News
Moya Lothian-McLean
Apr 02, 2020
ISTOCK
In December 2019, UK unemployment fell to its lowest levels since 1975.
Now, in the wake of coronavirus, it’s likely to double.
Forecasters predict a rise from 3.9 per cent to a figure more like 8.5 per cent by June, thanks to the economic impact of the health crisis.
But people still need an income because capitalism demands the exchange of money for the basic essentials to live.
Which is why applications for Universal Credit – the centralised benefit system – have skyrocketed, the tune of about 800,000 more people.
The BBC reports there’s been nearly one million Universal Credit claims in the past two weeks alone.
The Department of Work and Pensions say that 950,000 applications had been granted between 16 March and the end of the month.
This is absolutely astonishing - Around 950,000 people have applied for Universal Credit since govt introduced 's… https://t.co/CVn02TBE83— Laura Kuenssberg (@Laura Kuenssberg) 1585765312
Normally, they would expect 100,000 claims in that period.
And the exposure of a large swathe of the population to the Universal Credit system has led many to discover just how flawed it is.
Brought in to replace existing benefit packages in 2018, Universal Credit has been plagued by criticism from the beginning.
Claimants have to endure five-week wait periods before receiving their first payments and the system has been accused of plunging people into poverty and homelessness as a result.
Meanwhile, payouts are meagre, despite a temporary Covid-19 induced increase that means those aged over 25 will now receive £409.89 every month.
And yet the average weekly earnings for full-time employees in the UK is £585, according to the Office of National Statistics.
Universal Credit is only £94 a week and 1 in 4 people don't have any savings. Making the self-employed wait until… https://t.co/8JJjBeSkUh— Zarah Sultana MP (@Zarah Sultana MP) 1585246117
Many said their allocated payments were just not enough.
@piersmorgan my husband is on sick pay because of a heart attack in January and 3 surgeries since. I'm self employe… https://t.co/hck2FaOorp— Tracy Kennedy (@Tracy Kennedy) 1585817255
The massive influx of claims has also caused people to discover the UC system is not set up to process thousands of people at one time.
I’ve spoken to someone else just now who is 112,000th in the queue for identity verification for universal credit.… https://t.co/u4V97zhuY5— Lewis Goodall (@Lewis Goodall) 1585084253
Lengthy waits were reported en masse.
If today has taught me anything it’s I’ve got a lot more patience than I give myself credit for. If anyone is tryin… https://t.co/dlFNgVjfC5— Samantha Oakes (@Samantha Oakes) 1585749883
Some even gave up on the verifying their identity on the phone altogether (although not everyone has this option).
@Cornish_Damo I had the same problem. In the end I selected to bring ID with me to the interview instead because ve… https://t.co/Oy6CnQVHVs— Sonya (@Sonya) 1585160764
Meanwhile, some existing users of Universal Credit complained that they were still experiencing benefits sanctions for not being able to work, despite the reason being coronavirus.
Universal Credit hitting me with an £80 sanction , despite the COVID19 crisis and the fact I will not be able to wo… https://t.co/Wd8LGvWwme— Grace Bollins (@Grace Bollins) 1585554349
Others spoke about how their first experience with universal credit was affecting them.
@SpursSavva Yet last night me and my partner have applied for universal credit, which is the first time in 20 years… https://t.co/MzB1c5VRZF— Gambotheyid (@Gambotheyid) 1585809902
And then there were those who just couldn’t get through to make a claim at all.
#goodmorningbritain How are the self employed supposed to get any money to live. I applied online for Universal cre… https://t.co/xhFgNTEpXb— Graham McDowall (@Graham McDowall) 1585293803
There were plaintive cries for help.
@BorisJohnson I appreciate the unprecedented times but on behalf of all self employed people, what help is there fo… https://t.co/yRCIuPnsdh— Evelyn (@Evelyn) 1585137612
The situation seems pretty clear: Universal Credit is buckling under the weight of demand.
The UK needs a social security system it can rely on – and quickly.
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