Rent arrears owed by Fife Council tenants have soared by £100,000 a month since the roll out of Universal Credit.
The council, which is now owed nearly £8.5 million in rent arrears, has given a stark warning that the loss of revenue resulting from the welfare reform will inevitably have a detrimental impact on services and could threaten the local authority’s housebuilding programme.
Glenrothes area housing manager John Flaherty said the service’s head of revenues had calculated that every month across Fife £100,000 is added to the council’s rent arrears as a direct result of Universal Credit.
He added: “Indeed, it is having impact on our other work, or will soon start to.
“Our head of service has made it very clear, understandably, that the collection of rent and the avoidance of rent arrears is our number one priority.
“It’s what pays for the service we provide. It’s what enables us to build more houses.
“We will obviously try to maintain the level of service we provide across the board but it’s an additional significant pressure that we’re having to contend with across Fife.”
Council figures indicate that since December’s introduction of Universal Credit, where benefits are paid in a single monthly sum, rent arrears had rocketed by £700,000.
Mr Flaherty said the council was taking proactive steps to support tenants, who face a delay in receiving their first payment while their details are processed.
He added: “We have to accept that for a certain period they will not be able to pay their rent but we have to remind them of their obligation to do that and give them as much advice as possible, help them to access other sources of funding — foodbanks for example — to help tide them over until their money comes in and we get our share.”
Mr Flaherty was speaking to Glenrothes councillors at an area committee meeting.
Craig Walker, SNP councillor for Glenrothes West and Kinglassie, said Mr Flaherty’s report had painted a “damning picture of what Universal Credit is doing to people in Fife.”
Labour councillor for the ward Altany Craik said rent revenue was needed to fund much needed social housing.
“But people are being left with a choice between paying the council rent and paying for heating or feeding their children,” he continued.
“For us, eviction has to be a last resort and that’s a horrible situation for everybody.”
