The Archbishop of York writes:
"They fear Universal Credit, particularly because it seems to assume that everyone has a nest egg which will tide them over as they wait a minimum of 42 days for payouts. That is grotesquely ignorant, for millions of people, especially those in need of support, are already in debt and have nothing to fall back on. If their rental payments lapse, they are at risk of eviction. That means, in the case of families with young children, an additional burden for their local Council, who are obliged to house them, and whose resources are already stretched to breaking point. Some tenants have taken out short-term loans at excessive interest rates, because that seemed the only way out of their ’42 day' dilemma. So the repayment of capital and interest on those loans becomes the first call on any payment they receive. It’s a downward spiral."
"They fear Universal Credit, particularly because it seems to assume that everyone has a nest egg which will tide them over as they wait a minimum of 42 days for payouts. That is grotesquely ignorant, for millions of people, especially those in need of support, are already in debt and have nothing to fall back on. If their rental payments lapse, they are at risk of eviction. That means, in the case of families with young children, an additional burden for their local Council, who are obliged to house them, and whose resources are already stretched to breaking point. Some tenants have taken out short-term loans at excessive interest rates, because that seemed the only way out of their ’42 day' dilemma. So the repayment of capital and interest on those loans becomes the first call on any payment they receive. It’s a downward spiral."