New data published today by the Department for Work and Pensions shows that Universal Credit is in ‘total disarray’ and urgently needs to be paused.

The data shows that:

• One in four new claimants are now having to wait longer than six weeks to receive payment. This has deteriorated from one in five claimants, driving many into debt and arrears.  

• 42 per cent of families in arrears under Universal Credit state that it is due to the waiting times to receive payment, support being delayed or stopped, or administrative errors in the system.

• Half of families in arrears under Universal Credit have said that their rent arrears started after they made their claim.

• Half of new Universal Credit claimants need a DWP loan to cover the six week wait for their first UC payment being enforced by this Government. This suggests that the Department accepts that half of new recipients are unable to go six weeks without UC support. However, the advance loan requires rapid repayment, exacerbating the high levels of debt and arrears among Universal Credit claimants.  

This new evidence appears to confirm the findings of a report by Citizen’s Advice, published this week, which shows that Universal Credit is increasing debt among low income families. For 79 per cent of those asked, having priority debts such as rent or council tax is “putting them at greater risk of eviction, visits from bailiffs, being cut off from energy supplies and even prison.” This figure is up 10% compared with those on legacy social security payments such as Jobseekers’ Allowance. The same report also found that 2 in 5 have no money to pay creditors as their monthly spend on essential living costs is more than their income.

Debbie Abrahams MP, Shadow Work and Pensions Secretary, said:

“The Government’s flagship Universal Credit programme is in total disarray. It is unacceptable that one in four claimants are waiting more than six weeks to receive support, alongside mounting debts and arrears among recipients.

“I have written to the Secretary of State requesting that he immediately halt the roll out of Universal Credit to contain the misery being caused by the disastrous mishandling of this programme.

“In our manifesto we set aside £10bn for reform of the social security system, including transforming Universal Credit, to ensure that, like the NHS, it is there for us all in our time of need.”

Diane Abbott MP, Labour’s Shadow Home Secretary, responding to today’s terrorist attack in Parsons Green, said:

“We are all horrified by the terrorist attack in Parsons Green today. Our hearts are with those affected and their families and we are thankful that there are no fatalities.

“In what has been a difficult year, we have seen just how much we owe our emergency services including the police, NHS, Ambulance and fire service. And today we applaud the swift response of the British Transport Police and Transport for London staff who were first on the scene.

“Setting out to harm people on their daily commute is an attack on our very way of life. In times like this our great city has always pulled together with resilience and in defiance of any threat. Londoners will never be beaten by terror.”

Angela Rayner MP, Labour’s Shadow Education Secretary, commenting on the Government’s National Funding Formula announcement, said:

“Today’s announcement on the National Funding Formula follows years of pressure from the Labour Party as well as schools, teachers and parents across the country, forcing the Government to abandon millions of pounds in outright cuts to schools.

“However, it does not go nearly far enough to meet the Tories’ own election promises and is far less than Labour pledged in our manifesto. For many pupils and schools, funding will fall in real terms between now and 2020, which comes on top of a £2.7 billion in real term cuts since 2015.

“There is no new money for education at all, and this funding for schools is coming from other cuts to education budgets. Only months ago, Ministers guaranteed that the healthy pupils fund would be protected – now it is being cut by over 75 per cent, and the Education Secretary can’t even tell us where else the axe will fall.

“The next Labour government will give our schools the resources they need, reversing funding cuts and increasing the schools budget in real terms, as we build a National Education service that allows every child to fulfil their potential.”

Barbara
Keeley MP,
Labour’s Shadow Cabinet Minister for
Social Care, commenting on new delayed transfers of care figures due to
social care, said

“It
is deeply worrying that in July there was an 11 per cent increase in NHS bed
days lost due to a lack of social care. Over the last five years, delayed days due
to social care have increased by 113 per cent

“Delays
caused by patients waiting for a care package at home have also increased,
continuing an upward trend since February 2015, yet we see no action from
Theresa May and Tory Ministers to fix this shortage of home care.

“Keeping
older and vulnerable people in hospital when they are medically fit to leave
poses a risk to their recovery and increases their likelihood of contracting
hospital-acquired infections.

“A
Labour Government would provide the urgent additional funding needed to end the
crisis in social care.”

Justin
Madders MP, Labour’s Shadow Health Minister, responding to today’s NHS Combined Performance statistics, said:

“The Tories’ underfunding of the NHS has caused chaos for patients
and even in the height of summer key targets are being missed and waiting list
numbers are rising.

“There is a real danger to patients unless the Government takes
urgent action to support the NHS through the extra winter pressures.

“Theresa May’s decision last year to refuse the necessary winter
funding for the health service caused misery for patients right across the
country – she needs to say what action she’s going to take so that patients and
their families don’t suffer the same unacceptable waiting lists this winter.”