DWP Faces Backlash Over Universal Credit Changes

The Department for Work & Pensions (DWP) recently went under fire for its plans to double the application time for parents on the current Universal Credit system. From the initial one month period, parents could file for claims for two months starting on October 3, 2019.

The Conservative Party’s decision did not sit well with the people, thus eliciting a backlash from the people. According to the Mirror, the party’s decision to double up the filing period comes after numerous statements from the public saying the cost reporting system lacked flexibility. The previous filing and cost reporting system allegedly lost the claimants up to £1,100 per month.

Changes in the Universal Credit scheme include parents and guardians paying up-front fees for childcare prior to reimbursing these fees. In response, detractors say up-front payments provide additional burden for parents, urging them to sell properties, take on additional loans, and do without necessities, reports Mirror.

Apart from doubling the application period, the Conservative Party also made other changes to the Universal Credit system. Express reports that these include lowering the repayment cap to a maximum of 30 percent per individual starting October 2, 2019. Following this decision, around 850,000 individuals in the United Kingdom are slated to lose their support in attempts to pay debts or advanced payments.

To help alleviate the burden claimants are carrying, the Department for Work & Pensions states parents could gain additional monetary support from the government should they take out more advanced payments. However, Express states that this offering is only available for new claimants.

The advancement payment offering is an interest-free credit that requires borrowers to pay it back through installments. The caveat is that payments must only be made from succeeding Universal Credit payments. Under this new offering, individuals are slated to see a 15% deduction from their current monthly support.

New changes expected to commence next month are done under the new department secretary Therese Coffey.

RELATED ARTICLES

Program for an Electric Vehicle Tax Credit for Union-Built Vehicles
Credit

Program for an Electric Vehicle Tax Credit for Union-Built Vehicles Faces Obstacle

House Democrats' plan to provide customers with an additional option to encourage union-built vehicles has sparked controversy and discussion among legislators, manufacturers, and other parties. The House Ways and Means Committee last week cleared the tax breaks for consideration in the Democrats' $3.5 trillion budget bill measure, despite vocal objections...
Williams-Sonoma Key Rewards Credit Card Program
Credit

Williams-Sonoma and Capital One Introduce The Key Rewards Credit Card Program

Williams-Sonoma, Inc., a leading American home retail company, revealed that it has partnered with bank holding company Capital One to introduce the Key Rewards Credit Card Program. The company’s top-level Key Rewards program is upgraded with new credit cards. Cardholders can accumulate rewards when they shop at Williams Sonoma, Inc....
Federal Bank Credit Cards In Partnership With Visa
Credit

Federal Bank Introduces Credit Cards In Partnership With Visa

Federal Bank has announced the introduction of its credit card in India. To offer credit cards to its current clients, the private banking company has collaborated with Visa, the worldwide financial services corporation. As per Shyam Srinivasan, Managing Director and CEO of Federal Bank, the issuance of the card would...
Wells Fargo Personal Credit Lines Closure Plan
Credit

Wells Fargo Drops Personal Credit Lines Closure Plan

Wells Fargo & Co. sparked a public outcry when it announced plans to phase down personal lines of credit in July, but the firm will reverse direction on August 18, 2021. Customers who have been using their personal credit lines have just received notice from the San Francisco-based lender...
Universal Credit Human Rights Legislation
Credit

The Reduction in Universal Credit Violates Human Rights Legislation

According to the UN's poverty expert, reducing universal credit by £20 per week is an "unjustifiable" decision that violates human rights law and would certainly lead to an expansion of poverty. The retreat of the £1,000-a-year uplift from next month, according to Olivier De Schutter, the UN-appointed chair of the...
Credit Cards Dark Web Data Leak
Credit

Hackers Leak 1M Credit Cards on the Dark Web

One million stolen credit cards have been posted by hackers on the Dark Web through AllWorld.Cards. The act was reportedly done by cybercriminals in an attempt to promote their activities and operations, as well as make their organization known. The leaked credit card information was discovered by cybersecurity researchers from...
Carter’s Child Tax Credit May Boost Children’s Apparel Business
Credit

Carter’s Says Child Tax Credit May Boost Children’s Apparel Business

Carter’s, an American retailer for children’s apparel, says that with the new child tax credit rolling out across the United States, and as the usual shopping for back-to-school resumes, the company is confident about its opportunities. To meet the consumers’ demand, the company is being compelled to pay extra to...
Younited Credit Yields Million in Fund
Credit

Younited Credit Yields $170 Million in Fund Round

Younited Credit, a France-based company, has secured $170 million in fund round. Consumers in Europe can choose from a variety of credit options offered by the startup. It also employs a multi-distribution method. The funding round, which is led by Goldman Sachs, has participants including existing investors such as Bpifrance,...
Sterling Construction Modifies Credit Agreement
Credit

Sterling Construction Modifies Credit Agreement with BMO Harris Bank

Sterling Construction Company, Inc. has modified its current credit agreement with BMO Harris Bank, its lending group. It has revealed that numerous terms of the agreement are revised. Two of the terms include lowering the existing credit agreement borrowing interest rate by 2% points and reducing the credit agreement's future...