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

Armed Forces Commissioner

Ministry of Defence
£170,000 per annum
This is a unique opportunity to serve as the independent champion for Service personnel London (Greater)
Recuriter: Ministry of Defence

Executive Director Finance, Governance and Assets (s151)

East Surrey
£153,592 - £168,952
Local government in Surrey is being reshaped for the first time in more than 50 years. East Surrey
Recuriter: East Surrey

Transport Planning Officer Policy

Brighton & Hove City Council
£35,570 - £40,444
We are seeking candidates with experience of working in transport and an interest in developing policies and transport schemes... Hove Town Hall, Norton Road, Hove, BN3 3BQ
Recuriter: Brighton & Hove City Council

Social Work Consultant

Durham County Council
Grade 13 £48,738 - £53,051
Are you passionate about working with children and families?   This could be the post for you!   WHAT IS INVOLVED?  As Social Work Consultant you will Newton Aycliffe
Recuriter: Durham County Council

Missing Children Coordinator

Durham County Council
Grade 7 £31,015 - £34,811
Are you passionate about improving outcomes for vulnerable children and young people? Do you have experience working with children who go missing, exp Durham
Recuriter: Durham County Council
Linkedin Banner