Five ways to fix Universal Credit as rent arrears hit £24m

Housing federations across the UK are calling on ministers to reform Universal Credit to “stop pushing families into debt” as rent arrears reach £24m.

The four bodies – England’s National Housing Federation, Wales’ Community Housing Cymru, the Scottish Federation of Housing Associations and the Northern Irish Federation of Housing Associations – have also cited the two-child policy and benefit cap limit as leaving people on the brink.

Today’s findings show that the government urgently needs to fix the fundamental flaws in Universal Credit

But they also report that the controversial benefit system, which has put the heat on Work and Pensions Secretary Esther McVey following a damning National Audit Office report, is responsible for mounting rent arrears.

Surveys of 65 housing associations in England found that tenants are now in arrears to the tune of £21.6m while Scottish renters in 24 associations have in excess of £1.2m and it is also above £1m in Wales – at an average of £420 per person across 29 associations.

The UK government addressed some of Universal Credit’s flaw in the Autumn Budget last November, reducing the six-week waiting time for first payments and allowing advance payments to tide hard-up tenants over.


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