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Council makes ‘urgent’ call for extra government cash as UC arrears rise

A south London borough is has called on the government to provide “urgent” extra funding, to prevent families on Universal Credit being made homeless.

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Croydon Council says it may spend £3.1m on emergency payments to UC claimants #ukhousing

Croydon facing “unprecedented pressure as a direct result of the roll-out of Universal Credit” #ukhousing

Croydon Council has said it is set to spend £3.1m on emergency payments for families at risk of losing their home this financial year – up more than 50% from the £2m it spent last year.

It is concerned it does not have enough cash from government in its discretionary housing payment (DHP) budget to meet this demand.


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DHP is money from central government which councils can use to pay emergency housing costs for those who are in severe housing need. Croydon received £1.7m for 2017/18 and will top this up with £1.4m of its own funding.

In a letter to work and pensions secretary David Gauke, Alison Butler, deputy leader of Croydon Council, said: “This year we have an unprecedented pressure as a direct result of the roll-out of Universal Credit. Without this extra DHP support, Croydon Council’s costs will continue to increase.

“This would both affect the vital support we give Croydon residents at risk of homelessness and further highlight the flaws requiring urgent fixing in the Universal Credit policy.”

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She said clearing each Croydon resident’s arrears costs £800 more this year because Universal Credit has caused higher debts through its six-week payment delay.
From April to August this year the council made 958 extra DHP awards, up from 529 for the same period last year. It has 1,782 residents on Universal Credit living in temporary accommodation with unpaid rent totalling over £2.5m.

Universal Credit, which rolls several benefits including housing benefit into one monthly payment, was introduced in Croydon in April.

The Department for Work and Pensions has been contacted for comment

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