William Eichler 07 June 2016

'Indisputable link’ between UC and rent arrears, study finds

More than three-quarters (79%) of council tenants in receipt of Universal Credit (UC) are in rent arrears, a new report reveals.

New research by the National Federation of ALMOs (NFA) and the Association of Retained Council Housing (ARCH) has discovered an ‘indisputable link’ between UC and the proportion of tenants experiencing difficulties and falling into rent arrears.

The study, entitled One year on: An indisputable link, shows that only half of UC-claiming households that are now struggling to pay rent had pre-existing rent arrears.

The average six week assessment period, combined with the seven day waiting time, has grave consequences on tenants’ ability to maintain rent payments, according to the report, and is a significant contributor to the occurrence and accumulation of rent arrears.

Hugh Broadbent, NFA chair says: ‘The manner in which UC is currently being administered is clearly having a direct impact on the numbers of households falling into arrears - half of whom had no history of rent arrears.

‘Our concerns are heightened in situations where the claimant was not in paid employment immediately prior to submitting a claim for UC, for example where previous benefits have been sanctioned or adjusted. Many claimants simply do not have adequate savings or final pay cheque to carry them through the lengthy assessment period.’

The NFA and ARCH are calling on the Government to: abandon the seven day waiting period for UC entitlement; undertake a review of the monthly in arrears policy to ascertain if this is causing unnecessary hardship and long term disadvantage to some claimants; and speed up the UC assessment process to three weeks.

SIGN UP
For your free daily news bulletin
Highways jobs

Recycling Centre Site Operative - Braintree

Essex County Council
Up to £25959.0000 per annum
Recycling Centre Site Operative - BraintreePermanent, Full Time£25,959 per annumLocation
Recuriter: Essex County Council

Recycling Centre Site Operative - Braintree

Essex County Council
Up to £25959.0000 per annum
Recycling Centre Site Operative - BraintreePermanent, Part Time (annualised hours)£25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council

Care Resource Specialist

Durham County Council
Grade 10 £38,220 - £41,771
Do you want your work to make a real difference to the lives of children and young people in our care?   This is a brilliant opportunity to join a new Spennymoor
Recuriter: Durham County Council

School Crossing Patrol

Durham County Council
Grade 1 £4,106 (approx.) £12.85 per hour
Join our School Crossing Patrol Service! Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit? Durham
Recuriter: Durham County Council

Business Support Assistant

Durham County Council
Grade 3 - £25,185 - £25,989 (pay award pending)
We are seeking a proactive and organised Business Support Assistant to join our hospital social work team on a temporary basis. In this role, you will Seaham
Recuriter: Durham County Council
Linkedin Banner