Universal Credit is pushing poor tenants deeper into rent
arrears and sending food bank referrals soaring, according to a study by two
councils that have been guinea pigs for the new regime. Southwark and Croydon
councils in south London warned that without rapid changes the new system could
have a devastating effect across the country as it is rolled out over the next
few months, warning that arrears could reach “many hundreds of millions of pounds”
and that tenants could face severe hardship. One food bank reported an increase
in referrals of 97%. The report examined rent accounts for 775 social housing
tenants in the two boroughs who had moved on to universal credit between August
and October 2016, comparing them with 249 rent accounts held by tenants who
moved on to the older housing benefit system during the same period. Download
the report from the Smith Institute website.
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