UK poverty crisis as 500,000 children in homes trapped in benefit debt cycle

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"More than 500,000 children are living in families in debt to the Department for Work and Pensions (DWP), according to new figures which lay bare the scale of the benefits loan trap. Over 800,000 households on Universal Credit are having money deducted from their monthly payments to repay loans that helped them survive the five-week wait until their first benefits came in, data obtained by Citizens Advice shows."

"Analysis from Citizens Advice shows that more than 500,000 children are in families repaying loans to the government, with an estimated 143m clawed back from them last year. Joined by campaigners and politicians, the charity has called on Chancellor Rachel Reeves to turn the loans into grants at her upcoming Budget to bring an end to the debt trap."

More than 500,000 children live in families repaying loans to the Department for Work and Pensions after claimants took advance payments to survive the five-week wait for Universal Credit. Over 800,000 Universal Credit households have money deducted from monthly payments to repay those advances, representing 13 per cent of all Universal Credit households. Citizens Advice obtained figures showing an estimated 143m was clawed back from families last year. Campaigners and politicians joined the charity in calling on Chancellor Rachel Reeves to convert the advances into non-repayable grants at the upcoming Budget to end the benefits loan trap. A claimant from Kent described the wait for UC as horrible.

Read at www.independent.co.uk