industry news
More than 225,000 now claim Universal Credit
Figures released by the Department for Work and Pensions show 225,002 households were claiming Universal Credit in March, with 9,500 new claims being made every week. Universal Credit (UC) combines six
different benefits, including housing benefit, into one payment made directly to households in most circumstances. Since its introduction in 2013, the combined benefit payment has been rolled out to different groups of people across the country. However it has been beset with delays and criticised for its high costs, complexity and IT glitches. Back in 2014, the Government estimated
as many as four million people would be claiming UC by this point. The benefit is paid monthly to individual claimants, which in many cases has resulted in rent arrears building up as housing benefit is no longer paid direct to their landlords. The former Work and Pensions Secretary
Iain Duncan Smith, who oversaw the introduction of Universal Credit, has argued with the chancellor of exchequer over cuts in the welfare budget. Duncan Smith claimed these have undermined the original intention of setting up the new system.
Winners and losers
The original aim of Universal Credit was to encourage people to work more hours by letting them keep more of their low wage top-ups as their income rises. The Resolution Foundation think-tank also claimed the new system has been watered down so much that it risks failing to achieve its original purpose.
“On current projections, Resolution estimates that the 1.2 million families who are receiving of tax credits will no longer be entitled to any help under UC”
On current projections, Resolution estimates that the 1.2 million families who are in receipt of tax credits will no longer be entitled to any help under UC, leaving them £41 a week worse off, while a further 1.3 million will qualify for UC, but will be an average of £46 a week worse off. About 2 million families will be £34 a week better off. Up to eight million people are
eventually expected to be claiming Universal Credit by 2021, four years later than originally expected.
16 | HMM May 2016 |
www.housingmmonline.co.uk
Repairs to be brought in-house in Gloucester
A west country housing association has become the latest social landlord to bring its repairs service in house, joining a growing list of housing bodies taking this step. Gloucester City Homes have announced the
move will take effect from April next year, with expected annual savings of £300,000. Over the next year the association plans to
work with their current repairs contractor, Morgan Sindall (formerly Lovell), on transferring staff into the association’s workforce. Michael Hill, Director of Property Services at
GCH said: “The decision is no reflection on our repairs partner and will build on the already strong service.” The decision followed an independent evaluation of the service future options. He added: “Currently 99 per cent of tenants
say the overall repairs service is excellent or good. This shows the high quality of the service and GCH aims to continue and build on this
once the service is brought back in-house. Maggie Day, Westgate tenant and GCH
Board member added: “Tenants will see no change in an already high standard service when the changes come into effect, however we feel that it is important that our tenants and leaseholders are made aware of the changes as soon as possible.” All tenants are being informed of the change in the repairs service set-up by letter.
“Over the next year the association plans to work with their current repairs contractor, Morgan Sindall (formerly Lovell) on transferring staff into the association’s workforce”
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