part i claimants. Janet Allbeson from One Parent Families suggested that the system which administers Housing Benefit did not have the capacity to manage the sheer number of times that a claimant’s circumstances may change: The models do not take on board how swiftly people’s circumstances change, particularly those of working age. Tax credits made that mistake, Child Support has made that mistake. The systems just cannot cope with it. Housing Benefit cannot cope with it. In a sense, it is modelling systems around real live claimants. . . but certainly a customer-focused, client-centred view has to recognise how complex people’s lives are and how they change. . . because it is not just about income; it is also about security of income; that is something that people worry about.19 Fundamentally, however, the administration has evolved to deal with the complexities of particular benefits, rather than dealing with the complex personal circumstances of individual claimants. As one scathing consultant remarked: Processes are not designed from a customer focused perspective, and there is no central oversight or responsibility to identify and eliminate inconsistencies and contradictions, or remove work disincentives which arise from cross-system interactions and rules.20 The result of lack of responsiveness is overpayment (which is expensive, and must be reclaimed) or underpayment, as well as unfortunate gaps between when changes of circumstances are reported and when benefits are paid. The potential for fraud is also greater where separate benefit agencies only have a loose grip over the relevant circumstances of claimants.21 The problems of overpayment have been particularly acute with the Working Tax Credit and its rules for reconciliation. For example, if a family’s income rises by less than £25,000 above their assessed rate, they will not be required to pay back the ‘undeserved’ part of the tax credit award they had received. However, if the income drops below the assessed level, entitling them to a greater award, and then rises, again, they are liable for paying back
19 20 21
House of Commons Work and Pensions Committee, Benefits Simplification: Seventh Report of Session 2006–07 Community Links, Low Incomes Tax Reform Group and Child Poverty Action Group Interact: Benefits, Tax Credits and Moving into Work (December 2007), p.6 David Martin Benefit Simplification: How, and why, it must be done (Centre for Policy Studies, 2009), p.11.
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