Nearly £50million of Universal Credit benefit payments were clawed back from the poorest households in one month last year, according to the Tory government’s own figures.
New claimants for Universal Credit have to wait a minimum of five weeks for their first payment to be processed, forcing many to take out loans form from the Government.
The borrowing, known as Advance Payments, to cover their basic living costs before their first entitlement arrives and is then deducted from regular payments.
The delay has faced harsh criticism with MPs warning that the need to borrow forces claimants into a cycle of debt with some ending up at food banks as a result.
The Department for Work and Pensions (DWP) admitted that in August 2019, the latest period available, it deducted £50 million from claimants across the UK to pay back their loans.
The ten worst hit areas are in northern towns in what has been referred to as the Red Wall – traditional Labour seats in the North and Midlands many of which fell to the Tories for the first time in the December election.
Knowsley was the worst hit with £227,000 repaid for UC Advance Repayment deductions during August closely followed by Hartlepool on £218,000 and Bootle with £213,000.
(Image: PA)
In Glasgow South West, the constituency of Chris Stephens MP who asked for the figures, £110,000 was repaid for UC Advance Repayment deductions in one month.
Stephens described the figures showing the money being clawed back from some of the most deprived areas of the country as “astonishing”
“It is clear from this answer that the DWP Advance Payment system simply doesn’t work and demonstrates that the UK Social Security system is broken.”
Stephens said: “I would urge all Parliamentary colleagues to look at these figures and to press the UK Government to build a social security system fit for purpose, starting with ending the five week wait.”
(Image: Getty Images/iStockphoto)
“What is required is to end the five week wait, and introduce a first payment within the first two weeks of a claim without the need to pay this back – the current system is a vicious circle of debt.”
(Image: South Wales Echo)
A DWP spokesperson said: “In August 2019 alone £1.3bn in Universal Credit was paid out across the UK, and advance repayments amounted to less than 4 percent of that figure.”
In full: The 100 UK areas worst-hit by Universal Credit advances
KEY: Constituency and how much was repaid in Universal Credit advances in August 2019 alone. Other deductions were taken for other reasons – such as overpayments, arrears, fines or fraud – but advance payment deductions made up £50.2million of the £94.5million in total deductions across the country.
1. Knowsley (£227000)
2. Hartlepool (£218000)
3. Bootle (£213000)
4. Blackley and Broughton (£212000)
5. Middlesbrough (£211000)
6. Manchester Central (£208000)
7. Birmingham, Ladywood (£206000)
8. Birkenhead (£202000)
9. Leeds Central (£199000)
10. Liverpool, Walton (£192000)
11. Birmingham, Erdington (£188000)
12. Great Grimsby (£180000)
13. Easington (£178000)
14. Rochdale (£177000)
15. Sunderland Central (£174000)
16. Birmingham, Northfield (£170000)
17. Bradford East (£169000)
18. Wythenshawe and Sale East (£168000)
19. Oldham East and Saddleworth (£167000)
20. Blackpool South (£166000)
21. Blackburn (£164000)
22. Croydon North (£163000)
23. Stockton North (£163000)
24. Heywood and Middleton (£163000)
25. Washington and Sunderland West (£162000)
26. Newcastle upon Tyne Central (£161000)
27. Bradford South (£161000)
28. St Helens South and Whiston (£159000)
29. Walsall North (£159000)
30. Preston (£158000)
31. Birmingham, Hodge Hill (£157000)
32. Halton (£156000)
33. Oldham West and Royton (£156000)
34. Burnley (£155000)
35. Liverpool, West Derby (£155000)
36. South Shields (£154000)
37. Nottingham North (£153000)
38. Gateshead (£151000)
39. Houghton and Sunderland South (£151000)
40. Plymouth, Sutton and Devonport (£151000)
41. Rochford and Southend East (£150000)
42. Wolverhampton North East (£150000)
43. Manchester, Gorton (£148000)
44. Halifax (£148000)
45. North Tyneside (£147000)
46. Derby South (£146000)
47. Darlington (£146000)
48. Wolverhampton South East (£146000)
49. Doncaster North (£145000)
50. Wigan (£143000)
51. Ashton-under-Lyne (£142000)
52. Worsley and Eccles South (£142000)
53. Salford and Eccles (£140000)
54. Hastings and Rye (£139000)
55. South Thanet (£139000)
56. Birmingham, Perry Barr (£139000)
57. Leeds East (£138000)
58. Thurrock (£137000)
59. Sittingbourne and Sheppey (£137000)
60. Cardiff South and Penarth (£137000)
61. Birmingham, Yardley (£136000)
62. Coventry North East (£136000)
63. Bradford West (£136000)
64. Wallasey (£135000)
65. Kilmarnock and Loudoun (£135000)
66. Kirkcaldy and Cowdenbeath (£135000)
67. Leigh (£134000)
68. Doncaster Central (£134000)
69. Rotherham (£134000)
70. Croydon Central (£133000)
71. Clacton (£132000)
72. Newcastle upon Tyne East (£132000)
73. Hyndburn (£132000)
74. Meriden (£131000)
75. St Helens North (£130000)
76. North Ayrshire and Arran (£130000)
77. Great Yarmouth (£129000)
78. Sedgefield (£129000)
79. Barking (£128000)
80. Bishop Auckland (£128000)
81. Wentworth and Dearne (£128000)
82. Stalybridge and Hyde (£127000)
83. Walsall South (£127000)
84. Glenrothes (£127000)
85. Edmonton (£126000)
86. North Durham (£126000)
87. Bolton North East (£125000)
88. Garston and Halewood (£125000)
89. Ayr, Carrick and Cumnock (£125000)
90. Camberwell and Peckham (£124000)
91. Bolton South East (£124000)
92. Southampton, Test (£124000)
93. Birmingham, Edgbaston (£124000)
94. Southampton, Itchen (£123000)
95. Barnsley East (£123000)
96. Rutherglen and Hamilton West (£123000)
97. Redcar (£122000)
98. Dundee West (£122000)
99. Motherwell and Wishaw (£121000)
100. Swansea East (£121000)
