THE full impact of Universal Credit in East Lothian has been laid bare in two new reports.

A survey carried out by East Lothian Council’s revenues and welfare support service shows the significant level of negative impact that Universal Credit (UC) is having on county recipients.

While new research carried out by the Citizens Advice Bureau in Musselburgh and Haddington has highlighted how the scheme is having a severe impact on residents.

A total of 209 people responded to the council’s survey, which showed only one quarter managed financially while waiting for their first payment.

Waiting time for that first payment was about six to eight weeks for 82 per cent of respondents, with a further 18 per cent having to hold on for longer than that.

Councillor Norman Hampshire, East Lothian Council deputy leader, said: “This research provides a shocking insight into the impact of Universal Credit on people in East Lothian. It shows that UC affects many people with ill health and disability and that almost half of all claimants need to be referred for money or debt advice.

“East Lothian Council continues to work with its partners to mitigate the impact of Universal Credit on local people and at the same time continue to campaign for improvements and changes with the Scottish and Westminster Governments.”

The survey also found that 53 per cent of respondents required a loan from their families to tide them over; 28 per cent had to get benefit advance; 10 per cent had to apply to the Scottish Welfare Fund and 14 per cent went to the foodbank.

After three months on UC, only 36 per cent felt that they were now coping with payments and 46 per cent said that their financial situation had worsened and their debts increased.

The main reasons for people claiming Universal Credit are: change in work (25 per cent), stopping work (22 per cent), change in household (18 per cent), starting work (10 per cent) and new home (nine per cent).

A spokesman for the Department for Work and Pensions, which is responsible for the rollout of UC, said: “Universal Credit lies at the heart of our commitment to help people improve their lives and raise their incomes “It provides additional, tailored support to help people move into work and stop claiming benefits.

“And it’s working. With Universal Credit, people are moving into work faster and staying in work longer than under the old system.”

Yet research carried out by the Citizens Advice Bureau (CAB) in Musselburgh and Haddington stated that more people – 52 per cent – were losers under the new benefits system.

Thirty-one per cent gained from UC – which has combined income support, income-based jobseekers’ allowance, employment and support allowance, child tax credits, working tax credits and housing benefit into a single monthly payment.

But among those who gained, almost two thirds (63 per cent) would experience a financial increase of less than one per cent.

In contrast, almost eight out of 10 (79 per cent) who lost would have a financial reduction of more than 10 per cent.

The report, taken from a snapshot of 134 CAB clients over a two-week period in January, stated that the median loss of clients per week was £44.72, with the median gain just 34p per week.

The data, which will be submitted to the UK Parliament’s Work and Pensions Committee as evidence, stated lone parents were among the most adversely affected, losing an average of £58.51 per week. Claimants with disabilities would be as negatively impacted as lone parents, losing £61.51 per week.

The report ‘Universal Credit in East Lothian: Impact on Client Income’ was unveiled at a launch event in The Brunton, Musselburgh.

East Lothian was the first Scottish local authority area in which the DWP implemented full service rollout of UC last March, as one of the pilot areas for the UK Government’s latest reform to the social security system.

Councillor Fiona O’Donnell, one of East Lothian Council’s representatives on Musselburgh CAB, said: “The people who know best here in East Lothian, those who have claimed and are now in receipt of UC, have not, on balance, found the process simple. We know it will impact on other aspects of claimants’ lives such as health and increasing debt.”

Speaking on behalf of the CABs, Yvonne Cassidy, manager at Musselburgh CAB, said: “The thinking behind Universal Credit was that it would simplify an overly-complex system and would make work pay.

“However, here in East Lothian we have had the opportunity to see how the system works and the impact it has on claimants.

“As we were one of the first areas to see the system in operation we wanted to report our observations not just for the benefit of local people but also to show the rest of the country how it could impact them.

“Our findings are very worrying and show the system is definitely not working as intended.

“While some claimants are benefiting, significant numbers are clearly losing out and are struggling to make ends meet.

“As we have been drawing up this report, similar data has been published from the other pilot areas across the country.

“We hope that this information will be taken seriously by the Government and that it will help them to decide to make changes to the system so that people will not be harmed in the way that we have seen here.”

Martin Whitfield, East Lothian MP, added: “[The reports] demonstrate the negative impact Universal Credit is having on the lives of many of the most vulnerable people in East Lothian. It is outrageous that this new benefit has led to so many people being driven into debt and poverty.

“It is disappointing, therefore, that the Secretary of State for Work and Pensions has refused to delay the expanded rollout to new areas, despite being urged to do so by over 100 cross-bench MPs, including myself.

“All the available evidence points to Universal Credit being a disaster, which is why the Government should think again.”