Oldham to trial credit benefits

OLDHAM was today being named as one of four guinea pig areas for the Government’s overhaul of the benefits system designed to make work pay.

The flagship Universal Credit will be tried out in the borough and Wigan, Warrington and Tameside from next April, six months earlier than planned.

The new credit will replace six income-related work-based benefits, Jobseeker’s Allowance, Employment and Support Allowance, income support, working tax credits, child tax credits and housing benefit.

The Government claims millions of people have become trapped on benefits.

By overhauling the benefits system, the Government say people will always be better off in work.

Up to 1,500 new claimants are expected to take up the Universal Credit each month in Oldham and in each of the other three areas.

Claims

It will then be introduced everywhere from October next year, initially on a small scale — but phasing out new claims for a range of existing benefits entirely by April, 2014.

The transfer of millions of existing claimants to the new system is intended to be completed by 2017.

Work and Pensions Secretary Iain Duncan Smith said: “By sweeping away the complexities of the current benefit system, Universal Credit will be simpler and more straightforward for people to claim.

“The early introduction of Universal Credit demonstrates our ongoing commitment to transforming the welfare system and will improve the lives of millions of claimants by incentivising work and making work pay.”

The Government estimates that about 2.7 million households will have higher entitlements as a result of Universal Credit, with more than one million households seeing an increase in entitlements of more than £25 a week.