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EMPLOYMENT TRIBUNALS - There has been a sharp rise in cases going to employment tribunals particularly in disputes centred on working time and age discrimination.

Employment tribunals concluded 14,000 claims from October to December 2020 a 24% increase over 2019. Working Time claims have overtaken unfair dismissal as the most common claim.

This has increased the backlog of outstanding claims with waits increasing to 46 weeks for a hearing. up from 41 weeks before the pandemic. A wave of redundancy claims is expected following the end of furlough.

From October to December 2020, single claims increased by 25% compared with the same period in 2019, but there was an 82% rise in multiple cases with 29,000 claims being received.

According to the Ministry of Justice, this was the result of high numbers of claims against single employers, with 1,000 multiple claim cases, up from 630 for the equivalent period in 2019. Also, there were 27 claims per multiple cases in 2020 as opposed to 12 claims per multiple cases in the equivalent previous period.

Image: A mock employment tribunal. 

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OECD - Public unemployment spending is defined as expenditure on cash benefits for people to compensate for unemployment. The UK is therefore one of the lowest spenders on unemployment as a percentage of GDP (Gross Domestic Product).  

This includes redundancy payments from public funds, as well as the payment of pensions to beneficiaries before they reach the standard pensionable age, if these payments are made because the beneficiaries are out of work or for other labour market policy reasons.

This indicator is measured in percentage of GDP.

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ABC Press Release - Following an appearance by Colchester MP Will Quince, Minister for Welfare Delivery at the Department for Work and Pensions along with Neil Couling, Senior Responsible Owner at the Department for Work and Pensions.

Simon Collyer the Founder and CEO, of the Association of Pension & Benefit Claimants CIC (The ABC), has called on the government to make the £20 Universal Credit uplift permanent and address the five-week waiting period issue for new social security claimants.

It is rare for the Economic Affairs Committee and the House of Commons Work and Pensions Committee to meet together with the DWP to hold a joint evidence session examining the Government’s disappointing response to both committees’ recent reports on Universal Credit.

The £20 Universal Credit uplift the government claims was a temporary pandemic measure. Both committees in their reports have been concerned about rising foodbank use

The committee’s wanted to know why is this uplift being dropped in September when the government’s figures show that unemployment could grow by half a million people in the latter half of this year.

Minister Will Quince claims the government are planning to spend over £30 billion in employment measures, but the ABC is saying that the person on an average salary of £30,000 is paying…along with his employer's contribution, over £100 a week in National Insurance. This money should go to the National Insurance fund, which is separate from the General Fund. People believe they are paying for sick pay, disability benefits, out of work benefits and a state pension, not financing government schemes.

As an example, the ABC points out that a single person on £409.89 every four weeks could see this cut by £80 without the uplift. Many claimants find that the standard allowance does not cover all their housing costs which could mean a deduction of £11 for housing and if they have a loan or an advance because of the five weeks wait, this means this figure could be reduced still further. A single claimant might therefore have to live on as little as £369.63 every four weeks.

The ASSOCIATION of PENSION & BENEFIT CLAIMANTS CIC is saying that this is impossible. Gas and electricity during the winter could account for half of this amount. Many claimants give up mobile phone time and broadband without enough income, however, without communications, claimants lose contact with the job market and some slip into mental health issues due to isolation.

The ABC is warning of a humanitarian crisis. There were no food banks in the UK before the Conservative government in 2010. Foodbank parcels are a stop-gap, they are not designed to be lived on.

Minister Quince refused to recognise the direct connection between the five weeks wait and inadequate benefits and argued that the government could not carry out its research as money and resources where being channelled into the Covid response.

This is ironic as Colchester Foodbank have just moved to a new substantial premises as next-door neighbours to PC World points out the ABC.

Hardly a sign of static or declining demand.

New claimants can face a decision to manage without an income for five weeks or take an advance that will be deducted over two years.

Under David Cameron Prime Minister the Queen was found an extra 5 million pounds plus and David Cameron also proposed a privately funded private yacht.

A new poll just out by the Social Mobility Commission reveals a growing gulf between social classes and a mental health crisis that needs to be addressed. Nearly six in ten people believe the pandemic has increased the gulf between social classes, according to a new poll from the Social Mobility Commission.

Reducing the masses to starvation levels can hardly help social cohesion says, Simon. The ABC is calling on the government to rethink.

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US STIMULUS BILL - With House Passage, Congress Clears the Nearly $1.9 Trillion Stimulus Plan. Congress has given final approval on Wednesday to President Biden’s sweeping, nearly $1.9 trillion stimulus package, against Republican opposition. This massively increases social security protection for American citizens as well as stimulating the economy. 

By a vote of 220 to 211, the House sent the measure to Mr Biden for his signature, cementing one of the largest injections of federal aid since the Great Depression. It would provide another round of direct payments for Americans, an extension of federal jobless benefits and billions of dollars to distribute coronavirus vaccines and provide relief for schools, states, tribal governments, and small businesses struggling during the pandemic.

The “historic piece of legislation” will be signed on Friday at the White House.

The bill is estimated to slash poverty by a third this year and potentially cut child poverty in half, with expansions of tax credits, food aid and rental and mortgage assistance. It is a bold move designed to overcome the issues the pandemic has created and help get the American economy back on its feet.

Image: President Joe Biden, 46th president of the United States. 

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The House of Lords Economic Affairs Committee and the House of Commons Work and Pensions Committee hold a rare joint evidence session examining the Government’s disappointing response to both committees’ recent reports on Universal Credit

Watch Parliament TV: The economics of Universal Credit; Universal Credit: the wait for a first payment

Inquiry: The economics of Universal Credit; Universal Credit: the wait for a first payment

Inquiry: The economics of Universal Credit

Work and Pensions Committee

House of Lords Economic Affairs Committee

Witnesses

Tuesday 9 March 2021, vitual meeting

At 3.00pm

• Will Quince MP, Minister for Welfare Delivery at the Department for Work and Pensions
• Neil Couling, Senior Responsible Owner at the Department for Work and Pensions

Image: Lord Forsyth of Drumlean.

Lord Forsyth of Drumlean, Chair of the House of Lords Economic Affairs Committee, said:

“Our cross-party, evidence-based report concluded that Universal Credit in its current form fails to provide a dependable safety net and called on the Government to reform it.

“The Government’s response to our report failed to engage with many of the ideas we proposed for reforming Universal Credit. That’s why we’re taking this unprecedented step of working with a Commons select committee to push the Government to provide answers to the substantial problems that we identified in our respective reports, in order to better protect the most vulnerable in our society.”

Image: Rt Hon Stephen Timms MP,

Rt Hon Stephen Timms MP, Chair of the House of Commons Work and Pensions Committee, said:

“The flaws in the Universal Credit system, particularly problems caused for some people by the wait for a first payment and the hardship it can cause, have long been highlighted by many, both inside and outside of Parliament. Sadly, the Government has failed to engage with constructive proposals for change—and refuses even to do its own research to find out the impact of its policies. We hope that this rare joint session of Commons and Lords committees will lead to a change in the Government’s approach and that Ministers will start to take note of the strength of the arguments to reform UC to make sure it works as a safety net for all.”

The topics that are likely to be covered in the evidence session include:

• The extension of the £20 increase to Universal Credit
• Lack of additional support for legacy benefit claimants
• Starter payments to alleviate hardship during the five-week wait
• Link between the wait for Universal Credit’s first payment and rising food bank use
• Historic tax credit debt
• The monthly assessment and frequency of payments
• Support for vulnerable claimants
• Balancing the use of sanctions as a deterrent and the claimant’s security of income

In July 2020 the Lords Economic Affairs Committee published its report, Universal Credit isn't working: proposals for reform. Read the Government’s response to it.

In October 2020 the Commons Work and Pensions Committee published its report, Universal Credit: the wait for a first payment. Read the Government’s response to it.

DURING AN INQUIRY in the last Parliament, the Work and Pensions Committee heard evidence that problems with Universal Credit and delays in receiving payment were pushing people—predominantly women—into sex work to obtain the basics needed to survive, including money, food and shelter.

ABC Note: You can watch the session here: https://parliamentlive.tv/event/index/a032a122-2449-4de5-85fc-91975c69c72e

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MANDATORY ELECTRICAL TESTS - Landlords will have to make sure that electrical installations in their homes for new and existing tenancies are safety tested by a qualified person.

From 1 April 2021 new regulations will require landlords to make sure that the electricity supply in their rented properties is safe - this includes arranging for a test report from a qualified person at least every five years. Tenants must also be provided with a copy of the report.

Failure to comply with the new Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 could result in a fine of up to £30,000.  The regulations were previously in place for new tenancies only, but have now been extended to cover and protect those already in an existing tenancy.

For tenants, these regulations mean that:

• The ‘fixed’ electrical parts of the property, like the wiring, plug sockets, light fittings and fuse box, including permanently connected equipment such as showers and extractors in rented homes must be inspected and tested every 5 years, or more often than this if the inspector thinks that is necessary
• The regulations do not cover electrical appliances such as kettles, toasters, hairdryers etc
• Throughout the whole time a tenant is living at the property, national electrical safety standards must be met
• Your landlord must give you a report that shows the condition of the property’s electrical installations
• If you signed a new tenancy agreement on or after 1 July 2020 the regulations will apply to your rented home straight away
• If you signed your tenancy agreement before 1 July 2020 the regulations will apply for you from 1 April 2021

These regulations do not cover social housing. Tenants of housing associations should contact their housing provider if they are worried about the electrics in the property. These regulations also do not cover tenants who live with their landlord (lodgers).

There is also details on the new legislation via the Government’s website:

 www.gov.uk/government/publications/electrical-safety-standards-in-the-private-rented-sector-guidance-for-landlords-tenants-and-local-authorities

Image: Mandatory Electrical Testing. 

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BUDGET DAY - The budget was not all bad. 

The £20-per-week boost to universal credit will be extended until the end of September, Chancellor Rishi Sunak announced in the Budget.

The government will also give working tax credit claimants an equivalent increase for the next six months. This will be done through a one-off payment of £500.

 Chief Executive of Child Poverty Action Group Alison Garnham said:

“Child poverty levels were already too high pre-pandemic yet children and parents were noticeable by their absence from this budget. Extending the £20 uplift is vital because struggling families cannot keep afloat without it, but that will be as true in six months as it is now. This decision only postpones the pain. The chancellor promised certainty to business – children and their families deserve no less.”

Thomas Lawson, chief executive at Turn2us, said: “There is much in this budget that those of us struggling with money will welcome; especially the extension of the furlough scheme, expanding the Self-Employed Support Scheme, and the rise in the National Living Wage. However, the decision to only extend the Universal Credit uplift for six months will have far-reaching consequences for those of us dependent on this income. Especially the half a million families who are expected to fall into poverty as a result – directly challenging the governments own commitment to levelling up.

 “Our social security system has endured years of cuts, freezes and austerity. The £20 uplift went some way to making up this shortfall but is still significantly less than people received a decade ago. Today our government could have taken the opportunity to fundamentally and permanently make our social security system fit for purpose. We will now continue to work in partnership to make the case that the £20 uplift should both be made permanent, and extended to legacy benefits. Only then will we be able to see a full financial recovery which leaves no one behind.”

Simon Collyer founder of the Association of Pension & Benefit Claimants CIC said 'It could have been a lot worse, the chancellor is right to let the economy get off its knees before making any drastic changes. Considering all the talk about the Great Reset, not much has changed in reality. Overall we didn't expect better - we have clung on to the tiny £20 a week extra, money taken and replaced from 14 billion in cuts since 2010'.  

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BUDGET DAY  - A shocking 715,326 private renters cannot cover the rent they owe with the amount of Universal Credit they receive. These are figures provided by Generation Rent.

Wednesday's budget will be crucial for many and failure to act by the chancellor could bring about a humanitarian crisis on a scale never seen before in the UK. Social Security claimants are finding it difficult to put food on the tables as 14 billion pounds has been taken out of the social security budget since 2010. 

The £20-a-week Universal Credit increase introduced during the pandemic is expected to be extended for another six months. It is just kicking the can down the road, however. 

ABC Note: This year's Budget speech will be delivered on Wednesday 3 March. It usually starts at about 12:30 GMT and lasts around an hour. Labour leader Sir Keir Starmer gives his response straight afterwards. Government borrowing for this financial year has reached £271bn. That's £222bn more than a year ago.

This has pushed up the national debt to £2.13 trillion. That's more than 99% of GDP. 

ABC Comment: A worker on £30,000 a year is contributing over £100 a week in National Insurance. Despite potentially paying in for decades the cash value of benefits paid are paltry and far below that which is needed to sustain even a modest life.

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JOB FAIRS - Communities Minister Deirdre Hargey has announced a series of virtual job fairs being piloted by the Department for Communities over the next few months.

The innovative pilot programme has been introduced as an alternative to physical job fairs which have been suspended due to Covid-19 restrictions.

The virtual job fair series will include regional, sectoral and council-partnered events and will begin with a regional job fair in the North West on Thursday, 4 March.

Minister Hargey said: “Each year my Department hosts a series of face-to-face job fairs which bring together a wide range of employers and jobseekers to showcase available employment opportunities.

“However, due to the challenges faced by the Covid-19 pandemic these have had to be suspended.

“After exploring alternatives to physical events, I have progressed this innovative digital approach to assisting jobseekers which will allow opportunities to be accessed virtually.”

The online virtual platform being piloted will include a ‘lobby’ area which will display and guide jobseekers to participating employers and other support organisations.

Jobseekers will be able to: choose which employers or organisations to visit; view suitable vacancies; and connect with individual employers directly for details and advice.

The Minister continued: “As we move through these unprecedented and challenging times, it is important that we explore all opportunities to support those in the job market.

“I would encourage jobseekers and employers to get involved in any of the events scheduled for their chosen area.

“It is hoped that this approach can then be expanded and developed as we continue to plan our recovery from this crisis.”

The first of the virtual job fairs will take place on Thursday 4 March 2021. Details of this and other events will be advertised on the Department for Communities social media outlets and JobCentre Online.

ABC Note: Further detail on virtual job fairs can be found @JobsBenefitsNI on Facebook and Instagram. Also the Job Centre Online website and NI Direct.

https://www.jobcentreonline.com/JCOLFront/Home.aspx

http://www.nidirect.gov.uk/careers-events

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UNIVERSAL CREDIT - The pressure on chancellor Rishi Sunak to extend the £20-a-week uplift in Universal Credit (UC) indefinitely in next week’s budget has been reinforced by a new survey from Unite, Britain and Ireland’s largest union.

Unite said the survey of 579 of its Community members, who include the unemployed and those with disabilities, found 78 per cent did not find the UC’s payment enough to live on, even with the extra £20, as they struggled to pay food and utility bills.

The £20-a-week UC uplift was introduced at the onset of the pandemic last year, but is due to end on 31 March 2021 – and in Unite’s survey  52 per cent said the extra money helped ‘a lot’ to make ends meet.

A total of 85 per cent found the five week wait for the UC payments to start as ‘difficult. Just over half those surveyed (54 per cent) took out an advance payment and 43 per cent said repaying the loan was also ‘difficult’.

Unite is one of a number of organisations lobbying the chancellor in next Wednesday’s (3 March) budget to make the uplift permanent and not just to extend it for another six months, given that unemployment could rise further as lockdown restrictions are eased and the furlough payments taper off.

The financial crisis facing the estimated 5.6 million UC claimants is thrown into sharp relief by figures from the Resolution Foundation which show that removing the £20-a-week boost after six months will mean the poorest households will be £350 worse off over the whole of 2021-22.

Some of the heart-rending comments from those struggling on the breadline are below. The full survey can accessed via http://www.unitetheunion.org/ucsurvey/ 

 “I lose a week’s food without it.”

 “You can't eat properly. It's cold in the winter because you can't afford to have the heating on, you can't buy clothes. [We] just live hand to mouth. The extra £20 helps so much it doesn't sound much but it helps to put food on the table.”

“We haven’t had to use a food bank since the uplift.”

Unite general secretary Len McCluskey said: “The lesson this survey and the many heart-breaking comments of Unite Community members about their experience of living on Universal Credit so starkly proves is that the £20 ‘top up’ has been a lifeline to millions, literally the difference between heating and eating. 

“The economic havoc the Covid pandemic has unleashed has yet to be fully felt, with unemployment expected to get a lot worse later on in the year.

“It is vital that families, who are struggling the most on the lowest incomes, are given immediate reassurance that the government will not suddenly abandon them in their hour of need."

Unite assistant general secretary Steve Turner added: “Even before the pandemic, child poverty was a deeply entrenched problem in the UK – for the government to consign a further 420,000 children to hunger and hardship would be a scandal.

"Instead of taking Universal Credit away from those in need – the majority of whom are in work – the chancellor should be extending the uplift indefinitely.

“These should include those on legacy benefits who have had no additional support, along with ending the five week wait which has forced people to turn to foodbanks in droves. 

"The grim reality is that work doesn't pay in this country and our benefits support system has been destroyed.  Those who have lost their jobs in this crisis are finding out how little this government thinks they should live on.  

“It is a disgrace and a humane government would be addressing this. We will carry on the fight to stop this cut."

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