Taxpayers saddled with £115million bill because of five-week wait for Universal Credit, new figures reveal
TAXPAYERS will be saddled with a staggering £115million bill because of delays in getting Universal Credit, new figures show.
The cash will be spent handing welfare claimants extra housing benefit for two weeks to plug the five-week waiting time for payment for UC.
Labour MP Neil Coyle, who uncovered the figures, said ministers should “stop throwing good money after bad” and scrap the wait.
Some 600,000 households will be moved onto Universal Credit in 2019, according to estimates from the Department for Work and Pensions.
Brits who claim UC through this “managed migration” are handed an extra two weeks’ housing benefits, worth £191 per person on average.
This will be extended to Brits claiming JSA, ESA and income support from July 2020.
The Sun has campaigned to Make Universal Credit Work by cutting the five-week wait down, to stop Brits going into debt when switching onto the new benefit system.
Mr Coyle, who sits on the Work and Pensions select committee, told The Sun: “We know that Universal Credit causes huge damage to many of the people it is supposed to help, plunging them into debt, foodbank use and despair.
"But it was supposed to be cheaper than the old system it replaced and we know it costs far more to administer as well as causing all the suffering.
"The DWP should stop throwing good money after bad, should better stand up for taxpayers and should scrap the five week wait and save money as well as save more people from having their lives damaged by Universal Credit."
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.
Universal Credit brings together six different welfare payments.
It was introduced to simplify the welfare system and incentivise people to work.
But it has been dogged by controversy amid claims by campaigners that long delays in paying the cash is pushing families into poverty.
A DWP spokesperson said: "We announced the additional Housing Benefit support in the 2017 Budget, as part of a £1.5 billion package designed to make it easier for people moving onto Universal Credit from the old system.
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