Research shows 16% of universal credit renters are in arrears after three months
- 27 Oct
Research has revealed that sixteen percent of universal credit claimants who rent a property found themselves in arrears after only three months of claiming the new benefit.
The figure has been revealed by the Department for Work and Pensions in its universal credit ‘Pathfinder Evaluation' report, reports 24dash.
The reports investigates universal credit claimant experiences in the pathfinder areas where initial eligibility criteria has been focused on singled, unemployed, non-home owning claimants who do not have any children.
Most of the research was carried out through a telephone survey of 900 claimants carried out in three stages, looking at their first impressions and experience at three and then six months. At the three month stage the report finds that 16% of universal credit renters were in arrears, however that reduced to 12% at six months.
The report states: "Claimants who were paying rent were asked whether or not they were up to date with their rent payments. The vast majority of UC renters reported no arrears. For those who did report arrears [16% at wave 2, 12% at wave 3] the level reduced over time so that by wave 3 of the survey the proportion reporting rent arrears for UC was at 12% compared to 7% for similar JSA claimants. This suggests that the differences between UC and JSA renters level off over time. This finding is very similar to the findings from the introduction of direct payment of housing benefit to tenants in social housing in the Direct Payment Demonstration Project (DPDP). This found that rent arrears increased initially but payment patterns improved considerably by the end of the first 12 months. Following the evidence from DPDP and UC Live Service, DWP has put in place arrangements to deliver money management advice to claimants and alternative payment arrangements should claimants begin to accrue rent arrears. Work is also underway, as part of a landlord preparation strategy, to help further smooth the transition to UC."
The Secretary of State for Work and Pensions Iain Duncan Smith announced in September that he would accelerate roll out nationwide to Jobcentres from February 2015.
He said: "More than 30,000 people have made a universal credit claim and it is available in over 60 Jobcentres. By Christmas, universal credit will be available in almost 100 Jobcentres. This plan will ensure universal credit is established across Great Britain with new claims to legacy benefits closed from 2016. We will extend universal credit to families in the autumn and will shortly test the enhanced digital service."
What do you think of this? Tweet us your comments @suppsolutions
- 03 May
MANY MAY STRUGGLE AS A RESULT OF CHANGES TO THE UNIVERSAL CREDIT SYSTEM
The study envisages the following issues from the move which is expected to save the taxman £1billion a year by 2021:Chief executive of Child Poverty Action Group, Alison Garnham said:"This cut...
- 13 Mar
CIH SCOTLAND POINTS OUT ISSUES WITH IMPLEMENTATION OF THE NEW SINGLE PAYMENT ON UNIVERSAL CREDIT
Following recent warnings from the Scottish Parliament's Social Security Committee about problems with the new Universal Credit system, CIH Scotland has pointed out some issues with the...
- 23 Nov
THE LHA CAP WILL APPLY TO ALL TENANTS THAT RECEIVE UNIVERSAL CREDIT
These details were stated by the government:Lord Freud announced in a ministerial statement that this would "ensure simplicity and a streamlined process". He also said tenants who are moved from...
- 17 Oct
UNIVERSAL CREDIT SET TO EXPAND IN AREAS SERVED BY KIRKINTILLOCH JOBCENTRE
The beneficiaries of this would have to live within one of these postcodes: G64 4, G66 1, G66 2, G66 3, G66 4, G66 5, G66 7 and G66 8.This entitlement means working age people in these postcodes...
- 25 Aug
AFTERMATH OF UNIVERSAL CREDIT DELAYS
The labour MP also said "the minimum six-week payment period faced by new Universal Credit claimants led to reliance on emergency food parcels, triggered debt and rent arrears, and caused health...
- 25 May
FIRST ERROR AND FRAUD FINDINGS FOR UNIVERSAL CREDIT
The department's findings show that underpayments due to official errors were considerably higher than for the older Job Seekers Allowance (JSA) Programme, however, the rate of overpayments was...
- 09 Sep
Universal credit targets defended by Iain Duncan Smith
When asked about the effectiveness of the roll-out of universal credit Mr Duncan Smith said: “Universal credit is now available in more than half of jobcentres across Great Britain and will be...
- 18 Aug
Scottish carers are worse off due to universal credit
Child Poverty Action Group has sent a report to Scottish and UK ministers urging them to amend the universal credit regime to pay closer heed to Scotland’s systems and use devolved power to protect...
- 13 Aug
Universal Credit claimants rise to almost 90,000
Figures by the Department for Work and Pensions have found that 89,357 people were claiming universal credit by 9th July which was a rise of 18% compared to 75,426 on 11th June, reports Inside...
- 13 Aug
Scottish government to revamp universal credit
The Scottish Government has decided it wants to give claimants the choice of having their payments made twice a month rather than just once a month on universal credit, reports Scottish Housing...
What are the Future Funding Arrangements for Supported and Sheltered Housing? "Really enjoyable presentation, knowledge of presenters was excellent" M.D. - Community Integrated Care