Universal Credit Behind Rising Rent Arrears And Food Bank Use

Universal Credit is pushing poor tenants deeper into rent arrears and sending food bank referrals soaring, according to a study by two councils that have been guinea pigs for the new regime. Southwark and Croydon councils in south London warned that without rapid changes the new system could have a devastating effect across the country as it is rolled out over the next few months, warning that arrears could reach “many hundreds of millions of pounds” and that tenants could face severe hardship. One food bank reported an increase in referrals of 97%. The report examined rent accounts for 775 social housing tenants in the two boroughs who had moved on to universal credit between August and October 2016, comparing them with 249 rent accounts held by tenants who moved on to the older housing benefit system during the same period. Download the report from the Smith Institute website.

Universal Credit Is A Social Policy Disaster In The Making

Universal credit is the biggest change to our welfare system in 40 years. By the time it has been fully rolled out in 2022 it will potentially affect 8 million people across the UK. The rollout so far has been controversial, and fraught with difficulties. Social housing organisations, in which only around 2.6% of tenants are currently claiming universal credit, have been hit particularly hard by the speed and scale of the change. In August 2017 the DWP released a guide for landlords, in a bid to explain what the changes will mean and how they can support their tenants. Unfortunately, it made little to no mention of how to deal with the slew of administrative issues, faults and delays, which have already caused hardship for so many claimants. Read more on the Guardian website.

Tory Slammed After Dismissing Concerns Welfare System Is Forcing People Into Rent Arrears

The Tory benefits boss has been slammed after dismissing concerns his new welfare system is causing hardship and forcing claimants into rent arrears. Damian Green claimed “teething problems” had cleared up despite council figures showing average rent arrears of more than £900 among some Universal Credit claimants. The Work and Pensions Secretary downplayed evidence of problems raised by MPs and MSPs during a joint Westminster-Holyrood committee meeting. SNP MP Pete Wishart, who chaired the session, said areas where the full service began, including Inverness, reported a sharp rise in housing arrears. Direct payments to landlords are taking between six and 10 weeks to process. Read more on the Daily Record website.

Renewed Calls To Halt Universal Credit Pilots

Housing leaders said rollout of Universal Credit should be halted until 2019 to avoid the “significant financial hardship” experienced by those in the current pilot scheme. Delays in payments by the DWP are causing significant hardship and driving people to foodbanks or illegal loansharks, according to the National Federation of ALMOs.  Research by NFA of the scheme found people living in areas that were part of the pilot scheme were experiencing higher levels of hardship as a result. The NFA has raised its concerns with the DWP and called on ministers to rethink. Read more on 24housing.

Vulnerable Suffering As Result Of Housing Welfare Reforms

Reforms to the support provided for housing costs – including the Social Sector Size Criteria (SSSC) (also known as the “Bedroom Tax” and the “Spare Room Subsidy”) and the household Benefit Cap – are causing financial hardship to vulnerable people who were not the intended targets of the reforms and are unlikely to be able to change their circumstances in response, say the Work and Pensions Committee in a report published Wednesday 2 April. The SSSC is having a particular impact on people with disabilities who have adapted homes or need a room to hold medical equipment or to accommodate a carer. The Committee recommends that anybody living in a home that has been significantly adapted for them should be exempt from the SSSC. The Report further urges the Government to exempt all households that contain a person in receipt of higher level disability benefits (DLA or PIP) from the SSSC. Read more and download the report from the Parliament website.

Campaigners Voice Outrage at DWP’s Regime of Destitution

The DWP is operating a draconian sanctions regime that often penalises claimants for the department’s own mistakes, leaving people at risk of severe hardship and even homelessness, claims the charity Crisis. The charity spoke out against the DWP’s sanctions regime after the department released new figures on the number of sanctions imposed on those claiming Job Seekers Allowance (JSA) and Employment and Support Allowance (ESA). Crisis made its claims with the publication of new report, ‘Dashed Hopes, Lives on Hold’, which has gathered the experiences of the charity’s clients placed on the Work Programme. It claims that many of the sanctions imposed were “unfair” or made in error.  Download a copy of the report from the Crisis website.