How welfare reform is affecting everyone

The governments Welfare Reform Bill is going to have an enormous impact on all of us.  The biggest shake-up of welfare since Beveridge the planned benefit cuts are staggering.  Resulting in social security payment cuts of an estimated £18bn each year by 2014-15.  The people at greatest risk of the welfare reforms will be families with children and the disabled.  This is an ongoing process and the government will be carrying out reviews of existing disability benefit claimants over three to four years.  The shift away from direct benefit payments to landlords, for example, will be replaced with a one-off monthly payment known as the Universal Credit.  The people at greatest risk will be those who have an inability to manage their own finances.

Its seems Housing Associations are looking towards building partnerships with Credit Unions to ensure payments are paid directly into a separate account which will then be ring-fenced.  The money will be then paid directly to the landlord at the right  time.  Some landlords are introducing incentives to tenants to set up accounts with the Credit Unions.  It seems a sure-fire way to ensure they receive the necessary payments on time.  It will certainly give the Credit Unions more power in the longer term, which based on the performance of existing banks will only create greater diversity within the sector and further competition.  This surely must be a good thing.

The community and voluntary sector will be looking at ways in which vulnerable people can be supported and assisted, particularly with budgetary finance and other issues which will have a direct impact following welfare reforms.  Providing advice of how to better manage personal finance and how welfare reform is going to directly impact them.  There is a great deal of work being carried out in the sector at the moment. Tenants are being regularly informed of forthcoming changes and advising them of ways in which they can minimise their risks.

With unemployment rates increasing, the government needs to work harder to get the medium and long term unemployed back into work.  Creating real jobs for real people.  Training programmes and work incentives are simply not enough to facilitate this process.  International companies should be encouraged to invest in Britain, with its wealth of talent and work ethic, the people should and will demand it.