CITIZENS’ advice bosses have warned the roll out of Universal Credit in Colchester could add to residents' spiralling debts.

Universal Credit came to Colchester in June this year and replaced six different benefits with one monthly payment in a bid by the Government to simplify the system.

But Citizens’ Advice Colchester has warned more households are likely to get into serious debt because of delays in payments and mistakes in the new system.

There could also be knock-on effects on Colchester Council's finances.

Director Neil Lawrence said: “The rollout or universal credit presents huge challenges, not just for the individual claimants, but for local government as well as the private rented and social housing sector.

"It is difficult to quantify the financial impact across the borough, but last last financial year Citizens’ Advice alone helped clients with over £215,000 of debt."

Mr Lawrence said between April this year and up to now, clients' total debt has already reached £208,000.

He said Universal Credit will have a knock-on impact on Colchester Council’s finances too.

This is because claimants have to make a separate claim for Council Tax relief.

If they don’t do this - and many people are unaware that they have to - then they won’t be able to pay Council Tax.

The council won’t get the payment reimbursed from central government and so it will be out of pocket.

Mr Lawrence said: “We saw 900 clients with council tax arrears and are expecting that number to rise with the rollout of Universal Credit.

“We are working collaboratively with Colchester Council to ensure clients claim Local Council Tax Support and to negotiate repayment of arrears wherever possible.”

He warned claimants: “If you are unable to pay your council tax, it’s imperative that you act immediately. Contact the council or Citizens’ Advice straight away. If you don’t pay, and the council has to take enforcement action, court and bailiff costs will be added to the amount you owe.”

Mark Cory, leader of Colchester Council, added: “In principle, the idea of simplifying the benefits system is a good one. However, the shambles and human cost of the Universal Credit roll-out has been enormously damaging to many communities across the country.

“Fortunately, we were one of the councils that benefitted from a later implementation of Universal Credit and, moreover, our superb benefits team worked hard to prepare our residents for the changes and provide excellent support in the transition period.

“Residents can be assured our team will continue to provide an outstanding service to help them deal with any problems they may encounter as a result of changes to their benefits.”

A council spokesman said: “We have worked with the Department for Work and Pensions (DWP) and other key partners to ensure residents are aware of the support that can be provided through Local Council Tax Support (LCTS).

"We have also created processes to ensure the take-up of LCTS is prompted alongside the introduction of Universal Credit by the DWP.

“Anyone in need of additional help towards their Council Tax cost can check their eligibility by visiting www.colchester.gov.uk/lcts.”