Sharing insights on the (in)adequacy of social security

Over recent years, challenges with the social security system have been amongst the most pressing concerns we’ve been hearing from the charities we support across England and Wales. Regardless of where they’re based or what issues they focus on, many charities report that people in their community are struggling to navigate the system, or to get the support they need. The cost of living crisis has brought the gaps in the system into even sharper focus, as people are left unable to afford even the most basic essentials.  

This is why social security has been one of our main priorities for our influencing work over the last few years, and will continue to be a priority under our new strategy. This has been reflected in our funding – we have supported charities with campaigning, research or policy work to improve how the social security system works for those who face the greatest challenges. One of the other ways in which we use our influence is by feeding what we hear from the charities we support into Government and decision makers. For example, recently, we responded to the All Party Parliamentary Group on Poverty’s inquiry into ‘the (in)adequacy of social security’. Here are some of the key points from our submission to the inquiry, which draws on evidence from our charity partners: 

Click the image to read our Deductions: Drive of Poverty report

Purpose of social security 

The inquiry asks whether the system is serving its purpose to alleviate poverty; in fact, our research shows that the design of the system is actually driving poverty. Social security should provide a safety net – but at the moment, far from providing safety or security, it is leaving people unable to afford essentials such as food or heating. People are left having to turn to food banks or charities. While charities provide vital support, they simply can’t fill all the gaps, and certainly can’t or shouldn’t have to be a replacement for a robust social security system.  

Adequacy of social security 

It is clear through the cost of living crisis that the current levels of benefits are not enough to live on. Even outside this context, inadequacy is designed into the system:  

• Deductions: Almost half of people are receiving even less than the basic rate of Universal Credit due to deductions – repayments which are collected under much harsher conditions than many other forms of debt. Our report showed how deductions are leaving almost 7 million people with up to 25% of their payment deducted every month. Recent research shows that 95% of people with deductions from their Universal Credit are going without essentials. This is an area where Government could take action, even learning from their own practice in other areas. We’re calling for the overall maximum deduction rate to be reduced to 15%, and the maximum rate for government debt to 5%. 

• Sanctions: Sanctions often leave people without any social security. Most sanctions are for minor errors such as being late or missing an interview – which are often imposed even in circumstances which would have been out of the individual’s control, such as an incorrect notification of an appointment, or an impossible choice such as a clash with a funeral. Evidence from Public Law Project shows that many people face barriers in challenging decisions – yet 81% of decisions are overturned at appeal, suggesting most were imposed incorrectly or unfairly in the first place.  
• Local Housing Allowance (LHA): LHA rates are inadequate in the context of the current housing market, and have been frozen for several years. Research by Bevan Foundation has demonstrated a severe lack of affordable housing for low income households, with only 5.9% of properties available in Wales at the rates covered by LHA (and similar patterns have been shown in research by Crisis in England).  
• Local Welfare Assistance: This can play an important role in supporting people who’ve experienced a sudden or unexpected financial emergency, but provision is patchy across different local authorities as their budgets have been increasingly constrained. Our work with the Coordinated Community Support Programme demonstrates how joining up a local welfare scheme with the support provided by local charities can make a big difference. The Household Support Fund has been welcome, but a longer term funding settlement is needed, with guidance to ensure good practice. It’s also vital that local welfare provision is not used to compensate for the inadequacy of the rest of the system – it can’t be a replacement for adequate social security.

Groups facing additional barriers in the social security system 

Charities are also working to highlight the additional barriers that the system presents to particular groups who are often already facing other challenges. For example, some of those facing the harshest barriers include: 

• Disabled people: working-age adults who are disabled are more than twice as likely to live in poverty than those who are not. We support Z2K’s #PeopleBeforeProcess campaign, which is calling for Government to work with disabled people, people with health conditions, and Deaf and Ddisabled people’s organisations to improve assessment processes for disability benefits. Many people find the process confusing, complex and face barriers, hostility and stigma in getting the benefits they’re entitled to. The majority of people who appeal a refused claim have the decision overturned, demonstrating problems with how decisions are made in the first place.  
• Care leavers: Care experienced young people often face barriers in accessing the support they need. Research from Learning & Work Institute, in partnership with care leavers and specialist charities and supported by the Foundation, proposed 6 recommendations – including a introducing designated care leaver champion in every JobCentre, introducing a ‘marker’ in the system to trigger extra support for care leavers, and allowing all care leavers to be entitled to the over-25s rate of Universal Credit, given they may not have other sources of support to rely on.   
• Multiple disadvantage: Expert Link have been working with a group of experts with lived experience of multiple disadvantage and the social security system to improve access to benefits and reduce the barriers. Their aims include making better use of flexibility that does already exists within the system, and increasing work coach understanding of the challenges people might face. Similarly, research from IPPR includes recommendations to review sanctions policies, and to make support from work coaches more tailored to individuals. 

While this was not in the scope of the inquiry, we know that those who face some of the greatest challenges are people with no recourse to public funds – our charity partners such as Bristol Refugee Rights and RAMP, or Homeless Link and NACCOM, are demonstrating how change can be made to better support people in this situation.   

We need a stronger safety net 

Social security should protect people from being pulled into poverty – but at the moment, it’s pulling people deeper into poverty and leaving many struggling to afford even essentials. It’s clear that action is needed. We’ll continue to work with our charity partners to share this evidence with Government and advocate for change, to ensure the social security system provides a strong safety net for all.