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.
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.
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Universal Credit is paid monthly and in arrears, so claimants must wait a full month before getting their first payout.
"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."
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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