Woodchip is it ok to use on allotment

Hi
I have just joined this site.
Most people at our allotment use woodcips between their raised beds mainly I think because it is delivered free. I have been told though that it is not good to use as it takes the nitrogen from the soil and later on apparently nothing will grow except for blueberries. I would like to know if this is so please. Can anyone advise me Thank you