'Universal credit will push people into 5,000% APR loans' blog discussion

Mobeer

wozearly wrote: »

..Benefits, without exception, are paid in arrears...

So are most salaries, and paid monthly too.

wozearly

Mobeer wrote: »

So are most salaries, and paid monthly too.

Not disputing that, or the principle behind the idea of paying benefits monthly. But the majority of people on benefits have no savings and nothing to fall back on to cover the sudden loss of all income for 3 weeks as they shift to the new system. Which is where a payday loan is going to look very attractive.

Definitely looking to be a nice earner for sub-prime lenders when it comes in.

foolsave

""We are working with local authorities and the financial industry on how best to support individuals."

Note they are not working with the people most affected, the claimants, people not entitled to an opinion or a voice, presumable because they are considered as some kind of sub-humans



Of course the finance industry vultures will be in there working out how best to increase their profits.

And of course it is the people on benefits who are facing cuts to bail out the finance industry, it really does not get much unfairer than that does it?

foolsave

Faith177 wrote: »

I agree with it being phased in slowly as it is difficult going from weekly to monthly but I can't see a problem with being paid monthly. Thousands of people not on benefits manage it fine.

Just arrange for all DD's to go out day after you get paid anything else split between how ever many weeks till the next payday (4 or 5) it's not that hard.

It's much easier to manage when you have a decent amount of money coming in, people on benefit who have had to go a day or so without food may now find them facing a whole week without food.

Not that bothers those implementing the changes as they do not consider people on benefits as human being at all.

foolsave

Mobeer wrote: »

So are most salaries, and paid monthly too.

But most salaries are significantly more than benefits, people who used to run out of money towards the end of week will now face a whole week without money.