Currently around 3,000 Brummies receive Universal Credit for their housing costs but that is set to soar to more than 60,000 after the scheme is One woman, Geraldine Hill, survived for more than two decades on benefits without falling into debt.
fully rolled-out next month. But following a switch to the Government's controversial universal credit through a pilot scheme in August she has turned to food banks, can't afford to watch TV and has been left in hundreds of pounds of debt.
Miss Hill, who had already been moved into a smaller home by the bedroom tax, is considering moving again from her home on Port Talbot's Sandfields estate just to be able to make ends meet.She said: “It’s been a struggle, I have to rely on a food bank and I’m living in the living room.“All my housing, rent and DLA (Disability Living Allowance) was stopped, I ended up accumulating arrears through no fault of my own.“I’m in debt as I did not know they had stopped my benefits.“I was told to apply for Universal Credit and make my appointment down the job centre in July and I did not have my first payment until August 9.”She added: “I was a couple of hundreds of pounds in debt and I told everyone what was going on including the bank.“I couldn’t pay anyone until I got my monthly payment.“People need paying and want paying as soon as, I can’t pay when they want.“The TV licence took a chunk out of my payment.“It’s a vicious circle, I have had to borrow money from my family.“I rely on kind people to get a bag of food for me.“I went to the food bank.”
Miss Hill, who has been on benefits for 23 years, said following the move towards Universal Credit she had been told she had to look for a job on a daily basis despite the state of her health.Work and Pensions Secretary David Gauke has insisted the Universal Credit system is effective and will help encourage people back to work.But Miss Hill, who lives in Coastal Housing accommodation, said the new payment system, which is currently being rolled out across Wales, was forcing her to cut back rather than helping her transform her life for the good.
The six-in-one benefit is due to replace income-based Jobseekers’ Allowance, housing benefit, child tax credits, income support, working tax credit and Employment and Support Allowance.MARIG Chairman cllr Tristan Chatfield has written to Secretary of State for Work and Pensions David Gauke MP to voice concerns.The Birmingham said: “If the roll-out goes ahead as planned, there is no doubt that we will see an increase in homelessness and debt, just as we’ve already seen in other areas of the country.“We know from the pilot areas that rent arrears increase significantly when Universal Credit is introduced, because, for many vulnerable people, the switch from multiple benefits paid in stages, to a single monthly payment in arrears with a built in delay, provides too much of a cliff edge.“That will have disastrous consequences for many people across Birmingham who are already struggling to make ends meet. “We’re urging the DWP to take steps now to significantly reduce the risk of unintentional homelessness as Universal Credit is introduced across Birmingham. There must be a sensible approach to avoid the massive problems we’ve seen elsewhere in the country.”The Group is also talking to homelessness charities, housing providers and landlords to see if action can be taken to avoid people being evicted due to delays in payments.Work and Pension secretary David Gauke earlier this week insisted he would plough on with the flagship welfare reform despite warnings and criticism - some from Tory backbenchers. He said Universal Credit was helping people back into work and no-one should go six weeks without money, which has been linked to rent arrears and other debts for claimants.
He said: “Nobody who needs support should have to wait six weeks before they receive any support, and what we’re doing is making clear that people can receive an advance of their first month’s payment.
“That is then deducted over the next six monthly periods, and that is helping people deal with the cashflow issues in that first month.”