Universal Credit rent arrears rate

Universal Credit amounts to almost 14 per cent of social rent arrears in the Stirling area, an MSP told the Scottish Parliament this week.

Mid Scotland and Fife Green MSP Mark Ruskell raised the issue during social security questions.

The new benefits system came into force in Stirling on June 28, 2017, and replaced six means-tested benefits including housing benefit, child tax credit, income support and jobseekers allowance.

It was introduced nationally by the Conservative Government at Westminster and has been heavily criticised because of delays in payments and the difficulties faced by many people in submitting online applications for the benefit.

It has been blamed for a surge in the use of foodbanks.

In Monday’s budget, Chancellor of the Exchequer Philip Hammond announced an extra £1 billion to tackle problems caused by the introduction of the system which, he added, was “here to stay”.

Speaking at Holyrood, Mr Ruskell said Universal Credit was responsible for almost 14 per cent of Stirling area’s social rent arrears even though there remained a substantial number of claimants waiting to be transferred to the new set-up.

He believes the problem will only get worse.

The figure comes from Stirling Council which earlier this year reported that as of March 30, 2018, there were 807 mainstream tenants who have made a claim for Universal Credit.

A total of 674 of these tenants had arrears preceding their Universal Credit claim.

Total rent arrears attributed to Universal Credit in mainstream tenancies was, as of that date, £137,757, which was 13.7 per cent of total tenant arrears – which amount to just over a £1 million.

Mr Ruskell said:“The Tory Government’s implementation of the Universal Credit system has been a shambles and has put considerable strain on Stirling Council, as well as thrusting hundreds of families into hardship,”he added.

“The Scottish Parliament recently passed its Social Security Bill, which will ensure that the benefits we now have responsibility for will be delivered in a dignified manner. Unfortunately, the bulk of social security powers are still reserved to Westminster. Until that changes I fear that many in our communities will continue to be victimised by the UK Government policy.”