Universal Credit expands to the borough

Lord Freud

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From today (Monday 15 September) new jobseekers in the borough will for the first time be able to claim Universal Credit, the Government's flagship benefit.

Universal Credit has replaced six existing benefits with one all-encompassing payment, which is said to be designed to make work pay.

The benefits replaced by Universal Credit are: 

• Income-based Jobseeker's Allowance 
• Income-related Employment and Support Allowance 
• Income Support 
• Child Tax Credit 
• Working Tax Credit 
• Housing Benefit 

The roll out in Rochdale will mark the half way point for the initiative with up to 90 job centres across the North West being signed up to Universal Credit by the end of the year.

Speaking to Rochdale Online, Lord Freud said: “Universal Credit is destined to play a part in helping people back into work. We are really hoping that this helps boost young people into finding out what they want to do with their lives and what career path is right for them.

“You can continue to receive Universal Credit while working, with the amount reducing gradually as you earn more, so claimants will see more money in their pocket for each hour that they work.

“It can be hard coming on and off Job Seekers Allowance (JSA) so with Universal Credit, you could try a job for a week and then if you don’t like it, try another job and see which suits you best.”

Universal Credit allows jobcentres to access real-time HMRC earnings data, meaning that exactly the right level of support is in place to help people on their journey into work, including topping up claimants earnings when they are on a low income.

Once applications for Universal Credit are made, claimants are given support that is tailored to their individual needs and it is hoped that the new scheme will change the relationship between claimants and advisors.

Initial applications for Universal Credit are made online with a meeting at the job centre set up within a few days. For those who aren’t as online, there are other ways to sign up to the scheme.

Lord Freud said: “For those who aren’t online, they shouldn’t be afraid because there are ways for things to be done offline. We currently do have a very few number of people who have gone through the process face-to-face.

“The response we have had from claimants has been extremely positive. People are saying that they are finding this system easier and we are currently seeing 90% of applications made online. People are really responding to this concept – the concept of being out of work is to find a job and people are saying that this new way of doing things is helping them with that concept.”