Is Welfare Reform Working? - Impacts on working age tenants A study for SW HAILO
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Is Welfare Reform Working?
Impacts on working age tenants
A study for SW HAILO
Overview report – March 2015
Research by Eileen Herden, Anne Power, Bert Provan
CASEreport 90Acknowledgements
This report was prepared by Eileen Herden, Anne Power and Bert Provan at LSE Housing
and Communities, with support from Nicola Serle, Emma Glassey and Chris Grollman. We
would like to also thank Hannah-May Wilson and Ben Grubb for their research assistance.
We would like to thank the members of the HAILO working group for regularly meeting
with us to advise and support the research and provide valuable information on the impact
of welfare reform in their areas and within their organisation. Thanks to Paul Smith (Aster
Group), Clare Powell (Sovereign Housing Association), Lynette Nigh (Knightstone Housing
Association), Jim Bruckel (Yarlington Housing Group), Sue Shaw (Plymouth Community
Homes), Tom Woodman (DCH), Rob Webber (Spectrum Housing Group), and particular
thanks to Victor da Cunha, David Clarke, Rita Waligo, Paula Rye and Laura Marsland from
Curo for directly working with us throughout.
We owe special thanks to the 277 tenants who gave their time to describe their experiences.
Work, financial management and welfare reform are difficult subjects and we very much
appreciate the participants’ willingness to share their stories. Welfare reform is work
in progress and households are constantly having to adapt to new situations. We fully
acknowledge the limitations of our work and accept full responsibility for any mistakes
and incomplete information. We hope that this longitudinal research presents useful
evidence on how policy is playing out in people’s lives.
SW HAILO
The Housing Associations Influence and Leadership Organisation (HAILO) is a group of
chief executives of the largest South West-focused housing associations. The member
organisations own and build homes across the region and collectively have a turnover
of £700m, with 188,000 homes in management and 11,000 new homes in development
to 2015. Members are committed to working with other housing associations, other
organisations and partnerships in the South West. They collaborate on shared agendas,
contributing their knowledge, expertise and resources to make the case for investment,
research, innovation and the sharing of best practice in housing. Members work to
make a significant impact on outcomes for residents and their communities, and the
effectiveness and resilience of their respective organisations, through the development
of a culture of trust, sharing and collaboration.
LSE Housing & Communities
LSE Housing and Communities is a research unit within the Centre for Analysis of Social
Exclusion (CASE) at the London School of Economics led by Professor Anne Power. CASE
is a multi-disciplinary research centre, which focuses on the exploration of different
dimensions of social disadvantage and examines the impact of public policy. We aim to
understand the social dynamics of disadvantaged neighbourhoods; explore models of
housing and neighbourhood management; understand ways to support community and
resident self-help action; and inform government policy.
This report provides an overview to LSE Housing and Communities’ research for the South
West consortium, HAILO. A summary report is available at http://sticerd.lse.ac.uk/dps/
case/cr/casereport90_summary.pdf and a fuller extended report is available at http://
sticerd.lse.ac.uk/dps/case/cr/casereport90_extended.pdf. Life stories, vignettes and
quotes are used throughout the report to show how the main themes play out in people’s
individual lives. These examples could be multiplied across many cases. In all cases names
and some identifying details have been changed to preserve anonymity.
Page 2 SW HAILO: Is Welfare Reform Working?Table of Contents
1. About the project............................................... 4
2. Headlines............................................................ 5
3. Recommendations.............................................. 7
4. Main findings...................................................... 8
5. Working tenants............................................... 13
6. Looking for work............................................... 17
7. Economically inactive tenants.......................... 22
8. Work transitions............................................... 27
9. Tenants’ views of welfare reform..................... 28
10. What will help tenants manage?...................... 30
11. What can social landlords and
government do to help?................................... 32
Appendix: Life stories............................................. 34
Is Welfare Reform Working? Page 31. About the project
Context welfare reforms are affecting the The tenants we interviewed live
work status and day-to-day lives of in five different types of areas
The Coalition Government of social housing tenants. across the South West region,
2010 introduced a plan for radical representing a cross-section of
overhaul of the welfare system The first round of interviews was the region’s geography. Urban,
with four aims: conducted with 200 tenants in suburban, coastal, market towns
• t o cut back on government the spring of 2013 after a major and rural villages reflect the
spending; wave of welfare reforms was different patterns of settlement,
• t o give unemployed people introduced. The reforms included revealing the significance of
greater incentives to move the introduction of a Council Tax different geographic contexts for
into work; charge for people on benefits, the residents. The interviews spanned
benefits cap and the Spare Room Plymouth, a naval port; Torbay,
• t o protect vulnerable citizens
Subsidy (colloquially referred to a Devonshire holiday resort;
in need of support; and
as “the bedroom tax”), as well as Bristol, a large urban centre; Bath,
• to simplify the system. Social Fund localisation. the historic Georgian city; small
This report presents evidence on Wiltshire and Dorset villages, and
whether the aim of moving people In 2013 we asked residents about scattered settlements.
who are dependent on benefits their employment status, their
into work has been achieved, work history, their experience of This report brings together
and considers three important claiming benefits, their reasons evidence from both rounds of
questions: for working or not working, their interviews in order to find out
• re welfare reforms
A health, the services they use and how welfare reforms are affecting
encouraging tenants into rely on, and their communities. tenants’ lives and, in particular,
work or to work more? We also asked how they were how far the reforms are changing
• hat are the main barriers
W managing as Housing Benefit and the way tenants view work,
to work for out of work other supports shrank; how work benefits, opportunities for training
tenants or tenants who was changing; how the area they and progression into work.
want to work more? lived in and the services they used
affected their lives; and what
• hy are many social housing
W
helped or hindered their families’
tenants not working?
progress.
Background These interviews were repeated
Between 2013 and 2014 the one year later in 2014. We
London School of Economics contacted the same 200 residents
conducted two rounds of and managed to follow up with
interviews of 200 representative, 123 residents (62%) from the
working age, social housing original sample. 77 new residents
tenants from nine housing were interviewed in order to
associations in the South West maintain a sample size of 200.
of England who rent homes to Securing two thirds of the repeat
over 200,000 households. The interviews after a year is typical
purpose was to find out how for this type of research.
Page 4 SW HAILO: Is Welfare Reform Working?2. Headlines
In 2010 the Coalition Government introduced a
plan for radical overhaul of the welfare system.
This research examines the aim of moving people
who are dependent on benefits into work and
how it is being achieved.
• T wo years after the • T enants face many persistent
introduction of major welfare barriers to work. These
reforms many tenants are include ill health or disability,
coping with the transition to caring responsibilities
new payments and reduced for family members, high
budgets. A majority – 126 out childcare costs, poor skill
of 200, or 63% – said they levels, low confidence,
were managing financially inconsistent work histories,
by reducing expenditure, in lack of suitable jobs and
some cases on food, getting unaffordable transport costs.
into debt to pay large bills, • hile the majority of tenants
W
or borrowing from family find their links with the
and friends. Some ways Jobcentre unhelpful, they
of coping, such as cutting are generally positive about
back on spending, are more free training opportunities,
viable than others, such as particularly those provided
borrowing. One third were through Learn Direct.
struggling financially. The Job-seeking tenants are
vast majority of tenants are eager to increase their
strongly opposed to resorting qualifications and improve
to payday loans, and only five their employment prospects.
percent have done so. Jobseekers value this kind
• etween 2013 and 2014,
B of constructive support
one in six tenants have either and wish there was more
found work or increased “handholding” and face-to-
their hours. Tenants who face support.
found work most commonly
worked for family members
or became self-employed.
The majority of new jobs are
part-time and flexible hours.
SW HAILO: Is Welfare Reform Working? Page 5• S anctions and reassessments • T he majority of tenants • ousing association
H
of tenants’ benefits have commonly go for advice landlords have a direct
the potential to destabilise to Citizens Advice and interest in helping tenants
households and have other support agencies. manage and have already
negative consequences These service providers taken many steps to
not just for the jobseeker, are highly valued by tenants, ensure they remain viable
but for all members of and have helped resolve as businesses by not only
the household. Tenants problems with benefits and enforcing rent payments,
told us how sanctions, the arrears – including restoring but increasing front-line
immediate suspension of benefits where mistakes, staff, offering more training,
benefit payments, shift wrong assessments or providing more advice and
the jobseekers’ focus away unfair sanctions have participating in pilots to
from work, and redirect been imposed. test the real impact of
their attention to finding • T hree quarters of the the reforms.
alternative ways to cover 101 tenants who were
basic living costs. Sanctions economically inactive in 2014
cause debt and arrears had a disability (slightly above
that increase household the average for social housing
vulnerability and decrease tenants UK-wide). Despite
jobseekers’ capacity to go this, 74% of economically
out into the job market. inactive tenants contribute
They also affect other low- actively to their community
income family members who and society in other ways.
“help out”. Often, sanctions They care for disabled family
arise from administrative members, volunteer in their
mistakes, wrong judgements communities or take care of
and decisions that are young children.
subsequently deemed unfair.
Page 6 SW HAILO: Is Welfare Reform Working?3. Recommendations
Recommendations to Government and
social landlords
The following recommendations to the Government and to social
landlords arose directly from 400 interviews with 277 tenants in 2013-14.
Government
• Make Jobcentres more people-centred so staff hear the
truth about tenants’ problems and can help practically. Use
the documented evidence from claimants to amend policy
implementation, e.g. more job support, less job punishment.
• Avoid benefit suspension and sanctioning without notice,
except in cases of proven and extreme abuse.
• Reform the withdrawal of the Spare Room Subsidy to be
more flexible. Support housing mobility support schemes
to make it easier for under-occupiers to down-size.
Government and social landlords
• Support local services that have a proven track record in
helping low-income, low-skill tenants to cope with changes
and uncertainties, e.g. Citizens Advice, public libraries, free
internet access, credit unions.
• Find transport solutions for isolated tenants in rural and
semi-rural areas:
o Cash subsidies for work-related travel (taxis where bus
service is too infrequent)
o Car share schemes
o Employer-led transport for staff
o Moped/electric bike interest-free loans
• Provide low-interest, slow payback emergency loans for
crisis situations.
Social landlords
• Train front-line staff in handling difficult and sensitive issues
and train tenant representatives in welfare reform, finances,
work and benefit advice – so that both become a valuable
resource for communities.
Is Welfare Reform Working? Page 74. Main findings
a. O
verview of findings Four fifths of tenants claimed it tenants did not feel well informed
was very difficult to find work about changes to their benefits.
from 2013 in their area. These tenants
I appreciate and am very grateful acknowledged that lack of The reduction in tenants’ income
for my benefits. My benefits are relevant work experience, lack of brought about by benefit changes
my total budget, that’s what I live qualifications, and low confidence led the majority of tenants to
on, but I live within my means. made finding work particularly cut back on food, utilities and
I don’t complain because my difficult for them. Tenants said other household essentials.
benefits are my lifeline, I don’t that low skill levels and poor work Tenants drew on savings and
cheat the system. I have no TV, histories limited work options. on other family members, they
no internet, just food, gas and Competition for jobs that are sold (pawned) their belongings
electric. I make do. mostly part-time, low-wage and and borrowed money. Family
[Tenant living in an urban area] oversubscribed was strong. members of those affected were
often needed not just for cash but
LSE Housing and Communities Working tenants valued their also food and other in-kind help.
and HAILO published an interim jobs and were happy to be Tenants were overwhelmingly
report1 in March 2014. This employed, but worried about their negative about payday loans with
summarised our findings from job security and the stability of 80% saying they would never
the first round of interviews in their income. Low-paid working contemplate using them, and
2013 and provided a snapshot tenants spoke about juggling work only 5% actually doing so.
of tenants’ circumstances at the with childcare arrangements,
beginning of welfare reform. The and transport costs. They also Out of the 200 tenants, 190 said
main findings focused on barriers struggled to organise their that they were struggling or just
to work tenants faced as well as budgets on fluctuating incomes, managing financially and 79% of
tenants’ perceptions of welfare changing benefits and tax credits. tenants described their current
reform and its consequences for Four fifths of working tenants situation as difficult.
their financial management. relied partly on benefits.
Nine out of ten households – b. At a glance: Has
Barriers to work both working and not – were anything changed?
The findings of the interim report claiming benefits.
highlighted many of the barriers I really like and appreciate
tenants face in finding work. my new job. It’s given me a
Just over half of all households Welfare reform and financial confidence boost to know that
management
interviewed currently had I can get a job with this kind of
no member in work, and the In 2013 close to half of all tenants responsibility. It’s taken me time
majority of these households had been affected by changes to organise my tax credits and I
cited disability, ill health, to benefits – most commonly was in arrears for several months,
caring responsibilities or some by the introduction of a Council but I’m getting myself out of that
combination of the three as Tax charge for those on benefits now. The CAB has been brilliant
major barriers. and the Spare Room Subsidy in supporting my move to work.
(sometimes referred to as the [Tenant in a market town]
1: http://sticerd.lse.ac.uk/dps/case/cr/ “bedroom tax”). However, 67% of
casereport81.pdf
Page 8 SW HAILO: Is Welfare Reform Working?Summary variety of coping strategies, While the majority of tenants
including cutting back on basic continue to be unemployed,
During the first round of household purchases, “to make one in six households have
interviews, the overwhelming ends meet”. However, tenants either gained jobs or increased
majority of residents expressed now say they are more able the hours they work – this is
high anxiety about benefit to manage on less income comparable with the wider
changes, and their direct impact compared to a year ago, and are regional picture.
on tenants’ ability to manage. finding it less of a struggle to
Many were struggling to adjust cope. Many tenants have grown In contrast, about one in
to reduced benefits and higher more accustomed to a new twenty households have seen
costs due to changes in their status quo after the disruptions reductions in income from
benefit receipts, rent payments, caused by early welfare reform. earnings either because a
Council Tax, fuel bills and other Nevertheless many continue to working household member
essential costs. feel vulnerable, are unable to (adult child or partner) left, due
save, and feel insecure about to poorer health, or because
All tenants continue to juggle the future. fewer hours are available.
their finances and enlist a
Is Welfare Reform Working? Page 9Household composition Figure 1: Household composition – 2013 and 2014 (200 responses)
90
Household composition has
80
stayed relatively constant over the
two interview periods (Figure 1). 70
60
No. of tenants
Tenants living alone make up the
largest household group, followed 50
by single parents and couples 40
with and without children. 30
These figures are consistent 20
with the make-up of social 10
housing tenants nationally. 0
Living Single Couple no Couple with Living with
alone parent children children other adults
2013 2014
Work status Figure 2: Work status – 2013 and 2014 (200 responses)
More of the tenants we 120
interviewed were in work in 2014 100
No. of tenants
than in 2013. Out of the 123 80
tenants interviewed a second 60
time, twelve tenants moved into 40
work and eight tenants took on 20
more hours (Figure 2). More 0
tenants were in part-time work. Full me Part me Unemployed and Economically
looking for work inacve
Overall the number of tenants
looking for work dropped by 2013 2014
14 tenants, while the number
of economically inactive tenants
grew slightly. We discuss work
transitions later in the report,
looking at these movements in
greater depth.
Barriers to work Figure 3: Barriers to work – 2013 and 2014 (200 responses)
90
The barriers to work tenants
80
faced in 2013 have remained.
Poor health and lack of suitable 70
60
No. of tenants
work are the most frequently
named obstacles to employment 50
for tenants. This is followed by 40
the high cost of childcare, the 30
demands of unpaid care work, 20
and the high cost of transport. 10
Tenants also cite low levels of 0
confidence, poor skills and
e
e
h
s
are
s
y
ult
rt
ills
ob
ur
Ag
nc
pa
alt
po
ad
sk
ho
dc
de
hj
being middle-aged as barriers
He
ow
ns
il
or
nfi
or
ug
ng
Ch
tra
ol
Po
gf
to employment (Figure 3).
no
Co
ro
To
of
rin
W
te
st
Ca
No
Co
2013 2014
Page 10 SW HAILO: Is Welfare Reform Working?Benefits Figure 4: All households receiving benefits – 2013 and 2014 (200 responses)
200
The vast majority of tenants, 177
whether they work or not, are 180 168
receiving some form of benefits 160
or tax credit. 89% of all 140
No. of tenants
households claimed benefits in 120
2013 compared to 84% in 2014, 100
in spite of the increase in the 80
number in work (Figure 4). 60
40
20
0
2013 2014
Finances Figure 5: Financial management – 2013 and 2014 (200 responses)
120
Tenants had changed their view
of whether they were managing 100
No. of tenants
financially, generally reporting that 80
they were coping better in 2014. 60
Previously more than half of all 40
tenants said they were struggling 20
financially, while in 2014 more 0
than half claimed they were just Comfortable Managing Struggling
managing financially (Figure 5). 2013 2014
Many tenants said that they
learned to adapt to changes in
income brought on by benefit
changes and made changes to
their budgets. They adopted a
variety of challenging strategies
including falling into arrears for a
period, taking on debt, borrowing
from family, cutting back on food
and household necessities, selling
belongings and accessing food
banks. A large majority of tenants
in 2014 were against the idea of
using payday loans with very few
actually using them (5%).
Is Welfare Reform Working? Page 11How tenants are Figure 6: Adjustments to budgets and spending by tenants to cope with
loss of income – 2013 and 2014 (200 responses)
coping in response
180
to welfare reform
160
Compared to a year ago more 140
people are managing to cope 120
No. of tenants
financially and fewer feel 100
that things are out of control. 80
Nearly two-thirds of all tenants 60
interviewed significantly cut
40
back on their food purchases
20
and on their utility bills in the
0
past year, although overall the Cut back Cut back Borrow Arrears Credit Arrears Used food
numbers of tenants having to take food u li es money bills card debt rent bank
some remedial action had fallen
between 2013 and 2014. More 2013 2014
than half of all residents had to
borrow money from formal or
informal sources between 2013
and 2014. Thirty-five per cent of
tenants fell into arrears with their
essential bills in the past year in
order to cover basic household
costs and one in ten tenants
went to a food bank in both 2013
and 2014 (Figure 6). Two of the
vignettes later in the report show
how people are responding, or
managing to cope, albeit at a
tenuous level (Mrs Smith, pg 17
and Ms Achebe, pg 28).
Page 12 SW HAILO: Is Welfare Reform Working?5. Working tenants
Summary Only a third of working tenants
manage to save, and half
Working tenants are generally have borrowed money in the
proud to be in a job and value last year, mainly from family
their work. However, one or friends. The majority of
third of working tenants feel working tenants say they are
concerned about their job just managing financially,
security and 42% feel their pay but worry that emergency
is too low to live adequately. expenses could push them
into arrears.
Over four fifths of working
tenants rely on in-work benefits Working tenants are generally
to get by and balance the coping with reduced income
household budget; and a third and more insecure work but
have consulted advice agencies the struggle to cope affects
in the last year to help them their overall capacity.
cope. A third of all working
tenants reported problems
with the administration of
their benefits, including
mistakes, delays and
unexpected changes.
Who works? Couples with children and lone
parent households are most
My benefits are so important! likely to have someone in work.
Every little helps. I go to work and Men are more likely to be working
even with benefits there’s usually than women and those working
nothing left for myself. It all goes were split between those aged
on the essentials. 26-44 (47%) and those aged
[Tenant living in a suburban area] 45-65 (42%).
By 2014, almost two in five Working tenants for the most part
tenants interviewed were in have solid work histories – three
work and just under half of all quarters have been employed for
households had at least one most of their lives and the same
family member working. proportion have held their current
job for over a year.
Is Welfare Reform Working? Page 13The majority of tenants in Because I had been working at my Working residents interviewed are
work are employed in semi- job for several years before I got more likely to be working part-
skilled or skilled work, such pregnant my employer lets me time (58%) than full-time (42%),
as administration, education be flexible with my time. But to although 54% of all household
and hospitality. find a job like that now would be members are working full time.
difficult I think. I don’t know how Tenants explained that part-time
Over four in five working people with a family and without work is often necessary because
households are receiving in-work a flexible employer do it. it allows time to care for family
benefits. Compared to year one of [Tenant living in a market town] members, or is less demanding
the survey, there are more tenants if the tenant suffers from health
in work and at the same time Sixty per cent of tenants value problems. Other tenants say
more on benefits. Many new jobs their jobs and take pride in that the extra cost of childcare
are part time with unpredictable working. Many residents say associated with increased working
hours. This leaves tenants their jobs give them a sense hours prevents them from
dependant on in-work benefits, of self-worth. working full-time.
coping on too low an income.
However, over a third of working The follow vignettes illustrate
People’s experience residents are in insecure jobs the difficult balance between
of working due to short-term contracts work and responsibilities at
or unreliable business. 42% of home, as well as the complicated
My family and friends mostly look working residents feel their pay interplay between low incomes
after my son when I go to work. is too low to live adequately. and benefit receipt.
Working tax credits costs, she suspects she will that the local credit union has
Miss Roberts works as a dinner really struggle in the winter. encouraged her to start saving
lady at a local private school. money for emergencies, which
She works part-time which Miss Roberts says that her tax she tries to do a few pounds
suits her because it allows her credits are very important to a month. She says she cannot
to take care of her son who is her because they make working afford to eat healthily at the
often poorly. She constantly worthwhile financially. Miss moment. She also says that
feels she struggles financially. Roberts states that she will not claiming benefits online will be
With the cost of living going up, mind Universal Credit with the difficult for her because she
fuel becoming more expensive, exception of having Housing finds the process very stressful
more Council Tax to pay and Benefit paid to her, instead of and needs support filling out
a recent reduction in Housing the landlord. She thinks this the forms.
Benefit, as well as high fuel will be problematic. She says
Page 14 SW HAILO: Is Welfare Reform Working?Money problems Mrs Smith says that she is Mrs Smith is only just
Mrs Smith lives with her working a lot, but that her managing, and feels that the
17 year-old son, who goes pay just covers her expenses. cost of living has gone up a
to college and attends a Mrs Smith had problems with lot recently – especially food
hairdressing course which her benefits when she moved and utilities. She says she has
he is really enjoying. Mrs into full-time work. They were no idea where she would get
Smith has started a full-time stopped for a period while she money from if there was an
administrative job at the care got proof of her income and emergency because none of
centre where she worked she fell behind with her rent as her friends or family members
before as a part-time carer. a consequence. She has now are in a position to help her
She is proud that she was caught up, but she says it made out. Mrs Smith is still paying
offered the job and feels things difficult. off a loan she took on to buy
that she is progressing well a computer after two years of
through the company. repayments.
Struggling to make ends meet Mrs Norris lives with her young Since she has lost the tax
Mrs Norris works at a call adult son who recently started credits she has really been
centre 37 hours a week. She an apprenticeship. Once he struggling and has to borrow
does not enjoy her work, but it started working, Mrs Norris’ money from her family to cover
gives her an income of £900/ Child Tax Credit and Working bills, especially the new Council
month. She worked for an Tax Credit fell from £400/month Tax payment. She said she spent
insurance company for over to just £8/month. She says this hours on the phone at her own
25 years until they went out of change has been horrible for cost trying to get help but no
business. Mrs Norris says that her because the tax credits one at DWP was able to give
she finds it difficult to market allowed her in the past to cover her a straight answer.
herself and her experience to her £500 rent and use the rest
new employers. She also thinks of her income for bills and
her age works against her. other extras.
Is Welfare Reform Working? Page 15What helps working debt advice. The majority find the Two thirds of working households
CAB helps them resolve problems own a car and rely on it as their
households? they are unable to solve alone. primary means of getting to work.
My working tax credits make a Other helpful services for working Transport costs to and from work
hell of a difference. If I didn’t get residents include legal aid, the take up a large share of people’s
it I wouldn’t be able to work. It library, debt advice services, incomes, especially in rural and
boosts my salary. I use it to pay food banks, adult social services, more suburban areas. Two thirds
food and bills and my salary to mental health charities and of working households spend
cover rent. Tax credits make counselling services. more than £20 a week on getting
work possible. to and from work, and say that
[Tenant living in a rural village] What do working transport costs cause problems.
households find Residents who rely on public
For over four fifths of households, transport also complain about
their wages do not meet their
challenging? high costs and infrequent bus
needs and they have to rely on Over Christmas I had my hours service. In rural and suburban
benefits to top up their income. reduced a lot and it took six weeks areas bus timetables often do not
The most common benefits to get my benefits because there fit with typical working schedules,
received by working households was no one there to process the even less shift work.
are Housing Benefit, Council Tax documents over the holidays.
Reduction, Child Tax Credit and Imagine going six weeks without Thirty-two per cent of working
Working Tax Credit. Working Tax money over Christmas time. It households have had problems
Credit is particularly important was awful. claiming their benefits over the
because it not only tops up people’s [Tenant living a rural village] last year due to administrative
low incomes, but also helps cover error or delays in the claims
the extra expenses of working, Sixty per cent of working process. This often leads to debt
such as transport and childcare. households have dependent or arrears that low-paid working
Self-employed residents value children. Many of these households struggle to pay back.
their working tax credits because households struggle with work
it helps smooth out their income. hours that do not correspond with Three in five working tenants say
school or nursery hours, or report they are managing financially,
Working residents say that that their salary barely covers more than in 2013, but emphasise
receiving in-work benefits makes childcare costs. Parents worry how vulnerable they feel. A
the difference between struggling that going back to work is not in majority manage to meet all their
to pay their way on low pay and the best interest of their child, main expenses but often have
not being able to make ends meet. and many say that employers to cut back on food in order to
Benefits help low-paid tenants pay are not willing to allow flexible make ends meet. Only a fifth of
for basic necessities. Residents work around children’s schedules. working households have savings
say that their benefits make More than half of all working or are able to actively save at
work viable. households with dependent the moment, while nearly half
children rely on family members of working households have
One third of working tenants have and friends to care for their borrowed money in the last year
used Citizens Advice (CAB) in the children at least once a month. to get by, most commonly from
last year for help with benefit or family members or friends.
Page 16 SW HAILO: Is Welfare Reform Working?6. Looking for work
Summary Tenants value the training
offered through the Jobcentre,
One in eight of the tenants we particularly Learn Direct, an
interviewed is actively looking online basic work readiness
for work, two-thirds of these training programme. Well over
are over 45, and the majority half work as volunteers to
have been unemployed for increase their job readiness.
over a year. All tenants looking Many described difficulties
for work are receiving benefits. with the administration of
their benefits. Those who were
The main barriers tenants have “sanctioned”, i.e. had their
in finding work are poor health; benefit payment suspended,
being over 45 years old; facing experienced real hardship,
competition from younger which reduced their ability
people; the high cost of local to find work.
transport; low qualifications;
low pay; and low confidence. Two thirds of tenants had
An unstable work history and consulted CAB or other
limited work experience are agencies to obtain advice
also factors. and assistance.
Who is looking In 2014, 11% of tenants were
actively looking for work. Of
for work? tenants looking for work, close to
I was born and bred in this two thirds were over 45 years old
country. I’ve worked all my life, and were most likely to be living
my parents have worked all their alone or be a single parent.
lives. From 1971-2010 I worked
and paid taxes. I spent six years in The majority of tenants looking for
the armed forced. Why am I being work have been unemployed for
penalised? The pension age goes more than a year; two thirds have
up and up. It’s all well if you are patchy work histories and their
fit and able! We’ve all done hard experience is mainly in unskilled,
jobs all our lives. It’s a struggle low-paid work. Previous work
when you’re older and cannot experience is most likely to include
do physical work anymore. factory work, warehouses, care
No one wants to hire me and I work, retail and cleaning.
understand why.
[Tenant living in a suburban area]
Is Welfare Reform Working? Page 17Over half of tenants looking for Five residents looking for work have mentioned as obstacles to work.
work live in a household where used a food bank in the past year, Several residents have caring
someone has a disability. This while three quarters have cut their responsibilities for other family
affects residents’ ability to work weekly spending on food. Most members, or have physical
as their health problems limit tenants looking for work spend less or mental health problems
what they can do, and caring than £40 a week on food. themselves. Older tenants
responsibilities for a disabled approaching pension age feel they
family member make working Why are tenants out are near the end of their working
all but impossible. of work? lives and are being overlooked
by employers who are favouring
All tenants looking for work I cleaned in a hospital until my younger people because they are
receive benefits. Tenants looking husband left me in 2010 and I happy to take flexible contracts.
for work are split between had my nervous breakdown. I’ve Some also question their ability
managing and struggling been struggling with anxiety and to take on physical work.
financially. The ones that paying off our debts since. It’s
manage just cover their essential been difficult, but I feel like I’m The following three vignettes
bills and would struggle with almost over it now. I would like illustrate the types of barriers
unexpected expenses. to work again. tenants face in accessing
[Tenant living in a rural village] work. They also highlight how
Over half of tenants looking for unemployment can catalyse a
work are in significant arrears and Tenants in this category face range of negative outcomes,
two in five have borrowed money many barriers to jobs. Health from arrears to low confidence
in the past year. and age are most frequently and depression.
Struggling with disability several courses through Learn turned 16, which made things
and debt Direct in the hope that her more difficult.
Ms Frith lives with her teenage qualifications would help with
son who has health problems her job search. When her daughter left home
including difficulties walking last year she was expecting
and anxiety. She has started Ms Frith really struggles to pay the extra cost of the
to look for work in schools so financially; her cooker broke last Spare Room Subsidy, but
that she can match her son’s month and she had to get a loan didn’t get a notice until right
timetable but has not had any to cover the costs of a new one. before Christmas, when she
success so far. She says she She has had bad experiences was asked to make up for six
sometimes applies for five jobs with high interest loans in the months missed payments all
a week but never hears back. past and never wants to resort at once. She ultimately used
She has to stay in the local to one again. She says she is the Christmas money she was
area due to her son’s needs always in her overdraft and given as a present to pay off
and is reliant on expensive that her son’s Disability Living the arrears.
public transport. She has taken Allowance was lowered when he
Page 18 SW HAILO: Is Welfare Reform Working?The impact of sanctions Jobcentre to force you into a courses at Learn Direct and
Mr Leary lives with his two job that you are physically not has six qualifications that he
children and is currently suited for and then punish you is proud of. This has been a
searching for work. He had a by withholding your money. good resource for him.
car crash three years ago, which Mr Leary would really like to
left him physically and mentally work but he has to consider He really struggles through
disabled. He now walks with a what he can legitimately do, periods where his benefits
stick and admits to feeling quite as well as his 12-year-old son’s are cut and has to ask family
frail mentally. timetable, which only allows |and friends for money and
for part-time work. go without food in order to
Mr Leary’s benefits have been feed his sons. He thinks the
stopped for the third time Mr Leary goes to the library government should be more
because the Jobcentre claims every day to look for jobs on lenient with poor people
that he is not looking actively the computer there. He says especially because their
enough for work. Mr Leary he has never heard back from decisions affect children.
says that it is not fair for the an employer. He has attended
Transport, ill health and whole family. Bills and transport He is 59 now and only has one
a family loss costs all added up and the eye, which limits what he is
Mrs Spencer is the mother of a funeral had to be paid for out of able to do. He has signed on to
large family. Most of her children the remainder of their savings. all kinds of agencies, but work
have grown up and moved out, has been sparse. He is now in
but one son remains. He works Mrs Spencer was unemployed the process of signing onto Job
as a builder and contributes for seven years while she took Seekers Allowance (JSA).
substantially to the household care of her daughter, and has
income. Mrs Spencer’s daughter recently begun suffering from Transport is a big issue for the
died of cancer two months ago. her own health problems. Her family. They live in a very rural
She had been suffering with husband was made redundant area and a round trip to the
cancer for the last six years after 27 years of employment nearest town is £4.20. The buses
and it has been difficult for the and has not found work since. run very infrequently.
Is Welfare Reform Working? Page 19Tenants’ experiences For the most part, tenants’ opinions repeatedly said that they were
of the Jobcentre are poor. Three grateful for their benefits because
of job-seeking quarters feel they were badly these help them “survive”.
At the moment I travel to the treated at the Jobcentre. There are Half of residents looking for
Jobcentre and my volunteer work many problems including unhelpful work are active volunteers for
twice a week at nearly £8 return. treatment by Jobcentre staff, the an organisation. Residents feel
That is £19 in transport a week or unsuitability of the jobs they are positive about their voluntary
£70 a month, which is the total encouraged to apply for and accept, activity because it builds their
amount of money I get for one and the fear of sanctioning. Three confidence allows them to
week. A quarter of my benefits quarters of tenants say they feel the control and their timetable.
goes on traveling to the Jobcentre Jobcentre has been bad for their Many recommend volunteering as
and to my volunteering. confidence and feeling of self-worth. a positive first step back to work.
[Tenant living in a coastal area]
What makes looking for Training was held in high regard
When tenants were asked about work easier? by all jobseekers. Nine had
their experience of looking for completed Jobcentre Learn Direct
work, all spoke about their job I’ve had difficulties finding a courses, which they valued.
search in relation to the Jobcentre. job, but I do lots of volunteer
All had been to the Jobcentre in work. I organise community Nearly two-thirds of residents
the previous month. projects like sewing projects to looking for work had used the CAB
repair old clothes, I’ve helped in the past year and all residents
Nine tenants were enrolled in free with community art installation, said the CAB had helped them
Learn Direct training as a result fundraised for the local boxing solve a problem. Other services
of contact with the Jobcentre. club and organised amateur used by residents looking for work
This training was highly valued theatre. I like to be involved in my include: crisis loans, food banks,
and reviewed favourably. Tenants own way. I have problems with libraries and charitable groups
were proud of their training and anxiety but when I control my including churches.
the certificates they received, and level of activity I’m fine. Hopefully
hoped that it would contribute all my volunteer work might turn
positively to their job search. into a job someday. What makes looking for
[Tenant living in an urban area] work a challenge?
The majority of tenants looking
for work found it difficult to access In 2014, all jobseekers were The bus is £4.20 return to go just
the internet on a regular basis. claiming benefits, although one 5 miles. If we got that every day
Fourteen out of 26 tenants had had been sanctioned and was not that would be £25 a week! We
cancelled or went without internet receiving benefits when we spoke. spend about £10 a week just to
at home in order to save money. The most common benefits for get the bus to the Jobcentre who
Tenants often spoke about time job-seeking tenants are Housing are putting their foot down and
spent queuing for oversubscribed Benefit, Council Tax Reduction, telling us we need sign on weekly.
library or Jobcentre computers. Child Tax Credit, Job Seekers All we do there is CV training.
Allowance and Employment We’ve never claimed benefits
Support Allowance. Tenants before so we don’t know what to
Page 20 SW HAILO: Is Welfare Reform Working?do about the transport costs. Its pay for food, shelter and utilities
all new to us. My husband was in and in some cases they had to find
a job for 27 years, he’s now 59. money to provide for children.
[Tenant from rural area] Sanctions introduced a level of
hardship and struggle that made
Most jobseekers use the bus or looking for work unfeasible.
walk to get to appointments and
look for work. Public transport is A sanction stops your ability to
costly and unreliable. eat, to pay your rent. You end up
relying on friends and really go
Two thirds of job-seeking tenants through the mill. This went on
have experienced problems with for three months in the middle
their benefits in the past year. of the winter. They apologised
Half have experienced to me formally and I got paid
administrative delays and errors in arrears afterwards, but the
due to changes in circumstances damage had been done. Getting
requiring changes in benefits. benefits requires a huge amount
Delays in benefit receipt leads of personal administration.
to arrears, and the inability to People at DWP don’t seem to
purchase essentials such as food, understand the implications of
or pay for utilities or contribute their administrative errors.
towards housing costs. [Tenant living in a rural village]
Seven tenants looking for work
were sanctioned by the Jobcentre
in the past year. The most
common reasons for the sanctions
were missed appointment or
incomplete paper work. Four
tenants successfully appealed
their sanction and received their
benefits in arrears at a later date.
Tenants emphasised that
sanctions shifted their focus
away from their job search and
toward survival. Evidence from a
recent study by Oxford University
supports this finding2. Tenants
needed to find alternative ways to
2: http://www.theguardian.com/society/2015/
jan/20/jobs-revival-benefits-work-jobseekers-
allowance (accessed 5th February 2015)
Is Welfare Reform Working? Page 217. Economically inacti
More than half of economically
Summary receive benefits, which for inactive tenants have spent the
the most part constitute majority of their lives in work,
Four out of five economically their only source of income. often in physically demanding
inactive tenants – not in work Disabled tenants are especially jobs, until ill health or injury
and not looking for work – say grateful for their disability forced them to resign.
they have a disability, and the benefits, which help them
remaining fifth are looking pay for carers and mobility Many economically inactive
after young children. Half of vehicles. residents contribute to society
all economically inactive in ways that are not recognized
tenants say they have spent Nevertheless more than half in the economy. Three quarters
the majority of their working report difficulties with the are either full or part-time carers,
lives in employment. administration or management take care of young children or
of their benefits, including a volunteer on a weekly basis in a
Despite being economically third who have been reassessed local organisation.
inactive, many are active and had to appeal the decision
in other ways as carers, in order to secure their Half of all households with full-
volunteers in their entitlement. Half report they time carers have been affected
communities, or looking are managing financially, though by the Spare Room Subsidy
after young children. with little room for manoeuvre. reduction. They often have an
Around four in ten have used extra bedroom as their disability
Ninety-six percent of advice agencies like CAB. makes it difficult for their partner
economically inactive tenants to sleep in the same bedroom.
Several residents said they felt
they were being punished for
Who is economically and 43% were living on their own. their poor health. Households
Over three quarters of
inactive? economically inactive tenants
with carers are more likely to be
struggling financially.
My disability benefits are my say they have a disability. In 2007
lifeline but I think it’s still a hard Hills indicated that around 43% Nearly all (96 out of 101)
life on benefits. I can’t afford a of social housing households economically inactive residents
lot of things. It’s really difficult to had a serious medical problem receive benefits. The most
pay for the things my son needs, or a disability, and that this had common benefits are Housing
especially over the holidays when been rising steadily since the 38% Benefit, Council Tax Reduction,
he’s always home. I’d rather work reported in 1994-5. Since then Employment Support Allowance,
and earn proper money, but it’s disability levels have increased due Child Tax Credit and Income
just not possible at the moment. to increased aging and selection on Support. Benefits are the only
[Tenant living in a coastal area] the basis of need in all allocations. source of income for many
Disability leads to isolation and tenants and essential to them.
In 2014, 101 out of 200 residents anxiety for many residents. Others Residents with disabilities say
were not working and not looking are dependent on a family member disability benefits help them pay
for work. Two-thirds of these who is their carer. for carers and stay mobile.
tenants were over the age of 45
Page 22 SW HAILO: Is Welfare Reform Working?ve tenants
What prevents tenants care to family members and to Half of all economically inactive
avoid high care costs. Carers are tenants are managing financially,
from working? often quick to point out that they but finances are precarious and
My partner has cancer and other are hard workers, and that this they just manage to cover costs
issues. I’m his full-time carer and regularly goes unacknowledged. with what they receive.
had to give up my career several
years ago because we couldn’t 38 out of 101 of economically Over a third of economically
afford the carers. Our benefits inactive households have inactive tenants are in arrears,
are a necessity to us. I can’t go dependent children. Of these, half 43% have borrowed money in
to work. It’s the only way we can are taking care of young children the last year and three quarters
pay our rent. The gas and electric, under the age of five. Many have cut back on food spending.
the water and telephone bill. mothers of young children have Only 18 out of 101 economically
It’s such a struggle to pay them decided to stay at home until their inactive tenants, less than one in
all. But I just can’t go back to child reaches nursery age. Many five, currently have savings.
nursing at the moment because parents also cite high childcare
it doesn’t make sense financially costs as a major obstacle to work. Forty-nine residents have had
with the carers we’d have to hire. problems with their benefits
We really struggle. in the past year. For many
[Tenant living a coastal area] What is it like to be the transition from Income
economically inactive? Support to Employment Support
The main obstacle to working for Allowance was fraught with
economically inactive tenants My best friend committed suicide problems, causing delays. Others
is disability. Out of the 101 in March – she went through experienced administrative errors
economically inactive tenants, 73 period of relentless reassessments, due to changes in circumstances
stated that they have a disability and found the forms very not being recorded properly or
and 25 tenants live in a household confusing. She was disabled but processed in time. Residents
with a disabled family member. they were questioning her over also experienced difficulties
and over again. She needed lots of understanding the benefits
Most economically inactive support and she just didn’t get it. claims process and struggled
residents say they have both DWP hounded her for information, with the forms.
physical and mental health it was horrible. It’s a horrible
problems. Residents often say feeling, knowing that your friend Some residents experiencing
that their physical problems and was pushed over the edge like periodic ill health have been
limitations cause their mental that. It’s not over exaggerating to reassessed and placed into
health to deteriorate – for say that people are dying because working groups. This causes
example provoking anxiety. of this kind of treatment. Go after great stress to economically
scroungers, not genuine people inactive tenants who feel unwell
20 out of 101 economically in need. It’s so upsetting to lose and are not yet ready for the
inactive residents are full-time my friend. I’m pretty certain that labour market. Many go through
unpaid carers, while a further if these welfare reform changes appeals processes prior to a
12 care part-time for family weren’t going on, I’d still have her return to work and many are
members. Many carers gave with me. successful.
up jobs in order to provide free [Tenant living in an urban area]
Is Welfare Reform Working? Page 23Citizens Advice had been used by a The following three vignettes
third of tenants in the last year and illustrate how disability is a
most of these said that the CAB major obstacle to employment
had helped them solve a problem. for many tenants. They show
Economically inactive tenants how economic inactivity and
regularly use services such as legal complete reliance on benefits
aid, crisis loans, food banks, mental can cause a variety of hardships
health services, counselling, debt in people’s lives.
advice and libraries.
Reassessment and sanctions Mr Moore is at a loss to explain says he will find it hard, but it
Mr Moore has had three strokes why ATOS would say he is fit for may be the only option.
in the last year. He is currently work as he continues to show
on Employment and Support medical signs of neurological Mr Moore says the family are
Allowance but was deemed fit damage. His background is really struggling financially and
to work by ATOS several months in mechanical work and lorry have had to take food parcels
ago. His benefit was stopped driving and he says that he is and short-term loans recently
when he appealed the decision. too much of a health liability in order to get by. He says the
He is now waiting for his tribunal to go back to this type of work. family spend £50 per fortnight
in September, which will decide He thinks he would have to on food. Mr Moore is very
his future status. completely retrain and at 51 he worried and stressed about
the upcoming tribunal.
A successful appeal it took to make his appeal were eventually won his appeal and
Mr Smith has extreme very stressful because £30 has now received the highest
respiratory problems and very made the difference between level of carers and mobility
restricted lung function. He is surviving and paying the rent support.
waiting for a lung transplant. He bill or not.
is on Employment and Support He can’t emphasise enough
Allowance and Disability Mr Smith is so poorly that he is how helpful his reinstatement
Living Allowance but after unable to wash himself. During of benefits has been for him.
his Employment and Support the seven months with no “It’s a HUGE, HUGE help, I’m
Allowance assessment, he was benefits a neighbour helped so grateful”. He now has carers
put into a working group and him to go to a food bank once stay three days a week and says
his benefit payment dropped by a week to get groceries that he is managing comfortably
£30. He says the seven months he stretched over five days. He compared to before.
Page 24 SW HAILO: Is Welfare Reform Working?Rent arrears after their son and Miss Casper Jobcentre is very negative and
Miss Casper is in her early feels like she needs to stay that the staff try to push her into
twenties and unemployed. at home to look after both work without consideration for
Her son is 18 months old and of them. her circumstances.
Miss Casper has been struggling
with post-natal depression She is currently on ESA as a joint Miss Casper says they are
for some time now. The birth claim with her partner and they struggling financially as a family
of her son coincided with her receive child benefit and child and have significant rent arrears
husband discovering that he has tax credit. Both parents – who from when their storage heater
a degenerative bone disease, are on benefits for the first time broke last winter. She and her
which makes it very difficult for – have to go to the Jobcentre husband go without food at
him to lift anything. His illness for occasional interviews. She times in order to pay for bills.
makes it difficult for him to look says that the atmosphere at the
Is Welfare Reform Working? Page 25Moving out of work Several households experienced a
Progressing into work drop in income due to household
Ms Achebe accepted a fixed It’s been difficult since I lost my changes. This was often due to
term part-time contract with job. We’ve had to rely on my working children moving from the
the CAB last week, after 20-year-old son’s income to family home, or working couples
volunteering at the office make ends meet, which doesn’t splitting up.
for over a year. She now seem fair. We are struggling.
sees herself progressing We had to get a debt agency to The following vignette is an
on to be an advisor, and is sort everything out for us recently. example of a tenant moving
hoping to get a grant to pay [Tenant living in a suburban area] out of work due to ill health.
for advisor training in the The example also shows the
future. Ms Achebe credits her Seven people moved out of work risks associated with self-
volunteering at the CAB as between 2013 and 2014. This was employed work.
the main reason she got the mainly due to deteriorating health
job. Ms Achebe used to be a and redundancy.
cleaner, before she developed
back problems. She has no
formal qualifications and feels Self-employed risks Before Mrs Reed received her
she has to prove herself to Mrs Reed was a self-employed ESA she received a lot of help
employers in order to get a cleaner until she was forced from a local budgeting charity
foot in. to stop work due to an acute to manage the transition from
bowel problem. Mrs Reed work to benefits. The charity
The period of unemployment, currently receives Housing managed to freeze repayment
during which she was Benefit and ESA while she of several loans, and negotiated
volunteering, was very waits to have surgery. Mrs utility reductions with British
difficult for her financially. Reed would very much like to Gas. Without the support from
She said it was good to be go back to work, and worries the budgeting charity, Mrs Reed
volunteering at the CAB, that she will lose her customers is sure she would have fallen
however, because it helped if she is off sick for a long into greater debt.
her understand the benefit time. However, she finds it
system and how to get by on very difficult to stand for long
a low income. periods, which makes cleaning
impossible.
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