Warning that Universal Credit could lead to an ‘emergency’
PRESSURE is intensifying on the UK Government ahead of next week’s Budget to make changes to its flagship Universal Credit welfare reform programme.
Labour wants the roll-out of the controversial initiative which replaces six standalone benefits to be paused, while Plaid Cymru is calling for it to be scrapped and warning of a “social emergency”.
Leading think tanks and campaigning organisations have flagged up concerns.
Kayley Hignell of Citizens Advice has outlined key changes she wants Chancellor Philip Hammond to make when he delivers his Budget on Wednesday next week.
She claims that problems with the system mean people “are getting into debt while they wait for a payment” and half of the people the organisations helps with Universal Credit have “had to borrow money while waiting for their first payment, while many others got behind on bills and rent payments”.
She stated: “Currently one in five claimants aren’t being paid on time, taking their wait for full payment beyond six weeks.”
Ms Hignell wants the UK Government to “invest in work allowances which ensure people keep more of their earnings before their Universal Credit payment starts to be reduced”.
Victoria Winckler, director of the Merthyr Tydfil-based Bevan Foundation had similar concerns, warning: “There is a strong cross-party opinion that expecting people on often already low incomes to wait six weeks is just unrealistic and causing huge hardship.”
Labour leader Jeremy Corbyn is adamant that the roll-out of Universal Credit should be halted, stating last week: “We must pause and fix Universal Credit now, before millions of people are made worse off.”
Plaid Cymru Work and Pensions spokesman Hywel Williams said: “Westminster’s Universal Credit scheme is set to cause a social emergency. The changes being driven through will prevent Welsh citizens from achieving their potential in life...
“The Westminster Chancellor must use his budget next week to stop the roll-out of Universal Credit and protect the wellbeing of Welsh citizens.”
The Resolution Foundation argues a priority should be to “not only to shorten the six week wait in Universal Credit but to also reverse cuts to the new benefit and undo a deeper than expected benefit freeze”.
The IPPR think tank expects changes to Universal Credit will put “one million more children into poverty” across the UK.
The Child Poverty Action Group has warned that “freezes and cuts to Universal Credit work allowances will leave lone parents worse off by, on average, £710 a year, couples £250 a year.”
Former Labour Prime Minister Gordon Brown has also called for Universal Credit to be “abandoned for the time being”.
The British Association of Social Workers has warned in evidence to the Work and Pensions Committee that its roll-out will prove “detrimental to the needs of vulnerable adults and children”.
Work and Pensions Secretary David Gauke defended the policy in the Commons, saying: “Universal Credit gives people a better opportunity to work, it gives single parents greater support and gives parents greater support.”
The roll-out of Universal Credit in Wales is due to be completed in September next year. Shotton was the first area in Wales to have the new system, which is due to be introduced in Jobcentres in Swansea in December.
Brecon and Radnorshire Conservative MP Chris Davies was part of a group of MPs who met with the Chancellor and the Secretary of State for Work and Pensions to discuss Universal Credit.
He said he was now confident the policy will prove “beneficial,” stating: “There have been teething problems but I believe those will be wiped out. When we’re already seeing Universal Credit suit five out of six people without any problems whatsoever then it’s definitely the way forward.
“The final tweaks I’m sure will be ironed out shortly and it’ll be beneficial for all.”
But Shadow Welsh Secretary Christina Rees said: “Labour has repeatedly called for the UK Tory Government to pause the roll out of Universal Credit – sadly, the Government has so far refused to listen. This is a policy which has caused so much suffering to people in the areas in which it has already been rolled out, with heartbreaking stories from those affected.
“It is not too late for the Tory Government to think again, and both I and every other Welsh Labour MP would urge them to do just that.”