William Eichler 23 August 2019

Universal Credit driving tenants into rent arrears, study says

Universal Credit is causing tenants to fall behind in their rent, new research from a group representing landlords has revealed.

Research from the Residential Landlords Association (RLA) has found that 54% of landlords with UC claiming tenants had experienced these tenants going into arrears over the past year.

The majority of these landlords (82%) reported that the rent arrears began after either a new claim for or migration onto the new welfare system.

Universal Credit is the Government’s flagship welfare reform which rolls six benefit payments into one. It has been criticised for delaying payments to claimants.

The RLA’s report found that 61% of landlords were concerned about the financial risk of renting to UC claimants and 58% said they viewed these claimants as a higher risk for rent arrears.

A survey of residents’ experiences of UC, published in June by the housing association The Riverside Group, found that more than 90% of claimants were waiting for more than four weeks for their UC payment with 43% waiting more than six weeks.

In total, four-fifths of claimants (81%) said the wait for their first payment had caused them financial hardship with more than three-quarters (78%) saying they had to rely on loans.

The Riverside Group calculated that once UC had been rolled out to the estimated seven million users who will be claiming it by 2023, around three million more people will also see an increase in their debt.

The chair of the Work and Pensions Committee, Frank Field MP, recently said that Universal Credit should ‘come with a health warning’ – a comment rejected by a spokesperson for the Department for Work and Pensions.

'Universal Credit helps people into work faster than the old system and provides targeted support,’ the spokesperson said.

'Around one million disabled households will gain an average of £100 more a month, and changes to work allowances mean 2.4 million households will be up to £630 per year better off.'

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