Universal Credit claimants in Caerphilly council homes owe £500k in unpaid rent

Figures show that 783 of 933 tenants receiving benefits have an average debt of £610 each as of April, with a third owing more than eight weeks’ worth of rent.

Up to 15 tenants are moving onto the benefits system in Caerphilly per week, with the total number of claimants increasing more than sevenfold since it was fully rolled out last September.

Universal Credit was fully launched in Caerphilly borough in September 2018

The geographical split of the 933 council tenants claiming Universal Credit shown by housing area is as follows:

• Upper Rhymney Valley housing area - 46 per cent
• Eastern Valley housing area - 32 per cent
• Lansbury Park neighbourhood - 11 per cent
• Graig Y Rhacca neighbourhood - 11 per cent

A report has now warned that Universal Credit could carry serious implications for the council, staff and tenants, including a rise in homelessness and more debt.

READ MORE: Caerphilly council staff facing 'significant' workloads during Universal Credit rollout

“The impact is a strategic risk that, although mitigated by the advice and support we provide, remains a high risk to the housing service with critical impact,” says the report.

“If we are to be able to offer the same level of support to future tenants moving onto Universal Credit, it may be necessary to increase the number of support staff.

“Mitigating the impact comes at a significant additional cost but the alternative would be an even greater impact on tenants and their ability to sustain their tenancies, leading to an increase in homelessness, tenancy turnover, and rent arrears.”

Tenants continue to have problems using the digital-only application, with a survey finding 48 per cent of tenants struggled to make a claim.

READ MORE: What you need to know about managing your money on Universal Credit

Others have trouble budgeting the one-off lump sums they receive from the Department of Work and Pensions each month, and use the money earmarked for housing costs to pay for other things.

Caerphilly council say the number of Universal Credit claimants behind on their rent increased last Christmas.

Before Universal Credit, housing benefit would have been paid by the Department of Work and Pensions (DWP) direct to the social landlord

But staff have helped tenants secure £628,000 in extra income after making 2,035 home visits between April 2018 and March 2019.

The report says: “This came from a variety of sources including additional benefits, preferential water tariffs, written off utility debts, and grants. Staff were successful in applying for 92 free white goods items for tenants, such as cookers, fridge freezers and washing machines.”

Caerphilly’s Homes Task Group will discuss the report on May 16.