BIG READ: How universal credit is leading to poverty, debt and eviction in Warrington

Universal credit has been brought in to replace six benefits with a single monthly payment for those on low incomes, or out of work.

But the Government is facing widespread pressure to halt the further roll-out of it following a range of problems.

The sites in the borough in receipt of the most housing benefit, over the last three years, were James Lee House, Inclusion Housing, Warrington Women's Aid, Alder Lodge and Room at the Inn.

Following a Freedom of Information request, it can be revealed that James Lee House received £1,522,351 over the last three years, Inclusion Housing £839,329, Warrington Women's Aid £399,573, Alder Lodge £284,277 and Room at the Inn £115,298.

James Lee House

The council said there are 11 different subsidy schemes for housing benefit.

The authority has a statutory requirement to ensure each applicant at each address has the correct subsidy scheme applied to their claim.

It confirmed, for the five sites in receipt of the most housing benefit, that the majority of expenditure was funded by the Department for Work and Pensions (DWP).

James Lee House, on Brick Street, which is managed and run by The Salvation Army, provides 54 units of supported accommodation.

The Salvation Army is commissioned by the council to offer supported accommodation for single homeless people with 24-7 staffing.

A spokeswoman said the charity is committed is committed to alleviating homelessness in Warrington.

She added: "Along with other charities who work with vulnerable and marginalised people, The Salvation Army has voiced its concerns about the challenges that people living in supported housing face when attempting to make a claim for universal credit.  

"These problems can be made worse if claimants have experienced long periods of homelessness or are facing other challenges, such as mental ill health or addiction.

"We are pleased that the Government has announced that housing benefit will be maintained to help meet the cost of people living in supported housing, but we urge them to recognise the additional support our service users need to access universal credit in the first place and the ongoing help they will need to ensure their claim is maintained as they move towards independence."

Susan Blyth, centre manager at Room at the Inn, on Winmarleigh Street, has raised serious concerns over people often being 'forced into poverty' due to the lengthy universal credit process.

Room at the Inn

She said: "Room at the Inn and the Y Project are committed to provide support, information and practical help to vulnerable, isolated and homeless people.

"The changes in DWP support benefits has led to confusion, alienation and hardship – sometimes leading to extreme poverty and eviction, with people losing their homes.

"It appears that the constriction of universal credit in particular does not take into account people with poor literacy and computer skills – this can lead to lack of communication.

"And people without a telephone or computer access struggling to cope on monthly payment, especially when a month rent payment is sent to the individual to pass onto their landlord, whether private rented or social landlord.

"All too often the temptation to dip into their rent payment – when people have waited six to eight weeks without any money – is great, leading to debt and ongoing budget problems or the threat of eviction."

But the DWP, which is responsible for universal credit, has defended the system amid widespread criticism.

It says rent arrears are 'usually temporary' and that universal credit has increased recovery powers for arrears, which makes it easier for landlords to recover unpaid money.

A spokesman added: "Universal credit replaces an out of date, complex benefits system with cliff edges that disincentivised work and often trapped people in unemployment.

"We have just announced that we will be increasing the amount people can earn on universal credit by £1,000 before their payment begins to be reduced to ensure work always pays – and introduced £1 billion to help people moving over from the old benefits system to universal credit. 

"This is on top of the improvements we have already made – advances have increased to 100 per cent, the seven-day waiting period has been removed and we are paying housing benefit for an additional two weeks when people move onto universal credit.

"Rent arrears are complicated and they cannot be attributed to a single cause.

"Our research shows that many people join universal credit with pre-existing arrears but the proportion of people with arrears falls by a third after four months in universal credit."

Warrington was an early adopter of universal credit but became a full-service area last year.

Since April 2017, the council has made local welfare support payments totalling £12,722, as of October 31 this year, to universal credit applicants across the borough.

Warrington Town Hall

Furthermore, a total of £166,299 in discretionary housing payments have been made to residents struggling to meet rental costs, or in rent arrears, due to problems with the system.

Cllr Maureen McLaughlin, executive board member for public health and wellbeing, said: "Providers of temporary accommodation ensure their tenants claim housing benefit direct from the council on behalf of their residents.

"Residents in supported accommodation, who claim universal credit, have their housing costs sent directly via the council to the landlord, so these payments are more secure than for other claimants of universal credit. 

"For regular claimants, because universal credit is paid in arrears – and because people often experience delays in their payments – many are accruing debts with no means to pay their rent.

Cllr Maureen McLaughlin

"This can ultimately lead to eviction.

"Most private landlords in Warrington now won't accept new tenants on universal credit due to these delays and this is creating huge demand for the limited amount of social housing currently available.

"For people moving from traditional housing benefit onto universal credit, the payment delays and the lack of clarity about the amount to be paid both cause problems where previously there were none.

"Universal credit needs urgent reform to fix the system, remove the delays and make sure it is fully funded to prevent more Warrington residents needlessly suffering."