The Government’s flagship ‘Universal Credit’ benefit represents the biggest change to the welfare system since the 1940s.

The aim is to create a simpler and more flexible benefit system that makes work pay. When fully implemented, the Government estimates Universal Credit may contribute around £35 billion to the economy over 10 years.

What’s it all about? Universal Credit will eventually replace six existing benefits; Jobseeker’s Allowance, Employment and Support Allowance, Income Support, Working and Child Tax Credits and Housing Benefit.

New claims or people reporting a change in circumstances will go straight into Universal Credit, but everyone else will be transferred over gradually. The new benefit has more restrictive eligibility criteria and tougher sanctions.

Universal Credit has just come coming to Cumbria. So let's take a look at what’s involved…..

From April 2013 Universal Credit has been tested in several regions around the country and local Citizens Advice Bureaux have been helping people whilst gathering evidence of problems. We’ve lobbied Government for changes where needed and has some success; help towards childcare costs were increased from 70 per cent to 85 per cent following our evidence. Overall, however, nine out of 10 people in the test areas needed our help.

The first hurdle is that applications must be made online. Not everyone is confident with computers and many people have needed CAB help to register for a password and apply.

Sometimes the new computer system does not respond to changes in personal circumstances, and CAB have reported these problems to Government.

It’s vital to report a change in circumstances. You can be fined if you are late or forget, it affects the amount of your benefit and depending on when you pass on information, how quickly your benefit is increased (reductions happen immediately).

The next major issue is that Universal Credit is paid monthly. It includes rent and is paid into one bank account in the household. The calculations of 12 monthly into 52 weekly payments for things like rent can be confusing, and it’s easy to get behind with bills and fall into rent arrears, especially if you have to wait six weeks for your first benefit payment.

CAB research found that 95 per cent of claimants would prefer fortnightly payments and four in five people would prefer the rent to be paid direct to Landlords. Cohabiting couples make a joint claim - they need to agree which bank account receives the benefit and how it is used to pay the bills. One in five couples are worried about this.

Government says Universal Credit makes work pay. As earnings increase you “keep 35p for every £1 of net earnings” - but this doesn’t take into account the costs of going to work; travel expense, suitable work clothes, childcare, and loss of other financial support as income increases.

Overall the hardest hit by Universal Credit will be the most seriously ill or disabled people in our society, who live on their own struggling without a carer or who rely on dependent children for care. These people will lose a some financial support as they increase their working hours, making them worse off overall, their costs for going to work being higher due to extra support they need. Citizens Advice continue to campaign for disabled people.

Universal Credit may cause problems here in South Lakes but free help is available from your local Citizens Advice. Alongside helping you we will work to highlight the problems with the new system and how these may impact on local people.

Free, confidential advice and help is available from South Lakes Citizens Advice Bureau - telephone 015394 46464 for an appointment and help. We are a local charity, find out how to help us at www.southlakescab.org.uk.