Universal Credit begins roll out in Liverpool in September

Many people across Liverpool are concerned with the upcoming roll out of the Universal Credit system, in particular single mothers or families with children, who may in fact receive less financial aid. Not only are recipients becoming concerned with the upcoming changes, but city leaders as well as landlords across Liverpool are expected more tenants to fall behind on their rent and even become homeless.

The roll out in September will start for people with no dependents who are new claimants. However the elderly or very low income, meaning an income under £6,000, as well as women that are pregnant, will not be in this initial roll out. That being said, everyone will slowly be impacted over the next six months, as the process will be complete in March for the entire Liverpool region.

For those that may not be aware, the Universal Credit (UC) system will start in September for new claimants and it will be completed for all residents in March 2015. The result is that all benefits will now be paid out in one lump sum payout, and this includes money for disability payments, housing benefits, income support, and child credits. So any person that now receives any type of welfare will receive one cheque per month, and they need to budget their funds properly to pay all their bills, on their own.

The aim of the government is to break the nation’s cycle of welfare dependency, however it may be targeting, maybe unfairly, those that can least afford to keep up with their bills in the challenging economy. All too many people are still impacted by wage freezes and other challenges. The UC programme will also lead to an increased demand on food banks in Liverpool as well as church or charity based services.

Impact of Universal Credit on Liverpool

Some city leaders and experts across the nation also say people will receive less money from the new UC system than they get now, however this is debatable. Liverpool is the biggest roll out to date, and the fact is that no one is certain what the impact will be.

The biggest fear is that families with children, including single mothers, are most at risk for a reduction, and these people also tend to be the most vulnerable to keeping up with their bills on a monthly basis. There are even government studies that state individuals in low-paid work will have reductions.

A big concern is on homelessness. Both landlords, and many MPs in the Liverpool area, are fearful of rent arrears occurring in the city, which will lead to even more evictions. A reason for this is the housing benefit that tenants are use to having paid directly to their landlord will now be sent direct to them as part of Universal Credit. Another concern is on hunger, and the Trussell Trust food banks across Merseyside are ramping up for the increased demand for their parcels.

So the recipient of UC now need to manage the money they receive from the government on their own. They need to ensure the rent payments are made on time, and they need to balance that with other expenses they have too, such as for food or fuel. So that needs to be done at the same time as some residents of the city of Liverpool receive even less funds.

For those people that are fearful of fallen behind, then agencies do provide rental assistance in Liverpool, and there are also food banks and other programmes. The demand on these organisations is expected to increase though, and they all have limited resources. So people across the city need to plan for the upcoming changes to their benefits.