Fears are mounting that people living in Perthshire could be plunged into poverty as a controversial new benefit system is rolled out.
Perth and Kinross is the latest area to be switched on to “full service” universal credit, which replaces six benefits with a single payment.
The unpopular welfare reform has caused chaos elsewhere in Scotland, mainly due to a minimum five-week wait for the first payment after applying for the benefit.
Some 315 single people living in the region with no children have already been switched but the expansion, which started on Wednesday, means anyone who applies for benefits for the first time, or reports a change of circumstances for their current benefits, will be moved to the new system.
Perth and North Perthshire MP Pete Wishart has raised concerns about the knock-on effects of the roll out, as people struggle to pay their rent and buy food during the initial waiting period.
“I am really concerned,” he said.
“I have spoken to colleagues who represent areas which already have universal credit and they have made me aware just how difficult this could be – in other areas there has been a drastic rise in rent arrears and in foodbank referrals.
“This doesn’t just impact the claimant but it also means total uncertainty for local authorities in terms of unpaid rent and increasing demand on emergency welfare payments.”
He added: “I anticipate a big increase in people needing help from elected politicians and organisations like Citizens Advice. I am absolutely committed to helping anyone who has any issues with the transfer to universal credit and would encourage anyone struggling to contact my office.”
The Department for Work and Pensions (DWP) reduced the waiting period from six weeks to five last year but many people have reported waiting months due to problems processing their applications.
Perth and Kinross Council is already owed £1.3 million in rent arrears, with £110,375 of this coming from universal credit claimants.
The roll out came in the same week the National Audit Office launched a scathing attack on universal credit, saying the DWP had “dismissed” the hardship and challenges facing claimants and it was not giving value for money.
Despite this, council leader Murray Lyle is confident the local authority can handle the change.
He said: “I’m keeping a close eye on it.
“A lot of changes have been brought in since it was first launched to try to soften things like the wait for payment but we have still been working hard to make sure we are prepared. We have held a few training sessions and more than 200 front-line staff have attended so they can provide support for any issues that may arise.
“The areas it has rolled out in most recently don’t seem to have had the problems of the earlier places so I think as long as we can adapt to address issues as they arise we should be okay. I’m aware the audit wasn’t particularly positive in its report this week but I believe we have it under control.”
Councillor Lyle also pointed out that Perth and Kinross residents earning less than £16,000 per year are eligible for a council tax reduction.
Perth Citizens Advice Bureau manager Sandy Watts said: “We don’t know yet what it’s going to be like.
“We have had information from other offices so we know what the problems are likely to be, we’re bracing ourselves.
“We have all been working together – ourselves, the council’s welfare rights team and the DWP – to prepare for it as much as we can. We are all working from the same page.”
Anyone struggling on universal credit can contact the council’s welfare rights team on 01738 476900 or welfarerights@pkc.gov.uk.
Universal credit is working, says minister
Universal credit is helping more people into work, according to the UK’s minister for employment, Alok Sharma.
The welfare reform has proved controversial but this week Mr Sharma insisted the new system is working.
He said: “Universal credit is central to our commitment to help families improve their lives by moving into work.
“We know it’s working – universal credit people are moving into work faster and staying in work longer than under the old system.
“Now we are rolling it out to a wider range of people in a safe and controlled way. More people, including families and disabled people, can claim universal credit and access the extra help it provides.”
Last year the UK Government announced a £1.5 billion package to iron out problems with universal credit, including the initial wait from six weeks to five, and introducing advance payments for housing benefit.
Moira Cambridge, DWP customer service leader in Perth and Kinross, encouraged claimants to access one to one support at their nearest Jobcentre Plus.
“Universal credit offers tailored support, which includes more personalised help from a work coach,” she said.
“The new system is also more flexible, which means people can take on short-term work to develop their skills and build up their experience.
“Our staff are trained to support people throughout the claim process. We’d encourage anyone who needs extra help or information to come and talk to their work coach.”
