What happens to people who get their benefits stopped? Have you ever actually sat down and thought about what really happens? Or are the consequences unfortunate but unavoidable, so you don’t think about them? After all, sanctions are a justifiable way of making sure people aren’t defrauding the system, right?
Well, no. Benefit fraud is a different thing altogether and involves court cases, paying the money back and going to prison. Just over a year ago I was giving debt advice to a couple with young children who were sentenced to prison the week before Christmas.
Let’s look at what I’m really talking about. What bothers me is the growing gap in the numbers between people in work and people claiming unemployment benefit – known these days as job seekers allowance (JSA).
Not everyone who doesn’t work claims JSA. Some people are too unwell to work and they (should) receive a different allowance. Other people live in households which have other income and aren’t entitled to JSA. In theory, in an ideal world, this should cover everyone.
Recently, the number of people in work has been rising. We can have a debate about the quality of these jobs, and employment versus self-employment, but that’s for another day. However, government figures show the number of people receiving JSA has been falling faster than the number of people in work has been rising. It’s perfectly clear that they haven’t all started claiming the allowance for those too unwell for work as the furore over changes to this benefit shows. And neither you nor I believe they’ve all moved into households with other income.
No, people are no longer counted as claiming JSA because they have had their allowance stopped. And here is the key phrase I read on a discussion thread, and which continues to buzz round my head – “people are no longer counted”. These people don’t count any more – they’re off the JSA figures – who cares if they’re actually working or not.
So – what actually happens when your income disappears. It usually happens without notice. Most people will tell you they went to collect their money as usual to find it was not there, with no other warning. A sanction can last four weeks or eight weeks, but can be as long as 26 weeks or 104 weeks. Yes, that’s right – 104 weeks – that’s two years, a nice piece of government obfuscation there.
Now, let’s remember this is happening to people, not just numbers. What do you do when suddenly you have not money? You can’t put any more money on your gas or electricity meter – many people without a wage coming in have to use pre-pay meters. Let’s hope the weather is warm. You won’t be able to switch on the oven, but then again, chances are you don’t have any money to buy food. And if it goes on too long, you might not even have a cooker if you’d “bought” it from somewhere like Brighthouse and are paying back in instalments because you could never get that sort of money together up front. Keep the doors and windows locked so the bailiffs can’t get in.
You can’t top up your phone, so you can’t call anyone to see what’s gone wrong or how to put it right, and you don’t have the bus fare to go into town to sort it out. Your rent should still be paid by housing benefit, but this is often incorrectly stopped as well*. Then there’s water rates, TV licence, bedroom tax and council tax, all unpaid and stacking up arrears, penalties and further potential visits from bailiffs.
So what can you do? You could borrow from family and friends, if they’ve got anything they can lend you. But this can only be a temporary fix and will have to be paid back for the sake of family harmony. Likewise, you could go to a foodbank, but again, this is only a short-term solution if your sanction is a long one, and you’ll have to say no to the fresh veg they sometimes offer because you’ve nothing spare to put on the meter for the hob. You could try a payday lender (if you aren’t already struggling with previous loans). You’ll probably get one, but it’s hardly a good solution because even when/if your money is restored, there’s nothing spare to make the repayments anyway. Mind you, it’s an option more and more of us are turning too and personal credit in the UK continues to rocket. You could try a doorstep lender like Provident – at least they accept repayments in smaller amounts, but these seem to go on forever. But better than an illegal lender, a though which has crossed your mind. A Credit Union loan would be a better option, but (as yet) these aren’t available soon enough – you’ll need to be a saver for several weeks first in most cases.
If only there were hardship payments available to tied you over until the end of the sanction period – as least to put money on the meter and food on the table. What? You mean there are such payments? Why did no-one tell me about them?** Meanwhile, we’re all hungry and the last resort might be shoplifting, just so there’s something to feed the kids when they get home from school tonight.
After I wrote this blog but before I posted it, I read this article, which echoes some of my themes above and shows that sanctions don’t help people back into work anyway. Who’d’ve thought?
* see the Emergency Use Only report (pictured), p116
** see the Emergency Use Only report, p42 and p111