South Hams residents may face troubling times ahead as Universal Credit is expanded, with the possibility of pushing people further into debt.

The charity, Citizens Advice has helped solve over 9,000 problems over the last year in the South Hams. Citizens Advice has offered a warning after the government has released plans to accelerate roll-out of the benefit from five to fifty areas a month from October. The charity has explained that there are still many problems with the system including the long wait for first payments, the consequential pressure on public services which could undermine the good intentions behind Universal Credit.

A recent study analysing over 50,000 cases has shown issues with the scheme, which consequently could effect local people. The results prove that 79% of people on Universal Credit have priority debts such as rent or council tax which can put people at a greater risk of problems such as eviction. Two fifths of people are left with no money to pay creditors as their monthly spend on essential living costs amounts to more than their income, often leaving only £3 a month to pay creditors.

Citizens Advice is encouraging the government to ensure that no one is waiting more than six weeks for an income and for anyone who needs a payment receives it within two weeks that they don’t need to repay.

Additionally, the charity is again calling for the roll-out of Universal Credit to be paused until problems with the benefit are fixed.

Gillian Guy, Citizens Advice Chief Executive said: “The roll-out of Universal Credit is a disaster waiting to happen.”

“While the principles behind Universal Credit are sound, our evidence shows that if the government continues to take this stubborn approach to the expansion of Universal Credit, it risks pushing thousands of families into a spiral of debt, and placing an even greater strain on public services."?

“People face severe consequences - like visits from bailiffs and eviction - when they can’t pay their bills. But government can help protect these households by taking the simple step of pausing Universal Credit and fixing the underlying problems, so families are less likely to fall into arrears. The government should also ensure that everyone has access to the support they need to adapt to Universal Credit”

Further reasons highlighted by Citizens Advice on why people on the new benefit are facing money problems include poor administration, errors by the Jobcentre, problems with budgeting, difficulties opening a bank account and money being taken for other debts.

Universal Credit was created in 2013 merging six existing benefits into one including tax credits, housing benefit and Employment and Support Allowance. It’s there for people on low incomes or not in work to help them meet their living costs-including people who suffer with physical and mental disabilities. The benefit is paid in arrears as a single household payment on a monthly basis. After which the payment is gradually decreased as earnings increase to ensure work pays.

The local bases in the South Hams alone have helped over 4,000 people with over 9,000 issues showing the importance of this charitable work.

For locals, Citizens Advice South Hams is based in Totnes with outreach offices in Ivybridge, Kingsbridge and Dartmouth. The main office in Totnes is based in Follaton House on Plymouth Road, opening from 10am-1pm and 2pm-4pm. The Ivybridge base at The Watermark Centre, the Kingsbridge office at Quay House and the Dartmouth centre at Dartmouth Clinic are all open from 9.30-12.30. If anyone is searching for advice or information you can call 03444 111444 on weekdays between 9am and 4pm or alternatively you can visit the local website at www.southhamscab.org.uk or the national website at www.citizensadvice.org.uk.