Citizens Advice is calling for immediate changes to Universal
Credit ahead of a potential second wave of claims when the
government’s protection schemes come to a close.
Data released today by the Department of Work and Pensions
shows 1.9 million households have made a claim for Universal
Credit in the last two months. This equates to just under one
in ten working-age households in Great Britain.
While the rate of claims has tapered in recent weeks, the
charity warns its frontline advisors are preparing for a
potential spike in enquiries this summer. The job retention
scheme is currently due to end on 30th June, which could
precipitate further job losses.
The redeployment of staff by the Department for Work and
Pensions has helped respond to an unprecedented surge in demand
on the benefits system and ensured people can access financial
support.
However, frontline advisers at Citizens Advice say many people
they support with Universal Credit can face hardship as a
result of the five-week wait until their first payment, or risk
getting into debt by taking out an advance payment.
Responding to today’s figures, Dame Gillian Guy, Chief
Executive of Citizens Advice, says:
“The dizzying number of Universal Credit claims since March is
a grim reflection of just how many people have seen their
income swept away by coronavirus.
“Decisive action from the government means hundreds of
thousands of claims have been processed. The next step is to
support people during the five-week wait without putting them
at risk of debt problems in the future.
“With a potential second wave of claims looming, now is the
time for the government to further strengthen the safety net by
turning advance payments into grants.”
“£25 a month doesn’t sound like a lot to pay off,
but I know it will be a struggle”
Hairdresser Desislava, 33, has lived and worked in London for
more than five years. She lost her job in March and applied for
Universal Credit. At the time she was a lodger, and with no
savings to fall back on and no earnings, she quickly fell into
rent arrears and was evicted by her landlord.
Desislava’s local Citizens Advice supported her with an
emergency grant while she waited for her application for
Universal Credit to be approved. She has since found a new flat
and received an advance to tide her over until the first
payment, but the experience has left her shaken.
Desislava says: “Losing my job and my home was horrible. I was
shaking and crying because I thought I might end up sleeping
rough. I tried my best to look for another job, but nobody has
one - it’s a global pandemic.
“I applied for Universal Credit but when I saw the amount I’d
receive I realised it wouldn’t be enough to live on and cover
my bills. While I wait for my first payment I’ve managed to get
an advance of £300 which needs to last me until 4th June, but
I’m getting stressed and worried about how I’ll survive on
that.
“I then need to repay my advance over the next year. £25 a
month doesn’t sound like a lot to to pay off, but I know it
will be a struggle. Particularly as the amount I’m set to get
each month won’t even cover my rent and living costs.”
