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Thousands could be left short on their rent due to Universal Credit flaw

Thousands of people on benefits could be left scrabbling to pay their rent due to a flaw with Universal Credit.

Published
Pat McFadden

The next financial year will be a 53-week rent year but under the current terms of the Universal Credit system benefits will only be paid for 52 weeks, meaning struggling claimants in the Black Country and Staffordshire will not be covered for a week.

Concerned MP Pat McFadden has raised the issue with the Government following a meeting with Wolverhampton Homes, which has 3,000 tenants on Universal Credit, 64 per cent of whom are in arrears.

The Department for Work and Pensions has acknowledged the issue and said it is looking at whether the benefits system needs to be amended.

Mr McFadden, Labour MP for Wolverhampton South East, fears thousands of people in the region who rely on benefits could be left having to find a week's rent.

In a letter to Work and Pensions Secretary Amber Rudd, he said: "In the next financial year, because of the way the dates fall there will be 53 rental weeks. Yet the way the benefit is structured, tenants will only receive support for 52 weeks.

"This will leave them without one week of support for rental costs at a time when many are already struggling to meet rental costs. Rent is usually paid weekly and not monthly so this issue could have a significant impact on the incomes of people who are already very stretched financially."

Mr McFadden has called on the Government to change the system to ensure claimants are covered for the whole year. He said the average arrears of Wolverhampton Homes tenants was around £500, close to the equivalent of the average month's rent.

His letter continued: "I would be very grateful if you could look into this issue to try to find a solution which means tenants on low incomes do not lose out on a week's rent support through no fault of their own."