A third of Brits who move onto Universal Credit say they have money problems
And of them, 6 in ten say it started around the time they went onto the new benefit system, fresh research shows
A THIRD of Brits who went from tax credits onto Universal Credit said they had serious money problems and were struggling with their bills.
And of those, six in ten of them say their problems started around the time they went onto the new benefits system.
The research comes from a fresh report from the Department for Work and Pensions and HMRC about how Brits cope when transferring over to the flagship benefits system.
It found that a fifth of Brits who switched were keeping up with all bills and their finances just fine.
But 38 per cent said they were having "financial difficulties" and falling behind with several bills.
And a further 27 per cent said they were keeping up at moment but it could be a struggle.
The research would have been carried out at the time where claimants had to wait six weeks to get their first Universal Credit payment, which has plunged many Brits into debt.
Tax credits stop as soon as the UC claim has been made, but some of the claimants reported waiting up to THREE months for their first payment, the report found.
The wait has been slashed to five weeks after pressure from MPs, but The Sun has been campaigning to cut it further as part of our Make Universal Credit Work campaign.
Single people, those out of work, claiming housing help of suffering from health conditions were more likely to be struggling.
It also revealed that three quarters of those who had an overpayment in the past said they weren't told about it and they only found out once it started being taken off their UC payment.
Overall it said the process of claiming Universal Credit, which has been beset with issues since its rollout, WAS working, but there was further room for improvement.
Most claimants knew why they had to switch over to the new benefits system and were aware of what money they would get.
Two in three found it easy to arrange an interview at the jobcentre and get their documents together.
The news comes as today The Sun revealed that Amber Rudd is preparing a £2billion spending spree on benefits for low paid Brits to try and tackle poverty.
The Work and Pensions Secretary is demanding a small fortune to top up child benefits and housing allowances.
However, the Government were also accused of sitting on the research, which was carried out in 2016 and 2017.
Margaret Greenwood, Labour’s Shadow Work and Pensions Secretary, said today: "It is shameful that the Government’s own survey should find that nearly eight out of ten of those moving from Tax Credits to Universal Credit are struggling with their bills.
"Why has the Government only published these findings now, if the research was conducted between October 2016 and July 2017?
"Universal Credit should be helping people out of poverty; instead it is pushing many people into debt and towards food banks."
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 UniversalCredit@the-sun.co.uk to share your story.
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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
Since the report collected research there have been several changes to Universal Credit - including a boost to the amount Brits can earn and a cut to the amount that gets taken off them.
Esther McVey secured an extra £4,5billion package for Universal Credit in last year's Budget, and new DWP Secretary Amber Rudd has promised to make more changes.
An HMRC spokesman said: “This study shows that understanding of Universal Credit continues to rise. Satisfaction levels are high and people are being helped into work quicker.
“With Universal Credit, no one has to wait five weeks to be paid. Your first payment - an advance - is available on day one.
"We’ve extended the period that this can be paid back and safeguards are in place to ensure repayments are affordable.”
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