Government reforms to welfare are fuelling a significant rise in homelessness across the UK, campaigners have warned.
According to The London Renters’ Union, a grassroots organisation campaigning for a fairer housing market, claimants of Universal Credit are at greater risk of losing their home as spiralling rents stretch household incomes.
Freedom of Information figures from 15 London Borough councils reveal more than 24,000 households in receipt of Universal Credit approached their authority as homelessness between 2019 and 2022.
Speaking to TLE, Siobhán Donnachie, a campaigns officer at The London Renters’ Union, said: “Universal Credit plays a huge factor in homelessness, with rents rising faster than incomes and passing inflation.
“People can’t afford their rents now and people who receive Universal Credit are much more vulnerable to unaffordable rents, especially when waiting for their monthly payments. Often not being able to pay your rent means a risk of eviction.
She added: “We need to massively increase the supply of social housing and council housing because a lot of people don’t have any other option than to privately rent, which is often not suitable for many reasons.”
A link between Universal Credit and poverty
Research published by the Joseph Rowntree Foundation in 2020, established a link between Universal Credit and poverty, with the five-week wait cited as one of the aspects most likely to result in financial difficulty.
Under Universal Credit new claimants must often wait five weeks to receive their first payment. At this point, for low-income workers the consequences are severe, with many falling further into debt and poverty.
Meanwhile, according to analysis by the housing charity Crisis, homeless households are twice as likely to have been sanctioned when violating conditions such as missing appointments or failing to look for work.
Last July, a study published by the University of Sussex revealed the introduction of Universal Credit had cost society £465 million, resulting in more than 6,000 home repossessions.
Using data covering periods before and after reform, the study also found the transition from the legacy system of welfare payments onto Universal Credit contributed to more than 35,000 burglaries and 25,000 vehicle crimes.
Meanwhile, analysis from the Scottish Government revealed that Universal Credit had also contributed to relationship and mental health problems, with the government’s cut to the £20-a-week uplift tipping some households over the edge.
In 2019, some 86% of councils said they were unlikely to meet their statutory duty to prevent homelessness, with 78% of local leaders attributing an increase in those made homeless to Universal Credit.
“Priced out of housing”
Matthew May, a helpline adviser for the homelessness charity Porchlight, said: “People are being priced out of housing, and Universal Credit is playing a large part, especially the difficulties within the system.
“People aren’t receiving enough money to be able to maintain a normal lifestyle as most of their money gets eaten up by housing costs, and as the cost of everything else increases most people aren’t able to manage anymore.”
He added: “I don’t think I ever speak to anybody who has not suffered quite dramatically will mental health – the amount of calls we take relating to suicide is quite extraordinary which means we have to interven as a lot of people can’t see a way out of their situation.”