UC Renters Central Housing Group

UC Renters Facing Hardship

Around 10 per cent of PRS landlords with UC renters have faced at least one experiencing hardship because of the benefit cuts according to a survey carried out by an industry trade body.

The government cut the extra £20 a week payments for UC recipients in October last year after the pandemic related temporary increase was ended.

‘Hot on the heels’ of the government’s announcement the industry trade body undertook its latest YouGov poll of PRS landlords across England and Wales, to find out how the benefit cut had impacted UC tenants.

Landlords who are currently ‘housing’ UC tenants or had done last year, nine per cent stated that they had experienced tenants facing difficulties with paying rent because of the cut.

Official statistics of those living in PRS households across England and Wales on benefits found 55 per cent were not receiving sufficient payments to cover their rents.

The trade body warns this will become an ever increasing crisis further exacerbated by the government’s decision to freeze housing cost support.

It also believes that over the years the situation will worsen as the housing benefit support will only cover fewer properties.

Households across the UK are having to contend with sharp rises on food as well as the ‘criminal’ cost of energy that is set for another 50 per cent increase this year, and the government must do more to support tenants on benefits as it could lead to a disastrous situation.

The trade body is calling on the government to end the freeze of the Local Housing Allowance and to make sure that the rate is in line with current market rates.

A spokesperson for the industry body, says: “Benefit payments are failing to give tenants or landlords confidence that they will be able to cover rents. This basic problem lies at the heart of a broken system in desperate need of reform.

“With households facing a cost-of-living squeeze, it is vital that the benefits system gives the protection that tenants deserve.

“That is why the Chancellor needs to end the housing benefit freeze as a matter of urgency. Without this many tenants and landlords face an uncertain future about how to keep tenancies going.”

Richard Merrick of PIMS,said: “Some UC renters may have put aside the extra ‘income’ just in case for eventualities, as many home owners have in these uncertain times.

“However at times if something is given ‘free’ then it is only natural for beneficiaries to become too reliant on the extra £80 to £100 per month and a real shock when being brought back to the ‘cold world’.”

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