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Citizens Advice calls for Universal Credit rollout to be paused

10th July 2017

Citizens Advice calls for Universal Credit rollout to be paused

The rollout of Universal Credit should be paused until significant problems with it are fixed, says national Citizens Advice.

In a major new report - Delivering on Universal Credit - the charity reveals that the requirement to wait for six weeks to receive any payment means people face serious financial insecurity, with many being forced into debt.

The research also identifies a wide range of administrative challenges, including problems with the online system and long waits to get help over the phone, which can make the initial six week wait even longer.

Universal Credit merges six existing benefits into one - including tax credits, housing benefit and Employment and Support Allowance (ESA).

By 2022 over 7 million households will receive Universal Credit and new Citizens Advice analysis reveals over half (54%) of these will be working households.

Universal Credit will be claimed by more than half (52%) of all families with children in the UK and 6 in 10 (58%) households where an adult is disabled or has a long term health condition.

As part of the new study, Citizens Advice surveyed 800 people who sought help with Universal Credit in areas where there is full service - meaning anyone who would have previously have claimed one of the old benefits has to apply for Universal Credit.

It finds:

  • Over a third (39%) of people are waiting more than the 6 weeks it should take to receive their first payment.
  • Just over 1 in 10 (11%) are waiting over 10 weeks without the benefit.
  • 3 in 5 (57%) are having to borrow money while waiting for their first payment.

In the last year Citizens Advice supported more than 30,000 people with Universal Credit issues, with a quarter (25%) also needing help with debt issues.

The report also reveals that people are having problems with the application process. These range from difficulties using a computer or with the online system, to issues getting hold of the right evidence to support their claim.

And when things go wrong the research shows people are not able to get the help they need: nearly a third (30%) of people said they had to make more than 10 calls to the Universal Credit helpline during their application process, often having to wait over 30 minutes to get through.

Full service Universal Credit has been rolling out gradually across England and Wales for over 2 years, to around 5 new areas each month. But in October this process is set to speed up significantly, to over 50 new areas every month.

Citizens Advice is calling on the government to pause this acceleration and use the time to fix key problems with Universal Credit, before thousands more people are brought into the system.

The national charity also highlights that, unless addressed, these challenges will undermine the goals of Universal Credit, to simplify the benefits system and offer people the security and support they need to move into and progress in work.

As it stands many people are facing uncertainty about how much money they will receive and when it will arrive. This insecurity filters through to other areas of their lives, for instance making it harder to focus on finding work while they worry about how to keep on top of bills or put food on the table.

One woman turned to Citizens Advice for help when her Universal Credit application was delayed because her childminder didn’t provide receipts on a type of letter headed paper which was required as evidence for her claim. Because of this delay she lost her childcare places and had to take time off work to care for her children. Further delays to her Universal Credit claim then meant she could still not afford childcare, and she has since lost her job for taking so much time off.

Citizens Advice Chief Executive, Gillian Guy, said:

“Universal Credit is already failing too many people, pushing them into debt and leaving them without the means to make ends meet.

“Citizens Advice supports the principles of Universal Credit, but pushing ahead with roll out while the system remains beset with problems will put thousands more families at financial risk.

“The current flaws with the system also undermine the very reasons Universal Credit was introduced: to simplify the benefits system and make sure every hour of work pays. As things stand, too many people are finding Universal Credit very complicated, and problems such as long wait for payments or difficulties getting help with an application mean they are less able to focus on getting into work or increasing their hours.

“The government needs to pause plans to accelerate the roll out of full service Universal Credit this Autumn and devote the time and resource needed to tackle the key problems which mean the system is not working.”

In its new report Citizens Advice makes a range of recommendations to fix Universal Credit before it is rolled out more widely:

Reduce how long people have to wait for their first payment

  • Remove the 7 waiting days at the start of a claim, to reduce the amount of time people have to wait for their first payment.
  • Make sure everyone moving to Universal Credit is told they can get an Advance Payment to help them while they wait for their first payment.

Improve the support available to people so they can make ends meet

  • Introduce an online system so people can book their initial Jobcentre appointments online rather than having to call the Universal Credit helpline.
  • Make the Universal Credit helpline free of charge, at least until the roll out is complete.
  • Allow people to adjust to Universal Credit by offering everyone options in how they would like the benefit to be paid.
  • Put in place a comprehensive support package before Universal Credit roll-out accelerates, to make sure people get advice to manage their money and deal with any complications in the application process.

Notes to editors

  1. Survey of Citizens Advice clients asking for help with Universal Credit in full service areas running since August 2016 in 18 areas and as of May 2017 had a total sample of 792.
  2. Projection of number of families claiming UC in each constituency when full service rollout has completed uses national patterns of benefit claims from Family Resources Survey 2014-15 and constituency level administrative data from the DWP and HMRC from August 2015
  3. The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  4. The advice provided by the Citizens Advice service is free, independent, confidential and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  5. To get advice online or find your local Citizens Advice in England and Wales, visit citizensadvice.org.uk
  6. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
  7. Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.
  8. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.

Citizens Advice Medway

3rd Floor Kingsley House
37-39 Balmoral Road
Gillingham
Kent
ME7 4PF

Telephone: 01634 383760
Fax: 01634 383767
Email: info@cabmedwayadvice.org.uk

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Citizens Advice Medway is authorised and regulated by the Financial Conduct Authority (FRN: 617661).