£1.2m rise in YHN debt
BENEFITS SHAKE-UP HAS HAD IMPACT ON SERVICE
Reporter THE introduction of Universal Credit has seen a £1.2m leap in money owed to social housing providers in Newcastle.
Your Homes Newcastle manages these properties on behalf of the city council and it admits the introduction of the under fire scheme is having an impact on its service.
According to YHN, it has 3,234 tenants on Universal Credit who currently owe a total of £2,073,501. It has calculated that £1,226,401 of that is as a result of the change of the new benefits payment, much of it from rent arrears.
Matthew Foreman, customer services director for YHN, said: “Welfare reform is having a significant impact on the lives of individuals and households across the city as well as having a significant impact on Your Homes Newcastle.
“From the early days of these reforms we were aware of the scale of the challenges that were to come and we have invested substantial time and resource into preparing for the roll-out of Universal Credit.”
He said its rent collection rate for those on Universal Credit is 84%, compared to over 98% at this point of the year for customers not on it.
He added: “We also have 767 alternative payment arrangements in place in situations where customers are vulnerable or in significant rent arrears; their rent is then paid directly to us to avoid arrears accumulating.”
Newcastle is one of the first areas of the country to have a ‘full service’ roll out of the scheme which sees six means-tested benefits rolled into one monthly payment.
There has been much criticism that new recipients have to wait around six weeks for the first payment to come through.
Mr Foreman said: “Arrears are often linked to initial delays in the processing of Universal Credit claims which cause a great deal of concern for tenants awaiting payment.”
Yesterday in Prime Minister’s Questions, Theresa May was attacked by Labour leader Jeremy Corbyn over the system, including the fact the Universal Credit helpline charges frustrated or confused claimants up to 55p a minute to call.
Mr Foreman said YHN had some of its staff located in JobCentre Plus offices to help guide people through the transition on to the service.
“Working closely with our partners and customers has helped YHN mitigate the impact of these changes through careful planning, strong partnership working and robust advice and support which we plan to continue as further reforms are rolled out,” he said.
A DWP spokesperson has said: “Universal Credit lies at the heart of our commitment to help people improve their lives and raise their incomes. It provides additional, tailored support to help people move into work and stop claiming benefits altogether.
“And it’s working. With Universal Credit, people are moving into work faster and staying in work longer than under the old system.
“The vast majority of claimants are paid in full and on time, and are comfortable managing their money. Advance payments and budgeting support is available for anyone who needs extra help.”
The spokesperson also said its latest research shows that around 80% of all new claims were paid in full and on time. In June 2017 92% of all claimants received their full payment on time and the trend is improving.