A NEW report drawn up by Scottish Government officials has claimed that “the evidence is clear that certain features of Universal Credit can lead to homelessness”.
The official document warns that the UK Government's benefits policy has contributed to homelessness north of the border – stressing people are put at risk of losing their homes due to a five-week wait to receive their first payment.
The Scottish Government has suggested the findings show “how people can be plunged into poverty by a poorly executed” system.
The UK Government has rolled out Universal Credit gradually since 2013 to replace six ‘legacy benefits ‘ - income support, jobseeker’s allowance, employment and support allowance, housing benefit, child tax credit and working tax credit.
The Universal Credit caseload has nearly doubled since the beginning of 2020 due to the economic impact of the pandemic.
The Scottish Government report points to a rise in homelessness rates from 532 per 100,000 in 2015/16 to 573 per 100,000 in 2019/20 - warning “this increase roughly coincides” with the introduction of Universal Credit.
READ MORE: 14,000 families 'stuck' in temporary homes amid homelessness pressures
The document adds that “while it is not possible to draw conclusions from these high-level statistics”, it warns that “evidence from charities and other organisations indicates that there is in fact a link between Universal Credit and homelessness”.
It says: “The most direct way that Universal Credit can contribute to homelessness is by increasing rent arrears and ultimately evictions.
“There is also evidence that various aspects of Universal Credit contribute to relationship issues and mental and physical health problems, which are in turn associated with homelessness.”
The study also highlights “a statistically significant correlation” between homelessness across Scottish local authorities and sanctions, such as payments being stopped or reduced.
The report stressed that “this correlation does not demonstrate that sanctions cause homelessness”, but it claims “the five-week wait reduced expenditure on Universal Credit in Scotland by £144 million in 2019/20 relative to a situation where claimants received their first payment immediately”.
READ MORE: Universal Credit uplift of £20 should be made permanent, MSPs say
It adds: “This figure increases to a projected £205 million in 2020/21.
“The five-week wait can push many households into financial difficulties, particularly as the initial claim period is already likely to be one of financial turbulence, often following job loss or another change of circumstance.
“The five-week wait has been linked to rent and mortgage arrears in addition to debt and foodbank use.”
Social Security Secretary Shirley-Anne Somerville, said: “While a variety of circumstances can contribute to homelessness, this report paints a stark picture of how people can be plunged into poverty by a poorly executed social security system.
“The UK welfare system must be made fit for purpose with damaging reforms reversed. It is disappointing the UK Government plans to cut the £20-per-week uplift in Universal Credit payments in six months’ time and that they have refused to expand it to legacy benefits.
“Despite predictions of an increase in unemployment of half a million across the UK, unemployment support is being cut to its lowest level since 1990, and the decision to freeze local housing allowance rates from April 2021 will push more people into poverty and put them at risk of homelessness.”
The report concludes that “the evidence is clear that certain features of Universal Credit can lead to homelessness by contributing to financial, relationship and mental health problems”.
It adds: “A range of organisations have raised concerns that the joint payment made to couples under Universal Credit may cause relationship issues and enable domestic abuse – both of which, in turn, can lead to homelessness.
“It is also possible that the design of Universal Credit contributes to homelessness indirectly by deterring or excluding individuals who require support.
“The UK welfare system remains ungenerous by international standards,34 not least due to the legacy of the UK Government’s austerity agenda which coincided with the introduction of Universal Credit.”
The UK Government Department for Work and Pensions has been contacted for comment.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel