Staff costs for universal credit ‘unsustainable'
- 04 Aug
A trial by a housing association suggests that it will face a £1.2m blow.
A Salford-based landlord has found that the cost of managing direct payments of universal credit to prevent arrears could be ‘unsustainable.'
City West Housing Trust carried out its own pilot from July 2013 to March this year, to test the direct payment of benefit to tenants ahead of the wider roll-out of universal credit over the next three years, reports Inside Housing.
Its results show that the 14,600 home landlord, under which 52 tenants receive housing benefit direct, had an average rent collection rate of 99.18%.
The figures are better than those for the Department for Work and Pensions' six official demonstration projects, which found a rent collection rate of 95% across 4,719 tenants.
Yet when it came to calculating the landlord's management costs, the estimated staff time rose in this period from £178.94 to £754.88 for direct payment project cases. This was due to increased expenditure, which included home visits to tenants to collect rent and provide support.
It is estimated that if this cost were extrapolated across the 2,000 City West tenants set to receive direct payments, the cost would be around £1.2m.
Justin Freeman, head of income management at City West, said: "Our projections show it would cost in excess of £1.2m to deliver this level of ongoing support, which we know is unsustainable in the long term."
To combat this, City West recommended that landlords move prompt-paying tenants on to direct payment early to free up resources for those with the greatest need
What do you think of this? Tweet us your comments @suppsolutions
Image source: http://www.freeimages.com/photo/1020195
- 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...
Support Solutions 5th National Housing Support & Social Care Conference 2014 The Social and Financial return seminar was very helpful, helped me think about our approach to bidding, negotiating for funding and keeping hold of what we have! The New Technology seminar was really an eye opener- really got me thinking about potential applications for older people. P.M - Four Housing