‘I was left with £3.75 to my name after a devastating delay to my benefit payments’
Due to major delays in welfare payments, one woman was left with just £3.75 and couldn’t afford fresh food or pay her utility bills.
Tina, from Kent, is among thousands of people struggling to make ends meet due to a minimum five-week delay in receiving universal credit payments. He said his mental health deteriorated as he was dragged into debt.
“It’s a terrible situation, I’m scared,” he said. “I’ve had to ring houses and say, ‘I’m sorry, I can’t pay the bedroom tax.’ That’s what keeps a roof over my head. I’ve done this with every company, and I’ve said: ‘Look, if I don’t pay you, that doesn’t mean I refuse to pay, it’s just that there’s no money left. What I’ll do is, when the money comes in, I’ll deal with it.’
“I have £3.75 to my name – 75p in my bank account, £1 in my savings account and £2 in cash.”
A major report from the Financial Conduct Authority (FCA) Financial Lives earlier this year found that 1 in 10 people have no cash savings, while 21 per cent have less than £1,000 to support them.
Ahead of the Autumn Budget, charities have called on the government to end the five-week minimum waiting period, arguing it is pushing families further into debt and poverty.
For new claimants, universal credit’s ‘delayed payment’ model means the first amount of money will not be transferred to bank accounts until at least 35 days later, and some households may wait up to eight weeks.
Although the government offers an advance payment, this is a loan that must be repaid, eating into the claimant’s future income and forcing families to make difficult decisions such as skipping meals and avoiding electricity and heating.
“I want to pay the bills before the debt gets too high. I want to buy fresh food. I want to put some money towards my gas and electricity. But I can’t,” said Tina.
“For me, when I was up to my neck in debt, I was wondering, ‘Do I have enough money to buy a liter of milk and drink tea or coffee?’ It reminds me of moments when I thought:
“I sit here at night and think, ‘No, I’m not going to turn the lights on.’
“Even my phone won’t last long, but I don’t even have the money to order a new cable.”
Due to health issues, including heart and mobility issues, the 53-year-old struggled to find work, leading her to turn to the welfare system.
“This is what it’s going to be like, fighting for benefits for the rest of my life,” he said.
“I get very emotional. I rely on my local community cafe for help. I go and get food and I’m safe when I’m there. I can’t even afford a haircut, which gives me a headache because of my fibromyalgia.”
“I worry when I get calls from numbers I don’t know. But universal credit calls you from an anonymous number and if you don’t answer, sanctions are imposed.”
“This is what you deal with day in and day out. I tried calling them back; after three hours on hold I had to hang up.”
According to the charity Christians Against Poverty, which supports more than 8,300 people, 47 per cent have a budget deficit and need an average of £283 more each month to meet basic needs.
With no financial buffer, many customers are turning to credit cards, doorstep lenders or loans to hold on, pushing them further into debt ahead of the first universal credit payment.
“Don’t offer anyone an advance,” Tina said. “What is the easiest thing to get into but the hardest thing to get out of? Debt. I want this waiting period to be reduced.
“Even if they do it by giving gas, electricity and food vouchers so they don’t get spent on anything else. Surely that’s an option, right? Improve communication and make it more accessible.”
Stewart McCulloch, managing director of CAP, says: “This hold-up is not an accident but a design feature.
“Universal credit is paid monthly in arrears, leaving new claimants surviving with no income for more than a month until help arrives. Although upfront payments are offered, these are loans that must be repaid, pushing people already in crisis further into debt.
“The government’s mission is to raise living standards across the UK, but this policy actively runs counter to that aim. “The safety net should be there when people fall, not five weeks later.
“Ahead of the Autumn Budget, the Chancellor has the opportunity to rectify this situation by converting advance payments into non-repayable grants. This would be the single most effective step to make UC the lifeline it should be.”
A DWP spokesman said: “We support millions of people every year through universal credit and ensuring they get the support they deserve remains a top priority for us.
“Advances are available for new and existing customers who urgently need support, and people switching to universal credit will be able to enjoy their old benefits for an additional two weeks.
“But we recognize that universal credit could work better for people, so we are reviewing it, including how we can best support people before they receive their first payment.”
