New analysis of UK Government data by the national homelessness
charity Crisis has revealed that in England over 100,000
low-income renters on Universal Credit will be at least two or
more months behind on their rent when the planned £20 cut comes
next week, raising fears that thousands will be at risk of being
pushed into homelessness as they struggle to keep their heads
above water.
The cut, which will see people on Universal Credit lose an average of £87 per month or the equivalent of
£1,040
over a
year, will hit struggling households
amid
rapidly
soaring energy
prices,
a freeze on housing
benefit which
isn’t keeping up with rising rents in most parts of the country
and
the possibility
of further
redundancies in the wake of the Government’s furlough scheme
ending
today.
Currently, thousands are under incredible pressure to keep a roof over their
head.
With
the eviction ban
in England
now over
and
notice periods
as
low as
just four weeks
for those with
four or more months of arrears, Crisis is warning that a further drop in income
could lead to a
surge in homelessness unless the £20 cut is reversed.
Jon Sparkes, Crisis Chief Executive, said:
“For many struggling renters
this cut could be the final blow that forces them from their
homes.
“We know that when people have
somewhere stable to live, they are in a better position to find
work, build their careers and contribute to the economy as it
re-opens. Taking this vital lifeline away risks undermining all
of this.
“If we are truly serious about
levelling up the country and rebuilding our economy so it works
for everyone, then the UK Government must change course and keep
the £20 uplift so that people don’t needlessly lose their homes
this winter and we have a fighting chance at recovery.
“The
UK
Government
assured
people
they would not lose
their home because of the crisis; we must not fail them
now.”
-Ends-
Notes to Editor
-
Calculations are based on data from
the Household Resilience Study: Wave 2
(published April 2021). The 100,000
figure describes the number of households on universal credit
in England who were in two or more months of arrears during
November-December 2020 (the period covered by the data); given
that these households typically do not have any savings to draw
on, we assume that household arrears have not been resolved.
The figure does not take account of households who were in
arrears of shorter length or who have since entered rent
arrears, meaning that this figure should be taken as a lower
bound.
-
Housing Benefit rates (and the
housing costs component of Universal Credit) have been frozen
since April this year. This means the rents are no longer
linked to market rents, at a time when families and individuals
up and down the country continue to struggle with the economic
impact of the pandemic.
-
From the 1st June 2021 until the
30th September 2021 the UK Government announced that anyone
served a section 21 notice in England would need to be given a
notice period of at least four months. From the 1st October
2021 the notice periods are expected to reduce again to two months' notice for a section 21, which was the
required period before the pandemic. For tenants in arrears,
from the 1st August 2021 landlords only have to give a minimum
notice period of two months for arrears less than four months.
For arrears four months and over, the notice period drops to
four weeks.
