CAB Report on the Coalition Budget 2010

The Citizens Advice Bureau has written a report on Key welfare changes and their impact on low income households.

It makes for very depressing reading, and while it does not look specifically at disability benefits, it reports on the reductions and changes in Housing Benefit, JSA and tax credits, all of which are claimed by many disabled people. For instance,

From 2013/14 any claimant on JSA for more than 12 months will have their HB entitlement cut by 10 per cent. This will continue until they have “left the benefit system and been in work for a while”.
This seems a crude measure as it appears that it will apply even where the tenant is fully complying with their JSA requirements to actively seek work. The cut will fall hardest on those who face disadvantage in the labour market, such as people in poor health or with a disability who have failed the harsher medical tests for incapacity benefit and employment and support allowance, and have therefore been moved onto JSA.

It also explains why changing benefit levels from rising in line with the Retail Prices Index, to the Consumer Prices Index, will result in a reduction in the value of benefits and tax credits.

At the end of the study the report highlights scenarios illustrating the impact of the cuts on specific households, and several of the case studies include the issues of people who are ill or disabled. For instance,

A 50 year old man with mild learning disabilities and literacy issues has done manual work all his life until arthritis in his knees, hips and shoulder forced him to stop work. He has worked and paid contributions all his life until that point. He pays rent of £110/week and council tax of £18/week.
He claimed ESA but was found fit for work, so is now claiming JSA. The number of jobs he will be able to do is severely limited. He also has no access to his own transport and finds public transport very difficult because of the arthritis. His Jobcentre Plus personal adviser finds it difficult to suggest jobs for him. He has been out of work since his arthritis made it impossible to continue in his job two years ago and he has been claiming JSA for a year.
After housing costs he has a disposable income of £65.45 a week (his JSA). After a year as a result of changes in up-rating of JSA and also the LHA rates, his disposable income is likely to drop in real terms to about £64. However he may well also lose a further £8 off his HB as the 30th percentile rate is used to calculate the LHA rate. If he is unable to find a job after a year he will lose a further £10 a week of his HB. If he can not find somewhere cheaper to live he will have a disposable income after housing costs of about £46, a 30% reduction. Even if he can find somewhere cheaper to live, his disposable income will drop to £54, a 17.5% reduction.
If he had been allocated to the work-related activity group for ESA, his income would be £91.30 a week.

(cross-posted at Where's the Benefit?)

The Provident.

Shame on greatoffers@allaboutsavings.co.uk for this email, which is neither a great offer, nor anything about savings.

The Provy, those bullying, preying-on-the-poor, knocking-on-the-door loan sharks, have offered me possibly the worst terms for a loan ever.



Have a look at the bottom right,

*Example. Cash loan amount £300.
56 weekly repayments of £9
Total amount payable £504

Typical
183.2% APR

183.2% APR typical. So some people presumably get even higher rates!

Let's have a look. CCJs, poor credit history, been turned down before, renting a home, unemployed... yep!

So you're perhaps not in the best financial situation? How can you almost guarantee to make it a million times worse? Oh yes, borrow from the Provy! Borrow £300, pay back £504. And that, of course, is if you make every payment every week. If not... well, higher interest, increasing your 'loan' amount to cover missed payments... add a bit more to the end cost. You're already buggered, why not?

I am furious that this was sent to my email. I *hate* these people.

Now, a good organisation is Church Action Against Poverty. A Church group putting their faith and efforts to the good (unlike some).

Their Debt On Our Doorstep campaign

is a national campaigning organisation made up of local activists and public organisations. We aim to end extortionate lending and ensure universal access to affordable credit and other financial services. To this end our objectives are to:

* Publicise the extent and impact of extortionate lending on low income groups

* Lobby Parliament, assemblies and other decision makers to end extortionate lending

* Research and promote models of affordable credit

* Provide a platform for people on low incomes to comment on the impact of debt

We are part of a growing international movement for responsible lending and have been involved in the planning of a series of national conferences throughout Europe which culminated in the launch of a European Coalition for Responsible Lending in Brussels in 2006.

Debt on our Doorstep was the first organisation in the U.K to call for a 'responsible lending' duty to be placed on lenders, and this has since been introduced into the new Consumer Credit Act. We are expecting a consultation exercise on the requirements for lenders in the near future. Unfortunately, our campaign for interest rate ceilings to be introduced has not been successful, although the Government has pledged to keep this matter under review, and our work to bring about a competition commission inquiry into the Home Credit industry has recently brought about a real possibility for price caps in that market.

We are also working to develop local financial inclusion partnerships, and are calling for requirements to be placed on the banking industry to disclose, and then improve, the level of financial services available in low-income communities. In this respect, our work has been informed by the National Community Reinvestment Coalition in the U.S, with whom we are closely involved in our international work.

Debt on our Doorstep is also calling for excessive default charges, made by credit card lenders and banks to be refunded to borrowers - a total of £1.8 billion has been overcharged in the past 6 years for credit cards alone - and is working with the Bank Charges Action Group to recover these..

Good on them.

Also, if you're in financial trouble yourself, I can't recommend National Debtline too highly. They are a source of great advice and support, they don't charge anything (unlike so many of those companies who advertise on TV to help with your debts) and have helped me consistently over a long period.

As for greatoffers@allaboutsavings.co.uk, gmail rightly put their shit into my spam folder, where it will stay.