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11 June, 2020 Open access

More than half of new universal credit claimants are facing hardship waiting for their first benefit payment, says Citizens Advice

Survey of those that have applied for benefit since the lockdown finds that claimants haven’t been able to afford essentials like food and heating and/or have borrowed money from family and friends

More than half of those who have applied for universal credit as a result of the COVID-19 outbreak have faced hardship waiting for their first benefit payment, according to Citizens Advice.

Based on findings from a survey of 500 new claimants, Citizens Advice also reports that one in seven (14 per cent) who’ve applied for universal credit since the coronavirus lockdown haven’t been able to afford essentials like food and heating while waiting for their first payment, and one in five (19 per cent) have borrowed money from family and friends.

As redundancies increase and people who have been ineligible for the government’s support schemes run down their savings and seek support from the benefit system, Citizens Advice warns that further measures to 'shore up' universal credit are needed, including changes to the advance payment system -

'Universal credit has been a hugely important safety net during this crisis, but it’s simply not right that some end up skipping meals, borrowing from family members or falling behind on bills while they wait for money to come through.

The government has said that it is too complicated to change the payment process for Universal Credit. Yet tackling this technical challenge is needed to reduce the human cost of the five-week wait.

With the close of the Job Retention Scheme, it’s more urgent than ever that the government build on its measures by temporarily turning advance payments into a grant.'

For more information, see Coronavirus claimants facing further hardship in wait for Universal Credit from Citizens Advice.