UNIVERSAL credit has greatly increased rent arrears, with immediate action now needed in order to tackle the issue, according to MSPs.
In a report published by Holyrood's Social Security Committee on Wednesday, MSPs indicated that the number of arrears has increased since the new benefits system was introduced.
Universal Credit (UC) was brought in as a benefit to replace six other benefits by merging them into one monthly payment.
However, the roll-out of the system has been hit by delays, whilst concerns have been raised about the way that UC is being implemented.Calls for Universal Credit housing benefit to automatically go to landlords
READ MORE: Calls for Universal Credit housing benefit to automatically go to landlords
Earlier this year, an inquiry was launched by the committee to explore how social security support for housing costs is impacted by welfare reform, with a particular focus on the local housing allowance and Universal Credit housing costs.
In its report, the committee stated that it was "alarmed" by evidence which indicated increasing rent arrears under UC.
Referring to a submission by Citizens Advice Scotland (CAS), the committee noted that CAS stated that in the last 18 months, their clients' rent arrears issues were predominantly caused by them moving onto UC and experiencing problems with the delivery of support to pay the rent through the new benefit.
READ MORE: Less than half of Universal Credit claimants have rent paid directly to landlords
The committee noted evidence from Scotland's CAB network, as well as from other stakeholders, which suggested that the incidence of rent arrears is far higher amongst tenants receiving UC.
In data produced by the Convention of Scottish Local Authorities (COSLA), referenced in the report, it was also outlined that mainstream rent arrears for four local authorities (East Lothian, Highland, East Dunbartonshire, and Midlothian) had increased by a total of 26% in the two-year period from March 31, 2016.
The report stated: "COSLA acknowledged that increased rent arrears could not be attributed solely to UC but pointed out that its data 'generally shows sharp increases in the levels of rent arrears once local authority areas go onto the full service'.
"COSLA noted the UK Government's recent changes to UC but is yet to assess their impact."
In its recommendations, the Committee stated that the Department of Work and Pensions (DWP) should pay the housing element of UC directly to landlords as a default.
It also outlined that the minimum five-week delay for tenants receiving their first UC payment must change to help combat rent arrears.
The committee also raised concerns over the cost and condition of temporary accommodation and called for housing benefit in that area to be devolved with the aim of addressing issues of homelessness and rough sleeping.
A widening gap between private sector rents and the amount provided by the social security system is also highlighted in the report.
The Committee stated that it wants an urgent review of the Local Housing Allowance (LHA) so that rates are increased as required to help tenants afford rents in the private rented sector.
Committee convener Bob Doris MSP called the increase in rent arrears "unacceptable".
"The rapid increase in rent arrears since the introduction of Universal Credit is unacceptable," said Mr Doris.
"The UK Government must take immediate steps to tackle this issue which is costing local authorities and social landlords critical money at a time when budgets are already stretched.
"We want to see the housing element of Universal Credit paid directly to landlords and the DWP must review the minimum five-week wait for new UC claimants, both of which contribute to rising arrears."
Mr Doris added: "Our inquiry highlighted a number of issues, including the frankly discriminatory shared accommodation rate which should be abolished immediately.
"It is also clear that LHA rates are not fit for purpose and are failing to help claimants meet the rising cost of the private rented sector.
"We hope the DWP will take heed of the recommendations in this report and act swiftly to change the system, to help reduce arrears and ensure that our most vulnerable in society can pay their rent."
A UK Government spokeswoman said: "While rent arrears cannot be linked to any one cause, many people join Universal Credit with pre-existing arrears and research shows that number falls by a third after four months.
"In Scotland we already pay rent directly to landlords where requested and can pay Universal Credit more frequently to help with budgeting. This is in addition to 100% advance payments available from day one and two weeks' of extra housing support at the start of a claim.
"Meanwhile, Scotland has significant welfare powers, including flexibilities within Universal Credit and the power to top-up existing benefits, pay discretionary payments and create entirely new benefits altogether."
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel