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

Executive Director of Corporate Resources (Section 151 Officer) & Deputy Chief Executive

East Riding of Yorkshire Council
£148,775 - £159,480
The role sits at the strategic core of the organisation East Riding of Yorkshire
Recuriter: East Riding of Yorkshire Council

Director Children’s Social Care (Family Help and Safeguarding)

Swindon Borough Council
£104,196 (plus pay award pending)
You’ll join a supportive and ambitious leadership environment, with strong corporate Swindon, Wiltshire
Recuriter: Swindon Borough Council

Quadrant Support Advisor

Essex County Council
£25959.00 - £28621.00 per annum + Pension
Quadrant Support AdvisorPermanent, Part Time£25,959 to £28,621 per annumLocation
Recuriter: Essex County Council

Direct Payments Monitoring Officer

Essex County Council
£27869.00 - £32787.00 per annum
Direct Payments Monitoring OfficerPermanent, Full Time£27,869 to £32,787 per annumLocation
Recuriter: Essex County Council

Customer Services Assistant

Essex County Council
Up to £25959.00 per annum + full time equivalent
Customer Services AssistantPermanent, Part Time£25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council
Linkedin Banner