Call to fix 'fundamental flaws' in Universal Credit

The Scottish government is calling on the chancellor to stop the rollout of Universal Credit to enable "fundamental flaws" to be fixed.

Finance Secretary Derek Mackay has written to Philip Hammond asking for improvements to be made to the payments system in his autumn Budget.

He said a delay in payments had caused hardship to families across Scotland.

The UK government said the vast majority of people were paid their Universal Credit in full and on time.

The controversial measure, which is being rolled out across the UK, brings six existing benefit payments into one - but critics have claimed the six-week wait some people have for their first payment is contributing to a rise in debt, rent arrears and evictions.

In his letter to the chancellor, Mr Mackay said the announcement by the work and pensions secretary to offer Universal Credit advances upfront would "do nothing to fix the fundamental design flaws with Universal Credit".

He said: "The Universal Credit system is fundamentally flawed and causing unnecessary hardship and suffering to families across Scotland.

"It is vital that the UK government addresses these failings and that the roll-out is halted until the problems are fixed.

"I strongly urge the chancellor to use the autumn Budget to pause the roll-out, reduce the first payment wait time to a maximum of four weeks, move to a twice-monthly payment system and reverse cuts to work allowances.

"These measures would help ease financial pressures and stop pushing more families into poverty."

He added that the Scottish government remained "steadfast in its opposition to the government's austerity agenda which disproportionately hurts the poorest and most vulnerable in society".

"We believe the UK government position of persisting with the same failed austerity agenda continues to damage public services and the economy," he added.

A UK government spokesman said: "The best way to help people improve their lives is through work, and Universal Credit claimants are moving into work faster and staying in work longer than the old system.

"The vast majority of people are paid their Universal Credit in full and on time and advance payments and budgeting support is available for anyone who needs extra help.

"Meanwhile, the Scottish government now has significant welfare powers including flexibility over Universal Credit payments."