The leader of Edinburgh city council is set to write to the UK Government for help mitigating the roll-out of Universal Credit after claimants in the Capital made almost 800 applications for “crisis awards”.
Universal Credit is replacing six existing benefits – Child Tax Credit, Housing Benefit, Income Support, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA) and Working Tax Credit.
New claimants in Edinburgh are now moved onto Universal Credit and it is thought around 10,500 council tenants in the Capital will be on Universal Credit by 2023.
The UK government initially claimed Universal Credit would save money, but the new system has faced repeated criticism for leaving many claimants worse off than under previous benefits and for an error-prone system.
A report to councillors reveals that since April 2018, there have been 787 applications to the Scottish Welfare Fund for “crisis awards” from Universal Credit claimants.
Over 500 awards granted for struggling Universal Credit claimants
The report adds: “A total of 504 applications were paid, totalling £48,663.24.
Additional resource has been established within the team to ensure adequate support is available to citizens as they transition through Universal Credit.”
After calls made by SNP councillors, governance risk and best value convener, Conservative Cllr Joanna Mowat, agreed to urge council leader, Cllr Adam McVey, to write to the UK Government, asking for support in mitigating the impact of universal credit.
SNP Cllr Ellie Bird, who called for the request, said: “The risks that the council is facing as a direct result of Tory welfare reform are alarming.
“The Scottish Government’s full mitigation of the bedroom tax, also outlined in the paper, is very welcome.
"In light of the recent report by the UN Special Rapporteur on Extreme Poverty and Human Rights, which cites austerity as instrumental to increasing poverty and inequality in the UK, it’s more important than ever that we press the Westminster government for an equal commitment to help to mitigate the worst affects of their policies on our citizens.
”In April, Dr Jim McCormick, chairman of the Edinburgh Poverty Commission warned that in recent years, there has been an “unravelling” of measures to support people in poverty."
He added: “The biggest reason for progress unravelling is the UK benefits freeze. People who are on low wages, yes they have seen their wages rise, but the reduction in tax credits and the benefit freeze has more than offset that.”
Council is owed over £1m by struggling tenants on Universal Credit
The council has put aside a contingency fund of £9 million because of expected rent arrears.
Last month it was revealed that the city council is owed £1,269,837 by 1,086 tenants who rely on Universal Credit.
The council’s housing and economy convener, Cllr Kate Campbell, said: “Although the convener managed to dodge having to write to her own government to ask for help mitigating the worst aspects of welfare reform, she has agreed to ask the council leader to write to them.
“The committee acknowledged the huge potential risks of the Tory welfare reform agenda, particularly Universal Credit, and its damaging impact on residents. It’s important that mitigation doesn’t just fall to the Scottish Government, but that Westminster is asked to contribute towards protecting our most vulnerable citizens as well. Whether or not they’ll listen is doubtful.”
Cllr Mowat said: “I’m happy to write that letter to the convener.“There’s been a lot of change in where people need to go to get the advice and Citizens Advice Scotland is seeing this. It would be helpful to make sure that all councillors had a flow chart of those direct dial phone numbers so we can give that information to constituents.”
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