The number of housing association tenants in England in receipt of Universal Credit rose by 83% from June 2019 to September 2020.
That’s according to the latest report by the National Housing Federation (NHF), which also found that the number of social rented households in England claiming the housing element of Universal Credit has increased by 39% during the pandemic.
The report also found that 60% of households claiming Universal Credit are in arrears, compared with 36% of households paying by other means.
Further, if found that household in receipt of Universal credit are also likely to have higher arrears; on average, £610 compared with £301 people paying by other means – more than double.
Households claiming Universal Credit could owe over six weeks’ rent based on 2019/20 average general need social rent for England (the lowest cost rent for social housing).
If this pattern continues, the NHF says rent arrears could potentially rise by a further £330m when all working-age Housing Benefit claimants move to Universal Credit.
The NHF says this loss of income for housing associations will adversely affect delivery of services and their ability to build new homes.
The report, based on tracking surveys on 23 housing associations, shows that housing associations undertook a range of activities and initiatives to support tenants over the course of the pandemic, including helping tenants claim benefits, supportive approaches to rent collection, hardship funds, check-in calls, and help with shopping.
In light of the report, the NHF is calling for housing associations to work more closely with government.
The body is also calling for closer working between the Department for Work and Pensions and Ministry of Housing, Communities, and Local Government, including more research into Universal Credit.
Further, the NHF is urging the government to maintain the £20 Universal Credit uplift to be kept, launch a review into the initial five-week wait for payment, and for the DWP to publish its research on rent accounts of
housing associations in full.
In conclusion, the report read: “We will continue to monitor changes to households claiming Universal Credit and housing associations’ rent income through periodic surveys.
“We encourage our membership to complete these surveys so we can better understand the current
picture.
“We will also be conducting a repeat survey with Universal Credit claimants to understand their experiences of claiming during the Coronavirus pandemic.”
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