Tory rebels call on Government to halt rollout of Universal Credit expansion

Tory MPs have called on the Government to halt the rollout of its controversial new benefits payment system over concerns about the impact on claimants, it has been reported.

A letter backed by 12 MPs has been sent to Work and Pensions Secretary David Gauke urging him to pause the Universal Credit (UC) expansion, according to the Daily Telegraph.

The campaign has been led by backbencher Heidi Allen and backed by Andrew Selous, one of Iain Duncan Smith’s former parliamentary aides, it said.

Ms Allen (pictured) spoke out in the Commons earlier this month to call on the Government to “slow down a little bit and get it right” after figures showed around one in four new claimants wait longer than six weeks to be paid.

Mr Gauke is expected to make a decision in the coming days about whether the rollout should be accelerated.

UC combines a number of benefits such as housing benefit and tax credits into a single payment.

But research by the charity Citizens Advice found many using the system were waiting too long for their payments and getting into debts.

Department for Work and Pensions (DWP) data shows that 42% of families in arrears under UC say it is due to the waiting time to receive payment, support being delayed or stopped, or administrative errors in the system.

Around half of new claimants are receiving DWP loans to cover the six-week wait for their first payment.

A DWP spokesman said: “Universal Credit lies at the heart of our commitment to help people improve their lives and raise their incomes.

“It does that by providing additional, tailored support not available under the old benefit system, including more help for those in work so they can eventually stop claiming benefits altogether, and under UC people are moving into work faster and staying in work longer than under the previous system.

“The vast majority of claimants are comfortable managing their money, and for anyone who needs extra help, we have budgeting advice and benefit advances. Continuing to roll out Universal Credit in a safe and controlled way will mean many more will benefit from moving into employment.”

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