Delays Caused By Flaw In Help To Buy ISA

Tens of thousands of first-time home buyers have had their purchases delayed because of a flaw in the Help to Buy Isa, research has found.   In 2016 the savings accounts were described as a “scandal” when it was disclosed that first-time buyers would not be able to use the money saved for an initial deposit on their new home. A flaw in the scheme means a 25 per cent government “bonus” on savings is not paid out until the sale has completed, leaving buyers to find the deposit money elsewhere, for example by borrowing from parents.  Read more on the Daily Telegraph website.

https://www.telegraph.co.uk/news/2018/09/26/tens-thousands-first-time-home-buyers-suffer-delays-caused-flaw/

Universal Credit Flaws Pushing Claimants Towards Debt And Eviction

Thousands of benefit claimants are facing debt, rent arrears and eviction as a result of policy design flaws in universal credit, according to landlords and politicians, who are demanding an overhaul of the system. They have warned that UC rules that require claimants to wait at least six weeks for a first benefit payment mean many are going without basic living essentials, forcing them to turn to food banks and loan sharks. Ministers are being urged to slow down the national rollout and to increase support for vulnerable claimants who are struggling to cope with the demands of monthly payments and an increasingly online-only system. Read more on the Guardian website.

Universal Credit Flaws Make Shorter Hours Better For Some

The coalition government’s welfare changes will make it more attractive for some people to work short hours, even if the policy does improve overall financial incentives to work, says a review. Universal Credit has flaws that particularly affect millions of single parents, second earners and workers without dependent children – largely younger single people. For some, the work disincentives become worse than under the current system and, for others, the system is constructed so that their income falls very little if they halve their hours from 16 a week to eight, according to what is probably the largest independent review of the measure’s likely impact on more than 8 million claimants. Download a copy of the review from the Resolution Foundation website.

Universal Credit's Flaws Exposed By Tenants

A North West housing association has said a survey of its tenants has exposed flaws in the government's universal credit (UC) system, with some of those using it forced to turn to pay day lenders to get by. One of four initial pilots in 2013's roll out of UC, First Choice Homes Oldham (FCHO) found that their tenants had suffered multiple frustrations and complications with the new system, with some saying it had forced them to face "stark choices over heating or eating". However, the DWP has called the survey "misleading" and not reflective of the true situation. Read more on 24dash.