Churches have responded to a damning report on the government's flagship Universal Credit benefits system with a call for its implementation to be halted pending an independent review.

The new system was meant to replace a complicated and expensive patchwork of benefits that saw many left unclaimed and families in serious need. It was intended to make claiming benefits simpler and is paid to people in work as well as unemployed, with payments gradually tapering off as income rises.

While the principle has been generally welcomed, a National Audit Office study has found Universal Credit causes hardship and is not delivering value for money. The NAE found it could cost more to administer than the previous system.

Speaking on behalf of the Baptist Union of Great Britain, the Church of Scotland, the Methodist Church and the United Reformed Church, Paul Morrison said: 'Churches have repeatedly expressed concerns about Universal Credit and the damaging effects it is having on communities. The NAO's findings are deeply concerning but not a surprise.'

The report is the first official document to take seriously the concerns of claimants and acknowledge the problems they are facing, according to Morrison.

He said: 'I met a single mum at a parent and toddlers' group in West London. She cried when she told me about her experience of Universal Credit. She is worse off, struggling to make ends meet and as a result has to stop her childcare course at college.

'The policy that cut her benefits was intended to "incentivise work". In reality it made her life more difficult and closed down her opportunities. Her story is sadly unexceptional.

'Half of people receiving Universal Credit report going into debt. This is the result of delayed, inadequate, and irregular payments. It makes budgeting impossible and can make debt inevitable. The Department for Work and Pensions' own figures show that four in 10 people reported serious financial difficulties, whilst one in 10 waited more than 11 weeks for payment.

In Universal Credit areas foodbank use went up 52 per cent, whereas in other areas it was 13 per cent. The case is incontrovertible. Universal Credit is failing, and the poorest are suffering the consequences.'

The churches call on the government to halt the implementation of Universal Credit and commission research into its effects, and to engage with the people who use the system to design an approach that meets their needs.

Morrison said: 'Until the voice of those who use the benefit system is listened to and valued, Universal Credit will continue to cause harm to the communities it is meant to serve.'

According to work and pensions minister Alok Sharma, the NAO report was written before the introduction of measures enabling people to get 100 per cent advances on their first payment.

He told the BBC's Today programme those on housing benefit could also get extra money to help them transition, saying: 'We've not seen the full impact of these very positive changes.'