Delays in paying universal credit means thousands will be penniless for the festive season

New benefit claimants won’t get any cash before Christmas, according to a housing association.

Universal Credit claimants have a 42-day wait for payment meaning those applying for the benefit this week won’t receive anything before the Christmas holidays.

This will affect some 60,000 households – with 40,000 children – according to housing association the Peabody Trust.

According to Peabody's “Safe as Houses” report, claimants on Universal Credit are still experiencing difficulties with the application process, with some struggling to pay their rent, and forced to borrow from friends and family to manage everyday expenses.

MPs and peers will debate universal credit on Thursday afternoon amid speculation that ministers were planning to cave in to mounting pressure and cut the current minimum six-week waiting time to four weeks.

However any decision to change the waiting time won’t be implemented before Christmas.

“Making a phonecall free does not improve the fundamental failure of Universal Credit. Six weeks or four weeks minimum wait for payment is too long and is pushing the poorest into greater debt,” a spokesperson for Peabody said.

“The government should pause the rollout and reduce the waiting period to two weeks. This could ensure 60,000 households get some money in time for Christmas.”

The lengthy wait has been blamed for spiralling rent arrears and rising foodbank referrals. More than half of new low-income claimants are used to budgeting on a weekly or fortnightly basis, and few have savings.

Although ministers have signalled that they are prepared to shorten the waiting time to four weeks, campaigners have warned this may still be too long for many households, and that further cuts to the waiting time should be considered.