Universal credit: Single mums win High Court battle

Law&Justice reporter(wp/bbc):::

Four working single mothers have won a High Court challenge over the government's universal credit scheme.

They argued a "fundamental problem" with the system meant their monthly payments varied "enormously", leaving them out of pocket and struggling financially.

Lawyers for the women said the problem was likely to affect "tens of thousands of people" claiming the benefit.

A DWP spokesman said: "We are carefully considering the court's judgment."

It comes as Work and Pensions Secretary Amber Rudd announced a raft of changes to the government's flagship scheme.

She also confirmed she would delay asking Parliament to authorise the transfer of three million people on to universal credit until next year, after a pilot of the transfer from existing benefits has been completed.

Universal credit is a means-tested benefit, rolling six separate benefits into one payment.

It has proved controversial almost from its inception, with reports of IT issues, massive overspends, administrative problems and delays to the scheme's roll-out.

• What is universal credit?
• Universal Credit: Will benefit changes affect you?

On Friday, it was announced that Danielle Johnson, Claire Woods, Erin Barrett and Katie Stewart had succeeded in a judicial review action against the government over the method used to calculate payments.

It followed a hearing in November when the court was told the women were struggling financially, with some falling into debt or relying on food banks.

'Untold hardship'

Tessa Gregory, a solicitor from law firm Leigh Day, who represented part-time dinner lady Danielle Johnson from Keighley, West Yorkshire, said her client was "a hard-working single mum" and "precisely the kind of person universal credit was supposed to help".

But Ms Gregory said the "rigid income assessment system" had left her £500 out of pocket over the year and spiralling into debt.

Solicitor Carla Clarke, of the Child Poverty Action Group, which also brought the case on behalf of the mothers, said the universal credit system was "out of step with both actual reality and the law", and had caused them "untold hardship, stress and misery".

When calculating universal credit, the Department for Work and Pensions (DWP) sets assessment periods for each person to look at how much they earn - from the 1st of the month to the end of the month, for example.

But lawyers for the mothers said a problem arises when claimants are paid by employers on a date which "clashes" with their assessment period.

For example, they pointed out that if a claimant is paid early because of a weekend or bank holiday, the system counts them as having been paid twice in one month and they receive a "vastly reduced" universal credit payment.

'Fairly compensated'

Two judges in London concluded the work and pensions secretary had "wrongly interpreted" the relevant regulations.

Ms Gregory called for Ms Rudd to take "immediate steps to ensure that no other claimants are adversely affected" and "ensure all those who have suffered because of this unlawful conduct are swiftly and fairly compensated".

On Friday Ms Rudd promised to make the universal credit system more "individual" and tailor it to claimants needs, for example by making payments more regular.

Changes will also see more money go directly to women who are the "main carer" in a family, in response to criticism that the "one payment per household" system penalised women.

Charities have argued a whole family's benefit payments often go to the man's account and women, particularly victims of domestic violence, have little or no access to it.

Ms Rudd also announced a U-turn on plans to extend a benefits cap on families with more than two children.

The cap will no longer apply to about 15,000 families, who had their children before the two-child limit was introduced in 2017.

Hitachi, UK says no decision taken on British nuclear project

Business correspondent(wp/reuters):::
Japan’s Hitachi (6501.T) has yet to decide whether to proceed with its trillion yen (£7.2 billion) nuclear project in Britain and talks with the government are continuing, the company and government said on Friday.

Hitachi’s Horizon Nuclear Power unit has struggled to find investors for its plans to build a plant in Anglesey, Wales, which could provide about 6 percent of Britain’s electricity.

Japan’s Nikkei business daily reported that Hitachi had decided to freeze the project, although it also reported that the board had yet to vote to make it a formal decision.

A spokeswoman for British Prime Minister Theresa May said talks with Hitachi were continuing.

“On Hitachi, the negotiations on that are ongoing and those are obviously commercially sensitive so I can’t comment,” the government spokeswoman told reporters when asked about the reports.

May met Japanese Prime minister Shinzo Abe this week in London. He told her Japan did not want to see a disorderly Brexit when Britain leaves the European Union in March.

Hitachi said in Friday’s statement that it had been assessing the project “including its potential suspension and related financial impact.”

“Should any matter arise which needs to be disclosed Hitachi will announce information in a timely manner,” Hitachi said.

Nikkei reported that Hitachi had decided to freeze the project, leading to a special loss of 200 billion to 300 billion yen for the year ending in March. Hitachi’s board would vote on the suspension at a meeting next week, it reported without citing its sources.

In Friday’s statement, Hitachi said: “These articles aren’t based on Hitachi’s decision or disclosed information.”

Hitachi was hoping a group of Japanese investors and the British government would each take a one-third stake in the equity portion of the project. A company source has said the project would be financed one-third by equity and rest debt.

Britain wants new nuclear plants to help replace its ageing fleet of nuclear and coal plants coming offline in the 2020s, but high up-front costs have deterred construction.

Another Japanese conglomerate, Toshiba Corp (6502.T), scrapped its British NuGen project last year after its U.S. reactor unit Westinghouse went bankrupt and it failed to find a buyer.

Shares of Hitachi rose by as much as 6 percent on the Tokyo stock exchange after the report.

Virgin Atlantic buys UK airline Flybe for cut-price $2.8 million

Business correspondent(wp/reuters):::
Richard Branson’s Virgin Atlantic has teamed up with Stobart Group (STOB.L) and Cyrus Capital to buy Flybe (FLYB.L) for $2.8 million (£2.2 million), aiming to rebrand the struggling British regional carrier and use it to feed customers to its long-haul flights.

The consortium will provide a 20 million pound bridging loan facility to support Flybe’s working capital requirements and up to 80 million pounds of funding would be made available once the deal was completed.

Flybe, which operates routes from about 25 British airports, including domestic connections to London’s Heathrow, said its short-term performance had been hit by higher fuel costs, currency fluctuations and uncertainties presented by Brexit.

“By combining to form a larger, stronger, group, we will be better placed to withstand these pressures,” Flybe Chief Executive Christine Ourmieres-Widener said.

A joint venture company called Connect Airways — 40 percent owned by Cyrus’ unit DLP Holdings and 30 percent each owned by Stobart Group’s aviation unit and Virgin Atlantic — had won the backing of Flybe’s board to buy the airline.

However, Flybe’s shareholders will receive one pence in cash for each Flybe share under the terms of the recommended offer, a 94 percent discount to Thursday’s close of 16.38 pence.

Flybe, Britain’s biggest domestic airline, was valued at 215 million pounds when it joined the London Stock Exchange in 2010.

GRAPHIC: Flybe shares nosedive - tmsnrt.rs/2H4RNtm

SMALLER AIRLINES STRUGGLE

Airlines have been looking to consolidate in many markets as a result of rising running costs, higher fuel prices and increased competition from budget carriers.

Air Berlin, once Germany’s second largest carrier, went into administration in August 2017 when former parent Etihad Airways withdrew funding. Nordic budget airline Primera Air and Cypriot counterpart Cobalt both collapsed last October.

Virgin Atlantic, which is 49 percent owned by Delta Air Lines, said Flybe would provide “excellent connectivity to our extensive long haul network and that of our joint venture partner, Delta Air Lines, at London Heathrow Airport and Manchester Airport”.

“In the near future, this will only increase, through our expanded joint venture partnership with Air France-KLM,” said Virgin Atlantic chief executive Shai Weiss.

The combined business will include a UK network carrier, with all flying operations except Stobart Air operating under the Virgin Atlantic brand. However, it plans to operate independently of Virgin Atlantic with only support functions having some overlap.

Connect Airways will also buy Stobart Group’s regional airline and aircraft leasing business immediately before the Flybe deal completes, the companies said in a statement, without disclosing a deal value.

Barclays acted as financial adviser to Stobart Group and Connect Airways, while Rothschild & Co advised Virgin Atlantic. Evercore advised Flybe on the deal.

UK economy slows as global worries, Brexit weigh on factories

Business correspondent(wp/reuters):

Gross domestic product was 0.3 percent higher than in the previous three-month period, down from growth of 0.4 percent in the three months to October and matching the consensus of a Reuters poll of economists.

Manufacturers suffered their longest period of monthly declines in output since the financial crisis, hurt by weaker overseas demand, the Office for National Statistics said.

Looking at November alone, industrial output dropped 1.5 percent on the year — the biggest fall since August 2013.

Worries about the global economy have been mounting due to concerns about a trade war between the United States and China. Figures from Germany and France earlier this week also showed falling industrial output.

“There may well be a common theme which is hurting the factory sector throughout Europe, for example changes in the auto industry,” Investec chief economist Philip Shaw said, adding that Brexit worries were also weighing on investment.

Carmakers across Europe have suffered from a fall in demand for diesel vehicles due to pollution concerns.

Sterling and British government bonds were little changed by Friday’s figures.

The figures fit with business and consumer surveys that suggest the economy is slowing sharply after robust growth of 0.6 percent in the third quarter of the year, reflecting growing uncertainty ahead of Brexit, as well as global jitters.

Britain is due to leave the EU on March 29 and whether businesses will still be able to trade without disruption to cross-border supply chains remains unclear.

Prime Minister Theresa May risks losing a parliamentary vote on Tuesday on the deal she has agreed with the EU. Defeat would leave open the prospect of Britain leaving the EU without any transitional arrangements to smooth the economic shock.

Compared with a year earlier, Britain’s economy was 1.4 percent larger. In November alone, it expanded 0.2 percent, compared with forecasts for a rise of 0.1 percent.

The Bank of England says the economy is likely to have grown around 0.2 percent over the fourth quarter of 2018.

Closely watched purchasing managers’ surveys have pointed to fourth-quarter growth of around 0.1 percent in Britain, according to data firm IHS Markit which compiles the surveys.

Britain’s economy slowed after the June 2016 Brexit vote, its growth rate slipping from top spot among the Group of Seven group of rich nations to mid-table or lower.

An unusually warm summer and the soccer World Cup spurred a pick-up in mid-2018 but retail sales data suggest consumers reined in spending late last year.

Britain’s services sector grew by 0.3 percent over the three months to November, while industrial output dropped by 0.8 percent, the biggest decline since May 2017.

Separate figures showed Britain’s goods trade deficit widened unexpectedly in November to 12.0 billion pounds from 11.9 billion pounds, worsened by the highest oil imports since September 2014.

Exclusive News::: Leading Brexit donors say Britain will reverse decision to leave EU

Political reporter(wp/reuters):::

 Two of the biggest donors to the Brexit campaign say they now believe the project they championed will eventually be abandoned by the government and the United Kingdom will stay in the European Union.

Peter Hargreaves, the billionaire who was the second biggest donor to the 2016 leave campaign, and veteran hedge fund manager Crispin Odey told Reuters they expect Britain to stay in the EU despite their campaign victory in the 2016 referendum.

As a result, Odey, who runs hedge fund Odey Asset Management, said he is now positioning for the pound to strengthen after his flagship fund previously reaped the benefit of betting against UK assets amid wider market fears about the impact of Brexit.

The donors’ pessimism comes amid deadlock in Britain’s parliament over the exit deal that Prime Minister Theresa May has struck with the EU, which has cast significant uncertainty over how, or even if, Brexit will happen.

Hargreaves, who amassed his fortune from co-founding fund supermarket Hargreaves Lansdown (HRGV.L), said the political establishment were determined to scuttle Brexit and this would lead to a generation of distrust of Britain’s political classes.

The government, he said, is likely to first ask for an extension to the formal exit process from the EU and then call for a second referendum.

The Duchess of Sussex announces Patronages

Royal correspondent,london(wp):::

Her Majesty The Queen has passed on two patronages to The Duchess of Sussex –The National Theatre and The Association of Commonwealth Universities. The Queen has held the roles for 45 and 33 years respectively. Her Royal Highness will also take on Patronage of two additional charities as part of her official working portfolio – Smart Works and Mayhew. 

The Duchess is delighted to become Patron of both national and grassroots organisations that are part of the fabric of the UK, and is very much looking forward to working with them to bring wider public attention to their causes. Her Royal Highness feels she can use her position to focus attention on, and make a particular difference to these organisations and, more widely, the sectors they each represent. 

For the arts, the National Theatre’s mission is to make world class theatre that is entertaining, challenging and inspiring for everyone and to be as inclusive, diverse and national as possible. In support of access to education, the Association of Commonwealth Universities is the world's first and oldest international university network and the only accredited organisation representing higher education across all 53 Commonwealth countries. 

With regards to supporting women, Smart Works helps long-term unemployed and vulnerable women regain the skills, confidence and tools to succeed at job interviews, return to employment and transform their lives. In terms of animal welfare, Mayhew is a grassroots charity working in a unique way to improve the lives of animals and people to better communities both in London and internationally. 

Over the last year, Her Royal Highness has held meetings and conducted private visits with each of these organisations. The Duchess will today visit Smart Works and over the next few weeks will undertake public visits to the other three organisations. 

Further information on these organisations and why The Duchess has chosen to support them as Patron follows: 

The National Theatre

The Duchess is a strong believer in using the arts to bring people from different backgrounds and communities together. The National Theatre’s mission is to make world class theatre that’s entertaining, challenging and inspiring – and to make it for everyone. It aims to reach the widest possible audience and to be as inclusive, diverse and national as possible with a broad range of productions that play in London, on tour around the UK, on Broadway and across the globe.

The National Theatre's extensive UK-wide learning and participation programme supports young people’s creative education through performance and writing programmes like Connections, New Views and Let’s Play. Its major new initiative Public Acts creates extraordinary acts of theatre and community; the first Public Acts production was 2018’s Pericles. The National Theatre extends its reach through digital programmes including NT Live, which broadcasts some of the best of British theatre to over 2,500 venues in 65 countries, and the free streaming service On Demand In Schools, used by nearly 60% of UK state secondary schools.

The National Theatre invests in the future of theatre by developing talent, creating bold new work and building audiences, partnering with a range of UK theatres and theatre companies. For more information, please visit https://www.nationaltheatre.org.uk/.  

Whilst Her Royal Highness spent ten years working in television, her training is in theatre. As well as a double major in theatre and international relations from Northwestern University, which is renowned for its drama programme, Her Royal Highness volunteered at a performing arts after school programme for children in underprivileged school districts in Los Angeles. 

The Association of Commonwealth Universities (ACU)

As a university graduate, Her Royal Highness is a strong advocate of accessible education for all, something she spoke of most recently during her visit to Fiji last year. Established in 1913, the ACU is the world's first and oldest international university network, with more than 500 member institutions in over 50 countries. It is the only accredited organisation representing higher education across the Commonwealth. The ACU champions higher education as a force for good in the Commonwealth and beyond.

Among its key principles is the value of higher education to society – or its role ‘as a common good’ – and the conviction that this value is enhanced by international collaboration. The ACU manages international scholarship schemes – including the UK government’s three major scholarship programmes and The Queen Elizabeth Commonwealth Scholarships – that offer life-changing educational opportunities, convenes universities to address key policy challenges such as climate resilience and peace and reconciliation, and promotes the role of universities in delivering the UN Sustainable Development Goals. For more information please visit https://www.acu.ac.uk/.

During her recent visit to Fiji, The Duchess announced new Gender Grants for ACU member universities in the Pacific to fund new learning initiatives aimed at empowering female university staff and promoting gender equality. Her Royal Highness last month met with university leaders, academics and international scholarship students as they discussed the role of higher education in addressing issues such as human trafficking, modern slavery, gender equality, peace and reconciliation, and climate change.

Smart Works

The Duchess has visited Smart Works several times over the last year where she has worked with many women who have benefited from the charity’s support, helping them through coaching and interview preparation. Her Royal Highness has also volunteered with several other projects in this sector in the past. Created in September 2013 Smart Works exists to help long term unemployed and vulnerable women regain the confidence they need to succeed at job interviews, return to employment and transform their lives.

Half of Smart Works’ clients are from an ethnic minority, long-term unemployed and have been unsuccessful with a large number of job applications. Thanks to the charity’s support, 60% go on to get a job following their visit to Smart Works. As well as providing complete outfits of high quality clothes for job interviews, beneficiaries also have access to one-to-one interview training and the opportunity to join Smart Works Network, meeting every month to further their professional and personal development. Smart Works aims to dress 3500 women this year across their two London offices, and additional bases in key cities across the UK - Edinburgh, Manchester, Reading, Birmingham and Newcastle. For more information please visit http://smartworks.org.uk/. 

Her Royal Highness has also been involved with several other projects in this sector, including a project whilst at university which provided prom dresses for young women in underprivileged areas. The Duchess has a longstanding track record of working in the space of women’s empowerment both in her local community as well as abroad. In recent years, Her Royal Highness has travelled to India and Rwanda working on projects to mobilise women in challenging or marginalized situations to see their full potential. 

Mayhew

The Duchess has long understood the connection between animals and community welfare and has supported various animal rescue centres in Los Angeles. Established in 1886 and entirely funded by public donations Mayhew is an animal welfare charity working to improve the lives of dogs, cats and people in communities both in London and internationally. Mayhew looks for innovative ways to reduce the number of animals in need through pro-active community and educational initiatives and preventative veterinary care.

This includes working with homelessness charities across London to ensure people and their dogs can be kept together; running a Pet Refuge programme to provide shelter and care for the pets of people in crisis for short periods of time; and educating young people about animal welfare and the importance of responsible pet ownership. Internationally, Mayhew works with governments, local communities and charitable groups in Afghanistan, Georgia, Russia and India to help improve animal welfare. For more information visit https://themayhew.org/. 

The Duchess of Sussex is very much looking forward to working closely with these organisations, and her continued work with The Royal Foundation of which she is joint Patron along with The Duke and Duchess of Cambridge and The Duke of Sussex. 

Rufus Norris, Director of the National Theatre said: “I would like to thank The Queen for Her Majesty’s long and unwavering support and service to the National Theatre. We were honoured when The Queen became our Patron in 1974 and have celebrated many moments together including, in recent years, the Diamond Jubilee and the marking of our 50th anniversary. It is a privilege to welcome The Duchess of Sussex as our new Patron. The Duchess shares our deeply-held conviction that theatre has the power to bring together people from all communities and walks of life. I very much look forward to working closely with Her Royal Highness in the years to come”.

Dr Joanna Newman MBE, Chief Executive and Secretary General of the ACU, said: “We are absolutely delighted that HRH The Duchess of Sussex has chosen to become Patron of the ACU. The Duchess shares our passion for the transformational power of higher education, and Her Royal Highness’ support will help champion higher education as a force for good in the Commonwealth and beyond. We would like to thank Her Majesty The Queen for her support, and we look forward to working closely with The Duchess as our Patron.”

Juliet Hughes-Hallett, Chair and Founder of Smart Works said: “We are thrilled to announce that The Duchess of Sussex will become the Royal Patron of Smart Works. An acknowledged champion of women and their rights worldwide, The Duchess will motivate ever more women to come to our centres and get the job that will transform their lives. The Duchess’s patronage will inspire the women we serve and help them reach for the stars.”

Caroline Yates, CEO of Mayhew said: “We are so excited that HRH The Duchess of Sussex has chosen to be our Patron. Mayhew works to improve the lives of dogs, cats and the people in our community, tackling the root cause of animal abandonment and neglect and supporting vulnerable people to stay with their companion pets. The Duchess has spent many years championing animal welfare, and we are honoured to have our charity represented by such a passionate Patron. We look forward to working closely with The Duchess and hope that, together, we can help even more animals and people.”

The Duke of Cambridge becomes Patron of the London Air Ambulance 30th anniversary campaign

Royal correspondent,london(wp):::

The patronage has been announced ahead of His Royal Highness’ visit to the London Air Ambulance at The Royal London Hospital later this morning. The visit will see The Duke meet with clinicians, paramedics, pilots and crewmembers, to learn more about the challenges of working as a first responder in the capital. 

Through his work as an air ambulance pilot for the East Anglian Air Ambulance, The Duke has seen first-hand the impact these first responders have upon the lives of patients with critical injuries. As Patron of the 30th Anniversary Campaign, The Duke will champion those working on the frontline, and highlight the importance of the London Air Ambulance’s vital work. 

Jonathan Jenkins, CEO of London’s Air Ambulance Charity, said: “We are delighted that The Duke of Cambridge has accepted the role of Patron of the London’s Air Ambulance 30th Anniversary Campaign.

"Through his support, we aim to raise awareness of the life-saving work carried out by us and by air ambulances across the UK. Our crew face significant challenges when delivering our rapid response and cutting-edge medical treatments in London.

"Through funds raised in our 30th year, we plan to improve our facilities to ensure we can respond even faster, enhance our training and ensure our crews have the facilities they need for their mental health and wellbeing.”