s easy
to be overwhelmed. Break things down into small
steps. If it’s all too much, get some advice
1
https://pavelka.co.uk/
CONTINUED
Quids in! | 36
HELP
2
IMAGINE LIFE DIFFERENT. Picturing how
bad things will get if nothing changes can be
a driver. So can seeing ourselves once we have
moved on
3
IT MAY NOT ALL COME OUT IN THE WASH.
There’s a reason to change and hoping for
the best won’t do. They say one definition of
madness is doing the same thing
time and again and expecting the
outcome to be different
4
BUY NOW, BUT WHAT IF YOU CAN’T PAY
LATER? It’s one thing to give in to temptation
when trying to lose weight, but if it’s the rent
money that’s gone and the budget won’t stretch,
things can go wrong
5
ME AND MY VICES. Spot, and try to break,
bad habits that work against our long-term
goals. It could be sleeping in or bad
time-keeping among jobseekers or
takeaways and non-essential
clothes for people struggling
It is hard to make big changes.
to pay bills
Quids in! says…
There are many reasons why we go
with the flow or get stuck in a rut. First
we have to work out what holds us
back. Then we have to identify the big
change we need to make: Is it to start
earning more? Is it to cut our budget?
Or just to get online and
find out what all the fuss is about?
When preparing to make
changes, there are six
challenges to consider:
6
EVERYONE ELSE IS
DOING IT SO WHY
CAN’T WE? If we feel
we have to keep up with
the Joneses, we’d better
make sure they’re in the
same boat or have the
same goals as we do
“To make the
right choices you
have to wake up
and commit”
Jessie Pavelka from
Good Morning Britain
Quids in! | 37
LAST RESORTS
The Universal Credit claim process
can leave people high and dry without
income for weeks. Here are a few ideas for
where to go for help and advice if you’re
unlucky enough to be one of them
H
T
L
A
E
H
L
A
T
MEN
Applying for Universal Credit may be stressful,
especially if we get into debt as a result, or spend
a lot of time worrying about money. We mustn’t
be afraid to take the first step if we’re feeling low,
and ask for some help. We can go to our doctor, or
contact one of the agencies below.
HELP
FOOD BANKS
Food banks provide boxes of food to people
in need. They are often run by church or
community groups. There are over 300 food
banks across the UK.
You often need a voucher to use a food bank.
You then exchange this at the food bank for
three days' worth of food. You can get food bank
vouchers from local charities, doctors' surgeries,
health visitors, social workers, Citizens Advice
and other welfare advice centres.
• To find your nearest food bank ask a local
advice agency or your council or visit qimag.uk/
foodbankmap
ADVICE AGEN
CIES
USEFUL CONTACTS
SHELTER
• Mind Info Line: ✆ 0300 123
3393 (Mon-Fri 9am-6pm)
www.mind.org.uk
For advice on housing-related problems,
including the Housing Cost element of
Universal Credit.
• NHS Choices information
web page on help available
for mental health: qimag.uk/
nhsmentalhealthhelp
Tel: 0808 800 4444
(free from landlines and most mobile networks)
Web: shelter.org.uk/advice
CITIZENS ADVICE
• Samaritans:
✆ 116 123
[email protected]
For help with all the above, including appeals
against decisions on some of the support you
should be able to find, or advice on managing
your budget. Adviceline is Citizens Advice
national service in Wales and England (where
coverage currently varies) – contact your local
office in Scotland and Northern Ireland.
• Scottish Association for
Mental Health (SAMH):
✆ 0800 917 3466
(Mon-Fri 2-4pm)
www.samh.org.uk
ssador:
Anna Williamson is a Mind amba
start
“I know just how scary it can be to
in!
the conversation”, she told Quids
Tel (England): Tel (Wales): TextRelay: Web: Quids in! | 38
03444 111444
03444 772020
03444 111 445
www.citizensadvice.org.uk
Quids in! magazine
Address 3 Monmouth Place, Bath, BA1 2AT.
Tel 08456 8049 06
Editor Jeff Mitchell Email [email protected]
Publisher Steve Faragher Email [email protected]
Comms Officer Dan Fineman Email dan@ socialpublishingproject.com
Advertising Opportunities Lisa Woodman Email [email protected]
Copy Sales Rhiannon McNamara, Deborah Colvill
Email [email protected], [email protected]
Quids in! magazine is designed to help people understand
and manage their money better. It is published quarterly
by the Social Publishing Project, a social enterprise.
Quids in! makes every effort to ensure content is correct at the time of going to print. Readers
should take specialist advice where necessary. Quids in! has no political allegiances, and opinions
expressed are not necessarily those of the publisher or editor. Any relationship with advertisers
or sponsors is always on the understanding that we retain our editorial independence.
Quids in! | 39