Concerns raised in Wolverhampton over roll out of Universal Credit

They were today raising that the Government's latest benefit scheme will cause 'serious harm to some of the poorest people'.

Benefit claimants are at risk of becoming in arrears on their rent, with some facing eviction due to delays in payments, according to Labour members of Wolverhampton council.

First payments are expected to take between six and seven weeks to be received, according to councillors who are 'concerned' about the impact this will have on people claiming the benefit.

According to a motion submitted to Wolverhampton council ahead of its full council meeting on Wednesday, councillors are concerned that the new benefit scheme will not consider the difficulties experienced by claimants having to wait almost two months for the first payment.

The motion, submitted by Councillor Lynne Moran, Labour councillor for St Peter's ward, suggests that the roll out of the benefit scheme will lead people to become evicted from their properties if payments are delayed.

She said: "I am not opposed to the scheme as a system, which has simplified several benefits into one. It a benefit for people who are a lot of the time in work and are used to being paid every week or month.

"However, unless you have a savings cushion you are going to feel the pinch of waiting six or seven weeks for your first payment of Universal Credit.

"What will happen is that people will apply for loans from the Department of Work and Pensions or other sources to tide them over, and then by the time the first payment of the Universal Credit comes in, they may owe more than £1,000 in rent, utilities and the loan repayments?

"It is my fear that this delay will see an increase in homelessness and even crime as people look for ways to feed their families or make up for the shortfall.

"The only concession that the government has made on this is that it has made the Universal Credit helpline for claimants, free."

Universal credit was first announced in 2010 and rolled six benefits into one, single monthly payment for working-age people.

It replaced child tax credit, housing benefit, income support, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA) and working tax credit. It is currently being rolled out in stages.

The first stage arrived in Wolverhampton in February 2016.

According to Councillor Moran's motion: "The City of Wolverhampton Council notes its concern at the roll out of Universal Credit without the resolution of the delayed payments issue.

"Experience elsewhere in the country suggests that delays of 6-7 weeks or more to people claiming benefits has put many into debt, led to increasing arrears in council rent and increased risk of private tenants being subject to eviction proceedings.

"Despite widespread calls for this to be addressed before the national implementation of the scheme, including from within the Conservative Party, the Government seems intent on proceeding.

"This council resolves to ask the minister to delay implementation, even at this late stage, to prevent serious harm to some of the poorest people in Wolverhampton."

According to a Wolverhampton council document on Universal Credit released in 2015, the benefit will be capped at a total of of £2,167 per month or £498.70 per week for couples and lone parents and £1,517 per month or £349.12 per week for single people.

Part of the conditions for the payments to be made is that claimants undergo assessments to determine their readiness for work.

Councillor Wendy Thompson, leader of the Conservative Party at the council said: "There is cross party agreement over the concerns about the six week delay of the initial Universal Credit payment.

"The Government has listened to concerns so far and has stripped the call charge for the helpline.

"We would agree that perhaps a weekly payment would be more appropriate for some people in receipt of Universal Credit."