Rent arrears will cause homes crisis

COUNCIL CHIEF’S WARNING

WORK and Pensions Secretary David Gauke failed to turn up to a Commons debate on Universal Credit.

It was left to a more junior minister, Damian Hinds, to explain why the Government was ignoring calls to pause the introduction of the new benefit system.

Universal Credit is set to be introduced at Blaydon JobCentre Plus in November, and at Bishop Auckland, Consett, Crook and Stanley, all in County Durham, in December. There is widespread concern that the payment system is pushing people into debt, as claimants have to wait six weeks or longer for their money. But the Government is ignoring a vote by MPs last week to pause the rollout.

Sharon Hodgson, Labour MP for Washington and Sunderland West, said: “People going without food, heating and some being evicted from their homes. Shameful.”

Newcastle City Council Leader Nick Forbes has warned that the UK “is on the verge of a housing crisis as a result of universal credit”.

The city was chosen to pilot the new benefit, which replaces a range of other payments such as housing benefit. Mr Forbes said: “The experiences of residents in Newcastle today stand as a warning to others. We are a trial roll-out city for universal credit.

“The impact here has been dramatic. Tenants living in council housing who have been moved to universal credit have accumulated £1.2m of rent arrears. That figure is alarming enough, but we are only about 25% of the way through our roll-out, so that figure is almost certainly set to rise. And that is just the tip of the iceberg – there are many more in the private rented sector who will be suffering alone, without the help offered by a responsible landlord such as the council.”

The Government did not announce any changes to its policy.

But Mr Hinds said the “general commentary” from last week’s motion had been heard, adding: “I’ve also taken away a number of points that were raised for action.

“There were some individual cases and also policy and process matters. These included how we can improve arrangements for direct rent payments, our approach in cases of domestic abuse, process for housing benefit debt recovery.”

Mr Hinds said staffing levels are increasing to complement the rollout of Universal Credits.