Monday, 2 December 2013

More Borrowing under Universal Credit

More benefit claimants are having to borrow money from family, friends, payday lenders, banks and credit unions to make it through the month under universal credit, a survey has shown. The first review of pilot projects found 34% of people are resorting to asking for money from other sources under the new system, which rolls all benefit payments into a lump sum – up from 19% under jobseeker's allowance. Claimants are now paid monthly rather than weekly, in a system that ministers claim will foster more responsibility and budgeting skills. However, the number resorting to payday lenders, bank overdrafts, credit unions and advances from the government has risen under the new system. Read more on the Guardian website.

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