New benefit system will ‘wreak havoc’ warns council’s treasurer
THE new Universal Credit benefit system coming to Glasgow this month will put people in danger of losing their home and lead to an increase in poverty, the council has warned.
The new benefit starts to roll out in part of Glasgow this month with tens of thousands of people expected to move on to it by the end of the year.
Allan Gow, Glasgow City Council Treasurer, said it will wreak havoc and plunge households into financial misery.
The roll-out, which has been taking place across the UK over the past few years, starts in Govan this month.
Several benefits are rolled into one and Housing Benefit is paid to the claimant instead of directly to a landlord.
All claims have to be made through the DWP website and payments paid into a bank account – which many people do not have.
New claimants for Housing Benefit, Employment Support Allowance, Working Tax Credit, Child Tax Credit, Job Seeker’s Allowance or Income Support will need to make an online claim for Universal Credit.
To ease the switch-over the council has allocated £2 million to help claimants get online and help with the skills for an application.
It will provide a city-wide helpline and online resources.
There is a built-in delay to the process which means claimants have to wait at least four weeks for their first payment, leading to an increase in food-bank referrals in some places.
Mr Gow said: “Universal Credit has wreaked havoc in every city and every community it has been introduced to. It would be foolish and hopelessly complacent to think Glasgow could somehow be immune to that.
“However, I’m not prepared to simply accept the hardship and the pain that we have seen unfold elsewhere.
“It is bleak though, but success will mean limiting the rise in rent arrears or the increase in the use of food banks.
“We can’t roll back Universal Credit, much as I would like to. However, by investing in the resilience of our communities and our city, I believe we can dull its edge.”
The DWP’s own analysis of Universal Credit found that only 54% of people were able to make their claim online without help while one-infour claimants was not able to submit a claim online at all.
It was also discovered that most claimants did not have the documents required by the government to verify their identity.
Govan Jobcentre is the first office to move to the new benefit tomorrow, then Laurieston and Newlands follow on September 26.
From October 31, new claims at Partick and Springburn jobcentres will be for Universal Credit.
The final jobcentres to be rolled out will be Castlemilk, Drumchapel, and Shettleston on December 5, three weeks before Christmas.
‘‘ I’m not prepared to simply accept the hardship and the pain