Credit roll-out costs council

More than £1m set aside tohelpcopewithchanges

More than £1million has been set aside by South Lanarkshire Council to address the consequences of Universal Credit being rolled out across the area.

The reform to the way that benefits are paid has already had considerable effects on the local authority’s income and on its costs.

Rent arrears, for those affected by Universal Credit, have risen dramatically, while increased resources have had to be directed towards dealing with the effects on council business and on helping the people in South Lanarkshire who have been placed in difficulty by the changes.

Daniel Lowe, executive director of Housing and Technical Resources, said: “We have known for some time that last month would be when the Department for Work and Pensions would move Universal Credit to the ‘full service’ stage across our area, and that it would create difficulties for many more people who receive benefits and for the council as we work to help those people.

“As a result, we have planned for that situation to allow us to be as wellprepared as it is possible to be for something where the exact consequences cannot be accurately determined in advance.

“In doing so, we set aside £1.187m as part of this year’s budget specifically to help offset the impact of Universal Credit becoming a full service.

“This significant amount will be used as we continue to support council tenants affected by the welfare reform programme, and provide support and assistance to those affected by the Under Occupancy provisions and the Benefit Cap as well as those in receipt of Universal Credit.

“The work to date has made a significant contribution in terms of supporting those affected to deal with the impact of the changes, as well as minimising the impact upon the council budget and services.”

Universal Credit is the most significant change brought about by the Welfare Reform Act and replaces six of the main means-tested benefits, including Housing Benefit.

The benefit operates as a single payment and is paid monthly, in arrears, with no benefit entitlement for the first week and the first payment being made around six to seven weeks after submitting an online claim. Applicants receive a single payment and are responsible for paying their rent direct to their landlord.

Since the introduction of the first phase of Universal Credit’s ‘live service’ within South Lanarkshire in October 2015, an average of 50 tenants have made a claim every month.

While the council has managed to maintain a relatively high level of rent collection since the roll out of Universal Credit commenced within South Lanarkshire, the move to ‘full service’ presents a significant challenge. The council says it has adopted a flexible approach and remains focused on assisting tenants to make their claim for Universal Credit, ensuring that the housing cost element is included and providing advice and information on other services to address wider issues, such as debt management.

Housing and Technical Resources also continues to work with tenants groups and communicate directly with tenants who are already claiming Universal Credit, as well as working more broadly with partners to promote awareness of the changes and their implications.

The council’s chair of Housing and Technical Resources, Councillor Josh Wilson said: “After years of austerity by the UK Government, the roll-out of Universal Credit is proving to be another blow to local authorities finances.

“Councils across the country are paying the price for bad UK Government policy, and in South Lanarkshire that is to the tune of over £1 million.

“That money would be better spent on building homes, investing in repair work and supporting people in their tenancies.

“Instead, like the Scottish Government, South Lanarkshire Council are now taking money from our budget to mitigate the worst effects of Tory policy.

“The roll-out of Universal Credit has been plagued with errors since its introduction – driving people into poverty and leaving them without support for over six weeks.”

We set aside £1.187m to offset the impact