Some problems with the design of Universal Credit

Exceptional article – again, like those before.

Politics and Insights

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Monthly payments
The government thinks this will help promote good budgeting and more closely replicate monthly salary payments.  Campaigners are worried that the shift from weekly and fortnightly payments to this new regime may push claimants recipients into debt. The Social Market Foundation says:

Most households in our sample opposed the idea of a monthly payment. This was the case for the majority of households, who tended to budget on a daily, weekly or fortnightly cycle.

One of the most controversial aspects of Universal Credit is the introduction of a new seven-day waiting period before an individual qualifies for benefit.

What is more, people on Universal Credit will have to endure a wait of one calendar month whilst their entitlement is calculated, and then a further seven-day wait for payment into their account, which will produce a total wait of at least five weeks before people already in hardship …

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