The annual NFA and ARCH survey into income management has been published – On the edge: cost-of-living findings from the council housing sector highlights the difficulties facing many tenants due to cost of living pressures. In the past year rent arrear have risen by around 4% in the 28 council areas represented in the survey (17 ALMOs and 11 Councils). The average amount owed per household also rose from £427 to £527, up by 23%.
In looking to understand the drivers of current trends, the report identifies the impact of severe inflationary pressures which impact disproportionately on the poorest households as well as a welfare system that isn’t for purpose. The system of Discretionary Housing Payments (DHPs) is also under increasing strain with reducing resources and increasing numbers requiring assistance.
Based on these findings, the report makes a number of asks of DWP and government including:
- Increase the basic universal credit element to cover the essentials of housing, food and heat.
- Stop paying universal credit in arrears
- Improve benefits for those in short-term, fluctuating employment
- Set a minimum level of benefit to stop deductions pushing families into destitution and to the brink of homelessness
