Forced into debt for Christmas?
Shock at changes to credit over the festive season
THE introduction of Universal Credit could leave people in Llanelli out of pocket over Christmas.
Timing of the Waleswide roll-out of Universal Credit could mean claimants are left with a financial black hole at one of the most expensive times of year.
Llanelli MP Nia Griffith said: “I am very concerned that the UK Government is pressing ahead with the roll-out of Universal Credit in Llanelli just before Christmas.
“Early December is the worst possible time to introduce this.”
THE introduction of Universal Credit could leave people in Llanelli and Carmarthen out of pocket over Christmas.
Timing of the Waleswide roll-out of Universal Credit could lead to delays in people getting their first payments, meaning claimants could be left with a financial black hole at one of the most expensive times of year.
Jobcentres in Llanelli, Ammanford and Carmarthen are among 20 in Wales where Universal Credit is due to be introduced over the next two months.
But as there is a fiveweek wait until a first Universal Credit payment is made, many people are unlikely to get their cash before Christmas.
Politicians have raised concerns the roll-out could effect individuals and families already under strain to meet expensive bills over the winter period.
Llanelli MP Nia Griffith said: “I am very concerned that the UK Government is pressing ahead with the roll-out of Universal Credit in Llanelli just before Christmas.
“Given the scheme’s five-week wait and appalling record of delayed payments, early December is the worst possible time to introduce this.
“It is shocking that so many people moving over to Universal Credit will be left out of pocket and forced into debt over the Christmas period through no fault of their own.”
Universal Credit, which is a six-in-one benefit meant to simplify the welfare system, has already been widely criticised for increasing food bank use after leaving claimants waiting weeks for payments.
New benefits claimants and existing claimants whose circumstances change are currently being placed on the new benefit in the first phase of the roll-out.
The first Jobcentre launched Universal Credit in November 2015. Now it is in almost every Jobcentre, and the final 107 will launch it in November and December 2018.
Welsh Assembly Member for Lanelli Lee Waters said: “The pressures faced by working families due to the botched roll out of Universal Credit are unnecessary and completely unacceptable.
“The failed policies of austerity by the UK Government continue to hit hard working people in Llanelli. How can it be fair for children to be missing out on Christmas due to the mistakes of Tory ministers?”
Campaigners’ fears are greatest when Universal Credit is new to an area.
It means Jobcentre staff are dealing with their first cases under the new benefit, which it is claimed could lead to teething problems and delays.
So while anyone who claims from late November faces a wait over Christmas, it is those in new Universal Credit areas who are being highlighted.
The Department of Work and Pensions has an advanced payment system to ensure that money is not cut off.
As soon as claimants apply for Universal Credit, they can apply for 100% of the first month’s payment – but this advance has to be paid back.
Repayments can be spread over 12 months and there is no interest.
Housing benefit will also keep being paid for the first two weeks of a Universal Credit claim to help bridge the gap.