Social security claimants face week without funds
Social security claimants face week without benefits
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Saturday, 11, Apr 2009 12:00
Social security claimants will not receive benefits for a week as the government introduces a streamlined fortnightly payment system.
The BBC's Radio 4 Money Box programme reports that the change in the process of distributing weekly payments will leave people without a week's benefits.
The Department for Work and Pensions (DWP) said claimants would receive a loan, claimed before the new system kicks in, which will be repaid via deductions over the following six weeks.
Speaking on the BBC's Money Box programme, DWP minister of state Rosie Winterton said: "No-one will lose out as a result of the change but we want to make the [payment] process simpler and through that improve the service to customers.
"We are moving to how most people in work are in paid - in arrears."
She added that the loan repayment scheme was designed to make it affordable and simple in order to minimise the disruption to claimants.
Liberal Democrat shadow social security secretary MP Steve Webb told the programme the scheme would cause unnecessary disruption and leave claimants with even less money as they repay the loan.