Calls to scrap rollout of new benefits system

Charities feeling the strain, while MPs say it will plunge more Scots into poverty

Charities across Tayside and Fife have admitted they are struggling to cope with the strain of Universal Credit amid calls for a wider rollout of the controversial benefit to be scrapped.

The new payment, which was introduced in Dundee last November, has been linked with a sharp increase in foodbank use in the city and a 1,400% rise in the number of people seeking emergency handouts nationwide.

Dundee City Council has seen the number of hard-pressed Dundonians seeking emergency help increase more than tenfold since the scheme was introduced, costing the local authority around £94 million annually.

Dundee MPs Stewart Hosie and Chris Law urged the UK Government to halt the rollout of Universal Credit or risk plunging more Scots into poverty.

Mr Law said: “Thousands of Dundonians will rightly be worried about the UK Government’s plans to migrate them from their current benefits, such as child and working tax credits, to a system which has severe and proven issues.

“Numerous studies have shown that instances of rent arrears and foodbank use are significantly higher amongst Universal Credit claimants than amongst those on the legacy benefits, which is simply unjustifiable.

“Universal Credit was meant to be an improvement on the existing system, but has instead caused untold misery for many of those forced on to it.”

The majority of claimants in Scotland are still on the older legacy benefits model but the UK Government has said it plans to migrate everyone to the new system by December 2023, prompting concern from charity workers.

Ken Linton, of Dundee Foodbank, revealed around a quarter of the work being done by his organisation is now solely to mitigate the impact of Universal Credit on vulnerable residents.

Mr Linton said the issue comes up daily for the charity, with the most frequent problems arising when people are moved across from one of the older benefits and forced to wait weeks for vital funds.

He added: “If the rate of distribution remains the same, there is only enough food available for a couple of months. We always welcome donations of food and the people of Dundee are very generous.”

Mike Archibald, from Perth Foodbank, said its provisions had been gutted by more than two-thirds “in a very short space of time” as a result of claimants facing payment delays.

Dundee East MP Stewart Hosie said it was “scandalous” local authorities and charities were being forced to mitigate the effects of Universal Credit, and said his office had been inundated with concerns.

“I have seen first-hand the damaging effects of the UK Government’s disastrous rollout of the service,” he said.

“These policies aren’t just harming people by taking money out their pockets, they are preventing local authorities from using money to benefit local communities.”

Unite the Community Tayside, an anti-poverty campaign group based in Dundee, will hold an emergency meeting this week ahead of a planned national day of action against Universal Credit.

Picture: Kris Miller. Ken Linton, of Dundee Foodbank, says Universal Credit has led to a huge increase in demand for the service.

Dundee East SNP MP Stewart Hosie says the move to Universal Credit has been “disastrous” for many benefits claimants in the city.