Online Decision Tool Could Help Save Universal Credit

Families should be able to ‘opt in’ to an online budgeting tool under the new Universal Credit, which allows them to determine the direction and frequency of benefit payments, according to a think tank.   The Social Market Foundation (SMF) report ‘Sink or Swim’ warns Universal Credit is at risk of “backfiring” and shows that the changes - including monthly payments and housing benefit paid to claimants in the social rented sector will leave many households struggling to cope.  Research it commissioned earlier this year, involving interviews with 30 low-income families, revealed that most opposed greater frequency payments and having their housing benefit paid directly.  In addition, it warned recently unemployed people could go for a month with no income at all under the move to fixed monthly assessments, and this could be even longer if employers struggle to meet the new reporting requirements. This, it warns, increases their chance of going into debt and could act as a deterrent for people to take temporary work.  Download a copy of the report from the SMF website.