PARAMILITARY loan sharks are preying on people forced to wait five weeks for Universal Credit, the Alliance Party has said.
Combining several benefits for those out of work or on a low income, Universal Credit (UC) was introduced for Northern Ireland in 2017 for new claimants, while those receiving legacy benefits were moved over to UC last year.
The typical wait of five weeks is caused by a month-long assessment period and extra time to process the first payment.
Alliance say this forces people into a cycle of debt, including borrowing from family, high-interest payday loans and in the worst cases, illegal money lenders often linked to paramilitaries.
Around 185,000 people in Northern Ireland are currently receiving UC.
The amount they receive depends on individual circumstances, but a single person under 25 will usually get around £311 per month.
Delays in payments can be especially hard for those experiencing disruptive and costly life events such as losing their jobs, relationship breakdown and leaving the criminal justice system.
Over half of UC claimants in Northern Ireland are also parents, and Alliance say the five-week delay can leave single of separated parents having to turn down employment opportunities because of childcare costs.
Alliance MLA for North Antrim, Sian Mulholland, said the five-week wait was “driving poverty and misery in every corner of Northern Ireland.”
“Despite repeated calls for help, successive Communities Ministers have made little progress on fixing the issues,” she said.
“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.
As well as running up debts, she said other effects of the wait included mental ill health such as anxiety, panic attacks, stress and shame.
“This cruel system is wrecking lives and urgent action is needed to fix it.”
Launching a policy document, No More Time to Wait, Alliance have suggested more access to non-repayable crisis grants for those under financial pressure, making the option of advance UC payments more affordable, a two-week run on child tax credit and backdating eligible claims to provide a quicker first payment.
The Department for Communities has been contacted for a response.
