The Universal Credit Nightmare has barely started rolling out when I spotted a shock to all homeowners hidden in the depths of the document. It seems that the hardworking taxpaying person  who has their own home could be in  for hell of a jolt, and

potentially risk losing their homes should they fall on hard times, such as lose a  job, become ill. So like a manic cat I sent off FOI to the DWP for clarification. it has took me a few conversations to clarify the response as usual that was as clear as mud.

When I received my reply I was right, many those  who make a new claim who already own their own homes will not be eligible to claim UC (Universal Credit) but will instead have to claim ESA, JSA , IS.

If you are already on ESA and migrate to Universal Credit you will still be eligible for UC but the SMI component  will be subject the ‘Zero Income’ rule, which effectively will include the removal of 16 hrs a week earnings disregard and any earnings

above the amounts below will be taken into account will be reduced the SMI help you will receive, so on top of paying the mortgage part of your mortgage while the state effectively pays the interest will come under the new rule and tapers below.


  • There will be a “zero earnings rule”. An owner occupier will have no entitlement to the housing costs element in any period in which they or their partner receive any earned income. Earned income includes any earnings from part time work, and certain benefits that employers pay such as Statutory Sick Pay and Statutory Maternity Pay. Under the current system claimants can work for up to 16 hours a week before their earned income is taken into account in full and starts to affect their benefits. The basis of UC is that claimants will keep more of their earned income because of higher disregards and tapers. As a result, under UC, there is a 65 per cent universal disregard. This means that a claimant would lose only £0.65 of UC for each £1 of net income above the disregard leaving the claimant with more available income than under the current benefits regime. For example, the monthly earnings disregards for claimants who lose their SMI as a result of the zero earnings rule are £111 for a single claimant; £734 for a single claimant responsible for one or more children or young persons; and, £647 for single claimant who has limited capability for work.When an owner occupier claimant’s earned income stops, he or she will be required to serve a further waiting period before they receive further help with their housing costs.


Any new claimants who own their own homes after claiming UC will  get the benefit but not the SMI on there mortgage which leaves them with a  huge shortfall in some cases.This is really going to hurt many People already struggling to keep their heads above water  with another whammy, so the government can save a few quid, its like a bedroom tax for homeowners!

This nasty vindictive government who seems to care not about the ordinary citizen in this country except for themselves and their corporate pals. The ‘I’m Alright Jack ‘mentality offers no solace to the working man or those who have misfortune darken their front doors. They say to people to work hard save and buy their own homes under their second run of  the ‘Right to Buy Scheme’ and when they do they will be punished for doing the right thing. I remember in the 70’s under Thatcher  they did right to buy ,made a killing and never replaced the social housing stock they sold off along I might add with subsequent governments also turning a blind eye to replacing the social housing stock.

Now with Bedroom Tax biting those hit by it, we still have very little in way of building replacements and those who are still in social housing have chance to take second bite of the cherry they missed first time round. While this scheme is different from the present one the catastrophic consequences for some homeowners will be immense. This government will punish the poorest in society yet again. They have no shame  for the outcomes of their actions and will just see it yet again as collateral damage to the governments goal of more cuts and many more to come over a sustained period in the future.



Comments on: "The Universal Credit Nightmare for Homeowners" (31)

  1. This really scares me Gail as I own and no longer get ESA now due to 365 day rule, my wife no longer gets carers allowance as she had to up her hours in her part time job due to lose of ESA really don’t know what I am going to do.


  2. Benefits become more complex, take more than they give and just bring more pain than gain.

    Women are even poorer than men, in the main, are so the loss of benefits is even harder. Then there is the loss of state pension payout at 60, from 2013 to 30,000 women and now fully in 2014 to half a million women born 1954. This is a loss of around £137.53 per week if you factor in Pension Credit.

    The Pension Bill was bad enough. The Flat Rate Pension from April 2016 is even worse. It ends Pension Credit, State Earnings Related Pension and State Second Pension. It also leaves many millions with nil income in old age forever.
    See if you lost most or all of your state pension, even at 80


  3. samspruce said:

    The famous words of Martin Niemöller come to mind:
    …they came first for the Communists, and I didn’t speak up because I wasn’t a Communist;
    And then they came for the trade unionists, and I didn’t speak up because I wasn’t a trade unionist;
    And then they came for the Jews, and I didn’t speak up because I wasn’t a Jew;
    And then . . . they came for me . . . and by that time there was no one left to speak up.
    This is why the people of the UK have to stop this Neo-Liberal slaughter. They ALL have to stand against injustice.


    • Eijnar said:

      The British people are a disgrace to humanity and are beyond all hope of redemption.When the bunch of Carpetbaggers we have masquerading as a government closed down REMPLOY, thus putting THOUSANDS of seriously disabled people out of work simply to prove the governments commitment to unrestricted capitalism,the great British Public,those caring types who like to cry at sad soap opera story lines, did NOTHING!
      No demonstrations ,no organized protest,no thought for the people being destroyed by this petty demonstration of bean counting above decency.When presented with a cast iron opportunity to demonstrate their sense of community and compassion for the less fortunate our entire nation gave these people a collective raspberry and watched as our government destroyed this company and the structure of the lives of our most vulnerable citizens.
      This single episode demonstrates that anyone anticipating the British people rising up and fighting against greed and tyranny is in for a very long wait,this country is PATHETIC!


  4. And, worse still, interest rates are almost certain to rise far above their present historically low levels. That rise will cause mortgage payments required by lenders to rise hugely. I expect that many jobless homeowners will be forced out of their homes by possession orders. Perhaps their capital will be wiped out by negative equity. If they find themselves with a large sum of money after losing their home, that capital will make them ineligible for UC, I believe.


  5. Big Bill said:

    Just as well UC is the impossible fantasy of a madman and will never happen then!


  6. All those who are working, and are Tory voters, but for whatever reason, are not working now…you are all in for a hell of a shock. Because it doesn’t matter, whether you support this vile regime when you were employed.

    The plain fact of the matter is, that once you are deemed to be not ‘financially-viable’, and therefore have to claim some kind of ‘benefit’, this Government will throw you to the wolves, as is proved with this ‘Universal Credit for homeowners.

    So, it doesn’t matter how much you have paid in, to the system, or whether – in Cameron’s words ‘you have done the right thing’, you have worked, and bought your own home. if you claim any sort of benefit, this Government will class you as a ‘sponger’. I wonder how you will feel then about your beloved Conservatives, when you become, one of the millions targeted yourself, as is the case now with this horrible ‘hidden’ policy?

    So, that will put you in the same boat as all those other poor ‘spongers’/souls who, through no fault of their own, have been targeted, demonized and ultimately killed by this Coalition – which is made up, mainly, of Tory ideological policies and propaganda.


  7. […] The Universal Credit Nightmare has barely started rolling out when I spotted a shock to all homeowners hidden in the depths of the document. It seems that the hardworking taxpaying person who has …  […]


  8. I wouldn’t really care if this government would class me a sponger or whatever. I hold them for freaky puppets serving to banks ant to themselves. They hardly represent the interests of the majority of UK people.

    As for the UC more people are getting to know it’s rubbish, just like most other policies Tories have made. No matter how good their computer system would be it can only be as good as the people who operate it.

    I suspect the rule about homeowners who pay mortgage to get £0 housing benefit when they come into a financial trouble is made to support banks who would first be keen to loan them money so they can continue to pay the mortgage before repossessing the property eventually and so grabbing it all.


  9. Great post Blueannoyed, would you mind if we re-posted with attribution on http://www.guerillapolicy.org a site for independent and frontline bloggers. Thanks for considering.


  10. would you mind if I share this on my twitter?


  11. Reblogged this on stewilko's Blog.


  12. Reblogged this on Benefit tales.


  13. Reblogged this on Vox Political.


  14. Reblogged this on sdbast.


  15. I had to sell my home in 2005 as I could get no help at all. I went from a £150 mortgage to a £400 a month rent. The £150 was interest only. I couldn’t afford to pay the mortage as I was on £50 per week and had no other income and no savings. Out of that £50 I had to pay for doctors to fill in insurance forms at £25 each x 5 before they would pay any PPIs out. My home had to go, I had lived there for nearly 12 years. It was only a two up two down and I worked hard to purchase my home. We all live in a house of cards, we so need the safety net of a decent Welfare system. We have paid for it, just as the pensioners have paid into the system too. There would be no need for tax credits either if people were paid a proper living wage!


  16. johnny dee said:

    If you are trying g to demgsify the problem, why do u use an acronymy like SMI in paragraph one? I have no idea what that is.

    Liked by 1 person

  17. The Universal Credit Nightmare for Homeowners | blueannoyed


  18. Reblogged this on L8in.


  19. mili68 said:

    Reblogged this on disabledsingleparent.


  20. mili68 said:

    Tweeted @melissacade68


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