A BBC investigation has found that despite housing benefit, the universal credit holder among the tenants has more rent dues than double of average rent up to £1m. One applicant said a fault left him with just £29 to live on.
But the UK government said about this concern that universal credit was working well.BBC specifically contacted each and every regional authority in the UK whom council hires about their dues. The outcoming ratio from the 129 councils that responded showing the standard amount owed by the tenants asserting universal credit across the UK is £662.56. For those tenants, housing benefits are £262.50.
Recently, across the UK one million people claim the new benefit and the out figure of the demand incidentally reaches to eight million. Council Chiefs and experts are indicating alarm. One person who is captured in the universal credit ignorance is a single dad named James Mc David. He had to leave work for looking after his two-year-old son and he urgently trapped into trouble while he made his first claim. In a month he received £579 and he had to pay £550 for rent and then buy other requirements such as food, medicines and pay other bills.
Incapable to find out about his low payment and pushed to turn to the regional food bank to have something to eat. Mr Mcdaid said he had to wait for months while his claim has proceeded.
He said, “If there weren’t places like this food bank you’d be in trouble. It’s quite distressing, you panic about things.”It’s not fair to have that amount of stress. It’s just mayhem because you just don’t know if you’re going to end up on the street or not”.
Employment minister Alok Sharma said, “Universal credit is working well. What we have is a system which is simpler, a system which people understand and ultimately makes sure they get into work faster and stay in work longer.
“After a period of time people will on average see those (rent) arrears coming down. But the key point here is to make sure that people get support in terms of funding, and that is why early this year we introduced a package worth one and a half billion pounds which means that anyone who’s coming onto universal credit who is currently receiving housing benefit will get an extra two weeks of run-on – two weeks of extra money”.