Impacts of external debt for indebted Universal Credit claimants
This research assesses the financial situation of Universal Credit (UC) claimants with external debt, investigates its impacts and explores forms of support.
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Details
DWP commissioned this research to fill a critical evidence gap on external debt (which includes credit card debt, rent and utility arrears, personal loan debts, consumer credit as well as money owed to family and friends and unofficial lenders) and its impacts on Universal Credit claimants and to support better delivery of DWP’s debt recovery and relief systems. A sample of those claiming legacy benefits was included to consider the issues for those Moving to Universal Credit. The research was intended to gain a better understanding of the total impacts of formal deductions and external debt (including informal) to other sources. The research is qualitative and quantitative.
Contribution to the evidence base
There has been little research examining the detail of how different debts impact on claimants. This research contributes to the body of evidence on Universal Credit that can be used to inform Policy and Programme decisions in the future.
Research value
This research has been used to consider how best to support claimants who experience financial difficulties as a result of debt and to identify further areas of research to improve Departmental policy