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UC waiting period ‘key factor’ in rent arrears, DWP survey shows
Families have said the five-week wait for a first Universal Credit payment is a “key factor” in causing rent arrears, a government-commissioned survey has revealed.
The survey was commissioned by the Department for Work and Pensions (DWP) and carried out by Ipsos Mori. It found that half of those in arrears said that the arrears started after they had made their claim for Universal Credit.
There were 1,039 Universal Credit claimants surveyed and between December 2015 and August 2016.
Families on Universal Credit who rent from a social landlord are “much more likely” to be in rent arrears than those renting privately, the survey also found.
There were 38% of renters on Universal Credit in arrears eight weeks after making a claim, falling to 31% four to five months after making the claim. The majority of those in arrears – 77% – said this was the first time this had happened in their current accommodation.
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The survey found that families struggled to plan monthly budgets in some circumstances because letters notifying them how much they would be given either arrived late or not at all.
Housing leaders and charities have warned that the waiting period for the first Universal Credit payment is causing soaring rent arrears for struggling families.
The National Federation of ALMOs recently found Universal Credit rent arrears had reached £6.7m, representing 10% of total unpaid council rent despite roll-out to only 2.6% of tenants nationally.
DWP has been approached for comment.
