The plan is for the universal credit to replace all the current out-of-work benefits and in-work support. Well let me focus on just one aspect of this, the intention to pay this new benefit on a monthly basis. WOW where do I start. I can only start with some negative comments before I try and find something positive about this idea. Here goes.
1. The amount of money people will have in one go. Currently JSA pays £128 per fortnight so a monthly payment at the same rate that means £277 each month. Imagine the damage that can be caused with that much money! Please let's have some common sense and don't do this.
2. The normal budgeting plan of the people I work with is spend all their "pay" within a quick a time as possible. Spend! Spend it so fast that by the end of the day it has all gone. On a fortnightly payment basis there is then only 13 days to endure before the same process happens again.
3. It is claimed that it will bring those on benefit in line with regular payment method of once a month. Most research shows that we are borrowing far more money than we should. There is nothing special about being paid monthly, it doesn't make people sensible about money! If benefit is paid monthly there will be more borrowing which usually causes more arguments (if 'friends' are involved or more room for loan sharks to charge hugely inflated interest levels.)
4. The way that so many find out there is a problem with their claim is when their money does not appear in their account. Once a month means it will be harder to resolve problems that arise. Once every 14 days know the claim is still a live claim, with the changes once every 28/30/31 days a person will find out if there is a problem.
5. Another softener to this idea is to introduce budgeting help. Well there is a clever idea, why hasn't someone thought of that before! Seriously, most people on benefits need help with budgeting and I along with many others have tried to help. If the rest of a persons life is chaotic budgeting help is just a small part of the solution. Ian Duncan Smith is aware of this so I hope that he has enough influence to prevent the government pretending that a simple answer of budgeting advice alone will solve the problems for people on benefit.
And now for some positives
1. Good for loan sharks
2. I presume there are cost savings although with everything being electronic controlled I'm not sure of the extent of the savings.
- Well I'm totally out of positives. Any ideas?
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