Three Principles the Benefit System should follow
We see first-hand how policy changes affect people. The work we do at Citizens Advice is based on the experiences of our volunteers, staff and the people we help.
Over the past 20 years our benefits system has seen a series of major reforms. Previous governments introduced Tax Credits and replaced both major disability benefits. Universal Credit, already claimed by 2 million people, replaces many of these.
Last year, staff and volunteers in the Citizens Advice network helped 580,000 people with their benefits. With this expertise in how welfare reform is working, we asked them to tell us what problems they were seeing with the current benefits system, and how it could be improved.
With input from nearly 600 staff and volunteers across England and Wales, we’ve identified 3 key principles our benefit system should follow:
- A system accessible to all who need it
- An adequate level of benefit that securely covers the cost of living
- Flexibility to help people live fulfilling lives, regardless of their situation
1. People need to be able to access the system
Nearly half of Citizens Advice benefits work relates to making a claim to access benefits. We explain the process, help fill in forms, register online accounts, collect evidence, appeal decisions when they go wrong, and many things in-between.
But a common problem we see with Universal Credit, Personal Independence Payment (PIP) and the legacy system is that benefits often aren’t accessible for the people who need them.
Our advisers warn that design choices — particularly in Universal Credit — are undermining potential improvements by creating new challenges, even as old problems are being addressed.
The Citizens Advice network view
Everyone should be able to access the benefits they have a right to claim. That’s why we’re calling on the government to fix the problems with digital applications, make the system easier to navigate and make it easier for people to access disability benefits.
2. Benefits should adequately and securely cover the cost of living
Advisers often tell us about people they help who don’t have enough money to live on. The Government’s own data shows 2 in 5 Universal Credit claimants are falling behind on bills and credit commitments or experiencing real financial difficulties.
People’s budgets will likely have been squeezed due to changes in the value of certain benefits. For instance, most working-age benefits have been frozen since 2016, whilst housing support was reduced in 2010. Incomes can also be unpredictable. For instance £1 in every £10 awarded in Universal Credit is deducted to repay debts and costs before it ever reaches anyone’s bank account.
Advisers see people experiencing hardship as a result of financial problems. But they also worry that a lack of money often leaves people feeling stressed and isolated, unable to achieve life goals.
The Citizens Advice network view
To address these problems, the government should start with ending the benefit freeze, and review how benefit rates are set to ensure people have enough to live on.
3. Diverse needs require a flexible system
There’s some recognition within our benefits system that a flexible approach is needed in providing support to people. For instance, support is available to disabled people who face extra costs due to their impairment or condition, whilst older people can often get access to benefits to help with heating costs.
However, our staff and volunteers often feel that a more flexible approach is needed to support people, particularly in relation to employment.
Universal Credit is geared towards getting as many people into work as possible and increasing their income — an aim supported by 4 in 5 Citizens Advice staff. But the pressure to work as a condition of getting benefits can exclude those who face barriers to entering, staying and progressing in employment — particularly certain disabled people or those with health conditions or caring responsibilities.
The Citizens Advice network view
The government should ensure flexible and tailored support is available to meet the needs of different groups of benefit claimants, and responds to changes in people’s lives. This is especially important when it comes to providing employment support.
What does it all mean for the future of the welfare system?
These principles aren’t a complete list for policymakers. Big political questions about eligibility and distribution of benefits remain. But for the benefits system to be successful, this advice from those on the frontline is an important place to start.
