Housing associations brace themselves as Universal Credit rolls out

The UK Government's Universal Credit scheme, which merges six benefits in to one payment, has been extended. Now parents are able to claim it for the first time.

Related topics:  Finance
Warren Lewis
25th November 2014
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The scheme will initially apply to parents in parts of North West England.
 
Work and pensions secretary Iain Duncan Smith said the accelerated roll out means that a third of the country’s Jobcentres will be taking claims for the new benefit by spring 2015.
 
From today, couples with children and lone parents will be able to claim support worth up to 70 per cent of childcare costs regardless of hours worked – with a monthly limit for one child of £532, and £912 for two or more children.
 
Iain Duncan Smith said: "Universal Credit is bringing welfare into the 21st Century by restoring fairness to the system and making work pay in a modern labour market.
 
"As part of our long-term economic plan, today sees the next stage of this welfare revolution brining families on-board with extra childcare support and flexibility for employers. By spring next year one in three jobcentres will be offering the new benefit."
 
The secretary of state announced in September that he would accelerate roll out of Universal Credit nationwide to Jobcentres from February 2015.
 
It is already available to single and couple claimants in over 80 Jobcentres in England, Wales and Scotland and will be available in nearly 100 Jobcentres by Christmas.
 
Hailed by the Government as a revolution in welfare provision, the scheme has not been without its problems.
 

Tens of millions of pounds have been written off due to technical problems and only 20,000 people are currently claiming it, rather than the one million initially envisaged by ministers.
 
Now a group of 30 North West Housing Associations have expressed fears over a New Year influx of new claimants.
 

The issue was identified about residents leaving benefits to take up temporary Christmas work during an event hosted by Equity Housing Group and the National Housing Federation. When the work period is over, a percentage of those residents will need to begin.

Like many other providers in the North West, Equity Housing has begun to see some their tenants making claims for Universal Credit. The full day conference gave participants the opportunity to find out how others have prepared for Universal Credit and how providers are managing customers with live claims.
 
Gareth Bevan from the National Housing Federation, who spoke at the event said: “Equity’s event was a great opportunity for housing associations who are starting to see a number of customers become recipients of Universal Credit. It was a great opportunity for everyone to learn from each other and explore how organisations can work together in the future.”
 
A positive outcome of the day included a commitment from the DWP to provide a Universal Credit partner contact for all social housing providers – a move which all attendees welcomed.
 
David Fisher, Equity Housing Group’s CEO added: “We were delighted to host this event. As we know, Universal Credit will begin to affect a significant number of our customers and the fact that so many social landlords attended demonstrates a real appetite for collaboration in the Northwest in terms of support, sharing good practice and learning from others.”
 

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