Four churches, who have repeatedly expressed concerns about Universal Credit, have called the findings in a new report by the National Audit Office (NAO) ‘deeply concerning’.

Earlier today (Friday 15 June) the NAO released a report, entitled ‘Rolling out Universal Credit’ which stated the welfare benefit was not value for money and failed to meet its financial objectives.

It is the first official document to take seriously the concerns of claimants and acknowledges the problems they are facing.

Paul Morrison, a Joint Public Issues Team Policy Advisor, spoke on behalf of the United Reformed Church, the Baptist Union, the Methodist Church, and the Church of Scotland.

‘Churches have repeatedly expressed concerns about Universal Credit and the damaging effects it is having on communities,’ he said. ‘The NAO’s findings are deeply concerning but not a surprise.’[1]

Mr Morrison added that Churches around the country have been supporting people living in severe financial difficulty, and it was clear that their lives were being damaged by Universal Credit.  

‘I met a single mum at a parent and toddlers group in west London,’ he continued. ‘She cried when she told me about her experience of Universal Credit. She is worse off, struggling to make ends meet and, as a result, is having to stop her childcare course at college.

‘The policy that cut her benefits was intended to “incentivise work” but, in reality, it made her life more difficult and closed down her opportunities. Her story is sadly unexceptional.

‘Half of people receiving Universal Credit report going into debt. This is the result of delayed, inadequate and irregular payments. It makes budgeting impossible … The Department of Work and Pension’s own figures show that four in ten people reported serious financial difficulties, whilst one in ten waited more than 11 weeks for payment. In Universal Credit areas foodbank use went up 52%[2], whereas in other areas it went up 13%. The case is incontrovertible; Universal Credit is failing, and the poorest are suffering the consequences.

‘A benefit system which drives families into debt and leaves them hungry is a failing benefit system. Universal Credit was designed by people who were highly literate, with access to computers and a full bank account. As soon as the system met people who didn’t fit this model it began to fail.

‘Until the voice of those who use the benefit system is listened to and valued, Universal Credit will continue to cause harm to the communities it is meant to serve.’

[1] Churches detailed briefing on Universal Credit http://www.jointpublicissues.org.uk/uc-poverty-by-design/

[2] https://www.urc.org.uk/news/2656-universal-credit-drives-more-families-to-use-foodbanks