Universal Credit not covering daily living costs

Three-quarters of people who are already in debt across the UK have had to borrow more money to cover daily living costs since receiving Universal Credit, according to new data from national debt help provider PayPlan.

The survey of more than 6,000 people, who have already sought advice from the free debt help provider, also shows 80% of respondents don’t have enough money to cover basic bills now they’re on Universal Credit. As a result, they’ve had to cancel household payments, miss medical appointments as they can’t afford the travel costs and, in some cases, go without food.

Rachel Duffey, CEO of PayPlan, said: “Results from our survey are very eye-opening. It’s extremely sad to hear how people are so much worse off when receiving Universal Credit compared to their previous benefits.”

“A real mix of people have expressed their concerns, including families, single parents and others who are unable to work as they’re carers or have health issues.”

“Some PayPlan clients also suffer from long-term vulnerabilities, including terminal illness, physical disabilities, learning difficulties and various mental health problems, which means they sometimes have no way of paying off their debts. We need to make sure that these people gain the support needed to manage their finances if they’re worried about how Universal Credit will affect them.”

Universal Credit replaced Income Support, Jobseeker’s Allowance, Housing Benefits, Working Tax Credits, Child Tax Credits and Employment Support Allowance. It rolled out in full in December 2018.