Universal Credit is “failing millions of people”, especially the vulnerable, according to a new report from peers.

The Lords’ Economic Affairs Committee said it agreed with the government’s aim for the scheme – to bring together multiple benefits into one payment.

But it criticised its design, blaming Universal Credit for “soaring rent arrears and the use of food banks”.

Welfare delivery minister Will Quince said the government was “committed to supporting the most vulnerable”.

But he said the scheme had “defied its critics in unprecedented and unforeseeable circumstances” during the coronavirus pandemic, adding: “The case for Universal Credit has never been stronger.”

One poverty charity, the Joseph Rowntree Foundation, said the report “reinforced the scale and urgency of reforms needed”.

And Labour said the system was “simply not working”,

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