EDINBURGH is preparing for the roll out of Universal Credit at the end of next month with many of the council’s tenants saying they still know little about the new benefit.
The switch will affect vulnerable tenants who have previously been homeless, according to a shock officials’ report published this week.
Over the next five years it is anticipated that 10,500 council tenants will move on to Universal Credit (UC) and the initial roll out from November 28 will affect tenants who make new claims or have a change in circumstances which will trigger a move to UC.
A report to councillors this week by Paul Lawrence, executive director of Place for the capital, indicates the lack of awareness about UC on the part of tenants.
The report to the Housing and Economy Committee states: “The results from last year’s tenants survey found that awareness of UC was low, with 85% of tenants who responded to the survey reporting that they knew nothing, or not very much, about UC.
“The survey also found that one in four tenants expected to be under more financial pressures over the following 12 months.”
The report explains how Universal Credit Full Service (UCFS) – previously known as the digital service – will affect tenants currently in receipt of housing benefit.
Lawrence states: “Under UCFS tenants apply for housing costs as part of their monthly UC and will be responsible for payment of their full rent and service charges. They will no longer claim housing benefit which is paid directly to their rent account.
“The council houses a high number of vulnerable tenants, including people who have been homeless who may find budgeting changes difficult.”
The changes to the payment of benefit under the UC system are so widespread and comprehensive that following the results of various pilot schemes across the country, the council is anticipating a major loss of income as tenants struggle to deal with UCFS in particular.
The report adds: “The approach to the collection of rent for council homes is robust and offers every support to tenants to avoid them getting into debt they cannot afford.
“Tenants are encouraged to engage as early as possible with the housing service and a wide range of support and services are available to help tenants to meet their rent payment responsibilities.
“The roll out of UCFS represents a significant risk to rental income collection and delivery of the Council’s house building programme and wider investment strategy.”
In preparation for UC full service roll-out, the HRA Business Plan has assumed a loss of income of around £9 million over the five years from 2018 to 2023.
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