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Universal Credit’s impact on the two HRAs

The Universal Credit roll-out raises questions for councils around meeting the requirements of the Homelessness Reduction Act and managing their Housing Revenue Accounts, says Gary Josey

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Universal Credit's impact on the two HRAs, by Gary Josey #ukhousing

As a director of housing with a retained housing stock, I’m currently grappling with two HRAs – our Housing Revenue Account and the Homelessness Reduction Act. I call it my HRA sandwich.

The Housing Revenue Account is the bottom slice, and with recent news about rent increases after 2020 it is beginning to look somewhat fresher.

The top slice is the Homelessness Reduction Act. We are not really sure how this will work out in practice. Future sustainable funding is obviously our primary concern, rather than the preventative requirements themselves.


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And right in the middle is a sandwich filling leaving a nasty aftertaste: Universal Credit.

With our Universal Credit roll-out starting in November, both of my HRAs are likely to be affected.

Rent loss for the Housing Revenue Account and increased arrears.

Far worse is the potential impact with private sector landlords who are already reluctant to house benefit claimants.

This will reduce available housing supply to the people most in need and cause an inevitable pressure on homelessness services.

I hope I’m wrong, but I think the next two or three years are going to be the most challenging yet for local government and council housing departments.

Now what shall I have for lunch today? I’ve gone off sandwiches.

Gary Josey, director of housing and communities, Bournemouth Borough Council

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