SDLP MLA Mark H Durkan has urged those on legacy benefits, including tax credits, to prepare for the move to Universal Credit which could have a detrimental impact on self-employed claimants.
The Department for Communities confirmed that migrations notice letters will be issue to those on working and child tax credits from 16th October.
Said the Foyle MLA: “The migration to Universal Credits is something we knew was coming down the line, I’d hoped that action could have been taken at an Assembly level to ensure this transition was as smooth as possible.
“The DUP’s continued boycott of our institutions has stripped us from that opportunity and MLAs have been prevented from addressing major concerns as part of secondary welfare mitigation legislation.
“In the absence of an executive, measures cannot be taken to protect people from the harmful consequences of welfare reform policies such as the Two Child Benefit Cap which according to Joseph Rowntree Foundation, has been a key driver in rising child poverty across the UK.
“The SDLP warned of the harm Welfare Reform would inflict on people across the North, we voted against its introduction.
“Yet despite those warnings, Sinn Fein, the DUP and Alliance voted to hand welfare powers over to a Tory government. Sadly, everything we’ve seen since has vindicated that position.
“The migration to UC will see thousands of tax credit households with children subject to this calamitous policy. The nature of this system will also have a significant and potentially detrimental impact on the self-employed.
“Payments will no longer be based on annual income but instead, income is calculated on a monthly basis with no allowance being made for seasonal income.
“This will have a disproportionate impact on self-employed workers who may see a fluctuation in their monthly income, particularly those who receive extra work around the Christmas holiday period.
“While there are some transitional provisions, these only apply for 12 months and essentially households will see a reduction in their income.
“There are clear equality concerns here as the move will have a disproportionately adverse effect on single parents who are more likely to be self-employed and women.
“The cost of living has pushed many families into poverty, the move to UC and failure to mitigate against serious flaws within the system will cause serious issues.
“The shortfall of 600 frontline staff within the Department for Communities due to continued budget pressures, will not only slow down the delivery of benefits for those in need but critically, it spells chaos for the migration of Tax Credits claimants.
“UC is a complex system and without appropriate support to navigate problems, including the 5-week wait, the consequences could be serious for claimants resulting in distress, budgeting difficulties, debt and rent arrears.
“I’ve written to the Permanent Secretary for Communities to ensure resources are in place to support Tax Credit claimants with this move.”
Tags: