Housing Federations urge overhaul of 'flawed' Universal Credit
Tenants receiving Universal Credit are collectively in £24 million worth of rent arrears, housing associations have warned. The findings were compiled from surveys of 118 housing associations across Britain. They were released by the National Housing Federation, the Scottish Federation of Housing Associations, Community Housing Cymru and the Northern Irish Federation of Housing Associations.
They said the £24 million figure is a snapshot'' of what is happening to social housing tenants across the country on Universal Credit and it is likely there are many more people struggling financially.
The bodies, representing more than 1,000 housing associations housing over 6.9 million people, are pressing for an overhaul of the flagship benefit policy, including scrapping the two child policy'' where families only receive benefits to cover the cost of their first two children.
According to the surveys, 24 housing associations in Scotland had more than £1.2 million of arrears debt from tenants on Universal Credit.
In Scotland, two-thirds (65%) of Universal Credit tenants are in arrears, compared with just under a third (32%) of other tenants, the housing association surveys found.
Universal Credit, which is being phased in gradually, merges six existing benefits, such as housing benefit and income support, into one.
Those representing housing associations said alongside scrapping the two child policy, housing association staff and agencies such as Citizens Advice should be able to sort out problems with Universal Credit as advocates for tenants.
They said this will help solve problems earlier and minimise rent arrears.
They also said that while in some circumstances people's housing costs can be paid directly to their landlord, this can be unpredictable and landlords should be paid rent at the same time it is deducted from the tenant's benefit.
David Orr, chief executive of the National Housing Federation, said: Today's findings show that the Government urgently needs to fix the fundamental flaws in Universal Credit.
There are some very simple changes they need to make, like ensuring payments are made on time and allowing housing associations to easily negotiate on behalf of vulnerable tenants, so tenants get their money when they need it.''