UNIVERSAL CREDIT CAUSES RENT CRISIS
Arrears soar at guinea-pig council
A SCOTS council used as a testing ground for the Tory welfare shake-up have revealed soaring levels of rent arrears.
Nearly three-quarters of tenants on universal credit have fallen behind with their rent in East Lothian.
The council were guinea pigs for universal credit’s “full digital system”, which was introduced by the Department for Work and Pensions two years ago.
A report on the harsh reality of the welfare changes was drawn up by officials this week.
East Lothian Labour MSP Iain Gray said it should serve as warning to the rest of the country.
He said: “East Lothian has suffered universal credit for two years now and it has caused nothing but difficulty, distress and deprivation.
“The waiting period and cuts to benefits have forced many of my constituents into debt.
“Council rent arrears have soared by 30 per cent and more than 70 per cent of council tenants on universal credit are in arrears.
“That is damaging to the council and their income, but more importantly it is damaging the lives of those who find themselves in debt that may take years to clear, if ever.
“Universal credit is a disgrace of a system and the Government should get it sorted.
“It is already blighting lives in East Lothian and the rest of the country is going to be no different.”
The rent arrears for people on the benefit are dramatically higher than the 30 per cent figure for all council tenants.
East Lothian say they are owed nearly £1million – and warned the move to new payments in the area has been “extremely challenging”.
The DWP insist universal credit helps people into work.
They said: “The majority of claimants are comfortable managing their money but we are increasing support to help people who need it stay on top of their payments.”
The extent of the damage emerged as MSPs continue to put the finishing touches to Scotland’s new social security legislation.
Yesterday, Holyrood’s social security committee agreed pensioners will not be meanstested for winter fuel payments. And means-testing will not be applied to disability benefit and employment injuries assistance.
The Social Security Bill was made possible by the pre-referendum Vow of more powers for Holyrood.