Extending conditionality and sanctions to people in work … but who is responsible for low pay?
| Date | 09 April 2018 |
| Published date | 09 April 2018 |
| DOI | https://doi.org/10.1108/MHSI-03-2018-0010 |
| Pages | 61-64 |
| Author | Rachel Perkins,Julie Repper |
| Subject Matter | Health & social care,Mental health,Social inclusion |
Rachel Perkins and Julie Repper
Extending conditionality and sanctions to people in work …but who is responsible
for low pay?
The introduction of Working Tax Credits in 2003 has enabled many people with mental health
conditions to return to and prosper in employment. Some people who experience mental
health challenges are only able to work limited hours. Prior to the introduction of Working Tax
Credits, such people were prevented from getting a job because to do so would actually
decrease their income –they would receive less in work than they received in out of work
benefits. Although they were not without their problems, Working Tax Credits changed this.
For those on low incomes –either because they were in poorly paid jobs, or working limited
hours, or both –they offered a kind of “top up”income that ensure that people did not lose
income by entering work. In 2015-2016, three million in-work families received tax credit
payments (see Social Security Advisory Committee, 2017).
However, with the introduction of Universal Credit, things are changing.
Already recent benefit changes are disadvantaging those people who would formerly have been
in the Employment Support Allowance “Work Related Activity Group”(WRAG). The Work
Capability Assessment divides people into one of three groups: first, there are those who are
judged to be fit for work: they receive only Job Seekers Allowance and its Universal Credit basic
payment equivalent. Second, there are those who are judged to have “limited capacity for work
and work-related activity –you can’t work now and you’re not expected to prepare for work in
the future”(www.gov.uk/health-conditions-disability-universal-credit) and are in the Employment
Support Allowance Support Group or its Universal Credit equivalent. These people will continue
to receive an extra amount of money under Universal Credit. Third there are those who are
judged to have “limited capacity for work –you can’t work now but you can prepare for work in
the future”(www.gov.uk/health-conditions-disability-universal-credit). The people with mental
health challenges who have really lost out are those in this group. In the past, they would have
been in the Employment Support Allowance “WRAG”and received enhanced benefit payments.
Now people judged to be in this group receive only the basic level of Job Seekers Allowance or
Universal Credit –the enhanced payment they used to receive will disappear.
Next, those people who have mental health challenges and can only work limited hours risk being
disadvantaged under Universal Credit through the extension of conditionality and sanctions to
people in work.
Working Tax Credits, like other welfare benefits are disappearing and will become part of the
Universal Credit system. People will still be able to receive some benefits if they are on a low
income. However, the Government has an explicit ambition to encourage people to earn more in
order to reduce, and eliminate, their need to claim these “top up”benefits:
As part of Universal Credit, we will, for the first time, be actively supporting claimants who are in low
paid work to earn more and become independent and self-sufficient (Department for Work and
Pensions, 2015, p. 2).
They say that they intend to do this in two ways (see Social Security Advisory Committee, 2017):
•extending to people on low paid work similar requirements and support to those which have in the
past only applied to unemployed claimants; and
•working with employers at both national and local level to understand their requirements and assist
them in offering progression to low paid employees (Social Security Advisory Committee, 2017, p. 8).
DOI 10.1108/MHSI-03-2018-0010 VOL. 22 NO. 2 2018, pp. 61-64, © Emerald Publishing Limited, ISSN 2042-8308
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MENTALHEALTH AND SOCIAL INCLUSION
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Editorial
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