Benefits of welfare reform

Universal credit (UC) represents the biggest upheaval in the welfare system for at least 40 years, merging six existing benefits into one monthly payment. The aim is both to simplify the system and to encourage work by making it easier for people to move in and out of a job without losing access to benefits. Yet it is in danger of failing because new claimants and anyone transferring from the existing benefits system must wait up to six weeks to receive their first payment. These delays are causing hardship.

Recent research by Citizens Advice carried out in pilot areas now using UC suggests the new system has placed vulnerable residents at risk of destitution and homelessness. People are finding themselves in rent arrears and deeper in debt. Areas where the benefit has been tested report the highest use of food banks. Low-interest loans and advance payments are available to help bridge this…

Source: Telegraph

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