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Universal Credit blasted for leaving council tenants in rent arrears

Shadow work and pensions secretary Margaret Greenwood said people receiving UC are ‘at risk of eviction and destitution’

UNIVERSAL credit (UC) leaving council tenants in rent arrears is yet another sign of its failures, shadow work and pensions secretary Margaret Greenwood said today.

The Labour minister called the BBC report, which revealed that people on UC are having more than double the arrears of those still on housing benefit, “clear evidence” of how UC was leaving people in debt rather than lifting them out of poverty.

On average, the amount owed by tenants claiming UC across Britain is £662.56, results from 129 councils show. For those on housing benefit it is £262.50.

Ms Greenwood said: “The government is determined to press ahead with the next phase of the roll-out.

“The newly announced housing benefit run-on does nothing for many of those who have recently become unemployed, making people wait weeks for payment, putting them at risk of eviction and destitution.
 
“Labour will stop the roll-out of UC, build the affordable housing that is so desperately needed and ensure that our social security system is there to support any of us should we need it.”

Flintshire council in north Wales, which was one of the first areas to test the controversial benefits system, said rent arrears have gone up by £1 million.

Tenants in the county owe an average of four times as much rent as those on the old benefits this week. The council said in September it was six times as much.

Evictions have increased by 55 per cent since last year, Flintshire council said.

The investigation comes amid government claims that they have listened to concerns and that UC is working well.

UC brings together benefits such as jobseeker’s allowance, child tax credits and housing benefit into one payment and is paid monthly in arrears.

Many claimants have said the delay in the payment, along with the confusing application process, has seen them left with no income for weeks and turning to foodbanks.

The amount for rent is paid straight to claimants under UC, unlike directly to the landlord in housing benefit. Tenants with disabilities and mental ill-health have reported it leading to financial trouble.

Currently one million people across Britain are on UC, which is expected to rise to eight million as the roll-out continues.

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