Minister hears of residents’ new benefit system struggles

Along with Haddington CAB, it has launched ‘Universal Credit in East Lothian: Impact on Client Income’, which contains research taken from a snapshot of 134 CAB clients over a two-week period in January in relation to the UK Government’s new combined benefits payment.

The report states that the average loss per week for clients losing out in the new system was £44.72, while the average gain for those benefiting was just 34p per week.

More people – 52 per cent – were losers under the new benefits system, while 31 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) experienced a financial increase of less than one per cent. In contrast, almost eight out of 10 (79 per cent) who lost out had a financial reduction of more than 10 per cent.

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

East Lothian was the first Scottish local authority area in which the Department for Work and Pensions (DWP) implemented full service rollout of UC last March, as one of the pilot areas.

Yvonne Cassidy, chief officer at Musselburgh CAB, said: “It was a wonderful opportunity to welcome Jeane Freeman MSP to Musselburgh CAB and to have the opportunity to discuss how Universal Credit has impacted on claimants and on local advice and support services.

“We also discussed the continuing rollout of Universal Credit and how the ‘Universal Credit Choices’ will work in practice for benefit claimants.

“Jeane was very interested to hear about the impact of Universal Credit on claimants and she witnessed an account first-hand from a visiting client who was only too happy to share her experiences.”

The client talked directly to the minister about the “unrealistic” six-week waiting period before the benefit was paid and how this impacted on her ability to pay her bills, which put her into debt. She complained about requests not being actioned by the DWP and the “significant and unexpected deductions” to her benefits payments.

This account backed up evidence from Musselburgh CAB that Universal Credit had left claimants in East Lothian “struggling to pay for essentials and forcing them into debt”.

Ms Freeman said: “Musselburgh CAB has been on the frontline helping those directly affected by the devastating impact that the UK Government’s ill-designed, flawed Universal Credit is having. I’d like to thank them for the opportunity to discuss these issues.

“We have, jointly with the Convention of Scottish Local Authorities, called on the UK Government to halt the rollout and fix the problems we know are causing serious issues.

“It was an invaluable opportunity to hear from people directly affected and explain that where we do have powers, we will act.

“That is why the Scottish Government has now offered people the choice of changing the frequency of their payments from once to twice monthly and to have the housing cost element paid directly to their landlord.”

A DWP spokesman said: “Universal Credit lies at the heart of our commitment to help people improve their lives by providing additional tailored support to move into work and stop claiming benefits altogether.

“And it’s working. With Universal Credit, people are moving into work faster and staying in work longer than under the old system. Paying UC the same way as many people in work are paid is an important part of that process.

“However, we are clear that advance payments are available to all new claimants who need one and it can be paid within five working days, and on the same day to anyone in urgent need. Budgeting support is also there for anyone who needs it.”