Councils forced to spend ‘valuable resources’ tackling effects of UC

Local authorities are being forced to spend their own resources tackling the effects of Universal Credit and preparing for its roll out.

Freedom of Information requests from the Labour party have revealed that councils are committing scarce funds towards preparing for the impact of Universal Credit above Discretionary Housing Payments provided by the Department for Work and Pensions.

The roll out of the new benefits system, which consolidates six benefit payments such as housing support into one, has been widely criticised, despite the Chancellor’s announcement of a £1.5 billion support package to help address concerns about the welfare reforms.

One report by the Smith Institute published by Southwark Council found delayed Universal Credit payments were pushing many into debt and rent arrears, causing considerable stress.

The report, which was published in conjunction with Croydon Council and Peabody, showed the average council rent account in Southwark sits at £8 in credit. However, for Universal Credit recipients, it is about £1,178 in arrears.

Labour’s research shows that councils are having to provide additional rent arrears support and increase staffing as well as working with their local food banks and Citizens Advice to offset the impact of Universal Credit.

Margaret Greenwood, Labour’s shadow minister for employment, said: “Universal Credit is causing misery and hardship for thousands of families this Christmas, and councils are being expected to pick up the pieces.

“It’s clear councils are committing their own valuable resources from already-stretched budgets to offset the impact of Universal Credit and to prepare for the damage its roll out could cause.

“This is yet more evidence that the government should immediately pause the roll out of Universal Credit so its fundamental flaws can be fixed.”