Debt ‘worryingly high’ for benefits claimants

MY THANKS to the Loughborough Echo for reporting on this very important matter headline - Worst benefit waiting times in the country.

At the end of last year Charnwood Borough Council’s processing of new Universal Credit (UC) claims were the worst waiting times in the country and nearly double the national average of 20 days, 10 days longer than the same quarter in 2017.

Coun Draycott, Labour Shadow Spokesperson states that in 2018 the number of claimants going on to UC increased and despite the assurances from the Council’s Cabinet Lead for Housing and from Housing Officers, whose standard reply was always that they were well equipped to support the number of increasing claimants, well clearly they were not prepared and people have suffered as a result.

Claims for Housing Benefit, one of the benefits now included in UC and which is causing the major issues, should be processed within 14 days. As stated in your article by the head of com

munication at Turn2us “every day beyond this increases the likeliness of rent arrears, evictions and homelessness.”

Coun Mary Draycott, has raised how the effects of this draconian legislation has impacted local people and families in Loughborough and Charnwood on a number of occasions. Her recent Question to Charnwood Borough’s Full Council meeting, revealed that average rent arrears for Universal Credit claimants is over double that of other social housing tenants, who are in arrears.

The information provided in response to Coun Draycott’s question at the Full Council meeting showed that average debt of Universal Credit recipients in arrears was £639 as against the average for those not on Universal Credit of £278.71.

Coun Draycott said: “the way rent is paid means housing benefit arrears are ongoing, however these figures clearly show that indebtedness is worryingly high for Universal Credit recipients. In addition, the average debt of Universal Credit recipients in arrears went up in the six months since October 2018 from £564 to £639. “We know that Universal Credit is not working nationwide, and since its introduction in Charnwood in June 2018 it is making the financial position of those who receive benefits worse. I know of the worry by tenants in the Hastings Ward and across the Borough, from receiving Council Housing benefit arrears letters, through no fault of their own.”

Stuart Brady, Labour’s Parliamentary Candidate for Loughborough who observed the Full Council meeting said: “We know from organisations like Citizens Advice that the billions taken out of Universal Credit by the previous Chancellor, the time lag between claiming and receiving benefits, the variability of the benefit, and the need to apply online are making life a misery for many. These figures sadly suggest that this is happening in Loughborough and Charnwood.

“We know from House of Commons Library data that 7,424 people in Loughborough Parliamentary Constituency will be receiving Universal Credit when it is fully rolled out. This data from Charnwood Borough Council says that currently 651 Council tenants are on Universal credit, so how are they going to manage when it’s at its peak with over 7000 claimants?

“I hear lots of concern about Universal credit and its impact on families on the doorstep. This data from Charnwood Council supports the Labour view that we need to pause and dramatically rethink the Universal Credit policy.”

Coun Mary Draycott, Charnwood Housing Spokesperson, and Stuart Brady, Labour Parliamentary Candidate for Loughborough