New system is leaving people destitute, renewing calls for its roll-out to be halted
Pressure is mounting on the UK government to ditch universal credit until its catalogue of problems are resolved.
Scotland's social security secretary Angela Constance warned the Westminster-imposed system was no longer feasible in Scotland and is demanding UK ministers halt its introduction.
The minister’s demand comes after a Westminster committee launched an inquiry into universal credit amid concerns over delays in payments.
The new system – where people use an online account to manage their claim or apply for a benefit – is fully operational only in certain parts of the country.
Three Scottish councils, East Lothian, Highland and East Dunbartonshire, have it in place, with other areas piloting aspects of the full system.
Constance has written to Damian Green, UK work and pensions secretary, to ask for a “complete halt to full service roll-out of universal credit in Scotland with immediate effect”, stating it is “no longer feasible”.
She said people who are moved on to full service have to wait six weeks before receiving their first payment, resulting in tenants building up rent arrears.
Delays in payments have seen landlords, including housing associations, reporting financial difficulties, with councils reporting record rent arrears, Constance said.
“It is clear that the system simply isn’t working and the UK government is not prepared to make the necessary changes,” she said.
“The six-week delay in receiving a payment – with longer delays for some being experienced – is a completely unacceptable situation and one which has the potential to push low-income households into further hardship and homelessness.
“I was also shocked to hear reports that, in some areas, landlords are advertising properties as ‘No UC’ due to their experience with the system.
“Despite the UK government having these issues highlighted in the pilots for universal credit and by councils, charities, housing associations and parliamentarians, absolutely no meaningful reassurance has been received.
“I therefore cannot be confident that these issues are even close to being fully resolved and it is my view that it is simply not credible for the UK government to continue with the further roll-out of full service universal credit until these problems are fully resolved.”
Leading charities have backed the call.
Mary Taylor, chief executive of the Scottish Federation of Housing Associations (SFHA), said the Department for Work and Pensions (DWP) had agreed that further roll-out of universal credit would only be done if it was safe to do so and now it was proven not to be.
She added: “We have been calling on a halt to the roll-out of the full service until the issues have been resolved, and welcome the Scottish Government’s intervention.”
It is clear that the system simply isn’t working - Angela Constance
And Taylor warned: “An increasing amount of time and money is being spent by housing associations, and others, to help and support their tenants.
"This cannot be maintained if the volume of cases increases, as it will do if the DWP increases the rate of roll out from five to 50 Jobcentres a month.”
“Universal Credit director general Neil Couling promised that the accelerated roll-out of the full service would only go ahead if it was safe and secure to do so.
“Now is the time to make this judgement call.”
Alison Watson, deputy director of Shelter Scotland, said: “Shelter Scotland shares the Scottish Government’s concerns about how the roll-out of universal credit is being implemented.
“We are worried that universal credit, implemented without thought to the consequences of leaving people with no income for several weeks, will push people into rent arrears and put more vulnerable people at risk of homelessness.
“However, there is real action that can be taken on homelessness right now here in Scotland.
"We are calling on the Scottish Government to take the lead on developing and delivering a new national Homelessness Strategy for Scotland.
“A new shared action plan on homelessness, co-produced with those who have direct experience of being homeless, could work across government departments and public services to focus on tackling the root causes of homelessness.”
A Department for Work and Pensions spokesman said: “The best way to support people is to help them into work, and under universal credit people are moving into work faster and staying in work longer than under the old system.
“Our research shows that the majority of claimants are comfortable managing their budgets, and we’re working with local authorities and landlords to get extra support to those people who may find themselves in arrears.
“We’ve been rolling universal credit out gradually so that we have time to ensure it works in the right way for everyone involved.”
