Charity says new benefit is harming the poor

Instead, in areas where it has been rolled out in Scotland, Citizen’s Advice Bureaux have seen a ten-fold increase in people contacting them about crisis grants, and a 600 per cent increase in clients with rent arrears, the umbrella body CAS said.

Analysis: Benefit delay can make rent arrears almost certain for claimants

By the time Universal Credit is fully rolled out, in 2018, it will affect more than 650,00 Scots, according to CAS.

The charity’s new Chair Rory Mair said: “For too many people, a system that is intended to support them through difficult times is making their situation much worse. We are today calling for a pause in the accelerated roll-out of Universal Credit, so that these problems can be fixed before more families find themselves in crisis.”

The charity is calling on the UK Government to fix “major” flaws in the system, which it says are leaving many Scots unable to make ends meet, in particular a six-week wait for payment at the beginning of the claim process during which claimants are likely to have no income.

In one roll-out area, advisers have seen food bank inquiries more than double and in another they went up 40 per cent, CAS said. In parts of the UK where Universal Credit has not yet been introduced, Bureaux have only seen a three per cent increase in requests for advice about food banks.

Analysis: Benefit delay can make rent arrears almost certain for claimants

Bureaux have seen a 15% rise in rent arrears issues in areas where so-called “full service” UC has been rolled out, compared to a national decrease of 2% and an 87% increase in crisis grant problems compared to a national increase of 9%.

Mr Mair added: “We have always supported the principles behind Universal Credit. Simplifying access to benefits for those who need them is critical. However, Citizens Advice Bureaux are uniquely placed to see how changes like this affect people and in all of the initial roll-out areas the evidence is clear: Universal Credit has major delivery and design flaws which risk hurting families instead of helping them.

“These include long waits for payments that push people into crisis and debt, all while battling a highly-complicated process with little support.

“Families are falling into debt and rent arrears, and having to turn to food banks just to survive,” he said.

Analysis: Benefit delay can make rent arrears almost certain for claimants

A spokeswoman for the Department for Work and Pensions said: “The best way to help people pay their rent and improve their lives is to help them into work, and under Universal Credit people are moving into work faster and staying in work longer than under the old system.

“We are rolling out Universal Credit in a gradual, safe and secure way, and in the rare cases where issues arise, we work closely with local authorities and landlords to support people when they need it.”

She claimed those who sought advice from Citizens Advice were unrepresentative. “This report is based on evidence from a self-selecting group of people and is not representative of the half a million people claiming Universal Credit.The vast majority of claimants have told us they are satisfied with UC,” she said.

However councils in several of the areas affected by UC roll-out agree with Citizens Advice that rent arrears are climbing as a result.

Analysis: Benefit delay can make rent arrears almost certain for claimants

Highland Council has recorded a 13 per cent increase in rent arrears since Universal Credit was rolled out in Inverness, a spokeswoman for East Dunbartonshire said there had been a “marked increase” in arrears since UC was introduced in Kirkintilloch and housing associations in Inverclyde say prior to the introduction of the benefit in Greenock and Port Glasgow, 13 per cent of tenants were in arrears. The percentage is now 85 per cent.

In December it was reported that rent arrears among tenants in East Lothian had risen by 20 per cent in just three months since Universal Credit was rolled out in Musselburgh.