New benefit on way to more areas
THE next areas to receive the controversial Universal Credit scheme have been revealed.
The system has already been rolled out in most places in Wales, including Cardiff, Swansea and Bridgend.
First introduced in 2013, Universal Credit was set up to simplify benefits by replacing six benefits with one monthly payment.
It also pays benefits to a household rather than to the individual.
But in the areas already covered, many new recipients have described being left in debt and dependent on foodbanks and borrowing thanks in part to the mandatory six-week delay in receiving their first payment.
One woman from Cardiff even feared losing her home of 24 years.
These are the local authorities that will introduce Universal Credit in November: ■ Rhondda Cynon Taf: Aberdare, Llantristant, Pontypridd, Porth, Tonypandy, Treorchy.
These are the local authorities that will introduce Universal Credit in December: ■ Carmarthenshire County Council: Ammanford, Carmarthen, Llanelli;
■ Ceredigion County Council: Aberystwyth, Cardigan; and
■ Gwynedd Council: Bangor, Caernarfon, Dolgellau, Porthmadog, Pwllheli.
The new system replaces six meanstested benefits with a single payment.
Described as the biggest overhaul of the welfare system since the 1940s, the government says Universal Credit will simplify the system with one monthly payment paid directly to claimants whether they are in or out of work.
It argues that the benefit of Universal Credit is that people will always be better off when they take on extra work.
However, critics argue that by trying to cut £2.7bn from the UK’s total benefits bill while introducing this major change, the government is causing pain to the poorest households.
Among working households, 2.1 million will get less in benefits as a result of its introduction (an average loss of £1,600 a year) and 1.8 million will get more (£1,500 average gain).
Citizens Advice estimates that by 2022, 400,000 households across the UK will be in the new system.
Universal Credit is paid to a person’s bank account once a month, rather than the fortnightly or weekly payments made under previous systems.
Housing contributions are also usually included in this single payment.
Claimants may have to wait up to six weeks before they receive their first payment under the scheme because it is paid monthly in arrears.
Government figures showed 23% of new claimants do not receive their first full payment within six weeks, which has been linked to rent arrears and other debts for claimants.
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