DWP urged to review universal credit 'issues'

In a report published yesterday, SSAC urged the DWP to ‘take stock of issues that do not seem to have been fully resolved but which are becoming more urgent as the rollout expands to more complex cases’.

SSAC, which advises the government, said changes to payment of housing costs are ‘a constant source of anxiety for landlords, housing associations, claimants and claimant advisers’. Under universal credit, benefit for housing costs is paid direct to households, as opposed to social landlords, in most instances.

The SSAC report said: ‘We believe this [direct payment] policy needs close monitoring to ensure that arrears are kept in check and landlords are not discouraged from offering accommodation to benefit claimants.’

Other recommendations include giving greater clarity on the requirements for in-work claimants, which SSAC said ‘need to be made public as a matter of some urgency’, and ‘a robust process of evaluation’ around the current sanction regime.

The report also referred to an earlier report by the Public Accounts Committee, from February 2015, which urged DWP to ‘reflect on how it will tackle potential problems of paying the housing benefit element of universal credit directly to claimants’, and highlighted the issues some landlords and claimants have had with rent areas as a result of the direct payments.

Pending a review into these issues by the Communities and Local Government Committee of MPs, SSAC recommends DWP ‘should engage with landlords and other stakeholders in a proactive way… to secure a mutually acceptable solution with regard to direct payment of housing costs.’

The report also reiterated the important of ensuring DWP staff are trained to understand, recognise and manage the nature of risks that universal credit claimants may face, and to support vulnerable claimants, particularly those at risk of exclusion and hardship. DWP has been contacted for comment.

UPDATE: 22.7.15 10.32am

The DWP has now issued a statement in response to the SSAC report.

A spokesperson said: ‘Universal credit is designed to mirror the world of work, ensuring that those on benefits have the same responsibilities and choices as working families. Paying Housing Benefit directly to claimants is an important part of this. The vast majority of people claiming universal credit are handling their own rent payments well and are confident in managing a monthly budget.’