Citizen’s Advice have published a report on Universal Credit with fresh evidence that it is causing debt and financial insecurity among recipients.
The advisory charity surveyed 800 people who sought help with universal credit in pilot areas, finding 39% were waiting more than six weeks to receive their first payment and more than half (57%) were having to borrow money to get by during that time.
Stephen Morgan, the new Member of Parliament for Portsmouth South, said:
“The Government’s plans for universal credit are in chaos. It is clear there are flaws in the scheme which need urgent attention”.
The Tories’ cuts to universal credit means that on top of the design and delivery issues, it fails to make work pay, compounding people’s ability to make ends meet.
Debbie Abrahams MP, Shadow Work and Pensions Secretary, said:
“In spite of this Government’s warm words about making Britain fairer, their tax and spending choices have done the opposite.”
The evidence from Citizens Advice is the latest in a long line of warnings about problems with universal credit, which involves wrapping six existing benefits into a single monthly payment.
“Labour will invest to reform universal credit. Our plans will create a social security system that, like the NHS, is there for us all in our time of need.”