Tenants claiming Universal Credit for long periods
persistently struggle to pay their rent and even build up more arrears despite
government attempts to improve the situation. Researchers analysing tenants of
Southwark Council who rely on UC pointed to a “worrying” trend of rent being
consistently underpaid by an average of 7%, even 15 months after the first
claim. They said arrears associated with UC could eventually cost the borough,
which owns nearly 37,000 homes, £6m a year. Thinktank The Smith Institute has
published its Safe as Houses 2 report on behalf of Southwark Council – which
was one of the first local authorities where Universal Credit was fully rolled
out. Download the report from the Smith Institute website.
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