‘Universal Credit is putting families at risk of becoming homeless’

CHARITY CLAIMS PEOPLE FACED WITH HAVING TO CHOOSE BETWEEN SPENDING MONEY ON FOOD OR PAYING RENT

LOW-INCOME families in Hull are at risk of homelessness due to shortfalls in Universal Credit, a homeless charity has claimed.

According to a new report from Crisis, the gap between rents and Universal Credit is leaving people facing the choice between paying for essentials like food and bills and paying their rent.

In the most severe cases, people are becoming homeless, the charity says, with the loss of private tenancies currently the number one cause of homelessness across England.

In Hull, which is considered one of the least affordable areas in the Yorkshire and Humber region, just nine per cent of two-bedroom rented houses were affordable for small families receiving Universal Credit in 2018-19.

For those unable to find properties their benefits can cover, renting anything else in the cheapest 30 per cent of the market is leaving a weekly shortfall.

In Hull, the monthly shortfall is £23, which is equivalent to just over two weeks’ worth of electricity and gas. Cuts to Local Housing Allowance (LHA), which is administered under Universal Credit, is supposed to provide financial support for those on low income who are unable to meet housing costs.

However, Crisis says that cuts to LHA, which was frozen altogether in 2016, has made fewer homes affordable to those receiving Universal Credit with rents continuing to rise.

The charity is now calling on the government to commit to resorting LHA rates in the next spending review so that it can cover the cost of renting at least 30 per cent of properties in any given area, and so that it keeps up with rises in rent each year.

Mandy Carlson, director of Crisis Skylight South Yorkshire, said: “We all deserve the dignity and stability that a safe and decent home provides. Yet the widening gulf between Universal Credit and private rents is leaving many in Yorkshire and the Humber living on a knife-edge.

“More and more people are forced to make impossible choices between keeping up with the rent and paying for essentials like food and bills, all the while knowing that falling behind with payments could cost them their homes.

“Universal Credit can be a tool to prevent homelessness, but only with the right investment – and that’s why we are launching this campaign.

“We need to see Government bring Universal Credit back in step with the true cost of renting.

“This will drastically reduce council spending and will provide greater reassurance to private landlords that people on Universal Credit can afford to pay their rent each month.

“Most importantly, it will stop people becoming homeless in the first place while giving those on the lowest incomes the safe and stable homes they need to build their futures.”

The Department for Work and Pensions (DWP), which spends £23bn a year helping people across the UK with their housing costs, said it has committed over £1bn to help tackle homelessness.

A spokeswoman for the DWP said: “We have targeted extra funding at low-income households in areas where rents are placing most pressure on budgets, and given local authorities £1bn since 2010 to further support vulnerable claimants.

“With Universal Credit, housing costs can be paid directly to landlords to help people manage their money and many people take up this support.

“We continue to tackle the root causes of homelessness, committing £1.2bn of funding so far, as well as building more than 400,000 affordable homes since 2010.” The loss of private tenancies is currently the number one cause of homelessness across England