Many turn to loans as new benefit bites
DESPERATE families are turning to doorstep lenders and payday loans as the Government’s Universal Credit scheme rolls out nationwide.
Delays in payments of the new benefit – designed to replace multiple benefits with a single one – and harsh sanctions have caused many to struggle to make ends meet.
A report for the Department of Work and Pensions found that 82 per cent of people were in rent arrears – 58 per cent of those were after Universal Credit was introduced.
Citizens Advice’s Gillian Guy said it was “crucial” the Government addresses issues with the benefit.