Universal Credit is “car crash” for tenants, landlords and agents, says MP

Universal Credit has been an “ideological error” for the 1.2 million tenants on housing benefit within the system as well as landlords and agents, it has been claimed by Stephen Lloyd, MP for Eastbourne (pictured, right). This is despite the Chancellor’s measures in his budget last November, which attempted to mitigate the financial stress of those moving to Universal Credit falling into rent arrears as they awaited payment. Stephen’s comments came during a debate he led in the House of Commons this morning during which speakers from all sides of the political spectrum savaged Universal Credit and its effect on the housing sector. As well as dramatically increasing the number of people presenting themselves to councils as homeless after being evicted from private rented properties for rent arrears, Universal Credit has made many private landlords reluctant to rent to claimants, he said. “Many years ago I warned that this would be a car crash, and it has become one,” he said. Quoting figures given to him by the Residential Landlords Association, he said 87% of landlords will not rent their properties to Universal Credit claimants and that among those who did, 38% have experienced rent arrears problems. He then called…