Future of welfare benefits after Furlough Scheme ends?

[DreamChaser23]

Do you think welfare will rise in the amount that it is currently at? For example, an increase in the amount to universal credit and other benefits?

The truth is a lot of industries will suffer even after COVID ends. Retail, Hospitality, Manufacturing, Aviation etc...

The likelihood is that when the furlough scheme ends in October a few million at least will be made redundant and a lot more jobs are being lost each day. Meaning being on welfare for a long period of time will become the norm.

How do you see the future of benefits such as Universal Credit? Will the amount rise of stay the same?

for some reason my keyboard won't print COVID, just 'cover'.

We spent a few months on UC last year and tbh I was surprised at how generous it was.

Family of 5, 3dc, renting. Parent 1 earning £1650 a month net, parent 2 made redundant.

UC awarded was £750 a month. With one parents income of £1650, Child benefit of £200 and UC of £750 it brought our household income to £2600 a month net.

Our total outgoings (except food/household) are approx £1500 - with UC and CB it was more than enough to cover us and live reasonably well - and one parent was at home full time which made life massively easier in many ways. We actually look back at that time quite fondly as it was like someone giving one of us an (enforced) holiday.

I’d been expecting £100 a month tops so was very surprised.

@TERFWars

We spent a few months on UC last year and tbh I was surprised at how generous it was.

Family of 5, 3dc, renting. Parent 1 earning £1650 a month net, parent 2 made redundant.

UC awarded was £750 a month. With one parents income of £1650, Child benefit of £200 and UC of £750 it brought our household income to £2600 a month net.

Our total outgoings (except food/household) are approx £1500 - with UC and CB it was more than enough to cover us and live reasonably well - and one parent was at home full time which made life massively easier in many ways. We actually look back at that time quite fondly as it was like someone giving one of us an (enforced) holiday.

I’d been expecting £100 a month tops so was very surprised.

Don't you you know that a positive story about UC is frowned upon by most mumsnetters!

I find it a bit sickening tbh how people were happy to let 'others' live off benefits and they were 'scroungers' and 'raking it in'. No interest in how long it can take for benefits to start paying out etc. (I've been very unwell and over 2 years later my benefits aren't sorted). Now they've lost their job or are too ill to work all of a sudden benefits are not enough to live on!

Universal credit has been increased by £100 pm I believe. I don't know if this is a permanent increase but it has been very welcome by me as I have been able to afford to pay more of my bills - still getting into debt, house close to repossession and needing to use the foodbank but it is better.

Universal basic income would be good alternative.

@Frozenfrogs86

Universal basic income would be good alternative.

why?

TERFWars, if you'd just been made redundant, were you not awarded contribution-based JobSeekers Allowance rather than Universal Credit?

On contribution-based JSA your partner's income wouldn't be taken into account.

Contribution-based JSA only pays out for 6 months – but that would be fine, because you were only unemployed for a few months.

I think benefits should rise but doubt very much they will under a Tory govt

"and if you have over 6000 savings you don't get anything as far as I know."
I think the rules are that for every £250 (or part thereof) over £6k you are treated as having an additional £1 per week (£4.35 per month) in income. This has the effect of reducing your benefits. If you have £16k in capital then you cease to be eligible.

I think now would be a good idea to lower the pension age back to 60. This would free up jobs for youngsters who will be claiming benefits in any case.

I don't know if the government can afford it though but I worry what jobs there are going to be for the young going forward.

TERFWars, if you'd just been made redundant, were you not awarded contribution-based JobSeekers Allowance rather than Universal Credit?

It was dh made redundant - but no, it was only UC. We have a preschooler though so he was officially exempt from Jobseekers I believe...but it was only UC that was discussed.

@BBCONEANDTWO

I think now would be a good idea to lower the pension age back to 60. This would free up jobs for youngsters who will be claiming benefits in any case.

I don't know if the government can afford it though but I worry what jobs there are going to be for the young going forward.

Pension age is not retirement age unless you want to tear up the age discrimination act, and not all jobs performed by over 60s could be taken by young people, I am 65 and at director level no 'youngster' could do my job it would most likely be taken by a 40-50 year old with the possibility of their job being taken by a younger person and so and so forth down the line.

@KarenKuruma

So UC rates were fine when they were just for the underclass, but now youre (general you) affected, they become a problem?

I had to go into debt when I became too ill to work and (then) ESA didn't cover my bills. I lived.

Exactly.

What a lot of people don't realise is that even the current benefit rates aren't what they were pre lockdown.

Benefit rates were quickly increased by over £80 a month when COVID hit.

They didn't want the middle classes, claiming for the first time, to see really how low an amount people have been expected to live on.

Also over 50% of claims have debt (advance, utility companies etc) deductions of up to 30% of their benefits.

I think benefits should rise but doubt very much they will under a Tory govt
Rather depends how many people are claiming, if there's sufficient numbers to affect the Tories election chances, who knows what they might do, the Tories will want to to keep their new northern voters.

I wonder if there will be more legal challenges against various rules and rates as more people become aware of the UC system and/or have to fall back on it. Especially anything that looks discriminatory when compared to the previous system.

I looked at the rates during lockdown and, even though I’d known they were low, I was shocked at quite how low. I will be volunteering PT with CAB again, which I haven’t for more than a decade. I’m nervous TBH.

I wonder if there will be more legal challenges against various rules and rates as more people become aware of the UC system and/or have to fall back on it.
They'll be plenty of claimants who know how to complain, and won't be afraid of doing it, the Job Centers might find themselves in trouble if they start pissing off people, who are liable to complain to their MP, or get the lawyers involved.

@BlueBrian

I wonder if there will be more legal challenges against various rules and rates as more people become aware of the UC system and/or have to fall back on it. They'll be plenty of claimants who know how to complain, and won't be afraid of doing it, the Job Centers might find themselves in trouble if they start pissing off people, who are liable to complain to their MP, or get the lawyers involved.

Job centres themselves wont be in any trouble if they are following the rules laid down by the DWP, MPs cant do much for an individual unless it has been proven that an individual has been denied help when entitled, not just because they feel they want more money all they can do is highlight that some of their constituents are having problems surviving . As for lawyers who on benefits can afford those unless they are able to get legal aid.

There’s probably some scope for pro bono judicial reviews.

As for lawyers who on benefits can afford those unless they are able to get legal aid.
Don't be so naive, plenty of lawyers will do this sort of work for free.

I agree with an early poster that now is the time to lower state pension age to 60 again. But only if those people don't take up a PAYE job (alongside their pension). To free up a few million jobs for young people.

There should be a system like in other countries whereby you get paid a percentage of your last yearly salary for X amount of months. People’s outgoing are geared to their incomes so a flat rate doesn’t work.

The House of Lords is part of the benefits system. Generous handouts.

@DianaT1969

I agree with an early poster that now is the time to lower state pension age to 60 again. But only if those people don't take up a PAYE job (alongside their pension). To free up a few million jobs for young people.

Many people cant afford to live on just their pension, so what you are saying is that a 60 year old cant work and pay extra taxes (salary and state pension combined) but can get tax free benefits instead if they are struggling, as I said up post a young person wouldn't get my job, a 40-50 year old might with a younger person getting their job etc but that depends on so much. I am not retiring next year when I am 66 I will be deferring both my state and private pension until I decide to retire full time and its my decision to do so