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UK housing bodies warn Universal Credit is ‘flawed’ and ‘causing suffering’
The UK’s four housing federations have launched a joint call for the government to reform the “flawed” Universal Credit, which they say is “causing suffering and hardship” across the country.
The trade bodies, which together represent more than 1,000 housing associations with nearly seven million tenants, issued a joint call for reform today.
They want ministers to make changes to Universal Credit before it is rolled out to all parts of Britain this year, including scrapping the rule that families only receive benefits to cover the cost of their first two children.
Surveys of 118 housing associations in England, Wales and Scotland found that Universal Credit tenants are in £24m of rent arrears.
The England survey found that 73% of Universal Credit tenants are in debt, compared to 29% of other households. In Scotland, the figures were 65% against 32% respectively.
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Housing associations in England also reported increases in Universal Credit households receiving food bank vouchers and demand for welfare advice.
As well as changes to the two child limit, the federations are urging ministers to scrap the benefit cap limit, allow housing association staff to act as advocates for tenants to solve issues with their claims and to make sure Alternative Payment Arrangements are no longer paid in arrears.
They are also calling for the Department for Work and Pensions to expand its Universal Credit support operation and restore in-work allowances to claimants.
More than 185,000 social housing tenants in England, Scotland and Wales were receiving Universal Credit to help pay their rent in December 2017.
Around 10% of potential claimants have been changed over from the previous benefit system, with the number of people receiving Universal Credit set to double this year.
David Orr, chief executive of the National Housing Federation, said: “Today’s findings show that the government urgently needs to fix the fundamental flaws in Universal Credit.
“There are some very simple changes they need to make, like ensuring payments are made on time and allowing housing associations to easily negotiate on behalf of vulnerable tenants, so tenants get their money when they need it.
“If people aren’t receiving money on time, of course they’re being pushed into debt. People depend on these vital payments.”
Sally Thomas, chief executive of the Scottish Federation of Housing Associations, said: “We would like to see the UK government accept our five asks as they will allow for further vital changes that will facilitate better administration of Universal Credit and reduce its negative effects on tenants.
Stuart Ropke, chief executive of Community Housing Cymru, said: “The recent changes to Universal Credit are welcome, but as it stands, the system is still not fully fit for purpose.”
Ben Collins, chief executive of the Northern Ireland Federation of Housing Associations, said: “A number of important points are raised in these asks, which we support.”
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