13) Escaping Social Welfare Series #1; What happens when benefits are cut and replaced by Universal Credits in the UK?

 

Are you one of the thousands caught in the middle of the latest Social Welfare reform in the UK? How is it affecting you? Have you not yet gone through it but are waiting with baited breath for the letter to drop through your door?

This topic has taken priority over every other at the moment. I’m interrupting the Health and Wellbeing series to make room for something really important right now.

If you have already gone through this process and have come out the other side, was it as awful as some people have experienced or better?

If you can stick with me to the end, I intend for you to have the tools to help take the sting out of the process.

The reform encompasses all social welfare benefits being amalgamated into one Universal Credit by 2029. The agenda is to speed that up as fast as possible so it’s almost like a slash and burn policy to streamline these awards to cut costs (including staff) and let automation handle the admin. I'm sure there's more to the agenda than that but I'm not saying a word.

The benefits to be scrapped in this round of major change are;

Child Tax Credits

Housing Benefits

Income Support

Income-based Jobseeker’s Allowance (JSA)

Income-based Employment and Support Allowance (ESA)

Working Tax Credit

You don’t have to do anything about the change until you get a ‘Migration Notice’ letter stating that you do.

The same rules still apply though, if your circumstances change in anyway, you have to declare it and the process begins immediately.

I have found some very helpful videos on YouTube and they are here and here. These may not be 'up to the minute' up to date but explain more about Universal Credit than I can. 

No matter where you are on that transition, I’m guessing there was, is or might be considerable stress that comes with your benefits being cut completely for anywhere between 3 and 8 weeks. If you end up having to appeal, even longer and you have no money while the appeal proceeds.

How long can you survive with no money? Do you have a reserve to pay your bills and meet all your needs? Chances are, if you are on social welfare, in work or not, you most likely won’t have up to two months’ worth of expenses saved up. You might even have debt.

The main purpose of this blog is not to spread doom and gloom but to recognise the problem and offer solutions.  There are too many ways to manage and prepare for the transition. Here are just 5.

Personal Finance Self-Assessment

Basically, you’re writing down your bank balance and what cash you have. Then list all your creditors and other people you owe money to, all your bills and then contact them and explain the situation. Some might freeze or reduce payments and some may just say tough but at least you are being proactive and getting it on record that you did communicate with them. Some suppliers have discretionary payments to help customers out in these situations.

Stock Take

Take stock of what you have in your store cupboards/pantries and in your garden if you have one. Write down how many and what meals you can make with it and then calculate how many more meals are needed for at least a month.

A meal plan is really helpful, especially if you choose just two weeks with a different meal every night, rotate the weeks.

Other Resources

·       Think family and friends (not the ones who will forever hold you over a barrel of indebtedness. It’s not worth it).

·       Community gardens and allotments where you could barter your help for veggies. If you don’t ask and work for it, you probably won’t get and if you are turned away, at least you know and can prove that you’ve made every effort possible.

·       Churches, food banks and community pantries. For food banks you will need a voucher from DWP (Department for Work and Pensions), to state you are on benefits and in need. Community pantries; you may need to go through an interview and go on a waiting list but it’s worth it. I’ve never had the need to use one but I know people who have and it’s a life saver even if a little undignified.

·       DWP loan (last resort). Avoid this one as far as possible because it’s a debt and they will take it back from you before you get your benefits. So your payments will be less until it’s paid back and you will already be in debt due to those bills you couldn’t pay.

·       Citizen’s Advice Bureau. They can help with filing in forms (though most are now online), they can help you figure out where you could go for more help.

·       Your greatest resource? It’s you! Your experience, skills and attitude and the same of others around you.

Cut Unnecessary Expenses. I know this one’s a bit obvious but it is so very helpful.  Remember what’s actually needed. Roof over your head, clothes on your back, food in your belly and connectivity to the internet to do all you need to with regards to benefits. Cut or freeze non-essential subscriptions and eating out. This is where Make do and mend comes to mind. There are countless websites, blogs and podcasts out there that have brilliant ideas on how to scrimp and still have fun.

Don’t Beat Yourself UP

Some things like the government exercising their powers to cut expenses and make changes that have negative impacts are NOT your fault. The last thing I want is for anyone to go away from this blog feeling overwhelmed and left in a poverty mindset.

Remember, This is Temporary

These are merely tools to help weather transition to Universal Credits and the consequences that cause a lot of stress and hardship. But it will be over in a time and who knows? You might very well be among those few who ended up being better off. Some might not be but then you now have the tools to cope even then.

Because the solution is often in the problem, the solution can also bring new opportunities. Keep an open mind, be proactive in doing all you can to prepare for it and things will be less stressful than it would have if you just sat there waiting for the letter to arrive.

Conclusion: It’s not about surviving, it’s about thriving even in turmoil.

What determines how you come out of this, depends on your mindset, planning and preparing in taking control of your situation and minimising the negative consequences of those things mentioned which are NOT your fault.  

By the time you come out of it, if prepared as best you can, you will be more resilient and in a way, more empowered to be your own hero and the forger of your own destiny even if there is no chance of you ever escaping the dole due to disability or advanced years. But even then, you never know...

You’ve got this!

PS. I will be visiting this topic again in the next blog and podcast. So if you have any questions or suggestions and tips to share and help us all, please DO comment and share.

The podcast that accompanies this blog is here.