Professional Documents
Culture Documents
Between 2013 and 2017 Universal Credit replaces six means-tested working age
benefits. Universal Credit represents a major expansion and intensification of
personalised behavioural conditionality and indicates the ubiquity of
conditionality at the heart of twenty-first century UK social citizenship.
Introduction
Universal Credit merges a number of means tested in work and out of work
benefits. Introduced as a central feature of the Welfare Reform Act, the UK
government believes Universal Credit will provide incentives to encourage more
people to enter the paid labour market, while simultaneously offering fairness to
the tax payer. It is claimed that it will simplify the benefits system by replacing
six social security benefits with a single means-tested payment for those looking
for work or already in paid employment on low wages. However, certain existing
payments for adults will remain including, contribution-based Jobseeker’s
Allowance, contributory Employment and Support Allowance, Attendance
Allowance and Carer’s Allowance.
All Universal Credit claimants (in or out of work, disabled or non-disabled, with
or without sole/significant caring responsibilities) and their partners are
required to complete a “Claimant Commitment”. The Claimant Commitment is an
individual action plan broadly similar to a Jobseeker’s Agreement, which will
increase the work-related pressure and job seeking expectations for most
claimants. Claimants are required to set out the specific details of the work-
related actions they will take and the Claimant Commitment also includes details
of the sanctions that will be applied for non-compliance. It is expected that most
claimants will be subject to some sort of work related requirement, such as work
preparation and work focused interviews. Job search requirements are reviewed
in a range of ways, including face-to-face ‘signing on’ at Jobcentre Plus offices for
unemployed people as well as online and adviser interviews by phone. Universal
Credit claimants can also be mandated to attend the Work Programme. Before
examining the details of conditionality in practice, the next section contextualises
Universal Credit conditionality within the existing British welfare system and the
recent policy making trend to increase behavioural conditionality.
The default option is what you are given if you don’t make a choice. Universal
Credit is a means-tested benefit for people of working-age who are on a low
income. It is intended to be simpler than the current system of benefits and tax
credits. It is being introduced gradually. Whether you can claim depends on
where you live and your personal circumstances. Everyone who receives
Universal Credit will be placed in a conditionality group based on their
circumstances and work capability. The group you are in will determine what is
expected of you during your claim.
Universal Credit introduces, for the first time, a bolstered system of ‘personalised
conditionality-directed mandatory activity to prepare for and obtain work and
tough sanctions for non-compliance-including for claimants already in work.
One of the crucial changes that Universal Credit brings is to open up low-paid
insecure and part-time workers and their partners to behavioural conditionality
and associated sanctions/fines. This was originally designed to deter so-called
“free loaders” from claiming unemployment benefits when they were not looking
for work. Universal Credit now enables this sanction based approach to be
applied to in work claimants for the first time. However, the harsh penalties
introduced seem potentially counter-productive as a principle for delivering in-
work benefits for those who are already fulfilling their work related citizenship
obligations. This conditionality flaw may undermine the logic of Universal Credit
in practice because it re-categorises the previously respectable ‘deserving’ status
of low paid workers as ‘undeserving’. As such it serves to abolish the distinction
between being ‘in’ and ‘out’ of work-and also, in theory at least, to extend
conditionality-and its associated stigma-to everyone within its range. Under the
new system, those who have succeeded in finding a job will not be rewarded
with the legitimacy of a respectably-named tax credit to top-up low wages or a
life free from behavioural intervention. Instead, low paid workers in receipt of
Universal Credit who do not meet the ‘conditionality threshold’ will become
subject to conditionality.
Those in low paid work and in receipt of Universal Credit will have to ensure that
their weekly gross earnings exceed a ‘conditionality threshold’. This is to be set
at a level equivalent to 35 hours work per week paid at national minimum wage
rates. In work claimants who earn below this amount will be expected to agree to
meet the threshold by a combination of working more hours or increasing their
pay rate in their current job, finding another second job to supplement their
income from the first, or getting a new job with better wages to take them over
the threshold; otherwise they are potentially subject to tough work related
sanctions.
The variety of conditionality and the severe sanctions for non-compliance and
fines for errors/fraud place a great deal of pressure on the initial processes of
setting up a claim, constructing the Claimant Commitment and assessing the
appropriate level of work related requirements. There are concerns that the
‘digital by default’ claims process may position many applicants at a
disadvantage in negotiating a process that holds very significant personal
consequences. While Universal Credit is designed to increase take-up, the online
claims process is likely to make it more difficult for a range of citizens to claim
their entitlements. For example, widespread literacy difficulties, learning
disabilities such as dyslexia, and language issues, combined with patchy online
access, present very real challenges for citizens seeking to access their
entitlements.
Conclusion
The type and scale of the conditionality changes within Universal Credit
represent a fundamental change to the principles on which the British welfare
state was founded. While social security has always been conditional on the
social contractual obligations of individual citizens, including paid employment,
Universal Credit represents a new, more constrained and qualitatively different
deal for citizens than that envisaged by the architects of the post-war welfare
state. Universal Credit encompasses new forms of conditionality that seek to
limit the entitlements of social citizenship by increasing work related
requirements for accessing collective social security benefits. The current UK
Coalition government has been clear that extending and intensifying principles
and mechanisms of conditionality are to be central elements of its ongoing
welfare reforms. In spite of the Coalition government hailing (praise something
enthusiastically) Universal Credit as an integral part of their ‘radical new
approach to welfare’, Dean (2012) notes it is, in fact, the latest in a long line of
measures that combine elements of both sanction and support to incentivise
paid work while simultaneously discouraging ‘benefit dependency’.
Conditionality has long been seen by some as an appropriate tool for tackling a
form of narrowly defined so-called ‘welfare dependency’ linked to non-
employment and reliance on out of work benefits. Its intensification and
extension within Universal Credit in order to help ‘people along a journey
toward financial independence from the state’ sees this definition of welfare
‘dependency’ expanded to now include employed low paid workers (and their
partners) who are in receipt of in work benefits and credits.
Overview
This chapter focuses on the key social policy measures targeted at unemployed
people in the UK, and critically considers how these measures are experienced
by those directly affected. In this analysis, discussion is focused on the
experiences of JSA claimants, although it is recognised that many of the policy
reforms discussed, such as the extension of welfare conditionality, also impact on
the wider ‘economically inactive’ population.
Welfare conditionality refers to attaching work-related behavioural conditions
to benefit receipt, for example, requiring people to spend 35 hours per week
looking for work in order to be eligible to claim Universal Credit.
In recent years, policy attention has shifted away from concentrating efforts to
encourage benefit recipients to find work on unemployed people alone to a much
broader focus on the wider economically inactive population, on all those on out-
of-work benefits. Today, many disabled people and lone parents are expected to
take steps to seek work as a condition of continued benefit receipt, even where
they are awarded disability benefits or Income Support. At the same time,
eligibility for benefits has changed, meaning more and more lone parents and
disabled people have been moved onto JSA, where they must comply with work-
related conditions that encompass work search and various forms of work-
related activity, such as skills and employability training and mandatory work
experience. This shift in policy is best understood as a shift from a relatively
narrow concern with ‘unemployment’ to a broader focus on ‘worklessness’.
Throughout, political and media emphasis is placed on the supposed ‘problem’ of
‘welfare dependency’, with ‘work’ being posited solution. In this analysis, paid
employment is seen as transformative, with the scope to deliver rewards that
extend beyond financial remuneration to improvements in health, well-being
and family life. Further, paid employment is conceptualised as the primary duty
of the responsible citizen, and governments characterise their welfare-to-work
efforts as ensuring that this duty is being fulfilled.
Both the Conservative government and their predecessors across the political
spectrum argue that the role of intervention is to help people to help themselves,
giving those out of work a “hand up, not a hand out”. “The work is the best form
of welfare” statement dominates, and is used to justify a reliance on both
incentives and sanctions (such as removing essential benefit income for a month
if an appointment is missed) to promote ‘working behaviours’. At the same time,
there is also a sustained emphasis on ‘making work pay’ to ensure that those in
paid employment are financially better off than those on out-of-work benefits.
Importantly, there are two ways to make work pay. First, it is possible to
increase the rewards attached to paid employment, an approach that was
favoured by Labour. In this respect, Labour introduced some of the most socially
progressive measures of their time in office, such as the National Minimum Wage
in 1999 and relatively generous forms of in-work support via tax credits.
Second, it is possible to make work pay by reducing out-of-work benefits,
therefore widening the gap between the income received by those in and out of
work. This has been the approach favoured by the UK Coalition government,
which ahs legislated for a significant range of cuts and reductions in eligibility to
out-of-work benefits.
Following reforms since 2010, unemployed claimants must now seek work
within 90 minutes travelling time of their home, and are expected to treat
looking for work as a full-time job. Failure to comply with these demands include
a range of possible sanctions, escalating for repeat ‘offences’ and of different
lengths according to their judged severity. This includes the ‘ultimate sanction’ of
three years without benefits for those who three times fail to accept a job offer,
apply for a particular job or take part in a form of compulsory work experience.
Figures show a considerable rise in the imposition of benefit sanctions under the
UK Coalition government when compared with levels of sanctions during the UK
Labour governments of 1997-2010.
Participants described being encouraged to look for any job, rather than focusing
on those areas in which they were most interested, qualified or experienced.
‘Strivers and Shirkers’: The Consequences of a Divisive Rhetoric
Today, individuals who are often already coping with the shame of struggling to
manage in poverty also have to contend with the consequences of a stigmatising
rhetoric that increasingly associates non-work with irresponsibility and failure.
This rhetoric is affecting how people see themselves in ways that could be
damaging to self-confidence, self-esteem and thus, ironically, chances of securing
paid employment.
Under conditionality, claimants describe how they feel as if they are placed
under suspicion, having to prove and demonstrate their ‘deservingness’. This can
prevent the development of a trusting and effective relationship, with claimants
often reporting feeling judged and looked down on in these interactions and
treated with an absence of respect. JCP appointments are often characterised by
long waits, a lack of privacy and a dominant security presence, all further
extending the ways in which these encounters can be generative of stigma and
shame.
In navigating the benefits system, claimants have to deal with a bureaucratic
system that has often been criticised for providing a poor service with particular
issues around the provision of clear, timely and accessible information. Problems
have been reported regarding misleading, contradictory and difficult to
understand official communication, with inevitable consequences for individuals’
understanding of their own rights. Individuals have reported finding out that
they have been sanctioned when they go to try and withdraw their benefits
money, only to find a zero balance. Poor levels of communication about
forthcoming welfare reforms cause particular anxiety and worry, and contribute
to feelings of fear and uncertainty about changes to the benefit system.
For out-of-work claimants, the work of engaging with officials can be time-
intensive, emotionally draining and undermining self-worth. There is the risk
that these relationships interfere with the potential for claimants to see such
officials as people that might provide them with meaningful support to enter
paid employment. The role of JCP can be seen as that of policing eligibility for
benefits, rather than helping people to find work.
Emerging Issues
However, research evidence shows that individuals are often frustrated in their
job searches, not by an absence of motivation or commitment to securing
employment, but by demand-side barriers such as an absence of jobs or the lack
of suitable childcare.
In May 2015, the Conservative Party won a majority in the Westminster general
election, and pledged that their government would continue the welfare reform
effort to make sure that work always pay, and that no one is able to ‘choose’
benefits as a lifestyle choice. They promised particular reforms to ensure that
young people are encouraged to make the transition from education into
employment, by extending mandatory forms of work experience and reducing
their eligibility for benefits. These reforms further extend the policy emphasis on
conditionality and reductions in social welfare provision, and will need to be
closely monitored.
Critics of the approach taken by recent UK governments argue that focusing on
paid employment as the primary duty of the individual citizen is inherently
exclusive, and serves to neglect the various forms of contribution in which so
many of the economically ‘inactive’ are engaged. These include volunteering,
caring, parenting work, and the informal care ad support that is so often
provided in low-income communities.
Defending the approach taken, the incoming 2015 Conservative government, like
its Coalition and Labour predecessors, focus on the transformative rewards
offered by paid employment and their objective to share these rewards with
more of the working-age population.
There are particular concerns here about the recent growth in insecure,
temporary, low-paid and inflexible employment, given evidence that engagement
in these forms of work can have very negative consequences, particularly for
mental health and well-being.
Those who are critical of the government’s approach argue that its emphasis on
the ‘problem’ of ‘welfare dependency’ and proposed solution of ‘work’ is based
on a simplistic and superficial analysis of the policy issues. This approach implies
that ‘welfare dependency’ is always and inevitably negative, and neglects
consideration of the ways in which we are all dependent on the state and each
other. The giving and receiving of care is an intrinsic part of what it is to be
human, and dependency is not necessarily and inevitably a negative
characteristic. If we understand ‘welfare’ more broadly to include not just social
welfare provided to out-of-work claimants, but the various forms of state
support on which we all depend, such as education, healthcare and tax relief,
then our understanding of who is welfare-dependent changes.
However, the current policy approach shows little sign of changing, with all the
main political parties committed to a continued prioritising of welfare conditions
and measures to activate the ‘inactive’.