Half-baked Tory welfare plans caused further outrage yesterday as new research suggested millions will struggle to manage their money when the Universal Credit scheme comes into effect.

Nearly three million benefit recipients will struggle with budgeting their finances, shrunk ever further by continuing Con-Dem cuts, according to the Payments Council, which is responsible for ensuring people receive social security payments.

Universal Credit will combine several benefits, including housing benefit, into one payment so that many claimants will receive a lump sum once a month rather than getting their money on a weekly or fortnightly basis as they do now.