Debt misery of claimants on Universal Credit

58,000 Ulster households in arrears

UNIVERSAL Credit claimants have found themselves in thousands of pounds of debt within weeks of signing up a charity has said.

The latest report from the Joseph Rowntree Foundation on the all-in-one benefit system, reveals how one woman fell into £6,000 arrears in just one month.

Another person had to keep food as cool as possible in a sink after her fridge broke and she couldn’t afford another.

Deirdre Mccausland, a single parent with two children, said: “I wouldn’t wish my experiences of Universal Credit on anyone. The wait for the benefit puts you in debt immediately and leaves you unable to catch up.”

A total of 57,920 households in Northern Ireland were claiming Universal Credit in February.

This is likely to have risen due to the distribution caused by the coronavirus pandemic.

And 137,000 have received Universal Credit since the rollout started in 2017.

The average monthly payment for each household is £680, although there is a five-week waiting period before first payment is received after signing up.

The report, produced in partnership with Ulster University and University of York, highlighted the waiting period as one of the main reasons claimants fall into debt.

During this time claimants are able to take out an advanced loan, but this has to be repaid from future payments. A total of 61 % of claimants take these loans, receiving on average £610. Co-author of the report, Dr Mark Simpson said: pic posed

“Having worked directly with people from across Northern Ireland who have experience of Universal Credit, our research has confirmed the special payment arrangements and additional payments for Universal Credit recipients in Northern Ireland can help people survive.

“However, a core theme was that life on Universal Credit is still a struggle for many and the research suggests a number of improvements.”

MONEY WOES People are struggling