TRATAMIENTO DE EFLUENTES GENERADOS EN UN PROCESO DE CIANURACIÓN.

What is changing?

When households receive their Universal Credit award, it will go to one bank account, which has to be nominated and approved by both members of a couple. This is a change from the current system, where different benefits and tax credits can be split between the main earner and the main carer. In 80% of cases, the Child Tax Credit (typically the largest state transfer families receive) is paid to the mother, for example.104

Summary of impact

For most of our households, the single recipient was viewed with indifference; this was because of the collaboration over finances in most households, and the fact that most of our interviews were with women, who generally elected themselves as the potential claimant under Universal Credit. However, in a minority of cases, the research suggests that the reforms could undermine the financial independence and resilience of a household member where power was unbalanced within the relationship. In addition, the secondary literature suggests the reforms could have unforeseen impacts such as lowering the level of resources directed at children.

Implications of the single recipient

Most of those interviewed felt that the move towards a single recipient would not be problematic. This was due to two principal reasons. First, many of the women interviewed nominated themselves as the likely recipient. Second, even when this was not the case, participants often expressed high levels of trust, sharing and communication with their partners over household budget management.

104 Chris Warburton Brown, “Should mum get the credit? The impact of paying tax credits directly to mothers”, University of Glasgow presentation, http://www.social-policy.org.uk/lincoln2011/Warburton-Borwn%20P5.pdf.

I mean, I guess Dan puts the money in, and he’s the one who, kind of, checks and makes sure, and I double check to make sure its ok. It’s, kind of, the two of us really.

Female in a dual parent household, recently transitioned into work, London

Therefore, most of our households felt that they would adjust to the reforms with only a marginal restructuring of the way the household managed its money.

I don’t think it would affect us a great deal. Obviously we would have to juggle things around as to who pays what.

Female in a dual parent household, recently transitioned into work, Brighton

It wouldn’t affect us. I would just give the [Post Office] card to H.

Male in a dual parent household, long-term out of work, Brighton

However, these findings have to be interpreted with care, not least because the evidence from other benefits for workless couples suggests the man is the likely claimant: currently almost

two thirds of Income Support claims are made by men.105 _{First, the}

majority of our interviews were carried out with only one member of the household, typically the woman, and the interviewee had identified themselves as the principal budgeter in the household. Second, the research involved a number of paired interviews. This did not bring different underlying tensions to the surface but, even in paired interviews, research suggests that when asked about their arrangements, couples may put on a united front to convey

105 Department for Work and Pensions, Equality Impact Assessment – Universal Credit: welfare that works (London: HMSO, 2011), 10.

togetherness.106 _{To get right to the bottom of any inconsistencies} in how members of the households report how they will manage money under the Universal Credit, more interviews with women and men independently and together may help.

A small number of women interviewees also believed that some benefits should go to the member of the household who was ‘entitled’ to it, because they saw it as income replacement. For example, it was argued that, if a man had just been made redundant, it was fair that he should receive the Jobseekers’ Allowance:

I just think if it was his Job Seekers money, it should go to him. I just feel that that’s the right way.

Female in discussion group, Brighton

Some interviewees did express secondary concern for other households – that, in a troubled relationship, for example where there was a power imbalance or a controlling partner, it may be problematic for one partner to have no independent source of income.

You’re basically giving the power to people to control other people.

Male in discussion group, London

Though interdependence and collaboration with partners was most common for our interviewees, in a small minority of cases the idea of a single recipient was extremely troubling. This concern stemmed from:

• financial affairs being separately managed within the

household, with little sharing of information on income and expenditure;

106 J. Stocks, C. Diaz, C. and B. Hallerod (eds), Modern couples sharing money, sharing life (New York: Palgrave Macmillan, 2007).

• a lack of certainty about who would end up wanting or being able to lead the household finances and budgeting process;

• distrust of the man’s ability to spend money in the interests of

the whole household;

• concern that the single recipient could be used to exert power

and control within the household.

One woman said that she would have to nominate herself as ‘I

don’t trust my partner’. She also noted that it would cause significant tensions in the household,

Because a man… if something like that happens, a lot of men, the majority of men would think, “Well, I’m the man, it’s me who should be controlling it”.

Female in a dual parent household, recently transitioned out of work, London

Although reluctant to manage the household finances completely herself, another woman noted,

I think if he had it, he’d probably get on like some kind of power trip and like “no, it’s his money”, “here’s your £10 pocket money” and stuff like that. I don’t think it would be good for us if that was the case.

Female in a dual parent household, recently transitioned into work, Oldham

Therefore, it is clear that a single recipient could have significant consequences for such households. Under the provisions of the Welfare Reform Bill, both members of a couple have to sign the Universal Credit claim. Additionally, the Secretary of State has powers to decide which partner should receive a payment, for example where the Secretary of State considers that the benefit

money could be mis-spent.107 _{This power will be useful in cases} of criminal abuse, but less compelling in instances of power imbalances and financial abuse within the household.

Wider implications

Our research suggested two broad categories of people: those who will manage well with a single recipient and those where it could be extremely problematic because of financial abuse. But the secondary literature suggests there are wider, more subtle implications which may mean there are less tangible implications of which households may be less aware.

First, some households may not be abusive, but the man does control financial arrangements. The academic literature reveals that the power dynamic over finances in some households can be

unbalanced, and can be particularly unfavourable for the woman.108

Several studies show that in these types of households, men often

consume more items from the common ‘house-keeping’ purse.109

Additionally, secondary analysis of the 2005 Financial Services Authority baseline survey of financial capability shows that 46% of

households have a joint bank or building society account;110 _{but a}

joint bank account does not necessarily mean joint ownership of the management of the money. The Government has confirmed that ‘particularly in low income households … men sometimes

benefit at the expense of women from shared household income’.111

107 Department for Work and Pensions, Explanatory memorandum for the Social Security Advisory Committee, http:// www.dwp.gov.uk/docs/uc-draft-regs-2012-memorandum.pdf, 7.

108 The Women’s Budget Group, Women’s and children’s poverty: making the links (London: The Women’s Budget Group, 2005), 6.

109 Chris Warburton Brown, “Should mum get the credit? The impact of paying tax credits directly to mothers”, University of Glasgow presentation, http://www.social-policy.org.uk/lincoln2011/Warburton-Borwn%20P5.pdf. 110 Adele Atkinson, Stephen McKay, Elaine Kempson and Sharon Collard, Levels of financial capability in the UK: results

of a baseline survey (Bristol: University of Bristol, 2006).

Second, there is a wealth of evidence from the UK and abroad to suggest that when women receive benefits this is more likely to lead to higher expenditure on children. When child benefit was transferred to women from men in the late 1970s, there was a significant increase in expenditure on women’s and children’s

clothing.112 _{In Brazil, Canada and France, there has been econometric}

testing showing that men and women have different spending

patterns, with women tending to spend more on children.113

Third, other literature suggests a single recipient could have wider gender implications, of which claimants may be less aware:

• One member of the couple could be deprived of the

opportunity to manage finances on a regular basis. Making more people dependent on their partner for financial affairs –

as 19% of people currently are114 _{– could have negative long-}

term effects, particularly in later years if a relationship ends because of separation or bereavement.

• One member of the couple may not be able to access a bank

account in the future. To open a bank account, you need proof of income – which is difficult if you are not paying utilities or bills.

• It could lead to a couple penalty. Those forming new

relationships are more likely to have a separate bank account: 58% of cohabiting couples did not set up a joint account when

they first moved in with each other, for instance.115 _{But the risk}

of losing control over income when a partner moves into the

household could deter couples from living together.116

112 Shelly J.Lundberg, Robert A.Pollak, Terence J.Wales, “Do husbands and wives pool their resources? Evidence from the United Kingdom Child Benefit”, The Journal of Human Resources, XXXII, (1996), 479.

113 John Hoddinott and Lawrence Haddad, “Does female income share influence household expenditures?”, Oxford

Bulletin of Economic and Statistics, 57:1 (1995), 78.

114 Atkinson, McKay, Kempson and Collard, Levels of financial capability in the UK: results of a baseline survey.

115 Myra Butterworth, “Four out of five couples do not share joint bank account”, The Daily Telegraph, May 9, 2011. A further 21% only set up a joint account for bill payments.

116 Fran Bennett, “Universal Credit: payment to joint claimants”, http://wbg.org.uk/pdfs/Universal-credit-payment- to-joint-claimants-Nov-2011-Clause-97.pdf, 6-7.

The secondary literature suggests there are more nuanced gender implications. So, in addition to the powers residing with the Secretary of State, there may be a case for claimants to be given a choice to split payments if they feel this would help their budgeting and financial arrangements.