Universal Credit pilot council calls for suspension

In a cross-party letter to work and pensions secretary Damian Green, Great Yarmouth Council said private landlords are not willing to take any new tenants who receive Universal Credit (UC) as a result of delays in payments coming through.

The council, which has no overall political control and covers the constituency of the previous housing minister Brandon Lewis, said it has ?deep concerns? about the roll-out of UC and called for an ?urgent? investigation.

It also questioned why it had been selected as one of the pilot areas for UC ?given that the borough has wards with some of the highest deprivation levels in the country, where some people rely on benefits as their main or sole source of income?.

The council, which has been piloting the welfare change since spring last year, said UC claims are taking longer than expected to process ? ?eight weeks or more? ? and the consequent delayed payments mean private landlords are facing ?tough decisions to start eviction processes?.

Council tenants? rent arrears have increased since UC ? which combines a number of welfare streams into a single monthly payment ? was rolled out, which is ?against a trend in previous years of falling arrears?, the letter said.

Local landlords have told the council one concern is ?a lack of communication? and a lack of ?timely decisions? from the DWP.

The letter added: ?Given these issues, we ask that the process be changed to facilitate a better communication process. If this is not possible, we request that the housing benefit element of Universal Credit be immediately suspended from the Universal Credit go-live system until the communication process can be resolved?.

The council is also concerned temporary accommodation is not ?Universal Credit-friendly?. In ?many? cases applicants have left temporary accommodation before they receive their first UC payment, because of the delays, ?and have no incentive to pay the council if they have received a negative decision?. The council said this impacts on its budget ?at a time when public sector finances are tight?.

A Department for Work and Pensions spokesperson said: ?The reasons for rent arrears are complex and to link it to welfare reform is misleading. Universal Credit is transforming lives with people moving into work faster and staying in work longer than under the previous system. It is designed to mirror the world of work by giving people responsibility over their lives, and paying Housing Benefit directly to claimants is an important part of this process.

?We work closely with local authorities to ensure that claimants are fully supported and rent can be paid directly to landlords for people who need extra support.?