A recently released report by the Department for Work and Pensions revealed shocking statistics about the struggles faced by benefits claimants with debts. These individuals often ended up unable to buy food due to financial constraints, with 81% of universal credit claimants running out of money before their next payment. The report highlighted how debt prevented claimants from finding work or taking better-paid jobs because they couldn’t afford transportation. Some felt trapped in perpetual financial instability, with one in five owing at least £10,000.
The report, ordered to be published by Secretary of State Liz Kendall, emphasized the harsh realities faced by welfare recipients, such as mounting debts caused by lifelong money problems or sudden health crises. The findings shed light on the mental health toll and limited financial options experienced by those in debt. The report advocates for an increase in universal credit to cover essential costs and a rise in housing benefits to help with rent payments.
Overall, the report revealed the urgent need for better support and resources for benefits claimants to prevent them from falling into insurmountable debt and financial hardship.
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