Laura Sharman 16 January 2017

Universal Credit has 'devastating impact' on rent arrears says research

The amount owed in rent arrears for people claiming Universal Credit (UC) and living in council housing has nearly doubled in the past year, new research has revealed.

A new study by the National Federation of ALMOs (NFA) and the Association for Retained Council Housing (ARCH) found 89% of claimants were in rent arrears last September, compared to 79% in March 2016. The average value of the debt has almost doubled to £615 from £321 over the same period.

John Bibby, chief executive of ARCH, said he was 'extremely concerned' about the increase in rent arrears for UC tenants. 'Not only are numbers of households increasing as UC is rolled out, but the percentage of households falling into rent arrears and experiencing financial difficulty is critically high,' he said.

'If this trend is not reversed it will have significant impact on local authorities’ rental income streams and the long term ability for housing departments to provide essential services to their communities.'

Both NFA and ARCH are calling for an end to the seven day waiting period for UC claims.

Hugh Broadbent, NFA chair, said: 'We believe the current unacceptable waiting times and errors in processing claims are causing significant financial hardship to our tenants and communities.

'The reported increase in the presence of loan sharks within our communities is alarming, but sadly not surprising. The delay in claimants receiving benefit inevitably forces households to turn to other ways to survive, including family and friends, pay day lenders and as a last resort loan sharks. The repayment of extortionate interest only further exacerbates a tenant’s ability to pay their rent.'

SIGN UP
For your free daily news bulletin
Highways jobs

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Assistant Director of Legal and Governance (Deputy Monitoring Officer)

Bury Council
£91,639 to £99,427
We are seeking someone with a strong grounding in local government law and governance, or experience gained in a similar environment. Bury, Greater Manchester
Recuriter: Bury Council

Head of Skills and Opportunity

Bristol City Council
£80,737 - £89,465
You will be at the heart of a rapidly changing education, employment and skills landscape. Bristol
Recuriter: Bristol City Council

Adults Social Worker - West Essex (Expression of Interest)

Essex County Council
£36124 - £51834 per annum + Flexible Working, Hybrid
Register your interest here to be notified of upcoming Social Worker opportunities within Essex County Council's Adult Social Care services in West E England, Essex, Harlow
Recuriter: Essex County Council

Director of Planning and Building Control

Royal Borough of Greenwich
up to £140,000
Our new director will play a key role at the heart of the Council’s ambitious agenda for place‐based growth and regeneration. London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner