Universal Credit put over 270,000 people at risk of debt due to ‘unacceptable’ 5-week wait
Hard-up Brits who rely on Tax Credits are forced to give them up while they waited weeks before receiving their first Universal Credit payout
MORE than a quarter of a million vulnerable Brits were at risk of plunging into debt after being forced to give up Tax Credits while they waited to be moved onto Universal Credit last year.
Families who were migrated onto the new controversial benefits system were left without any "transition payments" during the up to five week wait for their first Universal Credit handout.
The Department of Work and Pensions set aside £3billion to make sure that existing benefit claimants aren't left without cash while they migrate systems to stop their income plummeting.
But the help isn't available to those who's move is sparked by a "change in circumstances", like moving house or having a baby.
Now, the DWP has admitted moving 273,747 Tax Credit claimants onto Universal Credit without any protection during the transition period, between December 2017 and November 2018.
The Government's flagship scheme has been riddled with a string of serious issues since it launched in 2013, which is why The Sun has launched a campaign to Make Universal Credit Work.
The Sun wants to Make Universal Credit Work
Universal Credit replaces six benefits with a single monthly payment.
One million people are already receiving it and by the time the system is fully rolled out in 2023, nearly 7 million will be on it.
But there are big problems with the flagship new system - it takes 5 weeks to get the first payment and it could leave some families worse off by thousands of pounds a year.
And while working families can claim back up to 85 per cent of their childcare costs, they must find the money to pay for childcare upfront - we’ve heard of families waiting up to 6 months for the money.
Working parents across the country told us they’ve been unable to take on more hours - or have even turned down better paid jobs or more hours because of the amount they get their benefits cut.
It’s time to Make Universal Credit work. We want the government to:
- Get paid faster: The Government must slash the time Brits wait for their first Universal Credit payments from five to two weeks, helping stop 7 million from being pushed into debt.
- Keep more of what you earn: The work allowance should be increased and the taper rate should be slashed from from 63p to 50p, helping at least 4 million families.
- Don’t get punished for having a family: Parents should get the 85 per cent of the money they can claim for childcare upfront instead of being paid in arrears.
Together, these changes will help Make Universal Credit Work.
Join our or email [email protected] to share your story.
While claimants can apply for an advance loan to cover them during this time, the cash is taken out of their Universal Credit payments in instalments until the debt is repaid.
This leaves hard-up Brits at risk of borrowing funds from loan sharks, who charge rip-off rates, to plug the gap, pushing them even further into debt.
The figure, obtained by Labour in a Freedom of Information request, covers Brits on Child Tax Credit or Working Tax Credit, meaning that they either had a job and, or, a family.
Are you on Universal Credit? Tell us your story. Email: [email protected] and join our
Universal Credit is paid monthly and in arrears, so claimants must wait a full month before getting their first payout.
It can then take another seven days for the payment to reach their bank account, meaning that the overall application process can take up to five weeks.
The Sun is calling for this process to be reduced to two weeks to stop seven million being pushed into debt.
A DWP spokesperson said: "People only move onto Universal Credit from existing benefits if they have a change in circumstances – this ensures they’re receiving the right level of support.
What to do if you have problems claiming Universal Credit
IF you're experiencing trouble applying for your Universal Credit, or the payments just don't cover costs, here are your options:
Apply for an advance - Claimants are able to get some cash within five days rather than waiting weeks for their first payment. But it's a loan which means the repayments will be automatically deducted from your future Universal Credit pay out.
Alternative Payment Arrangements - If you're falling behind on rent, you or your landlord may be able to apply for an APA which will get your payment sent directly to your landlord. You might also be able to change your payments to get them more frequently, or you can split the payments if you're part of a couple.
Budgeting Advance - You may be able to get help from the government to help with emergency household costs of up to £348 if you're single, £464 if you're part of a couple or £812 if you have children. These are only in cases like your cooker breaking down or for help getting a job. You'll have to repay the advance through your regular Universal Credit payments. You'll still have to repay the loan, even if you stop claiming for Universal Credit.
Cut your Council Tax - You might be able to get a discount on your Council Tax or be entitled to Discretionary Housing Payments if your payments aren't enough to cover your rent.
Foodbanks - If you're really hard up and struggling to buy food and toiletries, you can find your local foodbank who will provide you with help for free. You can find your nearest one on the
"Universal Credit is a force for good for many, and over 1.4 million people are now successfully receiving the benefit."
The "managed migration" of existing benefit claimants to Universal Credit will received transition payments but that won't start until 2020.
But there still won't be any help available for those who are moved over after a change of circumstances before then.
Margaret Greenwood MP, Labour’s Shadow Work and Pensions Secretary, said: "It is unacceptable that hundreds of thousands of workers are being pushed onto Universal Credit without any protection.
"Universal Credit has caused poverty and hardship to families across the country. The Government must immediately stop the roll out."
MAKE UNIVERSAL CREDIT WORK
Universal Credit was rolled out to 44 new areas in December, meaning that now every job centre in the country runs the service for new claimants.
Yesterday, we reported how experts believe that Universal Credit could be £100 a month - or £1,200 a year - better off if ministers implemented changes The Sun campaign is calling for.
A disabled man was left with less than £1 to live on over Christmas after receiving a Universal Credit payment of just 1p.
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