Advertising helps fund Big Issue’s mission to end poverty
News

DWP publishes Universal Credit damage report 18 months later

Ministers heard from people who were struggling to pay bills after transferring to the new system

A study showing that the move to Universal Credit pushes people into financial difficulty has been published by the DWP and HMRC – but it is dated November 2017.

The report showed that 60 per cent of respondents to the joint survey said transitioning to the new benefits system – which rolls six benefits into one payment – made it difficult for them to pay their bills.

The six-week wait for a first payment was a key factor in the trouble Universal Credit caused, with more than half of claimants saying that they were not warned beforehand.

Some even said they experienced “considerable stress” as a result of payment delays, some of which meant they had to wait for as long as three months to be paid.

A quarter said Universal Credit caused them “real financial problems”, forcing them to fall behind with bills and commitments.

The research was carried out between October 2016 and July 2017. Months later, then-work and pensions secretary David Gauke said the new benefits system was working.

Advertising helps fund Big Issue’s mission to end poverty
Advertising helps fund Big Issue’s mission to end poverty

Last month NHS providers announced that Universal Credit is a “major factor” behind England’s mental health crisis.

More than 1.5 million people will be transferred to the new system – which a UN poverty inspector said is part of a network of policies which inflict “unnecessary misery” – this year.

However the full rollout has run into repeated problems. Last year, parliament voted for three million people to be moved onto the new benefits.

Keep reading the journalism that powers our mission

Register free to continue and learn more about the stories, campaigns and the support we provide, helping people facing poverty across the UK.

But this was cut back to just 10,000 in an attempt to avoid “human catastrophe”.

The most recent information seems to pin the final full rollout for December 2023.

When asked to explain why ministers sat on this information for 18 months, the DWP referred The Big Issue to HMRC for a joint statement.

In the statement, a spokesperson defended the report, saying that it shows “satisfaction levels are high and people are being helped into work quicker”.

They said that improvements had been made, and that “no one has to wait five weeks to be paid” because a first payment advance is available on day one.

Advertising helps fund Big Issue’s mission to end poverty

Do you know how Big Issue 'really' works?

Watch this simple explanation.

Recommended for you

View all
Rents in the UK are at record highs. Will they keep going up?
rents uk
Renting

Rents in the UK are at record highs. Will they keep going up?

Big Issue at 35: How prime ministers have supported Big Issue vendors
Big Issue 35

Big Issue at 35: How prime ministers have supported Big Issue vendors

People could face an 'impossible winter' with energy bills forecast to rise by 25% in January
an elderly person looking out
Energy bills

People could face an 'impossible winter' with energy bills forecast to rise by 25% in January

How a Big Issue vendor overcame homelessness to play hockey for England: 'It means everything'
Former Big Issue player turned hockey player Dan Bleach in a changing room
Big Issue 35

How a Big Issue vendor overcame homelessness to play hockey for England: 'It means everything'