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

Assistant Director Housing

North Yorkshire Council
£111,533 to £119,774 plus relocation support
Housing is one of the most high profile and closely scrutinised areas in local government Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Strategic Head of Finance and S151 Officer

Sevenoaks District Council
Package up to £109,592
As the Section 151 Officer, you will play a key role in supporting the Council through its wider journey.. Sevenoaks, Kent
Recuriter: Sevenoaks District Council

Social Worker (Family Worker, Link Role) - Family Solutions

Essex County Council
£38487 - £51834 per annum
Interviews will be held in person at Greenstead Youth Centre, Colchester on Monday 8th June 2026.We have an exciting opportunity to join our high-per England, Essex, Colchester
Recuriter: Essex County Council

Adults Social Worker - Tendring Neighbourhood Team

Essex County Council
£38487 - £51834 per annum + Flexible Working, Hybrid Working
This advert is open to Experienced and Newly Qualified Social Worker's (NQSW). The starting salary for a NQSW is £36,124 per annum, rising to £38,487 England, Essex, Clacton-On-Sea
Recuriter: Essex County Council

Apprentice - Business & Administration

Essex County Council
Up to £15435.00 per annum
Apprentice - Business & AdministrationFixed Term, Full Time£15,435 Per AnnumLocation
Recuriter: Essex County Council
Linkedin Banner