William Eichler 02 January 2018

Councils forced to commit ‘valuable resources’ to cope with UC roll out

Local authorities are being forced to commit ‘valuable resources’ to tackling the effects of Universal Credit (UC), Labour says.

Freedom of Information requests from the opposition party have revealed councils are committing scarce funds towards preparing for the impact of UC over and above Discretionary Housing Payments provided by the Department for Work and Pensions.

The roll out of the new benefits system, which consolidates six benefit payments such as housing support into one, has been widely criticised - despite the Chancellor’s announcement last November of a £1.5bn support package to help address concerns about the welfare reforms.

One in-depth report by the Smith Institute published by Southwark Council, one of the first boroughs nationally to see the full roll out of UC, found delayed UC payments were pushing many into debt and rent arrears, causing considerable stress.

The report, which was published in conjunction with Croydon Council and Peabody, showed the average council rent account in Southwark sits at £8 in credit. However, for UC recipients, it’s about £1,178 in arrears.

Labour’s research reveals councils are having to provide additional rent arrears support and increase staffing as well as working with their local food banks and Citizens Advice to offset the impact of UC.

Newcastle City Council, for example, is spending nearly £400,000 of its own resources supporting UC claimants, almost a quarter of which comes from additional rent arrears support.

Tower Hamlets Council has set aside £5m over three years to help those affected by Universal Credit, while Barking and Dagenham is budgeting £50,000 to support UC claimants from January 2018.

‘Universal Credit is causing misery and hardship for thousands of families this Christmas, and councils are being expected to pick up the pieces,’ said Margaret Greenwood, Labour’s shadow minister for employment.

‘It’s clear councils are committing their own valuable resources from already-stretched budgets to offset the impact of Universal Credit and to prepare for the damage its roll out could cause.

‘This is yet more evidence that the Government should immediately pause the roll out of Universal Credit so its fundamental flaws can be fixed.’

SIGN UP
For your free daily news bulletin
Highways jobs

Executive Director of Place

Hounslow London Borough Council
£159,840 - £186,282
We are now seeking a new Executive Director of Inclusive Growth & Place to lead this bold agenda Hounslow (City/Town), London (Greater)
Recuriter: Hounslow London Borough Council

Revenue Services Support Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£28377 - 36969 per annum
We have a vacancy in our Rent Collection Service and are looking for a capable and ambitious individual to join Richmond and Wandsworth Council’s Better Service Partnership. You will be a team player, articulate and organised and help play a central rol Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Benefits Assessment Officer

West Northamptonshire Council
£34203 - £37067
Join West Northamptonshire Council and help make our community a great place to live, work, and thrive. As a Benefit Assessment Officer, you’ll play a vital role in supporting residents by ensuring Housing Benefit and Council Tax Reduction claims are pr Northampton
Recuriter: West Northamptonshire Council

Head of Facilities Management

Redbridge London Borough Council
£89,037 - £92,538
Our borough is beginning a huge transformation. With ambitious regeneration plans, a need for new infrastructure, Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Community Protection, Licensing and Regulatory Services

Redbridge London Borough Council
£competitive
This is your chance to be part of a new management team with a mandate for change and a shared sense of purpose. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council
Linkedin Banner