Universal Credit

Low-income families could be pushed further into financial difficulties and debt by a shift to monthly benefit payments under Iain Duncan Smith's welfare reforms, a think tank warned today.

MPs have been warned people from disadvantaged backgrounds may suffer if the Government pushes ahead with plans to digitise the benefits system.

The Government wants banks and credit unions to create new current accounts to help benefit claimants better manage their money when its universal credit comes into force next year.