As we enter a recession, will DWP re-introduce requirements to look for work?


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Laptop and notebook © Photo by Nick Morrison on Unsplash

As Government works to keep apace with the evolving economic impacts of COVID-19, we can expect further shifts in welfare policy over the months ahead. Having increased benefit rates and removed the requirements usually attached to them, the Department for Work and Pensions may be about to bring back welfare conditionality at a time when getting a job will prove increasingly difficult.

Most people on Universal Credit must meet requirements set by their Work Coach in order to receive the full amount they’re entitled to. This could involve looking and applying for jobs, increasing working hours, participating in training, or attending a meeting at the Job Centre. Failure to meet a requirement leads to a sanction, reducing the household’s UC payments.

When Government announced the lockdown due to COVID-19, these requirements were suspended for three months on 19th March.

But as this period comes to an end, some people may face new challenges in meeting the conditions attached to their claim.

Reverting back to UC conditionality will be particularly challenging amid a context of a sharp reduction in jobs to apply for. The ONS reported this week that vacancies have fallen by 170,000 since the last quarter – the largest reduction since records began in 2001. Alongside this, there has been a 25% decline in hours worked since the lockdown started. The Bank of England is now forecasting that the UK is entering its deepest recession in 300 years.

Caring responsibilities have shifted through the lockdown, with some parents finding their time is largely taken up with supporting primary school age children, and some households may now be sharing a laptop between children studying and parents looking for work. With ongoing uncertainty over plans to re-open schools, this situation is unlikely to change for many families before September this year.

As Government continues to advise against public transport use, people who don’t have a car might have difficulty getting to face to face appointments at the Job Centre. Many libraries and in-person advice services remain closed, and as some people fall in to debt, it could be difficult to meet essential costs, like broadband or electricity bills, that are essential for online job search and contact with work coaches.

In this context, as the DWP considers next steps in developing and offering support for individuals affected by COVID-19, it will soon need to shift from a short term response to a comprehensive plan for Universal Credit, employment support and job creation post Covid-19.

This plan should consider the need for more in-depth, personalised employment support for individuals working in the worst affected sectors looking to re-skill and explore alternative work opportunities where they live. Alongside this, it will also need to embed Universal Credit as a form of long term income replacement to support some households through the recession and economic recovery.


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