Credit, Collections & Insolvency News
Citizens Advice is calling for immediate changes to Universal Credit ahead of a potential second wave of claims when the government’s protection schemes come to a close.
Data released today by the Department of Work and Pensions shows 1.9 million households have made a claim for Universal Credit in the last two months. This equates to just under one in ten working-age households in Great Britain.
While the rate of claims has tapered in recent weeks, the charity warns its frontline advisors are preparing for a potential spike in enquiries this summer. The job retention scheme is currently due to end on 30th June, which could precipitate further job losses.
The redeployment of staff by the Department for Work and Pensions has helped respond to an unprecedented surge in demand on the benefits system and ensured people can access financial support.
However, frontline advisers at Citizens Advice say many people they support with Universal Credit can face hardship as a result of the five-week wait until their first payment, or risk getting into debt by taking out an advance payment.
Responding to today’s figures, Dame Gillian Guy, Chief Executive of Citizens Advice, said “The dizzying number of Universal Credit claims since March is a grim reflection of just how many people have seen their income swept away by coronavirus.”
“Decisive action from the government means hundreds of thousands of claims have been processed. The next step is to support people during the five-week wait without putting them at risk of debt problems in the future.”
“With a potential second wave of claims looming, now is the time for the government to further strengthen the safety net by turning advance payments into grants.”