22.11.16
Universal Credit pilot council calls for ‘urgent’ suspension of roll-out
One of the local councils piloting the roll-out of Universal Credit (UC) has written to the DWP asking for the immediate suspension of the housing benefit element of the system due to adverse effects on local residents, particularly homeless applicants.
In a cross-party letter to work and pensions secretary Damien Green, Great Yarmouth Borough Council said that private landlords have been forced to start evicting tenants who receive UC due to delays in their receiving payments.
The council, made up of Conservative, Labour, UKIP and independent councillors, expressed “deep concerns” about the roll-out of UC and called for an “urgent” investigation into its impact. The letter was also copied to the Civil Service head of UC, Neil Couling, and Great Yarmouth’s MP Brandon Lewis.
“It is in everyone’s interests to ensure that the implementation of UC happens as smoothly as possible. The borough council is working closely with partners, including JobCentre Plus, to support people through the transition,” the letter read.
“However, since the roll-out began in April, councillors have been faced with growing evidence about the way the process has been managed which is causing major concern for landlords and councillors, as well as unnecessary stress and anxiety for claimants who are left without income for a significant period of time,” it continued.
Councillors asked for clarification as to why Great Yarmouth had been selected as one of the pilot areas for UC in spring last year considering the high deprivation levels of some of the borough’s wards, with some people relying on benefits as their main or sole source of income.
With some UC claims taking over eight weeks to process, the letter explained that private landlords have started to evict UC tenants or reject the notion of taking on UC tenants. The council noted that its own social housing rent arrears have also increased since the roll-out, which the council noted was “against a trend in previous years of falling arrears”.
Local landlords told the council that they are most concerned by “a lack of communication” from the DWP, particularly in relation to UC47 requests which allow landlords to request payment directly from a tenant’s UC if the tenant is struggling to pay rent. The council therefore urged better contact from the DWP to avoid further homelessness and unnecessary pressure on local organisations.
“Given these issues, we ask that the process be changed to facilitate a better communication process,” the letter said. “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 added that due to the delays it has been missing out on arrears from homeless applicants in temporary accommodation, thereby affecting its budget “at a time when public sector finances are tight”. It noted that many applicants leave temporary accommodation before they receive their first UC payment, concluding that temporary accommodation is not “UC-friendly”. It asked for a response to their letter by Wednesday 30 November.
A DWP spokesperson downplayed the importance of the letter, calling the link made by the council between rent arrears and welfare reform “misleading”.
“The reasons for rent arrears are complex and to link it to welfare reform is misleading,” the spokesperson said. “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.”
Earlier in the year Damien Green announced further delays in the roll-out of Universal Credit, which is now not expected to be fully implemented until March 2022.