People claiming Universal Credit are still struggling to pay
for the roof over their heads, despite the wait for their first
payment being reduced from 6 weeks to 5, new Citizens Advice
data shows.
1 in 2 people the charity helped were in rent arrears or fell
behind on their mortgage payments, the same number as when the
wait for the first payment was longer.
Citizens Advice also found 60% of people it helped are taking
out advances while they wait for payment.
The research also found that, following changes by Government
in 2017, fewer people are falling behind on their bills or
going without essentials during the wait period. Payment
timeliness has improved - now 1 in 6 people are not paid in
full and on time, while previously it was 1 in 4.
The report, Managing Money on Universal Credit,released today,
reveals new analysis based on the 190,000 people Citizens
Advice has helped with Universal Credit.
Among the people the charity helps with debt and Universal
Credit:
-
Debt problems are more common for the people we help with
Universal Credit than those claiming benefits under the
previous system, with 24% of the people we helped with
Universal Credit also seeking debt advice.
-
Nearly one in two (47%) have no money left after essential
living costs (such as food, housing and transport) to pay
creditors, or are spending more than they take in.
-
More than 4 in 5 (82%) hold priority debt such as council
tax, rent arrears or mortgage payments, and energy
debts.
Citizens Advice is calling on the government to make Universal
Credit far more flexible to fit around people’s lives and to
make sure people have enough money to live on.
It also wants Alternative Payment Arrangements to be more
widely available, allowing for rent to be paid direct to a
landlord, more frequent payments, and a payment to go to both
members of a couple.
Just 3% of claimants currently receive more frequent payments,
while just 20 households in the UK receive split payments to
different family members.
Four in 10 of the people helped by Citizens Advice are aware of
managed payments to landlords, while just 1 in 6 know payments
can be made more frequently.
Gillian Guy, Chief Executive of Citizens Advice,
said:
“Half the people we help with a Universal Credit claim are
still struggling to keep a roof over their heads while they
wait for their first payment.
“Changes to the waiting period for first payment have
improved things for many people, but our evidence shows they
don’t go far enough.
“Universal Credit must continue to be reformed so it works
for all claimants and leaves people with enough money to live
on.”
