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News: Rent arrears likely thanks to Universal Credit cutback - warning

Fri, 01 Oct 21

New analysis of government data by the national homelessness charity Crisis suggests that in England over 100,000 low income renters on Universal Credit will be at least two or more months behind on their rent when the planned £20 cut comes next week.

Crisis claims that the cut, which will see people on Universal Credit lose an average of £87 per month or the equivalent of £1,040 over a year, will hit struggling households amid rapidly soaring energy prices, a freeze on housing benefit which isn’t keeping up with rising rents in most parts of the country, and the possibility of further redundancies in the wake of the Government’s furlough scheme ending today.

Crisis is warning that a further drop in income could lead to a surge in homelessness unless the £20 cut is reversed.

Chief executive Jon Sparkes says: “For many struggling renters this cut could be the final blow that forces them from their homes. 

 

“We know that when people have somewhere stable to live, they are in a better position to find work, build their careers and contribute to the economy as it re-opens. Taking this vital lifeline away risks undermining all of this.  

“If we are truly serious about levelling up the country and rebuilding our economy so it works for everyone, then the government must change course and keep the £20 uplift so that people don’t needlessly lose their homes this winter and we have a fighting chance at recovery.”

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