Five-week Universal Credit wait forcing some to turn to illegal money lenders, says Mulholland, as Alliance launch policy document

The five-week wait for a first Universal Credit (UC) payment is forcing some people to turn to illegal money lenders in order to survive, while experiencing mental ill health and going cold and hungry, Alliance MLA Sian Mulholland has said.


 
She was speaking as Alliance launched its No More Time to Wait document, setting out proposals to address the five-week wait people experience. They include widening access to crisis grants, making UC advance repayments more affordable, introducing a two-week run-on of child tax credit for those eligible and backdating eligible claims to provide a quicker first payment.
 
UC, which was introduced by the UK Government in 2013 to replace several ‘legacy’ benefits, is designed to support those out of work or on a low income. With over 185,000 claimants in Northern Ireland, the policy has sparked controversy for a number of reasons, including the five-week wait all claimants must endure before they receive their first payment.
 
North Antrim MLA Ms Mulholland said it was time for change.
 
“The UC five-week wait is driving poverty and misery in every corner of Northern Ireland today,” she said.
 
“Despite repeated calls for help, successive Communities Ministers have made little progress on fixing the issues. UC claimants have no more time to wait. The five-week wait is forcing some people to turn to go hungry, turn to food banks and live in cold homes. That is not good enough.
 
“Claimants have also reported running up various forms of debt, borrowing from friends, high-interest payday lenders, and in the worst cases, turning to illegal money lenders. That and other factors relating to the wait results in mental ill health in many cases, including anxiety, panic attacks, stress and shame.
 
“This cruel system is wrecking lives and urgent action is needed to fix it. Alliance has consistently called for the callous approach of UC to be ended and this party document is the latest piece of that work, addressing the issues so people within the UC system here are no longer plunged into poverty and hardship by a five-week delay to their first payment.”

View our full proposals here.