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ARCH meets Lord Freud 21/12/2016

ARCH chair Councillor Paul Ellis, chief executive John Bibby and colleagues from the National Federation of ALMOs (NFA) met Lord Freud on 14 December to discuss the preliminary findings from the latest ARCH/NFA Welfare Reform survey, prior to his retirement as Minister of State for Welfare Reform. IMG_0006 Lord Freud 141216

 

The meeting had been called in advance of the publication of the full findings of the survey due to the Minister's impending retirement at the end of December. Caroline Nokes MP, Parliamentary Under Secretary of State for Welfare Delivery, who will take on this aspect of the Minister's brief, was also in attendance.  

 

This was the third in a series of meetings with the Minister held to discuss the findings of the survey - all of which have demonstrated a higher proportion of tenants claiming Universal Credit in arrears of rent compared to tenants overall.

 

The latest survey was carried out in November 2016 and covered 33 stock retaining councils and Arm's Length Management Organisations (ALMOs). The full findings will be published in the New Year and will report figures as at 30 Sept 2016. This follows a surveyconducted in April/May, which reported figures as at 31 March 2016. The findings will report longitudinal findings across the 20 organisations who previously completed the survey and overall findings from all 33 participating organisations.

 

Universal Credit (UC) was introduced in April 2013 as the central plank of a wide ranging series of Welfare Reforms. This system was introduced by the 2010 Coalition Government, to make work pay and to encourage benefit claimants into full time work. UC combines the following benefits and tax credits: Jobseeker's Allowance, Employment and Support Allowance, Income Support, Child Tax Credit, Working Tax Credit and Housing Benefit into one single monthly payment. Universal Credit has been rolled out gradually but by May 2016 it had been rolled out nationally to all Jobcentre Plus offices for single claimants, and is continuing to be expanded to include all claimant types via the full service.

 

As at 30 September 2016, our survey respondents housed a total of 7,535 households who were in receipt of UC. Twelve of these organisations are based in the North of England, nine in the Midlands, eleven in the South and one in South West Wales. Collectively they manage a total of 456,959 homes. This survey provides an update on the impact of UC on levels of rent collection while exploring some of the factors which may be pushing more UC claimants into arrears.

 

While Ministers' gave no indication of any change in policy (for example by allowing tenants to elect at the outset for direct payment of UC to their council landlord) it was agreed to continue the ongoing dialogue with Ministers as UC is rolled out across the country.

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