Christmas Fears Over Universal Credit - MPs Urge Delay Implimenting

Kevan Jones MP

The Government has been urged to delay the introduction of radical changes to the benefits system amid fears it will plunge families into debt over Christmas.

MPs have written a letter calling on the Department for Work and Pensions to rethink plans to introduce Universal Credit during November and December.

They said: “There is a real worry that the introduction of UC at this time will cause extreme hardship for many people in vulnerable situations, exacerbated by the financial burdens of the festive period.”

The letter was organised by North West Durham Labour MP Laura Pidcockand signed by other MPs including Helen Goodman, Labour MP for Bishop Auckland; Ian Mearns, Labour MP for Gateshead, and Kevan Jones, Labour MP for North Durham.

Image: MP Laura Pidcock

They are concerned about the introduction of the new benefit system, which replaces a range of allowances including housing benefit.

It is being rolled out across the country, but comes into effect at different times in different parts of the country.

And it is to be introduced at a number of job centres in the North East in December and November.

But MPs warn that where Universal Credit has already been introduced, it has led to delays of up seven weeks before benefits are paid - causing people to fall into debt and in some cases to rely on food banks.

"It is a vanity project and people in the North East should not be conned" said MP Kevan Jones

Introducing the benefit over Christmas will leave people without money in the festive season and into January, when they are already likely to be struggling, MPs say.

The letter, published in The Guardian, said: “We are concerned about the Department for Work and Pensions’ proposed rollout of Universal Credit in our constituencies during November and December.”

Fears aired that Universal Credit will have 'scrooge' effect when rolled out at Christmas time.

The MPs added: “We understand that the proposed changes were designed to make the social security system simpler, more reactive to individuals’ issues and more efficient. However, evidence from other parts of the country where UC has been introduced already, shows that it is far from the efficient system trailed.

“In many cases, recipients have had to wait seven weeks for payment of the benefits. This puts an incredible strain on individuals and we have seen in other areas an increased use of food parcels during this period.

“There are also issues around the removal of the severe disability premium, which leaves many disabled people in a precarious position.”

Ms Pidcock said: “The government recognises there are many difficulties with the system so why don’t they do the decent thing and pause the roll out until they have sorted the issues?”

A DWP spokesman said: “We are rolling out universal credit in a gradual, safe and secure way and the majority of people are managing their budgets well. The best way to help people 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.”

Tenants in Newcastleran up arrears of £381,000 with Your Homes Newcastle, which manages housing on behalf of the city council, after the benefit was introduced in parts of the city earlier this year.

The figure was revealed in the House of Commons by Newcastle MP Catherine McKinnell.

Image: MP Catherine McKinnell

Universal Credit is 'failing thousands of people', says head of Citizens Advice

Universal Credit is to be introduced at job centres in Bishop Auckland, Consett, Crook and Stanley in December.

It will also be introduced at Blaydon Job Centre Plus in November.

Nationally, the benefit will also be introduced to job centres Birmingham, Wolverhampton, Cornwall, Fife and several London boroughs in December.