Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.AllNewsSportCultureLifestyleMore than 800,000 households on Universal Credit are repaying loans taken to cover the five-week wait for their first payment, affecting more than 500,000 children. These advance payments are deducted from subsequent Universal Credit payments, leading to financial hardship and debt for many families. An estimated £143 million was recovered from families last year through these loan repayments, according to data obtained by Citizens Advice. Charities and politicians are urging Chancellor Rachel Reeves to convert these loans into grants in the upcoming Budget to prevent families from falling into a debt trap. The Department for Work and Pensions (DWP) states these are interest-free advances and is reviewing Universal Credit to better support claimants during the initial assessment period. In fullUK poverty crisis laid bare as 500,000 children living in families trapped in benefits debt cycleThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
Stark figures show number of UK households stuck in benefits loan trap
Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.AllNewsSportCultureLifestyleMore than 800,000 households on Universal Credit are repaying loans taken to cover the five-week wait for their first payment, affecting more than 500,000 children. These advance payments are deducted from subsequent Universal Credit payments, leading to financial hardship and debt for many families. An estimated £143 million was recovered from families last year through these loan repayments, according to data obtained by Citizens Advice. Charities and politicians are urging Chancellor Rachel Reeves to convert these loans into grants in the upcoming Budget to prevent families from falling into a debt trap. The Department for Work and Pensions (DWP) states these are interest-free advances and is reviewing Universal Credit to better support claimants during the initial assessment period. In fullUK poverty crisis laid bare as 500,000 children living in families trapped in benefits debt cycleThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
