Housing fears for welfare claimants

HALF of the people Citizens Advice helps with Universal Credit struggle to keep a roof over their heads while they wait for payments, the charity has said.

One in two (49%) people the charity helped were in rent arrears or fell behind on their mortgage payments, despite the wait for their first payment being reduced from six weeks to five, according to Citizens Advice.

The charity also found 60% of people it helped are taking out advances while they wait for payment. The report, Managing Money on Universal Credit, reveals analysis based on around 190,000 people Citizens Advice has helped with Universal Credit. Universal Credit which helps people with their living costs replaces several other benefits such as income support and housing benefit. But concerns have repeatedly been raised about it causing hardship and suffering as the scheme has been rolled out. In February 2018, the Department for Work and Pensions said Universal Credit was being paid sooner to new claimants, benefiting the average household by around £160.

Citizens Advice said nearly a quarter (24%) of the people it helped with Universal Credit were also seeking debt advice.

Nearly one in two (47%) said they have no money left after essential living costs such as food, housing and transport to pay creditors, or are spending more than comes in.

And more than four-fifths (82%) hold what Citizens Advice classes as “priority debt” such as council tax, rent arrears or mortgage payments, and energy debts.

A Department for Work and Pensions spokesman said: “Most people on Universal Credit are happy managing their money, but budgeting support is available for anyone who needs extra help.”