Arrears spark call to halt welfare rollout

Leader of Stirling Council Scott Farmer has written to the Westminister Government calling for a halt to the rollout of Universal Credit.

The welfare reform was introduced in Stirling in June last year.

A council report has shown that since then council house and housing association rent arrears have increased significantly.

There has also been a sharp increase in the number of crisis grants awarded to struggling families and individuals, and food bank referrals have increased.

In his autumn statement in November, Chancellor of the Exchequer Philip Hammond announced a £1.5 billion package of measures to tackle concerns over the nationwide rollout of the new welfare set-up.

The seven-day waiting period before a claimant can apply for the benefit will be scrapped next month.

That reduces to five weeks the time before people can receive an initial Universal Credit payment. Claimants will also be able to get an advanced payment within five days, from this month, but that has to be paid back within 12 months.

In his letter to Work and Pensions Secretary David Gauke, Councillor Farmer said the changes don’t go far enough.

He points out that Universal Credit is an entirely online system and many vulnerable people do not have access to a computer or the skills to use them.

In addition , the system of single household payments makes it more difficult for people in abusive relationships - making them more financially dependent on their abusive partner and therefore more vulnerable to sustained financial abuse and control.

In his letter, Councillor Farmer said: “For too many people across the Stirling Council area, a system that is intended to support them through difficult times is making their situation much worse.

“These issues simply must be addressed comprehensively and at speed.

“The minor changes introduced by the Chancellor will on the whole require legislation to enact, meaning many more months of potential increased vulnerability until even these alterations will impact on claimants.”

Universal Credit brings together six benefits – including unemployment benefit, tax credits and housing benefit – into one, online-only system. Rollout across the country was due to be completed last year but it is behind schedule and had been blasted for causing hardship by making claimants moving on to the new system wait six weeks and sometimes longer for payment.

A spokesman for Scottish Conservatives accused Councillor Farmer of trying to score cheap political points and added: “The leader of Stirling Council continues to demean that office with his poor judgement and performance. The SNP must stop stoking up fear and anxiety and start engaging positively to help address the issues that we have all identified during the rollout process. The significant changes announced recently are going a long way to doing this and have received support from many organisations helping people through the changes but as usual the SNP are keen to create grievance and are part of the problem, not the solution.”