14 September 2018
Since the introduction of Universal Credit in 2013, there have been a variety of issues raised, especially from people who rent properties and find themselves in debt. The main reason for this is because those who claim for Universal Credit, must wait six weeks before they receive their first imbursement, and therefore are not able to pay their rent in time.
Previously, tenants received some of their benefits or tax credits weekly, which made it easier to pay their rent. These benefits and tax credits included:
Anyone that was entitled to the benefits above are also entitled to Universal Credit, which is one standard allowance for each household, in addition to any further payments that could be paid out for the following reasons:
In relation Universal Credit claimants, there have been a variety of local authorities that have reported issues regarding rent arrears. Including the Cheshire-based company, Halton Housing who reported that out of the 7000 homes that they manage, only 24.9% of their tenants claim for Universal Credit, however 63.7% of rent arrears are actually owed by UC claimants.
Halton Housing compared these statistics from before the introduction of Universal Credit, which established that there had been a £210,000 increase in rent arrears relating to those who claim for Universal Credit.
Other statistics show that across 105 local authorities, 50% of tenants that receive Universal credit are actually a month behind on rent, and 30% of tenants are behind by two months.
It is clear that Universal Credit is causing a variety of issues for both tenants and landlords, which begs the question whether changing to a one-fits-all benefit was the most effective approach, especially in terms of housing.
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