Rent arrears could rocket by £5.8 million under welfare reform

Estimates point to a huge issue in the future

A built-in six-week delay before new claimants receive Universal Credit payments is expected to send Fife Council’s rent arrears sky high, it has emerged.

A new report has laid bare just how much pressure new welfare reforms and benefit sanctions are putting on individuals, communities and council resources across the kingdom, amid fears that people will struggle to cope when Universal Credit is fully rolled out in December.

A limited, initial roll-out of the new set up has been under way since April 2016 with more than 1,350 people now on Universal Credit.

However, early evidence has pointed to huge challenges for claimants and services, particularly around long waiting times to receive benefit payments, poor information flow resulting in less council tax reduction payments, and a negative impact on rent payments and income.

Indeed, Fife councillors have been told this week that rent arrears could rise by a staggering £5.8 million, given the 506 council tenants already on Universal Credit in Fife have racked up arrears of £197,000 – an average of £389 per tenant.

Les Robertson, head of revenue and commercial services, said the £5.8m was an estimate using that average across all council tenants likely to be on Universal Credit.

“That figure would be about doubling our rent arrears,” he told members of Fife’s executive committee this week.

Head of housing John Mills added that the key problem appears to be the six-week wait new claimants are experiencing before receiving any cash.

Fife councillors have also expressed their concerns.

Council leader David Ross said: “We think it’s an absolute scandal that this is being proceeded with.

“It’s not a place any of us want to be in but we will do our very best to mitigate the impact on Fife.”

Kirkcaldy councillor Neil Crooks added: “I would describe this sanctions regime as medieval, and it shouldn’t be in a so-called 21st Century democratic society.”

Councillors paid tribute to the work done by the local authority and its partners to alleviate the situation in the face of reforms, but SNP leader Neale Hanvey bemoaned the need for the work in the first place.

“If we had the choice to control this part of policy we would probably make a different choice that would not be a reflection of a pernicious and deliberately targeted social policy against the poor and most vulnerable,” he said.

That figure would be about doubling our rent arrears. LES ROBERTSON