Just About Surviving

Monitoring the impacts of welfare reform in Newham

Ellie Roberts,

Community Links

Research overview

‘Simplify the system and make work pay’

Need for evidence on impacts of reforms

Current government set on implementation; learning important for

future

Methods: 18 in-depth interviews with claimants, plus staff and

stakeholders

Finances

Squeeze on incomes is pushing people into ‘survival mode’

Coping strategies – often harmful

Competent money management and reluctant to take on debt

‘So I’ve got a roof over my head… the thing is that sometimes I

miss a week from the rent because something else has come up.

I’m robbing Peter to pay Paul’

Work

People enjoyed working but did not see it as a route out of

poverty

Financial ‘stick’ approach to ‘making work pay’ too limited

Sense of resignation and powerlessness amongst those who

could not work

‘If you work for the minimum wage, how to you pay your rent?’

‘I think they are trying to get everyone they can into work even if they are

wearing an oxygen mask’

Housing

Reforms to HB and LHA make people worry about meeting high

housing costs

DHP crucial to allowing people to meet costs.

People felt powerless to change their housing situations

‘I tried to look up how to move because the rent is too expensive… private rent is a whole load more compared to if I was accommodated by the council. It’s just not really working out for me.’

Support

Family and friends important for support and advice

Lack of trust in formal organisations to give support.

Organisations offering support feel constrained by what they

can offer.

‘They’re my support network and I need that even more than the

money – their emotional support… I don’t know what I would have

done if I didn’t have these people around me.’

Key points

Knock-on impacts – costs down the line

“Just About Surviving” day to day

System is short-termist

Unsustainable situations

Secure and Ready

Towards an Early Action social security system

Will Horwitz,

Early Action Task Force

Social security now

It does a big, important job

Insurance: dealing with setbacks

Social investment: seizing opportunity

Sometimes compensating for failures elsewhere

Often done badly, with knock on costs

Done badly…

Acts too late

Erodes confidence and self esteem

Stigmatises receipt of support

Ignores other support – eg from family and friends

Pays too little

Sometimes abandons people completely

= Insecurity

1) Insurance:

Ready to deal with setbacks

Act early

Presumption of willingness

More universal support

Recognise importance of relationships

Value other forms of contribution

Pay enough to live on

2) Social investment:

Ready to seize opportunity

Affordable housing

Stronger labour market institutions

Childcare

Health

Skills and education

Spending rules standing in the way

Short term budgets

Budget silos

Welfare cap

Initial ideas to stimulate change

Ten year planning/testing

Treat Early action spending like capital spending

Realign incentives & an early action loan fund

Reform the welfare cap

Where next?

Early action approaches gaining ground elsewhere

Changing the tone of the welfare debate

Applying framework to Jobcentre Plus