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Call for Universal Credit rethink

Published: Wednesday, 11th October 2017

Homelessness and debt will increase in Birmingham unless the Government agrees to rethink the roll-out of Universal Credit.

That is the warning from Birmingham's Multi-Agency Welfare Reform Implementation Group ahead of next month's planned roll-out.

Universal Credit, which will be paid monthly in arrears,  is the government’s six-in-one benefit payment, designed to replace income-based Jobseekers’ Allowance, housing benefit, child tax credits, income support, working tax credit and Employment and Support Allowance.

Around 3,000 people in Birmingham currently receive Universal Credit with housing costs but that number will significantly increase once the national roll-out of the Full Service gets underway next month.

It is estimated that eventually over 60,000 people in Birmingham will be eligible for the housing element of Universal Credit.

Official figures from pilot schemes elsewhere in the country have shown that 24 per cent of new Universal Credit claimants wait longer than six weeks to be paid in full - causing many to fall behind on rent.

Now, the chair of Birmingham's Multi-Agency Welfare Reform Implementation Group Cllr Tristan Chatfield has written to Secretary of State for Work and Pensions David Gauke MP to voice concerns.

Cllr Chatfield, Birmingham City Council's Cabinet Member for Transparency, Openness and Equality, said: "If the roll-out goes ahead as planned, there is no doubt that we will see an increase in homelessness and debt, just as we've already seen in other areas of the country.

"We know from the pilot areas that rent arrears increase significantly when Universal Credit is introduced, because, for many vulnerable people, the switch from multiple benefits paid in stages, to a single monthly payment in arrears with a built in delay, provides too much of a cliff edge.

“That will have disastrous consequences for many people across Birmingham who are already struggling to make ends meet."

Now Birmingham's Multi-Agency Welfare Reform Implementation Group, consisting of a range of partners including homelessness charities and housing providers, is urging the Department for Work and Pensions to make changes to the planned roll-out, by agreeing to a slower transition and other safeguards to reduce the risk of rent arrears and evictions.

Cllr Chatfield added: "We're urging the DWP to take steps now to significantly reduce the risk of unintentional homelessness as Universal Credit is introduced across Birmingham. There must be a sensible approach to avoid the massive problems we’ve seen elsewhere in the country."

Background

The Universal Credit roll-out will affect households of working age who claim in work or out of work benefits, including:

  • Income based Jobseeker’s Allowance
  • Income related Employment and Support Allowance
  • Income Support
  • Working Tax Credit
  • Child Tax Credit
  • Housing Benefit

Families with three or more children will not move to Universal Credit until 2018.

For more information, please click here