A MASSIVE shake-up of the benefits system will cause “pain, poverty and misery to thousands of North-East families,” it has been claimed.

The criticism has been made of the Government’s Universal Credit which is designed to merge several benefits and tax credits into one monthly payout and is now being trialled around the country.

The TUC and Child Poverty Action Group said nine out of ten families will be no better off because of social security benefit cuts and changes to tax credits.

But Labour MPs in the region said even more worrying was the fact that claimants will need internet access to claim, something about a third of benefit claimants don’t have. Direct housing benefit payments to claimants could also lead to some people failing to pay the rent.

Universal credit is being introduced for eight million working-age people looking for work. It will replace income-based jobseeker’s allowance, income-related employment and support allowance, income support, child tax credit, working tax credit and housing benefit.

James Wharton, Conservative MP for Stockton South, said Universal Credit would simplify the system and reduce fraud. He argued that, contrary to the TUC’s point that nine out of ten families will be no better off, thousands of low paid North-Easterners were being taken out of the tax system.

He said: “The current system is so incredibly complex some people have been able to play the system and others have missed out on what they’re entitled to. This is 67 benefits rolled into one. It’s fairer and more straightforward.”

Labour have not opposed the idea in principle but raised concerns that the Department for Work and Pension's  computer system will not be able to cope with millions of claims.

Kevan Jones, Labour MP for North Durham, said: “The findings by the TUC and Child Poverty Action are not surprising. Most people claiming benefits are actually in work but many budget weekly while this is a monthly payment. It isn’t going to make life easier.

"Landlords have been on to me raising concerns that some people in dire straits just won’t pay the rent in instances where it is currently paid to them. It’s not just disreputable tenants. It could be a mother worried about finding food to feed her children making that choice. This is being rushed in and is ill thought-out.”

Andy McDonald, Labour MP for Middlesbrough, said warning bells have been sounding for months that that computerised infra-structure won’t be fit for purpose.

He said: “This is going to cause pain, poverty and misery for thousands of North-East people. I was at a digital inclusion programme in my constituency and was staggered at the number of people on benefits who don’t have access to a computer. I don’t have the exact figure but it’s something like 35 per cent. It’s an example of people running the Government not really understanding ordinary people’s lives.”

The North-East is likely to be disproportionately affected because of a higher than average number of people on benefits with 10.1 per cent of the working age population unemployed compared to the national average of 7.9 per cent.

The Ladder Project, a charity in Ferryhill, County Durham, provides 11 computers for jobseekers and recently raised concerns that it is already struggling to cope.

Universal credit will be introduced across the country from October and the whole process will be completed by 2017. A pilot scheme has begun in Ashton-under-Lyme. Other projects in Warrington, Oldham and Wigan have been delayed until July.