William Eichler 11 September 2017

Universal Credit pushing people into ‘spiral of debt’, charity warns

The expansion of Universal Credit (UC) is a ‘disaster waiting to happen’ because many of its problems have not been solved including the long wait for payments, charity warns.

A new report from Citizens Advice analysed over 50,000 cases where it had helped people with their debt problems and found for those on UC 79% had priority debts, such as rent or council tax, compared to 69% on legacy benefits such as Jobseekers Allowance or Housing Benefit.

It also found two in fvie (41%) had no money available to pay creditors as their monthly spend on essential living costs is more than their income. Typically, according to the report, people on UC only had around £3 a month left to pay creditors.

In light of these findings, which build on a report published in July, Citizens Advice called on the Government to pause the roll-out of UC to ensure no one applying for it waits longer than six weeks for an income, and that anyone who needs it gets a payment within two weeks that they do not need to repay.

‘The roll-out of Universal Credit is a disaster waiting to happen,’ the charity’s chief executive, Gillian Guy, said.

‘While the principles behind Universal Credit are sound, our evidence shows that if the Government continues to take this stubborn approach to the expansion of Universal Credit, it risks pushing thousands of families into a spiral of debt, and placing an even greater strain on public services.

‘People face severe consequences - like visits from bailiffs and eviction - when they can't pay their bills. But Government can help protect these households by taking the simple step of pausing Universal Credit and fixing the underlying problems, so families are less likely to fall into arrears.

‘The Government should also ensure that everyone has access to the support they need to adapt to Universal Credit.’ 

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Highways & Transport

Redbridge London Borough Council
Up to £95k
We are looking for someone with the professional expertise and the strategic perspective to move effortlessly London (Greater)
Recuriter: Redbridge London Borough Council

Duty Manager, Part-Time (Active Hampton)

London Borough of Richmond upon Thames and London Borough of Wandsworth
Actual starting salary of £20,816pa for 24 hours
Duty Manager,
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior Highways Inspection Officer

The Royal Borough of Windsor & Maidenhead
£39,526 - £43,613 per annum
This is an excellent opportunity for an enthusiastic Senior Highways Inspection Officer join our Highways Inspection team. Windsor, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

School Crossing Patrol - Cathedral C of E VA Primary School

Essex County Council
Up to £13.4600 per annum
School Crossing Patrol - Cathedral C of E VA Primary SchoolPermanent, Term Time£13.46 per hourLocation
Recuriter: Essex County Council

Creative & Digital Content Officer

Wyre Borough Council
£27,709 - £29,542
This role offers an exciting opportunity to contribute to the development and delivery of high-quality visual and digital content Wyre, Orkney
Recuriter: Wyre Borough Council
Linkedin Banner