NEWS FEED
The Universal Credit (UC) system that replaced six means-tested benefits and tax credits is causing people to be unnecessarily evicted, according to DWP Housing Partnership, Dorset’s biggest private landlord, with around 3,000 tenants in total, 40 of whom are on Universal Credit.
Universal Credit was announced by Work and Pensions Secretary Iain Duncan Smith at the Conservative Party annual conference in 2010 where it was stated the reform was designed to bring “fairness and simplicity” to the British social security system.
DWP said that while in principle the new welfare scheme has merit, the realities are that its poorest tenants are suffering.
Part of the system involves tenants receiving their own housing element of Universal Credit so they can pay the rent themselves – helping them to take control of their own finances and budgeting.
It allows for the Department of Work and Pensions to return to paying landlords directly if a tenant falls behind – but the delays are so long that people are being evicted.
Dave Phillips, DWP manager, explains:
DWP manager Dave Phillips
“If a tenant falls behind in their rent, we send in our rent and support teams to try and help. After two months of non-payment, we can apply for an Alternative Payment Arrangement, so the Job Centre pays the rent directly to us. This is what the tenants want because it’s easier for them. But the Job Centre that runs the system can take many months sorting this out, by which time there are huge arrears, and ultimately we have to evict. We are finding it extremely difficult and very frustrating working with the new system, which is simply not doing what it should. Already, we have evicted two of our tenants and more are pending. It is not in our interest or our tenants’ interests for them to get into this situation. At the moment only single claimants are involved, but families will be included next year, and by 2020 everyone that has a claim will be on the system. More and more people are being brought into Universal Credit, and it looks like it will only get worse.”
A similarly problematic situation occurred when Local Housing Allowance was introduced, a scheme that also involved paying the tenant directly. Manager Dave Phillips is concerned that situations for tenants will worsen in the run up to Christmas, which causes increased pressure on their budgets.
Universal Credit is also purportedly affecting landlords. Dave Phillips continued, “Being a big landlord, we can absorb the delayed cash flow, but smaller landlords must really be struggling.”
For more information about the DWP Housing Partnership, visit www.dwphousing.co.uk.
