Universal Credit is failing Brits leaving almost half of claimants struggling to pay bills, damning report says

UNIVERSAL Credit is leaving almost HALF of Brits unable to pay the bills and is failing vulnerable people, a damning report has found.

The government's new flagship benefits system is causing financial hardship and forcing people directly to foodbanks, MPs have blasted.

And the DWP's "systemic culture of denial and defensiveness" when MPs are raising issues means that there's a huge risk that thousands more are going to be affected in future.

Around 60 per cent get an advance on their payments to help them survive when they first go on to Universal Credit, it said, and surveys from the Department found that 40 per cent of claimants were experiencing financial difficulties eight or nine months into their claim.

That can take them up to two years to clear off, it added. "The package of support to help claimants adjust to Universal Credit is not fit for purpose," it claimed.

Universal Credit is the new benefits system replacing six other types, and which is set to be rolled out across the country in the coming months.

But MPs said it wasn't anywhere near ready to be rolled out to everyone, and they had "serious concerns" about what would happen when it was finally started.

The Chancellor, Philip Hammond is under pressure in next week's Budget to plug the funding gap in Universal Credit, which means millions are set to lose out.

Vulnerable claimants such as those with long-term health conditions are being failed by the system, as there's not enough help to support them and they don't monitor how they are doing.

They recommended that the DWP significantly speed up the payment of the new benefits to Brits who are in need of help, help local associations with the extra costs, and stop and fix errors before rolling it out to the wider public.

Committee chair Meg Hillier stormed: "This report provides further damning evidence of a culture of indifference at DWP – a Department disturbingly adrift from the real-world problems of the people it is there to support.

"Its apparent determination to turn a deaf ear to the concerns of claimants, frontline organisations and Parliament is of real concern. The culture needs to change."

She said that MPs would be watching the Budget closely on Monday, hoping for help for the flailing programme.

The news comes on the same day that a separate report said that disabled people could be £300 worse off under Universal Credit.

Even working disabled people who successfully receive the Work Allowance could be more than £200 worse off, as the support given is not as generous as that offered by Tax Credits, a report from Citizens Advice said.

Labour's Margaret Greenwood said that ministers should stop rolling out Universal Credit now.

She added: "It is shocking that the Conservatives are still refusing to accept the hardship it is causing and are determined to go ahead with the next phase of Universal Credit.

"The Government is choosing to ignore clear evidence that it is pushing people into debt and rent arrears and even forcing some to turn to food banks to survive."

A DWP spokesperson said: “We will carefully consider the findings in the report – a number of which we are already working on. For example, we have recently begun a new partnership with Citizens Advice to deliver better support to the most vulnerable, and are working with stakeholders to ensure the Managed Migration process for people moving onto Universal Credit works smoothly.

“So far this year we have already announced several improvements to Universal Credit, such as plans to reinstate housing benefit for vulnerable 18-21 year olds, making direct payments to landlords, offering 100% advances and providing an additional 2 weeks of housing benefit for claimants.”

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