Source · Select Committees · Work and Pensions Committee
Recommendation 4
4
Paragraph: 33
We also heard evidence which suggests that people on Universal Credit are more likely to...
Conclusion
We also heard evidence which suggests that people on Universal Credit are more likely to have rent arrears than people still claiming legacy benefits. The Department’s own data show that, while some people who come onto Universal Credit have pre-existing rent arrears, the level of these arrears rises much more sharply after they make their claim. Even after a year, they have not fully returned to their pre-claim levels. That too is a worrying finding which deserves investigation by DWP.
Paragraph Reference:
33
Government Response
Not Addressed
HM Government
Not Addressed
As ministers have updated the Committee previously, the Department reallocated resources to prioritise its response to the COVID-19 pandemic. The Department will not be conducting nor commissioning any research. This included the introduction of significant measures to support those who may otherwise go hungry this winter and beyond through a package of support including the £170m Covid Winter Grant Scheme. This fund builds on the £63 million already distributed earlier this year and carries conditions and reporting requirements to ensure that the scheme is focused on providing support with food and utility costs to vulnerable families with children who are affected by the pandemic. We have also provided a second round of £16 million funding local charities through well-established networks to provide immediate support to frontline food aid charities, getting meals to those in need. The Annual Association of Retained Council Housing (RCH) and National Federation of Arms-Length Management Organisations (NFA) survey into UC 20201 showed that only 19% of tenants in affordable and socially rented households were on UC. Attributing rental arrears to UC is simplistic and not borne out by the evidence, natural migrants to UC are likely to have experienced a change in circumstances, prompting their UC claim; frequently it is changes in circumstances, such as a relationship ending or loss of a job, that causes arrears to build. This can mean that the pattern of arrears spike at the beginning of a claim and then there is a tail as accrued arrears are managed through UC and start to decrease. The Department also continues to work closely with landlords, as well as many other stakeholders, to improve their understanding of UC processes.