Minister claims housing benefit reforms is causing crisis and debt

The Scottish Government paper Impact of UK Welfare Policy on Housing found Westminster welfare reform, particularly the introduction of Universal Credit, had a 'substantial impact' on the level of rent arrears in Scotland, both on the number of people in arrears and the average amount they owe.

The report found in full services areas of Universal Credit this has led to increasing rent arrears 'having an impact on the ability of landlords to collect rents'.

Almost three quarters (72%) of social housing tenants in East Lothian claiming Universal Credit were behind on their rent, compared with 30% of all tenants in the region.

The report says about one fifth of Scotland's 2.4 million households get UK Government assistance with housing costs.

Tenants' response to welfare reform is varied, researchers found, but some may prioritise other costs over rent and fall into arrears, while others prioritise rent over other outgoings such as food or heating.

Private landlords may evict tenants who fall into rent arrears through the impact of UK welfare changes and could avoid taking on tenants on benefits in future.

Revenue lost to landlords in the social rented sector through rent arrears can affect services provided to other tenants, rents charged, and the ability to invest in new homes.

The report says privately rented housing has become 'completely unaffordable in some areas' due to a freeze on local housing allowance.

In Edinburgh those getting help with housing costs for a one-bedroom flat would only be able to afford 5% of available properties, not the 30% envisaged by Westminster.

The report adds: 'It is clear that the actions of the UK Government, in its areas of reserved competence, are having an impact on the operation of the housing sector which should be subject to devolved competence.

'In some cases the impact may be contrary to devolved priorities.'

Scottish Housing Minister Kevin Stewart called on the UK Government to rethink its welfare reforms.

He said: 'It is clear that UK Government welfare cuts are having a devastating impact, with money taken from the pockets of people across the country, pushing them into crisis and debt.

'We are doing all we can, with the powers we have to protect those on low incomes from these devastating UK Government cuts - spending more than #125 million this year alone to do so.

'This includes #62 million to fully mitigate the 'bedroom tax', help for those impacted by the freeze in local housing allowance, as well as providing support for low-income households.'