Universal Credit: Fear and Loathing for 2.9 million in the Poverty Trap

The government’s Universal Credit logo – the slogan is makes work pay. Pic Credit: gov.uk

Today the National Audit Office produces a timely report on the operation of Universal Credit and the impact on claimants of having to wait five weeks to get paid.

It comes when the numbers claiming the benefit has jumped from 2.9m to 6.1 million because of Covid 19.

The report investigates the plight of those needing to claim before Covid 19 struck and it paints a particularly bleak picture.

It is also relevant to the group of 1950s born women whose pension has been delayed from 60 to 66. As the Independent reported separately recently the rise of women making claims for such benefits – soared from 7,578 to 36,527 between 2013 and 2019 – and was almost three times more than men who are aged 60 and over.

Fear factor

What is alarming about the findings – which are an analysis by the NAO of the Department for Work and Pensions own figures – is that many of the people were too frightened to claim and delayed claiming for up to three months after they lost their job.

This damning point is raised in the report. It says:

“Our consultation with claimants and support organisations indicated
that a “fear factor” about Universal Credit is also likely to play a part in some people delaying a claim, or not claiming at all. This may result from people hearing about bad experiences from friends, family or the media, for example.
Some respondents told us they were worried about whether they would be able to cope during the wait.”

As a result the report says the DWP’s analysis of earning data ” found that almost half(49%) of households who claimed Universal Credit in the four years to mid-2018 had no earnings in the three months before they claimed the benefit.

Taking this into account and the additional five week wait to get the benefit this meant that many had to apply for advance payments to tide them over or go to food banks simply to get food to live which then had to be paid back by deducting it from the meagre universal credit they have to live on.

DWP headquarters in Westminster,London.

A particularly revealing table in the report puts together this bleak picture. It shows that an astonishing 80 per cent of all low income people starting to claim the benefit were in serious debt. Some 77 per cent had to rely on advance repayable payments. Another 34 per cent owed money to other government departments – often historic debts. And six per cent had third party debts,like unpaid council tax, child maintenance, rent and water arrears.

Nearly as badly off were claimants with a disabled child, disabled people and carers. Some 65 and 70 per cent had serious debts.

Now as the report shows this is against a dramatic improvement of paying the benefit on time from 55% in January 2017 to 90% in February 2020.

However, as the number of people claiming Universal Credit has grown, the number of people paid late has also increased from 113,000 in 2017 to 312,000 in 2019. In 2019 those new claimants who were paid late faced average delays of three weeks in addition to the five-week wait. Some 6% of households (105,000 new claims) waited around 11 weeks or more for full payment.

Universal Credit expansion delayed

The government has also limited the expansion of universal credit – delaying the final date of switching from other benefits from March 2023 to September 2024 at an extra cost of £1.4 billion to £4.6 billion.

Yet despite spending £39m to try and explain the new benefit to wary claimants the National Audit Office concludes the ministry has a communications problem.

Meg Hillier, chair of the Commons public accounts committee, said: ” too often the most vulnerable claimants still aren’t receiving the money they are entitled to when they need it most.”  

Stephen Timms, chair of the Commons work and pensions committee. Pic credit: Twitter

Stephen Timms, chair of the Commons work and pensions committee said:

“This hard-hitting report on Universal Credit from the National Audit Office confirms the Select Committee’s concern that that the five week wait for the first payment causes ‘financial hardship and debt’.

” It provides further evidence that the initial planning assumptions for Universal Credit were naive. We now know UC will cost an extra £1.4bn to the public purse.  It will take more than twice as long to roll out as originally planned.  Far from reducing fraud and error, Universal Credit is driving historic record high levels – more than £1 in every £10 paid through UC is incorrect”

Neil Couling director general Universal Credit

There is one man who has done rather well out of all this. He is “Mr Universal Credit” Neil Couling, who is in charge of the benefit at the DWP. According to the latest DWP accounts for 2019 he received a bonus of £15,000 on top of a salary of between £150,000 and £155,000 a year. He has got pension benefits worth a cool £80,000.

He will be appearing before the Commons work and pensions committee next Wednesday to explain how well he has handled the benefit for the 2.9 million claimants.

7 thoughts on “Universal Credit: Fear and Loathing for 2.9 million in the Poverty Trap

  1. I want to know why JSA claiments are not getting the extra £20 a week that UC claiments are getting,due to Covid 19,blatent discrimination.

    Liked by 1 person

  2. The vast increase in the number of people claiming UC is not because of covid 19, but is the deliberate strategy and policy of the Tories to have as many people unemployed, unhealthy, and living in poverty as possible. The vast increase in the numbers claiming UC is also due to the collapse of capitalism, for the truth about what is going on, every time you hear announcements of job losses, take a look at the direction of the Stock Market, it will always be upwards, because that means that the 1% wealthy elite, the establishment are increasing their wealth, while everyone else loses their jobs, their homes and their freedoms.


  3. It can be worse…..I’ve not been paid a penny for 14 1/2 years! They stole my identity and I still believe within the system could be claiming things in my name until this day….not only that, they simply ‘make up debts’….long time ago it took six court hearings, all at my expense for them to admit they didn’t know why I owed them the sum of £1500 (whilst refusing to confirm or deny if they know who they are) and this was in front of a judge….who deemed that acceptable and I really did owe the money! Couple with working 60-80 hours a week over 3 different temp jobs….my take home weekly pay was sometimes as low as £80….whilst paying over £300 a week in tax! You can’t make it up….but been unable to legally earn a penny for last decade and a half now nearly….forced to survive basically as a salve to pedophiles. Currently trying to drink myself to death, ideally before anonymous psychopaths start forcibly injecting everyone…..


  4. I am 62 & on Universal Credit . I am appalled that nothing is being done by the DWP to actually find out what it is like being on this awful Benefit. It is degrading the whole process. They need to use Co Production to get a true idea and sort out this mess once& for all. I have offered to Co Produce with them via Turn2Us whom I volunteer with . Surprisingly no reply
    as yet!


  5. seems comments coming through on the email (‘cept my second one has disappeared) but they not updating here……..you got tech issues David? thanks for not censoring me here, i do everywhere else 😦


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