OPPOSITION MPs told the Commons today how their constituents are being plunged into debt and forced to take out government loans while waiting up to five weeks for their first universal credit (UC) payment.

Labour MP for East Ham Stephen Timms asked Employment Minister Alok Sharma whether the Department for Work and Pensions (DWP) is concerned about rising indebtedness among struggling claimants who take out loans from the department.

Scottish National Party MP for Glasgow Central Alison Thewliss urged him to investigate flaws in the benefit debt repayment system as one of her constituents had her repayment for historic tax credit debt increased under UC from £11 a month to £76.46 on her monthly income after housing costs of £317.83.

Mr Sharma said that the “general rule” would be that deductions would not exceed 40 per cent of benefit allowances and the limit will be reduced to 30 per cent.

Labour MP for Rhondda Chris Bryant said his constituent was in “floods of tears” before Christmas because the system was “encouraging” her to be in debt for the first time in her life.

He urged the government to “stop the business of pushing the poorest people in this country, who are often the proudest people, into debt.”

MPs jeered when Mr Sharma said: “Of course we do not want to push anyone into debt.”

DWP loans are interest-free and can be paid back over a year, but will be extended to 16 months, he added.

Shadow work and pensions secretary Margaret Greenwood asked Mr Sharma why the government had decided to downgrade its pilot “managed migration” UC scheme from three million to 10,000 claimants.

She suggested that it could be down to the “threat of revolt” from MPs, who will be asked to agree to the pilot, over “very real fears that vulnerable people will be put at risk and fall out of the social security system altogether.”

A number of claimants would have difficulty making fresh benefit claims when being forced to transfer to UC through “natural migration,” when they have a change in circumstances, or through the “managed migration” roll-out, she warned.

Mr Sharma responded by saying that the pilot will go ahead in July before a “volume” of people are transferred the following year.