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

Lead Social Worker WMF2939e

Westmorland and Furness Council
£47,181 to £48,226
We have an exciting opportunity for the role of Lead Social Worker in the Learning Disability, Transition and Autism Team Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council

Streetworks Compliance Officer WMF2942e

Westmorland and Furness Council
£36,363.00 - £37,280.00
The Streetworks Compliance Officer role within the Highways Service plays a vital part in managing and overseeing streetworks Kendal, Cumbria
Recuriter: Westmorland and Furness Council

Family Hub Practitioner - WMF2923e

Westmorland and Furness Council
£32,061 - £32,597
An exciting opportunity has arisen for a Family Hub Practitioner in the Best Start Family Hubs Cumbria / Various
Recuriter: Westmorland and Furness Council

Support Officer

Durham County Council
Grade 4 £25,583 - £26,824 pro rata
We have an exciting opportunity for a part time temporary 24 month contract Support Officer to join our dedicated team within Business Services. WH Durham
Recuriter: Durham County Council

Class Teacher

Durham County Council
£37,101- £45,352
KS2 Class Teacher (Maternity Cover)  This is a maternity cover post and will continue until the substantive post holder returns. The successful candid Peterlee
Recuriter: Durham County Council
Linkedin Banner