The Budget won’t help people with poor health and financial problems
The new budget was billed as providing much needed support for low-income households in the face of rising living costs and the withdrawal of the Universal Credit uplift. And it is true that many people will benefit from the Chancellor’s pledges to increase the minimum wage while reducing the taper rate on UC benefits.
However, the budget offered no help for people who are unable to work due to long- term health conditions, including poor mental health. Financial and health problems are inter-related. Financial problems are a major cause of anxiety and depression, which affect a person’s ability to obtain, and hold down, a job. And physical health problems, also a limiting factor on employment, give rise to higher living costs too.
Over the past few months, our pilot ‘Financial Shield’ project, which is operating in Lambeth and Southwark, has seen over 400 working-age people with both health and financial problems. In the month before receiving our help:
89% had to cut back on food, heating, or other essentials because of a lack of money.
74% borrowed money to buy food or pay bills.
89% thought they would either definitely not or probably not have money left over after they had paid for food and other essentials including bills and credit payments.
Most people (68%) described their health status as poor, 26% as fair, and only 5% as good.
90% reported they had not received sufficient support in the previous 12 months from local services or organisations to help manage their long-term health conditions.
Our pilot indicates there is a huge unmet need for people to be provided with support to maximise their incomes via benefits claims and obtain relief from debts alongside interventions to help improve their health.
We are showing that targeting people for help through GP’s surgeries is both a welcome and effective intervention. People trust their GP and residents also value the face-to-face support they receive from our advisers. That support makes a huge difference to their lives, as illustrated by the case studies below. But even where benefits are maximised, an increasing number of people remain on inadequate incomes which make their health worse and restricts their ability to work.
Whilst the need to act on both health and finances simultaneously is becoming recognised, this has yet to translate into specific Government support for services to meet the needs of lower income households with health problems.
The Budget sought to ‘incentivise’ work rather than support people into it. But 1.3 million people claiming Universal Credit aren’t even required to search for work because of their health problems – a figure which grew by 8% between April and July this year. There is a strong commercial case for helping these people to get their finances and health back on track, in terms of both reducing the burden on the NHS and costs for the taxpayer.
As the cost of living continues to rise, Government cannot continue to ignore this group. The need for action is becoming urgent and the Chancellor will need to make more money available to support the provision of face-to-face advice services within GP surgeries as well as provide a higher baseline income guarantee if he wishes to move this group into work.
Back on Track case studies
Mike (not his real name) is a full-time carer for his mother who has dementia. When he received a letter from DWP stating that his mother’s Disability Living Allowance was being terminated and he needed to apply for Attendance Allowance instead, he became very anxious about the application due to his limited literacy skills and being digitally excluded. His anxiety spiralled to a point where he began contemplating suicide. He was already receiving medical support for his mental health and his doctor referred him to Back on Track whereby we helped him complete the Attendance Allowance application which was granted; and shared information on how to access the services of Dementia UK and Alzheimer’s Society for advice on caring for his mum. Mike said to me afterwards: “You and Dr Warda saved my life.”
Mohamed (not his real name) had a stroke which impaired his memory and critical thinking. His rent previously included all utility bills, however, this arrangement stopped without notification and despite continuing to pay his rent, he received letters demanding outstanding payments for utilities. After a year, he developed depression and was identified by his GP who then referred him for financial support. We have contacted the utility providers on his behalf and applied for schemes to write off the debt.