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A woman is unable to buy fresh food or pay her utility bills After major delay in benefit payment Only £3.75 was left to his name.
Tina, from Kent, is among thousands of people struggling to make ends meet Minimum delay of five weeks in obtaining universal credit Payment. he told her mental health She has suffered as she has sunk deeper and deeper loan,
“It’s terrible, I’m scared,” she said. “I had to call Housing and say, ‘Sorry, I can’t afford the bedroom tax.’ This is what keeps a roof over my head. I’ve done this with every company and said, ‘Look, if I don’t pay you it doesn’t mean I refuse to pay you, there’s just no money. What I will do is that when the money comes I will sort it out.
“I have £3.75 to my name – 75p in my bank account, £1 in my savings account and £2 cash.”
A major report from the Financial Conduct Authority (FCA) Financial Lives earlier this year found that 1 in 10 people had no cash savings, while 21 per cent had less than £1,000 to support them.
Ahead of the autumn budget, charities have called on the government to end the minimum five-week waiting period, arguing that it is Pushing families into more debt and sank deeper into poverty.
For new claimants, Universal Credit’s ‘payment in arrears’ model means the first sums of money will not arrive in bank accounts until at least 35 days later, with some families having to wait up to eight weeks.
While the government offers advance payments, it is a loan that must be repaid and affects the claimant’s future income and forces families to make difficult decisions Like skipping meals, avoiding electricity and heating.
Tina said, “I want to pay the bills that are coming before the debt gets too big. I want to buy fresh food. I want to put some money on my gas and electricity. But I can’t do that.”
“For me, it reminds me of when I was first in debt and wondering, ‘Do I have enough money to get a pint of milk and drink tea or coffee?’
“I sit here one evening and think, ‘No, I’m not going to turn on the lights.’
“Even my phone won’t last much longer, but I don’t have money to order a new cable.”
Due to her health conditions, which include heart and mobility problems, the 53-year-old has struggled to find employment, which has led her to turn to the welfare system.
“It will be like this for the rest of my life, I will keep fighting for benefits,” she said.
“I get very emotional. I’m relying on my local community café to help them. I go and get food and as long as I’m there, I’m safe. I can’t even get my hair cut, and I have headaches because of fibromyalgia.
“I get worried when I get calls from numbers I don’t know. But Universal Credit calls you on an anonymous number, and if you don’t answer, you’re banned.
“This is what you’re dealing with, day after day. I tried to call them back – after being on hold for three hours, I had to get off the phone.”
According to Christians Against Poverty, a charity that supports more than 8,300 people, 47 per cent are in a budget deficit and need an average of £283 more each month to make ends meet.
With no financial buffer, their customers may resort to credit cards, doorstep lenders or arrears to avoid waiting, leaving them in debt before their first Universal Credit payment.
Tina said, “Don’t give advances to anyone.” “What’s the easiest thing to get into but what’s the hardest thing to get out of? Debt. I want the wait to go down.”
“Even if they did it by giving vouchers for gas, electricity and food so it couldn’t be spent on anything else. Surely that’s an option, right? Improve communications and make it more accessible.”
Stewart McCulloch, chief executive of CAP, says: “This wait is not an accident, but a design feature.
“Monthly arrears of Universal Credit are paid, leaving new claimants to survive more than a month without any income before they receive help. While advance payments are offered, they are loans that must be repaid, pushing people already in crisis into further debt.
“The Government’s mission is to raise living standards across the UK, but this policy actively works against that aim. The safety net should be in place when people fall through the cracks, not five weeks later.
“Ahead of the Autumn Budget, the Chancellor has an opportunity to fix this by converting the advance payments into non-repayable grants. This would be the most effective step to give UC that lifeline.”
A DWP spokesperson said: “We support millions of people through Universal Credit every year, and it is a top priority for us to ensure they get the support they deserve.
“Advances are available to new and existing customers who need immediate support, and those moving to Universal Credit get a two-week extension of their legacy benefits.
“But we believe universal credit could work better for people, which is why we are reviewing it, including how to best support people before they receive their first payment.”