Thousands of Preston households still on legacy benefits

Thousands of households remain on legacy benefits in Preston ahead of the Government’s target to complete the Universal Credit rollout by 2024, new figures show.

By Andy Moffatt
Saturday, 26th March 2022, 3:45 pm

Debt charity StepChange said many claimants are being pushed into hardship by having to wait more than a month for their first Universal Credit payment after migrating from older benefits.

And measures recently announced by Chancellor Rishi Sunak to help with the cost-of-living crisis have been criticised for not going far enough to help low-income households.

In Preston, 11,497 households were claiming Universal Credit in February after being transferred from legacy benefits, while an estimated 5,998 remained on the old system, according to figures from the House of Commons library.

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Thousands of people in Preston are still receiving so-called legacy benefits

This means around 34% of households in the parliamentary constituency are still on older benefits, such as Employment Allowance, Income Support and Jobseeker’s Allowance, which are set to be fully replaced in two years’ time.

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StepChange said moving from legacy benefits to Universal Credit – which rolls six means-tested benefit payments into one monthly deposit – is challenging because new claimants must wait five weeks for their first instalment, meaning some people need a budgeting advance, while others can be pushed into debt.

Ed McDonagh, senior public policy advocate, said: "Overall, Universal Credit can work to support people, but it also has features that can cause real hardship and can actually worsen people’s debt as they try to work around them."

Chancellor of the Exchequer Rishi Sunak leaves 11 Downing Street as he heads to the House of Commons, London, to deliver his Spring Statement

Across Great Britain, 4.8 million households were claiming Universal Credit in February – 66% of the total number receiving benefits.

It means 34% of households remain on legacy benefits despite the rollout starting in 2013.

In his spring statement, Mr Sunak did not respond to calls to increase Universal Credit and legacy benefits in line with inflation – which means many will see a real-terms benefit cut from April – instead announcing that £12 million would be provided to reduce tax credit error and fraud and “in turn support a smooth transition to Universal Credit”.

Households still on legacy benefits also missed out on the £20 uplift to Universal Credit introduced during the coronavirus pandemic.