A GROWING number of people in Inverclyde need crisis grants as the introduction of the new universal credit pushes families into poverty. 

Council and financial help services in Inverclyde are coming under strain as the controversial new benefit rolls out locally, the Tele can reveal.

Around of 2,000 residents are now claiming it – and waiting up to 42 days for their first payment.

The council and its partners have been awarded a £2.5m lottery grant to tackle debt and financial exclusion while the local authority is also using £1m from its own anti-poverty fund to put a number of schemes in place to help claimants.

Council leader Stephen McCabe said: “There is no doubt council services are taking a big hit with universal credit but the biggest impact is on residents who are finding themselves with rent arrears.

“Supporting people through the benefit changes is one of our top priorities and this will continue. 

“But it does have an impact on other services. With the continued funding cuts passed on to councils, it means other services have to be cut.”

So far there are 1,650 universal credit claimants with a further 434 expected by the end of the summer.

In February this year 273 crisis grants were awarded to UC claimants in need, compared with just 52 the previous year.

Last year there were 3,763 applications from residents looking for a crisis grant for a number of reasons.

Seventy per cent were approved, with Inverclyde Council paying out a total of £145,400.

There were also 835 community care grants paid out, with the bill topping £400,000.

Latest figures show that 467 housing association tenants now claim UC, and the majority of them have rent arrears.

Inverclyde Council has been awarded £1.1m from the Scottish Government to help residents with housing costs in 2017/18.

But officials are warning that the introduction of UC has had a significant impact on the homelessness budget, because there is a loss of income to the council as a result of the changes from the old housing benefit.

Universal credit is part of the government’s controversial welfare reforms and it replaces payments like housing benefit, jobseeker’s allowance and tax credits.