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<p>For many people who do experience financial difficulties, these pre-date their
claim to Universal Credit. For example, in their report published on 11 July 2018,
the National Federation of Arms-Length Management Organisations (ALMOs) of Social
Housing providers found that of those Universal Credit households in rent arrears,
76 per cent had arrears prior to moving onto Universal Credit.</p><p> </p><p>In the
Universal Credit Claimant survey, published in June 2018, 4 in 10 claimants reported
they were having difficulties keeping up with bills. In 2011/12 in the report “Work
and the welfare system: a survey of benefits and tax credits recipients” from 2011/12,
one in three main claimants said they run out of money before the end of the week/month
always or most of the time, and a further third said this happens more often than
not or sometimes. Both surveys are available on gov.uk.</p><p> </p><p>Unlike in the
legacy system, we are investing around £200 million over the Universal Credit implementation
period into Universal Support to help claimants with budget management and digital
support. Our work coaches work closely with claimants, ensuring they can identify
any vulnerabilities such as financial hardship at an early stage. They can then tailor
support according to claimants’ individual needs and help to address these issues.</p><p>
</p><p>We also have a system of advances and budgeting support to help people with
the transition to Universal Credit. From 3 January 2018, we increased the repayment
period of Universal Credit advances to 12 months, with claimants able to get up to
100 per cent of their estimated monthly entitlement upfront. These advances are available
to claimants interest-free, and from July 2018, can be applied for online.</p>
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