UK: Computers blamed for benefits delay

greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread

Y2K is not mentioned in this article, however, I post it to illustrate yet again how dependent we have become on electronic transactions and record-keeping of all kinds.

From Sunday's Electronic Telegraph: ISSUE 1584 Sunday 26 September 1999

Computers are blamed for benefits delay By Martin Bentham, Welfare Correspondent

A CAMPAIGN to persuade millions of poor people to claim more benefits is to be postponed by the Government because its computers cannot cope.

Alistair Darling, the Social Security Secretary, planned to launch an advertising campaign this autumn amid concern that many claimants, particularly pensioners, are not collecting their full entitlement. Figures released last week show that up to #3 billion of income support, family credit and jobseeker's allowance goes unclaimed each year.

However, the publicity drive is now expected to be delayed until next year after the Benefits Agency gave a warning that its computers might be unable to cope with a large increase in claims. The agency, which earlier this year admitted that it had underpaid up to 200,000 pensioners because of a computer blunder, is worried that if it becomes innundated with new claims, it could create further embarrassment for the Government.

The postponement has caused anger at the Department for Social Security and last night prompted criticism from MPs and anti-poverty campaigners. David Rendel, a Liberal Democrat social security spokesman, said any delay was totally inexcusable. He said: "This is appalling. I am not surprised that the Government is having more computer problems, but that is not an excuse. They should make the payments, by hand if necessary. This is money which people are due, but now the Government is not even going to tell them what they are entitled to."

Age Concern said the introduction by Gordon Brown, the Chancellor, of a #75 a week minimum pension guarantee meant that 60,000 more pensioners were eligible for state help this year. That was in addition to the estimated 700,000 pensioners who already failed to claim their full entitlement. The postponement of the advertising campaign was therefore a severe disappointment. A spokesman said: "We were expecting this campaign and if it is now going to be delayed we will be concerned. It will mean thousands of people, who are entitled to more money, living in hardship for longer."

According to department figures, up to #1.5 billion of income support was left unclaimed in 1998 by as many as 1.15 million people. The lowest take-up rate was for pensioners with between 27 and 37 per cent of those eligible failing to claim their full entitlement. Up to #900 million of jobseeker's allowance and between #300 million and #470 million of family credit is also not claimed. Reasons for failure to claim include apathy, where small amounts are involved, and ignorance.

-- Old Git (anon@spamproblems.com), September 25, 1999


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