A/HRC/41/39/Add.1
2018. 55 The collapse of this vital resource has apparently been of little concern to the
Government, which decentralized responsibility for the funds and does not collect any
information on what has become of them.
D.
Privatization
44.
The United Kingdom was a pioneer in privatizing previously public services across
a wide range of sectors. In 2018, the National Audit Office concluded that the private
finance initiative model had proved to be more expensive and less efficient than public
financing in providing hospitals, schools and other public infrastructure. 56 Studies of the
results of privatization in sectors such as water, energy and public transportation suggest
that prices have been raised excessively while access for low-income households has been
restricted and capital investments have been inadequate. One study concludes that “private
providers of basic services are creating structures for sweating capital assets and extracting
revenue at the expense of households”.57
45.
The Special Rapporteur heard a great many complaints from people in rural areas
that the privatization and deregulation of public transport outside London had made trains
unaffordable and led to many bus routes being cut. The resulting isolation and inability to
afford basic transport had serious negative consequences in terms of access to jobs, schools,
health care and community engagement. Local authorities have often simply abandoned
their responsibilities by relegating key services to the private sector and failing to take any
regulatory measures to ensure basic service provision. Abandoning people to the private
market in relation to services that affect every dimension of their basic well-being, without
guaranteeing their access to minimum standards, is incompatible with human rights
requirements.
VI. Shortcomings of Universal Credit
46.
Social support should be a route out of poverty, and Universal Credit (UC) should
be a key part of that process. Consolidating six different benefits into one makes good sense,
in principle. But many aspects of the design and ongoing roll-out of the programme raise
grave concerns about the adequacy of the country’s flagship benefits programme.
47.
The Special Rapporteur heard countless stories of severe hardships suffered under
UC. These reports are corroborated by an increasing body of research that suggests UC is
being implemented in ways that negatively impact claimants’ mental health, finances and
work prospects.58 Where UC has fully rolled out, food bank demand has increased,59 a link
belatedly acknowledged by the Work and Pensions Secretary in February 2019.60
48.
Local authorities, devolved administrations and the voluntary sector described their
preparations for the roll out of UC as if they were preparing for an impending natural
disaster or health epidemic. They have expended significant money and energy to protect
people from what is supposed to be a support system.
55
56
57
58
59
60
Fitzpatrick, Destitution in the UK 2018, p. 9.
See National Audit Office, PF1 and PF2, report by the Comptroller and Auditor General (2018).
Kate Bayliss and Giulio Mattioli, “Privatisation, inequality and poverty in the UK: briefing prepared
for UN Rapporteur on extreme poverty and human rights”, Sustainability Research Institute,
December 2018.
See, e.g., Joseph Rowntree Foundation, “Briefing: where next for Universal Credit and tackling
poverty?”, 2019.
The Trussell Trust, “The next stage of Universal Credit: moving onto the new benefit system and
foodbank use”, 2018, p. 10.
Parliament, “Oral answers to questions”, 11 February 2019, vol. 654.
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