Amber Rudd promises to look into £2.5 million council bill for Universal Credit

The MP for Inverness, Badenoch, Nairn, and Strathspey politician revealed in October 2018 Highland Council was out of pocket by £2.5 million pounds for extra administration and resulting rent arrears after the five-week delay to getting a first payment through the system.

Administration costs made up £640,000 of the total costs above what was budgeted by the UK Government to roll out the new benefits system.

The SNP MP has now heard back from the Work and Pensions Secretary of State Amber Rudd who has promised to take a 'personal interest' in the extra costs surrounding Universal Credit.

Drew Hendry said: 'It really is well past time that this debt was settled by the UK Government. The previous Work and Pensions Minister is on record saying that no local authority should lose out financially as a result of Universal Credit, yet the Highland Council continues to have to prop up the failing system with its own cash - money it can ill afford. In October last year additional administration costs alone were over £640,000 - just think about the difference this money would make in our communities.

'The Highland Council Benefits & Welfare Reform team are experts at dealing with Universal Credit, they led the pilot, and are one of the top six highest performing teams across the UK. They’ve also been recognised as the Institute of Revenues, Rating & Valuation Benefits & Welfare Reform Team of the Year. If this leading team is incurring this level of additional costs to administer Universal Credit, one can only imagine the money other Councils are going to lose as Universal Credit is rolled out further.

'Officers at the Highland Council couldn’t have been clearer in their analysis of these costs. It is unacceptable that Highland Council Tax payers to continue to pick up the bill for the UK Government’s failing Universal Credit project and I will be keeping the pressure on the UK Government until this money is paid back.'