Money & Advice

Osborne indicates incapacity benefits 'to be cut'

Ministers have signalled that incapacity benefits will be targeted in a summer spending review aimed at cutting the £155bn deficit. Chancellor George Osborne said he wanted to protect those in "genuine need" while encouraging those who could work, to do so. Over 2.5m people are on incapacity benefit or employment support allowance - costing about £12.5bn a year. Labour's Yvette Cooper said it was a "return to the Thatcherite 80s". The government has said that NHS and foreign aid spending would be protected as it seeks to tackle Britain's budget deficit, but other government departments face 25% real terms cuts.

'Trade off'

Mr Osborne has said that figure could be reduced, if more savings can be found in the welfare budget - on top of the £11bn cuts he has already outlined. Speaking at the G20 summit in Toronto, he said there would be a "trade-off" between cuts in benefits and cuts in public services such as the police, defence and schools. He identified incapacity benefit and its successor, employment and support allowance, as possible areas for savings. 

George Osborne Chancellor: 'We have got to look at all these things, make sure it protects those in genuine need, protects those with disabilities and protects those who can't work but also encourages those who can work into work.' The Conservatives pledged during the election campaign not to reduce benefits for the elderly, such as pension credit, free bus passes, television licences and the winter fuel payment.

Mr Osborne said: "We have given very specific commitments on some and we have not given specific commitments on others.  "That is what I want to be part of the spending review over the summer. It is a trade-off and some of these benefits are very much larger than most government departments. "We have got to look at all these things, make sure it protects those in genuine need, protects those with disabilities and protects those who can't work but also encourages those who can work into work. That is the purpose behind our welfare reform."

'Readiness for work'

Housing benefit, which costs £21bn a year, has already been targeted - with new caps on the amount people can claim. And in the Budget tax credits were reduced, child benefit was frozen for three years and medical tests introduced for the disability living allowance from 2013. In the coalition deal between the Conservatives and the Liberal Democrats, there was a plan to reassess all claimants of incapacity benefit and its successor, the employment and support allowance, for their "readiness to work".  

Lynne Featherstone Lib Dem MP: ' The previous Labour government tried to get people off such allowances and my experience as a local MP from surgery is that the 're-assessment' of people claiming has been variable at best.' Those deemed fit to get a job would be moved onto Jobseeker's Allowance instead - amounting to a cut in benefits and a requirement to seek work. The Conservatives have argued that one in five incapacity claimants is fit for work - about half a million people. Before the election they suggested that could save £200m a year. BBC political correspondent Norman Smith said that privately the government's view was that many more than half a million could be transferred to Jobseeker's Allowance.

'Ghettos of poverty'

For Labour, Ms Cooper told the BBC the government appeared to be going for "arbitrary targets to cut spending instead of actually a sensible process driven by the medical evidence to try to get as many people as possible back into work". She accused the government of cutting support for the disabled in the Budget and said its policies amounted to a "return to the Thatcherite 80s".

Equalities minister Lynne Featherstone has also expressed concern at the proposals. Writing on her blog, the Lib Dem MP said: "The previous Labour government tried to get people off such allowances and my experience as a local MP from surgery is that the 're-assessment' of people claiming has been variable at best. "We need to be sure that there is no perverse incentive to determine that someone can work when they cannot. We also need to be sure that those carrying out the assessment are good at it."

On Sunday, Work and Pensions Secretary Iain Duncan Smith said he wanted unemployed council tenants to be given incentives to move to areas where there are jobs. He argued that millions were trapped in "ghettos of poverty" unable to move for fear of losing their homes and people were "trapped" in areas with high unemployment. He said his plans were about assisting people, not forcing them to uproot. But Labour MP Louise Ellman, MP for Liverpool Riverside, told BBC Radio 4's Today programme the argument ignored the "need for regional investment in local areas". She said Liverpool had only just recovered from the "devastation" of the 1980s and investment was needed to build up industry and economies so people "have a job to go to and a stronger economy". "A policy that moves on moving people out just leaves devastation behind," she said. "What the government seems to be saying is abandon regional investment and encourage individuals to move out - if you can find the homes they can live in. That isn't a policy, it's going back to the 80s and we don't want that."

Source:  The British Psychological Society

Co-op deal opens up market to excluded

People on low incomes will be offered affordable loans to help them pay for household electrical goods through a partnership between credit unions and The Co-operative Electrical.

The scheme announced today offers families an alternative to doorstep lenders and loan sharks, which over a year can cost 12 times more than money provided by a credit union according to figures by Association of British Credit Unions.

Through The Co-operative Electrical, part of The Co-operative Group, credit union customers will be able to access competitively priced products including washing machines, cookers, fridge-freezers, televisions, computers, digital cameras, sat navs and beds.

The scheme, which was initially piloted with Knowsley Mutual Credit Union, is now available through almost 100 credit unions with plans to extend availability to all credit unions in the UK mainland.

Once the credit union member has made their selection and had their loan approved, the credit union places the order and the item is delivered direct to the member’s home.

David Sanderson, commercial manager of The Co-operative Electrical, said: 'The impact of the recent recession has resulted in more and more people experiencing the restrictions of financial exclusion, paying the price for limited choice with interest rates and charges many times higher than those of mainstream personal loans.

'There is a need for an ethical and affordable alternative for purchasing those everyday goods that most take for granted. And, through our close relationship with credit unions we have developed a scheme that delivers greater choice and cost saving benefits to the financially excluded.'

Credit unions wanting further information about the scheme should email david.sanderson@coop.co.uk

Article by Rosie Niven, New Start Magazine

A fond farewell to Jan

Bromley Mind had to recently bid a fond farewell to Jan Bereziuk, who was their Welfare Benefits adviser for over ten years, and has moved on to pastures new.

Jan worked incredibly hard to ensure that service users of Bromley were given a fair deal with their benefits, and will be sorely missed.

Taking his place will be David Feast, and we wish both David and Jan the very best of luck for the future.

Bromley Mind Welfare Benefits Advisory Service listing

The Human Cost of the Recession

As the Conservative party predicts that we will see a staggering 26% increase in the number of people experiencing mental health problems by 2010 as a direct result of Britain's economic crisis, leading mental health charity Mind says that more investment is needed in services to help cope with this potential surge.

Mind's Chief Executive Paul Farmer (right) said:

"Financial health and mental health are inextricably linked. If people think that the recession is just about the cost to industry, then think again - it's also about the wide-ranging human costs. Job insecurity, redundancy, debt and financial problems are all proven to contribute to mental distress. As more people come face to face with these problems, there is no doubt that we will see an increase in depression, anxiety and stress. We need to make sure that these aren't the first steps up a one-way street by providing mental health support when people need it.

"All the indications are that next year we will see an increase in redundancies across more and more professions. As jobs are threatened and more people need to seek new employment, it's vital that we fight discrimination in the workplace so that people with mental distress are given an equal chance to stay in and find work.

"No one is immune to the recession, and no one is immune to the distress this can cause. It's never been a more important time to invest in mental health."

In May 2008, Mind published the report 'In the red: debt and mental health' which revealed that for people who already experienced mental distress, 91% said it made their mental health problems worse. We would encourage anyone struggling with their finances to talk about their concerns and seek advice and help. Mind recently launched a new section on it's website with advice on money management and where to get help: http://www.mind.org.uk/money

New survey reveals how the credit crunch is affecting our mental health

A new survey released on World Mental Health Day (10th Oct) has revealed that whilst the credit crunch has understandably made many people a little more depressed and anxious, just 8% had become a lot more depressed and anxious.

The YouGov survey commissioned by mental healthcare specialists Affinity found that overall 51% of people surveyed said that they were in fact unaffected by the current financial circumstances, and a further 37% had been a little more anxious or depressed. There were some variations in responses in that greater levels of effect were reported in those aged between 45-54 (41% a little more anxious and depressed, 9% a lot more anxious and depressed). Also the most affected regions have been Yorkshire and the Humber (46%), West Midlands and East of England (all with 47%) whilst the North East is the least, with 37%.

An issue raised through this survey was variation in how open people are in acknowledging mental health symptons. People in the North East are more likely to admit they have suffered a mental illness (24%) whilst those in the East of England and the South West are least likely to (11%).

Affinity Healthcare's consultant psychiatrist and honorary professor at Chester University Dr Ben Green (pictured right) said: "This is an interesting snapshot of the UK's mental health. It is clear that the credit crunch is having some effect on people's mental wellbeing, and it is clear that there is variation in how open some people are able to be about their mental health.

"Mental health is often affected by the economic climate and it's understandable that homeowners are more likely to feel more depressed and anxious due to the current economic turbulence. However, with openness and support, symptoms might well resolve."

He added that mental illness, which can be a problem with anxiety, mood or behaviour or a mental disorder, is misunderstood in the UK. The survey revealed that mental health problems affect many people's lives, either directly or through family members or close friends. Women are more likely to speak out with 17% admitting to suffering from a mental illness compared to 13% of men.

Dr Ben Green continued: "This survey is aimed at raising awareness of mental health and dispelling the negative stereotypes that people attach to the disorder. It revealed that 36% of respondents thought drug addicts would be most likely to suffer from a mental health problems, with another 19% admitting to thinking elderly people would be most likely to suffer.

"With some commentators stating that 1 in 4 of all people are likely to suffer from a mental health problem at some point in their life, we believe that these findings show that many people don't realise that it can be something as common as suffering from depression or anxiety."

Dr Green added "Another worrying area of this survey is that a high proportion of young people aged 18-24 (38%) seem to be turning to the internet as a way of diagnosing their problem rather than seeking treatment from a professional. It's vital that someone who suffers from mental health problems seeks professional clinical help in the form of a family doctor or a recognised support service.

"Mental health problems can leave individuals feeling isolated and alone. On World Mental Health Day, it's important that people realise they don't have to suffer alone and that there is help available."

For help and advice on any mental health issues contact:

MindinfoLine (Monday to Friday 9.00am - 5.00pm) on 0845 766 0163

BREC Closure

Press release from Ali Jafarey, Director BREC and the BREC Executive Committee:

"After Friday 20th June 2008, Bromley Racial Equality Council, BREC will cease business and close its doors. This sad situation has come about due to a lack of funding. BREC has been in operation since 1991 and over this period has served many thousands of people in the local community. Unfortunately this will inevitably impact on all of BREC's services and it is in this regard that unfortunately we will not be able to work with you any further.

All of the BREC staff and management have fought hard over the past three months to save BREC through applications and lobbying for funds, all with no success. We would like to thank all those who have worked in good faith with BREC to support those individuals and communities who have been victims of racial harassment or discrimination. We would also like to thank all our funders over the years. Lastly many thanks to the staff, executive committee and volunteers who have worked at BREC for their commitment and hard work over the years."

Minister launches innovative telecoms system

Minister for Care Services Ivan Lewis launched Mental Health Helplines Partnership's innovative telecoms network system at the House of Lords on 27th March 2008, followed by a video presentation to demonstrate the features and benefits of the system.

This system is further evidence of Government commitment to offer callers greater choice, and better access to services through mental health helplines.

Download full press release as a PDF file