Universal Credit: PO can help benefit claimants budget

[TrueBlueTerrier]

Universal Credit: Post Office can help benefit claimants budget monthly

http://www.theinformationdaily.com/2014 ... et-monthly" onclick="window.open(this.href);return false;?

The Post Office network could help nearly three million households manage their budgets and ease the transition to Universal Credit, a report suggests.

According to a survey commissioned by Consumer Futures, over a third of benefit recipients expect to be worse off as a result of the introduction of the government’s flagship welfare scheme.

“The roll-out of Universal Credit threatens to leave some of society’s most vulnerable people struggling with budgeting and red tape, but their local post office could provide them with basic bank accounts and support to manage the new system”, said Margaret Lynch, Chief Executive of Citizens Advice Scotland.

The Universal Credit scheme, which is currently being rolled out across the country, involves a move to monthly benefit payments, a single household payment and the removal of direct rent payments to landlords.

The scheme is designed to simplify the welfare system and encourage claimants to become independent so they can eventually get off benefits.

But Consumer Futures say that the changes set by government are likely to pose significant challenges to many low-income families.

Over a quarter of those surveyed admitted that they would find it more difficult to budget for bills and it could lead to them having to rely on payday lenders.

Many claimants currently budget on a weekly or fortnightly basis. Others do not have a bank account, which could help them to cope with the impact of monthly payments.

Today’s survey found 67 per cent of current claimants wanted banking solutions that could help recreate tighter restrictions on their spending.

74 per cent of consumers said they would be prepared to pay a small fee towards having an account if it meant being able to avoid penalty charges.

Interestingly, 83 per cent of respondents trust the face to face information, advice and guidance provided by Post Office services.

77 per cent of consumers felt the Post Office was as an important and convenient place to access services– especially for those who had low or no digital literacy skills or online access.

Andy Burrows, Head of Post Office and Essential Community Services at Consumer Futures, said: ‘We urge government and Post Office Limited (POL) to get the most from the reach and trust in the post office network to help people move onto Universal Credit as smoothly as possible.

Lynch added: ‘Post offices should be about much more than buying stamps – we want to see them as hubs for vital services at the heart of all communities.

“It’s vital that Ministers safeguard the post office network’s trusted role in providing these services at a time of huge change within the postal industry and the welfare system, so that those most in need aren't left high and dry”.

Consumer Futures calls on the Department for Work and Pensions to extend the Post Office Card Account contract, due to expire in 2015, and ensure that a long term Post Office banking solution is in place.

It recommends a long-term free model of the POCA to those with greatest risk to budgets, a successor to the POCA designed for those who would benefit from less budgetary assistance and the roll out of credit union products and services throughout the Post Offices.