Advertisement
BUY A WINTER SUPPORT KIT & CHANGE A VENDOR’S LIFE
BUY NOW
Opinion

Gordon Brown: Universal Credit doesn’t add up

After deductions by the DWP for arrears, people don’t have enough to cover even the barest of necessities this winter. It’s a cruel, entirely avoidable policy that is failing the most vulnerable

It was always my dream that homelessness would be wiped out in this generation. No one should be forced on to the streets. But I’m sensing that our benefits system is now doing just that. It’s not just that benefits are too low for families to make ends meet as fuel and food bills soar. It’s that during the worst winter in living memory for millions, the Department for Work and Pensions are persisting with a policy that penalises the most vulnerable – syphoning off deductions from already low benefits – and causing destitution. Take a single person on Universal Credit who receives £77 a week after rent. That’s just £11 a day, with – if they can get it – a top-up this winter of £3.98 towards the cost of their heating. That means living on an income of just under £15 a day.

But first gas and electricity has to be paid and, usually, around £1.59 for council tax and water. And if the Department for Work and Pensions deducts 25 per cent, only £3-£4 a day is left for food and all other necessities. When the Minimum Income Standards team at Loughborough University made the above estimates they found a total of £34.05 is the bare minimum really needed each week to cover everything, including food, telecoms, travel, furnishings, clothes, laundry, soap, toothpaste and toilet rolls. That’s almost 50 per cent more than currently received.

So, for too many on benefits, it means when anything breaks down – like a cooker, fridge or TV – they cannot be repaired because the call-out and repair costs are too high. It means too that beds, bedding and carpets can never be afforded – and homes are falling into disrepair. And it means that toothpaste, soap, toilet rolls – let alone nappies and hygiene products – are becoming luxury goods.  

And there’s an understandable explanation as to why things are getting worse: most people are in debt from day one of receiving Universal Credit. Because Universal Credit is paid in arrears, claimants have often racked up five weeks of debt even before they get their first official payment. And that means millions are having to see 20-30 per cent deducted from their benefits to pay back money which they should never have had to borrow and at a time when, clearly, they cannot afford the repayments.

And that means the government is passing the buck: to charities who cannot cope; to voluntary organisations formed for different purposes; and to foodbanks who openly say they shouldn’t have to exist and that they are in business to do themselves out of business as soon as possible.

During the first phase of Covid, the government relented and paused these deductions. And although they have discouraged utility companies and others from using benefit deductions to secure repayments, too many people are in dire straits today because they’re losing almost a third of due benefits in deductions. 

Advertisement
Advertisement

I am more convinced than ever that we need to guarantee a decent minimum income to all in need. But if the government wants to ease pressures before Christmas, the first thing they should do immediately is suspend deductions for the duration of this energy crisis. Not a huge cost to the government, for they’ll get their money back sometime, but a lifesaver if we are to prevent more people becoming homeless this Christmas.

Gordon Brown is a former Prime Minister and Chancellor of the Exchequer

This article is taken from The Big Issue magazine. If you cannot reach your local vendor, you can still click HERE to subscribe to The Big Issue today or give a gift subscription to a friend or family member. You can also purchase one-off issues from The Big Issue Shop or The Big Issue app, available now from the App Store or Google Play.

Advertisement

Change a vendor's life this Christmas and beyond

Buy a Big Issue Winter Support Kit for £34.99, you’ll receive four copies of the magazine and vendors could receive immediate tools for survival plus access to vital training and employment pathways to escape poverty for good.

Recommended for you

Read All
Lame Tories have failed us. Labour must plan to do better
John Bird

Lame Tories have failed us. Labour must plan to do better

Food bank volunteers at breaking point as demand rises: 'We must absorb the sadness and soldier on'
Charlotte White

Food bank volunteers at breaking point as demand rises: 'We must absorb the sadness and soldier on'

If UK doesn't value foreign care workers like me, it will never fix problems in social care
Sybil Msezane

If UK doesn't value foreign care workers like me, it will never fix problems in social care

What Monsters Inc can teach us about the Dublin riots – and why we should all be a bit more Sulley
Paul McNamee

What Monsters Inc can teach us about the Dublin riots – and why we should all be a bit more Sulley

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Here's when people will get the cost of living payment in 2024
3.

Here's when people will get the cost of living payment in 2024

Citroën Ami: the tiny electric vehicle driving change with The Big Issue
4.

Citroën Ami: the tiny electric vehicle driving change with The Big Issue