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Citizens Advice reports sharp rise in social housing rent arrears cases

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Citizens Advice reports sharp rise in social housing rent arrears cases

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Published by Jon Land for 24dash.com in Housing and also in Bill Payments

Citizens Advice reports sharp rise in social housing rent arrears cases Citizens Advice reports sharp rise in social housing rent arrears cases

The number of social housing rent arrears cases reported to Citizens Advice has increased by 13% since the same time last year due to the introduction of the bedroom tax and other welfare cuts.

The national charity today warned that the dramatic rise in rent arrears and threatened homelessness demonstrates that households are not yet feeling the benefit of the improved economic outlook.

In the second quarter of this year (July to September), Citizens Advice Bureaux gave advice on:

  • 22,412 issues about social housing rent arrears - a 13% increase on the same period last year;
  • 2,840 issues about possessions claims due to rent arrears in the social housing sector - a 38% increase on the same period last year;
  • 2,736 issues about threatened homelessness in social housing - a 12% increase on the same period last year;
  • 3,307 issues about Discretionary Housing Payments - a 110% increase on the same period last year.

The charity suggests says the impact of the under-occupancy penalty, commonly known as the bedroom tax, combined with changes to council tax support, has contributed heavily to rent arrears problems.

Instances of Citizens Advice Bureaux advising clients about Discretionary Housing Payments, to help people pay their rent, have more than doubled in the six months since April this year when the charge for under-occupancy was introduced.

Citizens Advice chief executive, Gillian Guy, said: “We are on the edge of a serious housing crisis. There are simply not enough homes to meet need and the result is yet more pressure on household budgets.

“Despite the good news, the economic warning lights are still flashing. The emerging trend of increasing social housing arrears is extremely worrying. Cases of arrears are up across every region of England, with the Midlands and parts of the North showing the starkest deterioration. Prices which far outstrip incomes and the damaging impact of high food and energy bills make paying rent simply impossible for many people.

“The impact of welfare reform is crucial. Done right, reforms such as universal credit could simplify support and incentivise work. However what we’ve seen in recent months is what can happen if reforms are rushed in without proper safety net in place.

“The debate over our state safety net must move away from the idea that it is entirely about money. Direct financial support is essential in helping people meet day-to-day costs, but the long-term importance of getting infrastructure right, particularly housing, cannot be ignored.”

New data published today by the national charity show an increase in advice given about social housing rent arrears in every English region. The North East and West Midlands are the worst hit English regions per head of population and the steepest year-on-year rises were in the East Midlands and Yorkshire and the Humber.

Of all the charity’s clients advised about debt issues:

45% are social tenants;
31% are private tenants;
20% are buying their home;
5% own their home outright.

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