Four Years into Welfare Reform How Succe

Reform Act 2012?

Queen Mary University of London School of Politics and International Relations 2016

1.0 Abstract

The Welfare Reform Act 2012 is the most radical restructure of the Welfare State by any recent government, prompting far reaching changes to those who receive support from, and those who administer the provisions. Beginning with a discussion of how the Act moved from narrative to policy, we see how political actors and the media ushered in the idea that the Welfare State must change. In order to measure the success of the Reform, I have chosen to evaluate three of its core changes: Universal Credit, the Removal of the Spare Room Subsidy, and the Benefit Cap. My reasoning for this in part due to my own employment experience in benefit services, wherein I work closely in the delivery of these particular changes. Using a multi-method approach, several successes can be observed, including higher employment levels – a governmental success. Conversely, several failures in the design and implementation of the Act must be addressed as the Reform continues. To conclude, this study will assess the best way to manage the continued implementation of the Act, with an emphasis on the promotion of integration and co-operation: with service providers and users working collaboratively.

2.0 Introduction

The Welfare Reform Act 2012 (see Parliament, 2012a) was enacted in March 2012, paving the way for an extensive programme of welfare reform under the then Coalition Government. It is anticipated that the Act is vital in achieving £18bn in savings in the welfare budget and it has suggested there may be £10bn more to come

(Williams, 2012: foreword). As a result, it is integral in the larger austerity programme and forms part of a wider set of reforms aiming to get the deficit under control, steady the national debt, and reform public services Gi ,

: . The programme was a response to the global financial recession of 2008 , he e the risk shift was further embedded with a change in emphasis from the global dimension of the crisis and a much stronger narrative and policy focus on local government and households, particularly those in receipt of

. Commentators on all sides of the political spectrum agree that the Act represents one of the biggest shakeups of the welfare state by any government (Gaffney, 2015; Cole, 2015; Taylor-Gooby, 2013).

elfa e e efits Ke ett,

The Welfare Reform Act (WRA) 2012 is expansive; making far reaching changes to the provisions of the Welfare State. The main elements are:

1. The introduction of Universal Credit (UC)

2. A cap on the amount of benefit for working age claimants – the Benefit Cap

3. Changes to rules regarding under-occupancy for those in the social rented sector – Removal of the Spare Room Subsidy (RSRS).

4. The introduction of the Personal Independence Payment, to replace Disability Living Allowance

5. Introduct io of a lai a t o it e t fo Jo seeke s Allowance

6. Harsher penalties for benefit fraud (DWP, 2015a)

This thesis will focus on the first three elements, arguably the most controversial parts of the Act. It will be analysing how successful was the design and implementation of the

Welfare Reform Act 2012? In doing so, a model of best practice can be developed. This model would prove useful for Local Authorities and other agencies trying to mitigate the negative effects of the Act for claimants, and give forewarning to the Department for Work and Pensions (DWP), Job Centre and Local Authority staff of what to avoid as they continue to roll out the Act across the country.

3.0 Literature Review

3.1 Welfare Dependency and the Need for Welfare Reform

The WRA 2012 was a response to the 2008 global financial recession. Although designed and implemented by the then Coalition government, the seeds were sown earlier. As Cole (2015: 50) notes, the need for reform can be traced to a series of reports and reviews undertaken by the preceding Labour Government between 2006 and 2008...the 2006 Green Paper, A New Deal for Welfare: empowering people to work [which]

ade the ase fo elfa e efo o the asis that the u e t s ste sustai ed a ultu e of welfare dependency. It is ofte asse ted , as Gaffney (2015: 44) states, that welfare spending was on an unsustainable upward trajectory prior to the 2008 crash, overall

expenditure …had sho little st u tu al ha ge o e e e t de ades . The Co se ati es

a ifesto highlights the belief in this culture of State dependency. The Reduce Welfare Dependency section proclaimed to do away with

La ou s failures, offe people ta geted, pe so alised help soo e a d Give unemployed people a hand up, not a hand out. Unemployed people must

be prepared to take up job offers...long-term benefit claimants who fail to find o k ill e e ui ed to o k fo the dole o o u it o k programmes …people who refuse to accept reasonable job offers could forfeit their benefits for up to three years. This will create a welfare system that is fair but firm (Conservatives, 2010: 17)

The Liberal Democrats (2010) focused on benefits needing to be fair and proclaimed the need to overhaul the failed system enshrined by Labour. Although their manifesto largely focused on changes to pensions, the statement of ta geti g payments towards those who need them most

: highlights this o ept of welfare dependency; although not as overtly as the Conservatives. The Labour Party (2010) did not view their welfare programmes as a failure and reminds the reader of their

e phasis i e, Li e al De o ats, e phasis i e, Li e al De o ats,

ou goal is to ake espo si ilit the o e sto e of ou elfa e state...a d e ill continue to crack do o those ho t to heat the e efit s ste (Labour Party, 2010:

5, 7, 20) all echo this concept of an unfair welfare system fostering dependency and fraud.

The Impact Assessments offer important insights into why the reforms are needed. For the UC Impact Assessment (DWP, 2012a: 1), the fi st se te e states that elfa e dependency has become a significant problem in Britain with a huge social and economic

ost , a d the arguing that the current system offers poor work incentives and that it actuall hinders rather than helps millions of individuals on low incomes…For people often reliant on benefits, the incentives to move into work or to increase earnings once in work can be very low . Te s su h as elia t , elfa e depe de

a d poo o k i e ti es enforce the ideology of an existing welfare system that is oversubscribed and not fit for

purpose - welfare as a lifestyle choice rather than a lifeline. The Impact Assessment for the Be efit Cap DWP,

: asse ts that the state a o lo ge affo d to pa people disproportionate amounts in benefit each week, sometimes in excess of what someone in

o k a take ho e i ages , the Cap meaning o kless households will no longer

e ei e o e i e efit tha the a e age age fo o ki g households . Welfare is presented as too desirable and that it makes less financial sense to work than it does to be

on benefits. Therefore, the cycle of welfare dependency continues. Finally, the Impact Assessment for the RSRS (DWP, 2012c: 1) argues that the reform will edu e Housing Benefit expenditure; encourage mobility within the social rented sector; strengthen work- incentives and make better use of available social housing . Once again, the reform focuses on benefits. Therefore, the cycle of welfare dependency continues. Finally, the Impact Assessment for the RSRS (DWP, 2012c: 1) argues that the reform will edu e Housing Benefit expenditure; encourage mobility within the social rented sector; strengthen work- incentives and make better use of available social housing . Once again, the reform focuses

3.2 Them and Us: The Skivers vs. Strivers Agenda

Upon consideration of the prevailing narrative detailed above, it is perhaps unsurprising that a perceived culture of welfare dependency has emerged ; those who choose a life on benefits and those who have to use them as a last resort.

I Hills : words:

It s ski e s agai st st i e s: disho est s ou ge s agai st ho est ta pa e s; families where three generations have never worked against hard-working

families ...It s the agai st us. We are always in work, pay our taxes and get nothing g from the state. They are a welfare-dependent underclass, pay nothing to the taxman and get everything from the state.

This was intensified during and after the financial recession. Nor is it unique to the UK, Hills (2015: 3) attributing Mitt ‘o e s otio of this elfa e di isio as o e of the ajo factors in his defeat at the 2012 presidential election. This division relies on the belief welfare is edist i utio , taki g ta pa e s o e a d gi i g it to the poor, a d that a large and growing part of the social security budget is spent on hand-outs to those who do

ot o k Hills, : . The Welfare State is seen as fostering dependency and worklessness (see Shildrick et al., 2012, chapter 3) when it should be doing the opposite.

e t epo ts, proposals, policy changes and procedural adjustments have not been introduced into a

This narrative forms pa t of a le, as o iousl the a ious Go e

a uu , ith TV sho s su h as Benefits Street only promoting this culture further (Cole, 2015: 51). As the narrative of welfare dependency continues, so does the policy of trying to fix it, which in turn continues the narrative. This cycle allowed political agents within the

Coalition to pursue even riskier reforms, as they a e likel to be successful if voters are also in a domain of losses or if the government is able to overcome the reform hostility of the voters who consider themselves to be in a g ai s do ai Ke s e ge ,

: . These welfare reforms are part of the est u tu i g of al ost all state se i es Ta lo - Gooby, 2013: 8) , e ause supporters of more ambitious reform believe that millions of pounds remain trapped within public sector organisations that could be released to

f o tli e se i es if state bureaucracy can be subverted (Burton, 2013: 2). Therefore, it is not just the provision of the Welfare State that need reforming, it is the State entirely.

The media played a key role in promoting the mentality that the welfare state must reform. The Guardian Patte so ,

has a gued that efo is e essa , as to ha ge behaviour – if you want, in fact, to give more people the chance of a future that's better than a life on benefits – what you have to do, even though it's difficult, and even though it

so eti es see s u fai is to fi ou chaotic welfare system. Although less focused on the notion of skivers vs. strivers, the piece promotes the ideas that the welfare system is overly complicated and a lifestyle choice for some. An Editorial (The Guardian, 2013) emphatically proclaims that u i e sal edit is a politi al hol g ail, cheaper for the state

to operate, more responsive for the claimant and it's been in the pending tray of many an

a itious politi ia e phasis added . Welfare is not just an expense through what it provides; the administration process itself is very costly as well. On the other side of the

political spectrum, Richard Littlejohn (2015), in The Daily Mail, declares that the system is just a series of box ticking, where people only have to do the bare minimum of job seeking

i o de to lai ge e ous elfa e a d that Iai Du a “ ith has ade g eat st ides i forcing skivers to find gainful employment . Another piece (Daily Mail, 2012) proclaims a i o de to lai ge e ous elfa e a d that Iai Du a “ ith has ade g eat st ides i forcing skivers to find gainful employment . Another piece (Daily Mail, 2012) proclaims a

concept is reinforced; a drain on the State, undeserving of its provisions, lazily pursuing their part of the deal while exploiting a system all too ready to help them. The point addressed here and above is that the desire for welfare reform cuts across the political spectrum, albeit how and why, is where the lines between Left and Right can be drawn.

The above examples within the popular UK media clearly demonstrate an agenda. Age da setti g , ites Bi kla d

: , is the p o ess hi h p o le s a d

alte ati e solutio s gai o lose pu li a d elite atte tio . He e, the p o le is elfa e dependency, unfairness and worklessness, and the solution is the substantial overhaul of the Welfare State. The former comes together and forms

a olle tio of p o le s, understanding of causes, symbols, solutions and other elements of public problems that

e tal offi ials (Birkland 2007: 63). In the case of the Welfare Reform Act 2012, those officials would be Ian Duncan Smith and Lord Freud (Parliament, 2012b). Returning to the media s role, those politi al elites a d politi ia s ea t to edia ues to o

o e to the atte tio fo e e s of the pu li a d thei go e

u i ate ith ea h othe . I advanced industrial democracies, media are part of politics, and they are the marketplace/arena in which political ideas and proposals are launched, tested, scrutinized

a d o tested Walgrave and Van Aelst, 2006: 100). What the Guardian and Daily Mail examples illustrated was the mentality that something must be done about the Welfare State, how as a diffe e t uestio , ut so ethi g eeded to ha ge. Whe politi al actors believe that TV a d e spape s dete i e the pu li s issue p io ities, a d that a d o tested Walgrave and Van Aelst, 2006: 100). What the Guardian and Daily Mail examples illustrated was the mentality that something must be done about the Welfare State, how as a diffe e t uestio , ut so ethi g eeded to ha ge. Whe politi al actors believe that TV a d e spape s dete i e the pu li s issue p io ities, a d that

3.3 UC, the RSRS and the Benefit Cap

This thesis focuses on three elements of the WRA 2012: Universal Credit (UC), Removal of the Spare Room Subsidy (RSRS) and the Benefit Cap. Arguably the three most controversial aspects of WRA 2012, each radically alters not just what the Welfare State can provide, but also how the State itself operates and provides its services.

UC aims to unify and replace six other means tested benefits including Tax Credits, Housing Benefit (HB), Income- ased Jo seeke s Allo a e a d I o e Related Employment and Support Allowance (Money Advice Service, 2015). By merging these into

a si gle o thl pa e t, it ill st e gthe o k i e ti es, edu e the u e of benefits and the number of agencies that people have to interact with and smooth the transition into work. This will make it easier for claimants to understand their entitlements

a d easie to ad i iste the s ste , thus lea i g less s ope fo f aud a d e o DWP, 2012a: 1). Perhaps the most substantive element of the Act, UC is going to affect both service users and those who administer benefits.

The Benefit Cap wants to estrict the total amount of welfare a household can receive, broadly to the level of the average take- ho e pa of o ki g households DWP, 2012b: 1). Essentially, the Cap will ensure that those on welfare receive no more than the average of those whom are in employment. In doing so, the Government hopes it will incentivise employment and make significant financial savings, both central themes of the reform. The Cap only applies to those between ages 16 to 64, i.e. below pension age, and has two different rates: £500 a week for couples with or without children, £500 a week for The Benefit Cap wants to estrict the total amount of welfare a household can receive, broadly to the level of the average take- ho e pa of o ki g households DWP, 2012b: 1). Essentially, the Cap will ensure that those on welfare receive no more than the average of those whom are in employment. In doing so, the Government hopes it will incentivise employment and make significant financial savings, both central themes of the reform. The Cap only applies to those between ages 16 to 64, i.e. below pension age, and has two different rates: £500 a week for couples with or without children, £500 a week for

Finally, the RSRS - AKA the Bed oo Ta , a term coined by Lord Best (Brown, 2013) - is to bring the rules in line with those governing the p i ate e ted se to . This is i order to contain growing Housing Benefit expenditure; encourage mobility within the social rented sector; strengthen work-incentives and make better use of available social housi g DWP,

: . Agai , efo i g welfare provisions to promote work incentives and make the system more equitable for those in public and private rented

accommodations. In other words, the intention is making things fair. There are two tapers, one of a 14% reduction in the eligible rent (i.e. the maximum benefit that can be paid) if under-occupying by one person and a 25% reduction if under occupying by two or more people (DWP, 2012c: 1).

I have chosen to focus on these aspects of the WRA 2012 not least because I work closely on administering them, in my role as Assessment Officer at Lambeth Council. Within this welfare delivery role, I assess entitlement to HB and Council Tax Support, the former being central to many of the changes that the WRA 2012 has introduced. Some scholars have described employees such as myself as street-level bureaucrats, agents of

elfa e depa t e ts, lo e ou ts, legal se i es offi es, a d othe age ies hose o ks interact with and have wide discretion over the dispensation of benefits or the allocation of pu li sa tio s Lipsk ,

. I and my department are one of the most common means by which citizens interact with the State. Some have argued that decisions we make, our routines, and the strategies we invent to cope with uncertainties and work . I and my department are one of the most common means by which citizens interact with the State. Some have argued that decisions we make, our routines, and the strategies we invent to cope with uncertainties and work

e a out (ibid). In regards to that line of thinking, in writing this thesis I occupy a valuable niche. The evaluation of the decisions others and myself make in the implementation of the WRA 2012 will lead to

recommendations on how best to implement the policy in future. I am essentially evaluating my own decisions as well as those made by my colleagues, as part of the grander pursuit of generating good Evidence Based Policy (see Sutcliffe and Court, 2005).

At its core, this thesis will examine the successes and failures of the design and implementation of the WRA 2012. It will utilise a range of sources and data to analyse this, both qualitative and quantitative to convincingly evaluate the Act. This study offers a synthesis of existing research material, seeking out themes across case studies. Many of the previous studies had a tendency to be isolated, particularly in geographical terms, but have concurrent themes that should be discussed. As mentioned earlier, my employment at Lambeth Council also enables personal insights – technical and practical – about how the WRA 2012 is performing and my access to academic literature - which many of the case studies analysed do not use – offers opportunities to combine knowledge that has

otherwise remained separated.

4.0 Methodology

This thesis utilised multi-method analysis, using both qualitative and quantitative data where appropriate. It engaged i the p o ess of t ia gulatio ; the use of o e tha one method or source of data in the study of social phenomenon so that findings may be cross- he ked B a,

. The all fo studies to o i e ualitati e a d quantitative data has increased recently, a esult of the p e ious pola isatio of app oa hes a d the asso iated sho t o i gs , he e use s of i fo atio e e ofte

dissatisfied ith the ualit of data a d the esulti g a al ti al o lusio s Ma sla d et al., 1999: 1). Multi-method approaches yield many benefits; a particularly intriguing one is

highlighted B

, he e ulti-strategy research provides such a wealth of data that researchers discover uses of the ensuing findings that they had not

a ti ipated . The data is so rich that new insights can be developed, ones that would not have been available if only quantitative or qualitative methods were used. Jick (1979: 608)

suggests that t ia gulatio allo s esea he s to e o e o fide t of thei esults , whic h he o side s its g eatest st e gth, hile also sti ulati g the eatio of i e ti e

methods, new ways of capturing a problem to balance with conventional data-collection ethods . T ia gulatio is ot pe fe t; diffi ulties ith epli atio a d the st uggle to give

both qualitative and quantitative methods significant attention are often further confounded by time constraints (Jick, 1979: 609-610).

Much of the qualitative data in this study will be from case studies conducted by, or in partnership with, Local Authorities. These will be supported by other case studies conducted by think tanks and charities, as well as those in academic literature. The Local Authorities span the breadth of the UK and include Northern Ireland (Gibb et al., 2013), Scotland (Stephens et al., 2015; Graham et al. 2015), Birmingham (Padley and Valadez,

2015) and Haringey (Davies et al. 2013). Here, we will be engaging with the comparative ethod outli ed Lijpha t

. I easi g the u e of ases as u h as possible...improves the chances of instituting at least some control, Lijpha t,

: , while strengthening the ability to analyse how the WRA has been implemented and its impact across a wide variety of contexts and time periods (Hopkin, 2010). There are limits, however. Burnham et al. (2008) goes into these in great detail, however the most

important consideration here is the issue of value free interpretation. The values of both the researcher and the political system being studied may cause the researcher to misinterpret what is being considered. As previously stated, I am a street-level bureaucrat working in benefits administration. I hold values that are tied to my role, my political affiliation, and even where I live. This is inescapable, as it is for every other political scientist, and they will have some degree of influence on the conclusions drawn. The important task is to limit this influence, so as to maintain as much objectivity as possible.

The quantitative analysis will primarily consist of statistical data from the DWP s Stat-Xplore (DWP, 2016) and from Lambeth Council. Using quantitative data, we can precisely measure and explain policy outcomes. It is particularly useful for analysing financial impact; as monetary savings is one of the major aims of the WRA 2012. The strengths of quantitative data and research are numerous, perhaps the most discussed is

that those ethods p o ide us ith a o je ti e f a e o k fo testi g a d alidati g theo ies a d h potheses a out the o ld a ou d us O'D e and Bernauer, 2014: 63). This is he e this stud s o je ti e ede tials a e i p o ed, aki g it o e diffi ult fo

ias to i te fe e ith the a al sis. Qua titati e data p o ides a esea he s ith a ias to i te fe e ith the a al sis. Qua titati e data p o ides a esea he s ith a

O D e a d Be aue : o side to e the ost se ious eak esses fo politi al s ie tists is the assu ptio that ua titati e esea h is o je ti e a d alue f ee . Quantitative data might more objective than qualitative, but it can still reflect biases and values of the researcher and those studied. This is no reason to abandon them completely, but is an important consideration when using them. The strengths and limits discussed above are not exhaustive; they merely reflect some of the more common arguments given by scholars - to list and discuss all of the merits and pitfalls require a thesis in itself.

5.0 Ethics

In my current employment at the London Borough of Lambeth Council (2016), I am at the front-line of welfare delivery, where I assess the entitlement of HB and Council Tax Support for Lambeth claimants. This gives me personal insight into how the Benefit Cap and RSRS changes affect service users, enabling me to reflect on my experiences with the areas of the WRA 2012 that I am more familiar with. However, some of these reflections should be considered anecdotal, to support and explain the research provided by others. My Local Authority has permitted me to do this and have also agreed to my request to do basic quantitative analysis of the some of the benefits data we have about those claimants whose benefit has been affected by the WRA 2012.

Ethical considerations must be discussed. Fortunately, there are existing guidelines provided by the Economic and Social Research Council (ESRC, 2010) and the American Political Science Association (APSA, 2012). The guidelines provided will shape how I conduct my study and are key in making it, ethically speaking, secure. There are considerations discussed by the American Political Science Association (APSA, 2012: 12, 27) that are particularly relevant to this study:

12) [The researcher] is a citizen, and like other citizens, should be free to engage in political activities insofar as this can be done consistently with obligations as a teacher and scholar

34) Possible risk to human subjects is something that political scientists should take into account.

Point 34 will be easy to manage, as no primary research with service users will be taking place. Data will either be analysed from case studies already provided or extrapolated and anonymised from statistical data. All data is stored securely on encrypted flash drives and servers. The likelihood of any harm coming to service users is very minimal, and it is highly Point 34 will be easy to manage, as no primary research with service users will be taking place. Data will either be analysed from case studies already provided or extrapolated and anonymised from statistical data. All data is stored securely on encrypted flash drives and servers. The likelihood of any harm coming to service users is very minimal, and it is highly

6.0 Findings and Discussion

6.1 Universal Credit

Figure 1 shows the claims made for UC. After an initially slow take-up, applications then begin to rise exponentially from July 2014. The low take-up at the beginning would largely be due to the roll out being staggered around the UK as well as the eligibility rules

i.e. single claimants only. Early applications would have also been confounded by technical and administrative difficulties, as is the norm with reforms such as this. Table 1 shows the actual number of people on UC filtered by area. The North West being so high compared to other Northern areas may be due to the fact that many of the initial UC trials took place there. The North West has also suffered with difficulties in financial growth (Harari, 2016) and its constituents have some of the lowest disposable income in the UK (ONS, 2015); therefore, it is unsurprising that there are a substantial number of UC recipients there. Overall, a success for the government; take-up has grown and UC would be making administrative savings as a result.

Figure 1: Universal Credit Claims Made

Source DWP Stat-Xplore (DWP, 2016).

Table 1: People on UC by area as of March 2016

North East

East Midlands

East of England

South East

South West

Yorkshire and The Humber

West Midlands

North West

Source DWP Stat-Xplore (DWP, 2016)

The e pe ted i pa ts of U i e sal C edit o side ed to e ost p o le ati Macleod and Kee e

: a gue, elate ot to a ou ts lai a le ut to othe

ha ges a ou d deli e . Pa t a d pa el ith this is that u h of the s ste ill e a automate d a d digital o l p o ess. Ta a d Fi

: suggest that the DWP has

ade p og ess to a ds de elopi g a ohe e t digital st ateg , but it needs to do more in how it manages the digital divide. There is substantial evidence that certain groups are

o e likel to e digitall e luded a d the DWP eeds to sta t thi ki g a out h the e is ot o e digital take up a o g so e g oups a d de elop lea pla s to ta kle this (ibid). Gibb et al. (2014: 14) states that because UC has no paper claims, it puts p essu e on the initial claims process, including the construction of the Claimant Commitment and assessments of appropriate work-related requirements. It is likely that many groups will find the online process difficult and rather than increasing take-up, this may reduce the

ha es of su essful lai s o a u ate assess e t . This issue was not lost on the Local Government Association (2012), who warned that

The Government's rush to make the benefits system available primarily online risks leaving mil lio s of ul e a le people ei g lost i the digital di ide…the social groups least likely to be connected are the elderly, disabled, poor and The Government's rush to make the benefits system available primarily online risks leaving mil lio s of ul e a le people ei g lost i the digital di ide…the social groups least likely to be connected are the elderly, disabled, poor and

What has been particularly concerning is how these changes will affect those who are the most vulnerable and require the most support. Graham et al. (2015: 11) found in Scotland that their respondents were actually more stable financially on UC, but the situation was still precarious with UC negatively impacting their financial and emotional well-being: due in part to financial instability, but also to negative or upsetting interactions with the system

i the ourse of applyi g for or lai i g e efits (emphasis mine). It is important to note

that this was a very small scale study, only analysing 30 households via longitudinal semi- structured interviews. However, it does illustrate difficulties with the new system being stressful fo lai a ts financial and emotional health.

Easton (2014) draws attention to the DWP quote, that UC p ese ts an opportunity to improve internet access for people who are currently digitally excluded as evidence that they are aware of and accept the problem. Easton o side s that e ause lo g te sickness or disability was given as the most common reason, chosen by 52% of the

espo de ts, h a e ipie t as ot looki g fo o k , these ha ges i deli e ill

ha e a pa ti ula i pa t o disa led people . One may think that there is only one benefit being integrated into UC that applies to those on long term sickness or disability: Employment Support Allowance. However, a substantial number of those who receive disability related benefits, also receive HB to meet their needs. There are a multitude of reasons why some disabled people may struggle with this new IT only system, not least is

having the physical and financial means to access a computer, and an application process that is not designed to accommodate a variety of different user needs (Easton, 2014). There are guidelines for this, but as the European Commission (cited in Easton, 2014) having the physical and financial means to access a computer, and an application process that is not designed to accommodate a variety of different user needs (Easton, 2014). There are guidelines for this, but as the European Commission (cited in Easton, 2014)

fu di g o e the last ea s . It does ot eflect well on the implementation and design of UC if those who need it most will struggle to actually get it. This needs to improve significantly.

Perhaps the situation is not so bleak. A DWP (2013a) survey found some encouraging esults f o the ea l pilots. O e all, % of lai a ts ag eed that: it as easier to understand what was required for payments under UC than JSA; UC provided a better financial incentive to work; and offered a better reward for small a ou ts of o k (DWP, 2013a: 7). The survey focused on comparisons to JSA, therefore some of the more vulnerable claimants who also receive DLA, ESA etc. were omitted: therefore, a more promising result. Regarding those who claim online, 17% had someone supporting them. In 81% this was a family member or friend, for 10% it was someone from the Jobcentre, for 4% it was a UC telephone adviser and for another 5% it came from elsewhere. While the 5% is a relatively small percentage now, it could nonetheless be crucial in the future. Lambeth Council provides digital assistance volunteers when making claims for HB, assisting those who struggle to use computers or have no home access to this technology. This service has been very well received and it is my understanding that they will be assisting residents with the switchover and application stages of UC. This is why integrated support for users is so crucial, although Councils will not be administering UC directly; they certainly can assist claimants with applying for it, provide budgeting advice and referrals for other benefits not part of UC – all of which Lambeth Council does. There is one finding Perhaps the situation is not so bleak. A DWP (2013a) survey found some encouraging esults f o the ea l pilots. O e all, % of lai a ts ag eed that: it as easier to understand what was required for payments under UC than JSA; UC provided a better financial incentive to work; and offered a better reward for small a ou ts of o k (DWP, 2013a: 7). The survey focused on comparisons to JSA, therefore some of the more vulnerable claimants who also receive DLA, ESA etc. were omitted: therefore, a more promising result. Regarding those who claim online, 17% had someone supporting them. In 81% this was a family member or friend, for 10% it was someone from the Jobcentre, for 4% it was a UC telephone adviser and for another 5% it came from elsewhere. While the 5% is a relatively small percentage now, it could nonetheless be crucial in the future. Lambeth Council provides digital assistance volunteers when making claims for HB, assisting those who struggle to use computers or have no home access to this technology. This service has been very well received and it is my understanding that they will be assisting residents with the switchover and application stages of UC. This is why integrated support for users is so crucial, although Councils will not be administering UC directly; they certainly can assist claimants with applying for it, provide budgeting advice and referrals for other benefits not part of UC – all of which Lambeth Council does. There is one finding

o pa ed to J“A DWP,

a: 7).

UC payments will be monthly and can only be paid to the applicant, not (usually) their Housing Provider like HB can. It is precisely this change that led one interviewee to

state that i theo U i e sal C edit sou ds ok, ut all the ha ges s a e us rotten. There is no guarantee that the system will work, and I think the transition to monthly payments

a d pa i g Housi g Be efit ill put us i to a ea s at fi st He de , : . Three pilots conducted under the previous Labour government, testing direct payment to tenants, found that rent collection dropped to 70% (Williams, 2012): a concerning trend for both claimants and their Landlords. More recently, direct payment pilots by Wigan Council (2014: 7) found

a a e age olle tio ate of % a o gst people receiving direct payments. This has a huge impact on collection rates and will require a further increase in

ou ad de t p o isio that has al ead ee i eased to £ . pe a u . This is worrying as savings for the government in the administration of UC are being offset by Local Authorities having to increase provisions for bad debt.

Table 2: Persons on UC filtered by Sex as of March 2016 Male

Source DWP Stat-Xplore (DWP, 2016)

Table 2 shows that almost twice as many of the people whom UC is paid to are men; leading some to argue that changes to delivery will disproportionately affect women. Ma ha e p oposed that it isks eati g a u fai ias agai st o e a d this is Table 2 shows that almost twice as many of the people whom UC is paid to are men; leading some to argue that changes to delivery will disproportionately affect women. Ma ha e p oposed that it isks eati g a u fai ias agai st o e a d this is

: . This was highlighted by the Welfare Reform Committee in Scotland (Watkins, 2013: 2), where it was

stated that with UC only being paid to one person, usually male, it means women lose thei i depe de e a d i o e. This esse tiall o e t ates fi a es a d po e i the

hands of one person and may result in resources not being shared equally. Money p o ided to o e is o e likel to e spe t o hild e s eeds tha o e allo ated to

men; therefore, the move to a household benefit payment could reduce spending on

hild e . With the o e to monthly payments, this further exacerbates the situation as o e i lo i o e households te d to e espo si le fo da -to-day budgeting and

any problems with the payment of Universal Credit or difficulties in monthly budgeting are likely to fall to them

i id . This is further o fou ded th ough the i orporation of

payments for children into UC will mean that child-related support will not necessarily be transparent or paid to the main carer, leading to concerns that this assistance may be less likel to ea h the hild e it is ea t to suppo t Ta and Finn, 2012: 8). Fortunately, UC

payments can be split between family members in some situations (DWP, 2015c), but this is entirely discretionary on part of the DWP. The provision of split payments has not been communicated effectively by the DWP or Local Authorities, which will need to be resolved as the roll out continues. This indicates a substantial oversight in the design of the reform. Although the government did not intentionally design the law to negatively affect women, it was a potentially critical oversight and may have troubling unintended consequences as the roll out continues. If anything, it will require cash strapped Local Authorities to review what support services they can provide to women who are struggling because of changes in welfare delivery.

Where the implementation of UC has suffered the most is with IT issues. The IT system developed for UC will rely on information collected by HMRC that will enable the

DWP to al ulate UC pa e ts ithout e ui i g lai a ts to suppl e plo e t or pe sio i o e i fo atio …[The] DWP is confident that systems will be ready in time for

i ple e tatio , despite o e s a o g IT e pe ts that the ti eta le is u ealisti Ta and Finn, 2012: 7). This new system is part of slashing the costs of benefit administration; a

system that does virtually everything automatically would reduce the administration budget and allow staff to focus on more complex service user needs . The e a e o i g past e a ples of su essi e go e

e ts t a k e o ds o la ge-scale IT programmes and major risks should be anticipated and avoided if service users are to be spared the

possi ilit of fi a ial ha dship aused pa e t dela s i id . This is a u fo tu ate reminder for every government about their IT failures. One only needs to remember the NHS patient record system launched in 2002 that was eset ha gi g spe ifi atio s,

technical challenges and disputes with suppliers which left it years behind schedule and over budget. In September 2011 ministers announced they would dismantle [the records system] , ith so e esti ates suggesti g the failed s ste ost £

(Syal, 2013). With the ai of the W‘A

aki g welfare expenditure savings of £18 billion a year by 2014 – Gi et al.,

: , a UC failure of a similar magnitude would be disastrous for the Go e

e t s fi a es a d credibility. Gaffney (2015: 51) is unimpressed by the ill-timed schedule for UC roll-out; and

raises o e s o e the IT p o le s hi h ha e ede illed it a e i fa t resolvable. This threatens the future of the programme, as its all-or-nothing implementation plan means that without all pieces of the puzzle being in place, the costs of partial implementation raises o e s o e the IT p o le s hi h ha e ede illed it a e i fa t resolvable. This threatens the future of the programme, as its all-or-nothing implementation plan means that without all pieces of the puzzle being in place, the costs of partial implementation

e o o , de isio s ade i the a e of effi ie that e d up osti g o e tha the sa e “to e,

: . If the IT s ste eates a false e o o , the ai of aki g fi a ial savings fails. It is partly because of these IT issue s that the DWP had to e aluate its ti eta le fo i ple e tatio . Fo e a ple, lega Housi g Be efit lai s ha e ee put

a k a ea a d ill ot egi to e t a sfe ed u til Ja ua “tephe s et al., 2015: 13), while full roll-out has now been delayed until March 2022, instead of 2017 as initially planned (BBC, 2016). These delays are concerning, particularly considering that DWP has had to subsidise many local authorities, some estimating costs up to £41 million, to hire temporary staff so that they can continue to provide HB until UC has been

implemented We ha , ited i “tephe s et al.,

a i gs about a false economy may not be unfounded. Drawing an example from my own experience, we had a service user on UC move from another borough to ours when UC was

: . Gaff e s

not yet live. We had not prepared for this situation, as UC was not meant to go live in Lambeth for several months. This is an issue that overlaps both IT systems and the staggered roll out across the country. How we could assist the user in the meantime was problematic, as we had not adapted our IT system to accommodate UC. Councils and the DWP need to think about situations like this when designing the reform. Essentially, this could be viewed as a failure of the policy at street bureaucrat level. While the fact that Central Government did not consider the possibility of people needing support moving from places where UC is live to where it is not, is a crucial oversight.

6.2 Removal of Spare Bedroom Subsidy and the Benefit Cap

Figure 2 shows that since being introduced, the number of cases of the RSRS being applied has steadily been decreasing, with a net-decrease of approximately 94000 cases over the period. This is a successful start to the implementation: the changes applied and

sa i gs i the elfa e ill ealised; a positi e out o e fo the Go e

e t. La eth s o data showed that on 18/04/2016, an average of £22.62 of benefit was lost with a standard deviation of £8.31, higher than the UK average. Unfortunately, the DWP data provides little further insight beyond this, so it is difficult to understand why it has been decreasing.

Possible explanations include:

1. Claimants have downsized properties

2. Changes in the composition of the household, such as a child turning ten

ea s old

3. Claimants may have stopped claiming HB altogether because they have started work

Figure 2: Cases of Under-Occupancy and Benefit Loss

One bedroom

Two or more bedrooms

Average Benefit Loss

Source DWP Stat-Xplore (DWP, 2016). The above list is not exhaustive, but it highlights the limits of the DWP data. Reasons 1 and

3 are arguably the principle aim of the RSRS, but without further data it would be 3 are arguably the principle aim of the RSRS, but without further data it would be

In a DWP study, Clarke et al. (2015) made several observations that reflect well on the implementation of the RSRS. 17% of claimants surveyed in autumn 2013 were no longer affected by summer 2014, with finding work or increasing earnings, having a relative or friend move into the property, or their children getting older being some of the most common reasons. Finding work and increasing earnings have had a particularly positive effect and the Government should be proud of that. La eth s o data sho ed that 1336 applicants affected by the RSRS gained employment in the period of January 2015 to April 2016. The la dlo d su e suggests that atio all a ou d ,

affected claimants had downsized within the social sector by autumn 2014, as compared

: . A study by Ipsos (2014: 5) supports this, finding that % of of te a ts o lo ge affe ted [ the RSRS] have

ith a ou d ,

i autu

Cla ke et al.,

do sized to a othe so ial p ope t ia a t a sfe o utual e ha ge , hile othe reasons for it no longer applying include claimants increasing their income enough to no longer needing benefits. Implementing a system to make it easier for tenants to complete mutual exchanges would certainly aid this further. From this evidence, the RSRS is successfully achieving another one of its aims: to persuade those with bigger properties to do sized to a othe so ial p ope t ia a t a sfe o utual e ha ge , hile othe reasons for it no longer applying include claimants increasing their income enough to no longer needing benefits. Implementing a system to make it easier for tenants to complete mutual exchanges would certainly aid this further. From this evidence, the RSRS is successfully achieving another one of its aims: to persuade those with bigger properties to

a possession order on 5% of RSRS affe ted te a ies…less tha a te th of this u e

ha e a tuall ee e i ted… ase suggested ost e i tio s No e e had ee of tenants with pre-existing arrears and/or who had not engaged with their landlord (Clarke

et al., 2015: 20). These figures show that the negative impacts of the RSRS are not as dramatic as originally envisaged and to blame evictions solely on it would be unsubstantiated.

Table 3: Under-Occupancy by Region in November 2015

Two or more One bedroom

Total

bedrooms

South West

East of England

East Midlands

South East

North East

West Midlands

Yorkshire and The Humber

North West

Source DWP Stat-Xplore (DWP, 2016).

Table 3 shows that the further north the location - with the exception of London - the higher the number of those affected by the RSRS. Scotland being particularly high may

be partly due to how its cases are counted (the whole country vs. individual regions). La eth s o data i o ed the DWP data i that the ajo it of those affe ted e e

only under-occupying by one room. A study in Merseyside, one of the poorest areas in the country due to low GDP and a high rate of unemployment (Sefton Council, 2013), by the

NHF (2013), examined the RSRS. It found that just 155 of the 26446 households affected downsized - less than 1%. Not an encouraging result. Since the RSRS was introduced, many Merseyside Housing Associations have recorded a substantial rise in use of food banks to help meet day-to-day needs (ibid). Caplan (2016: 8), observed this in their exploration of Trussel Trust statisti s, fi di g that a major reason for using a food bank has been cuts to benefits i ludi g the RSRS, the benefit cap, and benefit sa tio s hi h a e the tactics currently being used to discourage the so- alled depe de

ultu e a d ake o k pa . It would be difficult to describe the consequences of the RSRS such as these as a success.

One Merseyside resident, Mary, 59 lives with her son and is under-occupying by one bedroom, requiring her to pay a shortfall of £50.60 per month. She has long-term health conditions, so is reluctant to move because her neighbours provide her with care

a d suppo t. “he has had no choice but to sell the jewellery her late mother bought her as

i thda gifts. Whe the je elle is go e she ill ha e o a of pa i g the ed oo ta (NHF, 2013: 4). Another Merseyside resident, Teresa, 61, has her young granddaughter staying over many nights in the week because her daughter works at night. If Teresa did

not provide this, her daughter would be unable to work and would most likely have to claim benefits instead. Teresa is considered to be under-occupying by one bedroom. She does not work and finds it difficult to meet the almost £100 per month shortfall in her rent due to the RSRS. When she qualifies in January 2015 for pension credit, she will be exempt. Howeve , u til the she has to so eho fi d the e t a o e , o do size – but this would mean her granddaughter would have nowhere to sleep and her daughter would

ha e to gi e up o k NHF, : . Both cases are clearly sensitive, but one does have ha e to gi e up o k NHF, : . Both cases are clearly sensitive, but one does have

In a survey of 452 English Housing Association tenants that were under-occupying, Burkitt (in Gibb, et al. 2013) found that only 7% of them would be willing to downsize. Herden et al. (2015: 28) had a disabled respondent suggest that him and his partner are

pa i g a ta o disa ilit , as he a ot sleep i the sa e oo as his wife due to the equipment he needs keeping her awake at night. The impact of the RSRS on those who are

disabled and vulnerable is definitely a cause for concern. Barnes et al. (2016: 4) observed the particularly distressing finding that the RSRS , as ell as othe e efit ha ges, led to

increasing despair and self- ha . A state e t f o , Je , 56, is particularly alarming:

I e ee o ied si k si e Ja ua … What s goi g to happe to hus a d if I a t look afte hi [sta ts i g] a d the e s this thi g a d it s this thi g ith the ed oo ta that is utti g e to the o e… I a holeheartedly sa it s defi itel the situatio ith the ed oo ta that pushed e o e the edge [to self-harm].

The reform affecting those who are already vulnerable and or disabled to consider self- harm or even try to commit suicide is obviously not an intended consequence of the WRA 2012, nor particularly widespread, but it raises serious questions about its impact on the wellbeing of its most vulnerable recipients. If those affected are unable or unwilling to downsize still, the RSRS has failed as it would not be achieving one of its main aims.

, a ea s f o the , u de occupation households was £381k with £225k solely attributable to the under occupation

Wiga Cou il

: fou d that Ma h