Fife families are struggling to pay their rent due to universal credit, posing a threat to construction of affordable housing in the region.
Rent arrears have soared by more than £616,000, which Fife Council co-leader Councillor David Ross said was due mostly to the controversial replacement for benefits including income support and housing benefit.
Its roll out in Fife began in December, but recipients faced a delay in receiving their first payment.
If arrears continue to rise, he warned, reducing income for the housing service could impact on the delivery of much-needed council and housing association houses and flats.
Failure to provide appropriate housing for tenants, he said, could see an escalation of problems such as antisocial behaviour.
The local authority aims to build at least 3,500 new affordable homes over five years by 2022.
But Mr Ross said: “As we thought, universal credit is having a serious impact. Many people are going into arrears.
“It’s difficult to gauge at this stage if that is because of the delay in paying universal credit or whether it is a longer term issue but we know universal credit is having a negative effect on many, many families.
“In the first instance, we are worried about the pressure it is putting on families and tenants, particularly those with children, but we are also worried because of the knock-on effect it has on council finances.
“If there is a significant rise in rent arrears and we are not getting money in it will jeopardise our house building programme, for instance.
“We are working as hard as we can to make sure that doesn’t happen and we are fully committed to meeting our target, but this is an area of major risk.
“Having houses available is the right way of tackling all the housing issues, homelessness, overcrowding and meeting medical needs.
“If we don’t have the right housing problems such as anti-social behaviour will escalate.
“Waiting lists are significant. The estimate is we need to build 580 houses a year for the next five years to meet demand.”
He also said the council was doing its utmost to help people pay their rent, and urged those struggling not to ignore the problem and contact the council for help to manage their payments.
Almost 3,000 Fife Council tenants already receive universal credit but eventually around 14,000 will shift onto it.
A report which will be presented to the council’s meeting on Thursday by Mr Ross and co-leader Councillor David Alexander describes the rent arrears trend as “very worrying indeed for housing and their ability to fund the new house builds”.
