Cashless at Christmas

Anyone making a new claim for Universal Credit faces spending the festive season without money, Social Security Secretary Shirley-Anne Somerville said today.

The in-built wait of a minimum of five weeks before payment means that anyone making a claim this week will need to survive until January without money to which they are entitled.

Ms Somerville criticised the delay as she met with people receiving benefits on a visit to a Citizen’s Advice Scotland office in Leith –  the full service roll out of Universal Credit by the UK Government  began to be rolled out in Edinburgh last week.    

Ms Somerville said:

“Christmas is a time of additional expense for most people but it’s particularly hard for families with little money to begin with.

“It is therefore unacceptable that anyone making a claim for Universal Credit from last week will not see their money until after Christmas. This is an appalling situation for many across Scotland and why we have repeatedly called for a halt to the roll out of Universal Credit.

“The minimum five week wait for a first payment is just one of the many problems with Universal Credit, the roll out of which has led to sharp rises in the use of food banks and rent arrears. 

“While the DWP do offer advance payments, this needs to be paid back from future payments, locking families in to further debt at the start of a new year.

 “The Scottish Government cannot change Universal Credit.  It’s a benefit delivered by the UK Government. However, we do have limited powers to make the delivery of Universal Credit better suited to the needs of people. Since last year, our Universal Credit Scottish choices have given people the choice to receive their Universal Credit award twice monthly and have the housing costs paid directly to their landlord.

 “We are spending significant amounts to mitigate the worst effects of UK Government cuts and support those on low incomes - £125 million this year alone - £20 million more than last year. 

“Previous calls for the roll out to be halted have been ignored and Universal Credit will be available in all areas before Christmas. The UK Government must now make the fundamental changes needed to make Universal Credit fit for purpose before the managed migration of people on legacy benefits begins next summer.”

Background

The roll out of Universal Credit full service across Scotland has now been completed. This means that anyone who would have made a claim to one of the six legacy benefits will now have to claim Universal Credit. Anyone who currently receives a legacy benefit will also be moved onto Universal Credit should there be a change in their circumstances.

Due to the in-built minimum five week wait for a first payment of Universal Credit, anyone making a new claim will have to wait until after Christmas to receive that payment.