Laura Sharman 23 January 2020

Universal Credit causing 'debt and destitution' charity warns

Universal Credit is driving vulnerable people to use loan sharks, a debt charity has warned today.

StepChange said that flaws in the social security system are causing debt and destitution.

It found that half of its clients claiming benefits meet the official definition of destitution, with 10% using a loan shark due to problems linked to social security.

Nearly a third (27%) had recently used a food bank, with 43% using a credit card to pay for essentials over the past year.

The charity is calling for the Government to end the five-week wait period for Universal Credit, introduce discretionary hardship payments and overhauling the system of deductions to repay debt.

StepChange Debt Charity head of policy, Peter Tutton, said: 'We already knew that too many people are experiencing hardship and misery through problems with the Universal Credit system. What is new is the evidence of exactly how Universal Credit actively worsens debt problems, more so than the legacy benefits system.

'Sending people into the arms of loan sharks, and making a debt situation worse at the very time when people most need help, cannot possibly be what social security is for. It’s time to put these problems right.'

SIGN UP
For your free daily news bulletin
Highways jobs

Casual Support Worker

Oxfordshire County Council
£25992 - £28163
About Us Abingdon Community Support Service's primary purpose is to support adults to engage with a stimulating programme of meaningful individual and rewarding group activities. The Social and Community Services vision is to support and promote strong c Abingdon Community Support Service
Recuriter: Oxfordshire County Council

Quality and Review Support Assistant

Durham County Council
Grade 4 £25,583 - £26,824 Pro-rata
WHAT IS INVOLVED?   You will provide administrative, clerical and typing services to the Quality & Review Service, specifically in support of the Inde Spennymoor
Recuriter: Durham County Council

Duty Manager

Durham County Council
Grade 6 £28,142 - £31,022 per annum
We have an opportunity for a Duty Manager at Meadowfield Leisure Centre.  WHAT IS INVOLVED? You will be responsible for the day-to-day operation of t Durham
Recuriter: Durham County Council

Support Worker

Durham County Council
Grade 4 £25,583 - £26,824 Pro-rata
WHAT IS INVOLVED?   You should be an enthusiastic team player who takes pride in providing excellent customer service.  You will have good communicati Spennymoor
Recuriter: Durham County Council

Support Worker

Durham County Council
Grade 4 £25,583 - £26,824 Pro-rata
We have an exciting opportunity for a permanent Support Officer to join our dedicated team within Business Services (part time 22 hours).   WHAT IS IN Durham
Recuriter: Durham County Council
Linkedin Banner