Tenants’ rent arrears double on Universal Credit versus housing benefit, investigation finds

News12 Nov 2018Sarah Williams

Rent arrears for council tenants receiving Universal Credit are more than double those still receiving housing benefit, an investigation has found.

Responses from 129 councils to the BBC’s request for information showed that the average amount owed by tenants claiming Universal Credit across the UK is £662.56, while for those still on housing benefit it is £262.50.

Flintshire in north Wales, which was one of the first counties to roll out the new benefit scheme in April 2017, said that tenants in the county now owe on average four times as much rent as those on the old system.

In September, it was six times as much, the BBC reported.

Twenty-three per cent of benefit claimants are now on Universal Credit in Flintshire, versus around 10 per cent nationally.

Employment minister Alok Sharma said that Universal Credit is “working well” adding: “What we have is a system which is simpler, a system which people understand and ultimately makes sure they get into work faster and stay in work longer.”

At the budget last month, chancellor Philip Hammond said that Universal Credit was a “long-overdue and necessary reform”, but promised additional funds to support challenges around implementation and the level of rates and allowances.

An additional package of £1bn over five years would aid the transition, he said, while work allowances in Universal Credit will be increased by £1,000 a year – at a cost of £1.7bn annually once the roll-out is completed.