Benefit cuts to fund tax cuts, exploring data sharing and DWP's new poverty metric

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As the government plans to fund tax cuts by cutting welfare benefits we look at alternatives that offer more support and less punitive sanctions. The WorkWell scheme could bring positive support to those in long term unemployment. With working age benefits down 8.8% over the last ten years, social security needs to cover the basics; too many people can't afford food and rent.
There is often a disconnect between central and local governments in the way data is used and shared. This month we examined how data can be better shared across government to improve people's quality of life and outlined the actions we recommend for better data sharing.
Speaking to an engaged group of people from the utilities and financial services sectors at the Collaboration Network we had an informative discussion about embedding income maximisation across all points in a customer's journey by connecting people to support.
The DWP is developing a new poverty measure, Below Average Resources, based on a report by the Social Metrics Commission. With poverty on the rise since the pandemic, some schemes such as Support for Mortgage Interest (SMI) are under promoted which means that many households on Universal Credit may be missing out on thousands.

Managed Migration features

Users receiving migration notices can now get extra information, specialised support signposting, and an estimate of their transitional protection, all from within the Better Off Calculator.

Different legacy benefits are moving over to Universal Credit at different times. Some timelines include:

Income Support and Tax Credits with Housing Benefit from April 2024
Housing Benefit only from June 2024
Employment and Support Allowance with Child Tax Credit from July 2024
Job Seekers Allowance from September 2024

We are thrilled to be a member of the 2025 Fintech Pledge, as part of the Benefits Pillar. With over 10 million actions already completed, we look forward to seeing what else is achieved before the campaign ends in December 2025.

Deven Ghelani says:

"We welcome the addition of income maximisation as a pillar to the Fintech Pledge. Our research shows that people across the UK are missing out on £19 billion of support each year and that boosting benefit take up improves financial stability and wellbeing. We are proud to support the Fintech Pledge and lead the income maximisation pillar. Our mission is to help the sector to meet Consumer Duty and proactively break the vulnerability cycle to boost customer income and reduce the potential for arrears."

Find out more about the Fintech Pledge

Read our guest blog outlining benefits and support available

Second phase of London Pension Credit campaign launches across 25 boroughs

The second phase of the direct Pension Credit campaign across London is launching at the end of January. Funded again by the Greater London Authority with support from Age UK, 25 London boroughs are taking part, building on the £8.3 million of Pension Credit distributed in the campaigns' first phase.

Found out more about the first phase of the campaign and how 17 boroughs achieved over £100 million in lifetime impact for pensioners.

Webinar replay: How the debt sector is connecting people to support

As bills continue to rise many households have had to borrow money to cover regular expenses, with 76% of credit card users struggling to repay their monthly balances. At the same time, our analysis shows that £19 billion of support is unclaimed every year. Now, more than ever, people need this support.

Our webinar explores the factors driving financial vulnerability, how the debt and collections sector is closing this support gap and what others can learn from their approaches.

Get in touch to receive the on demand slides