2.7 million won't cope with Universal Credit

Wed, 02/10/2013 - 16:49 -- nick

2.7 million people will struggle to cope with the new Universal Credit system, a report says.

The Payments Council says the move to monthly payments will lead to problems with budgeting income.

Benefits are currently paid every two weeks.

The government has made plans for some vulnerable people to keep their fortnightly payments, but millions more will fall outside this provision.

The Payments Council oversees card and bank transfers, and surveyed benefit claimants over the last month.

It found widespread worry about both debt and paying bills when they are due.

Adrian Kamellard of the Payments Council said: "The introduction of Universal Credit means that people will have to be savvier about managing their money and will have to plan for the whole month instead of budgeting on a weekly basis.

"Understanding payments can help manage cashflow."

The research shows that half of all those eligible for Universal Credit are concerned about money management, and four out of ten would prefer to use cash to help them cope.

The Payments Council has created a free guide to help claimants with budgeting.

The government claims that Universal Credit should make it easier to take work, but it has been beset by problems.

The IT system underpinning it is behind schedule and overbudget, while some benefits, including free school meals, health benefits and legal aid, have been left out altogether.

And it was revealed by the Joseph Rowntree Foundation in July that it did not always pay to take on work, particularly for those with children, despite this being a key aim of the government.

“The introduction of Universal Credit means that people will have to be savvier about managing their money and will have to plan for the whole month instead of budgeting on a weekly basis.

“Understanding payments can help manage cash flow. Our guide explains different payment options which in turn can help pay bills on time, stay on top of your money and avoid missing payments or going overdrawn.”

- See more at: http://www.payyourway.org.uk/news-and-views/2013/10/01/research-reveals-universal-credit-payments-and-budgeting-advice-gap/#sthash.pP1AV00A.dpuf

“The introduction of Universal Credit means that people will have to be savvier about managing their money and will have to plan for the whole month instead of budgeting on a weekly basis.

“Understanding payments can help manage cash flow. Our guide explains different payment options which in turn can help pay bills on time, stay on top of your money and avoid missing payments or going overdrawn.”

- See more at: http://www.payyourway.org.uk/news-and-views/2013/10/01/research-reveals-universal-credit-payments-and-budgeting-advice-gap/#sthash.pP1AV00A.dpuf
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