Half of people eligible for Universal Credit are concerned about managing their cash flow after the change to monthly payments, a survey has found.
One in every two people who are eligible for Universal Credit think that the change will make it more difficult to manage their money, with common concerns including running into or increasing debt and struggling to pay bills or rent on time.
Under the new scheme, weekly or fortnightly payments will shift to monthly payments and housing benefit will be paid into the claimant’s bank account instead of going directly to a landlord or housing association.
Adrian Kamellard, chief executive 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.’
Fiona Weir, chief executive of single parent family charity Gingerbread said: ‘We know that families are good at managing small amounts of money coming in at different times, but moving to monthly budgeting under Universal Credit will be a big change.’
New claimants in six more areas – Hammersmith, Inverness, Rugby, Harrogate, Bath and Shotton – are being moved on to Universal Credit from this month., according to LG News