Universal Credit is contributing to a rise in homelessness because landlords are choosing to quit the market and sell their properties rather than trust claimants to pay their rent on time, a report has suggested.
The same report, on homelessness in Wirral, suggests struggling parents are kicking their kids out because of welfare changes which mean they can no longer afford to support them.
The concerning report cites the end of private sector accommodation as the main cause of homelessness in the borough, with the controversial six-in-one benefits system said to be partly responsible.
Under the new system, people in receipt of housing benefit must pay rent themselves rather than rely on their local authority to pay it to the landlord for them.
Wirral Council say evidence suggests that landlords may be leaving the sector due to "significant changes" to benefits, such as Universal Credit which "limits the ability for direct payments to private landlords."
People from across Merseyside have come forward with tales of hardship following the roll-out of the new system, from a man who was forced to eat out of bins to survive to people going without showers and food for days.
Former DWP boss Esther McVey, who is widely disliked in the region , has herself admitted some people will be worse off under the botched new system and squirmed about misleading parliament over it, in a car crash of an interview earlier this year.
The report, complied to give councillors an update on a rise in homelessness in Wirral, says 30% of housing caseloads are from people who have been made homeless because their private rented accommodation has come to an end.
Of those cases, 47% of applicants said their rented accommodation was coming to an end because landlords wished to sell their property.
The report said changes in welfare benefit administration, universal credit, the benefit cap and the introduction of more regulation for landlords played a part in landlords quitting the market.
'Rough sleeping has risen by 100%'
It contained bleak statistics which revealed rough sleeping has risen by 100% in the borough since 2015, while demand for the local authority's housing options services shot up by 17%.
The report has been compiled in light of the Homelessness Reduction Act, which gave public bodies such as local authorities and social services new legal duties to prevent homelessness.
This has led to a huge rise in caseloads for Wirral Council's homeless prevention team.
Have you lost your home because of universal credit? Email faye.brown@reachplc.co m
The team currently has 10 full time assessment officers, who have an average caseload of approximately 45 cases per person, compared with about 20 cases per person previously.
A break down of these cases says domestic violence and parents asking their children to leave because they can't or won't support them has contributed to a rise in homelessness.
The report adds: "Welfare benefit factors, including the Housing Benefit single accommodation rate and difficulties accessing affordable accommodation may be linked to the 2018/19 increase in the category ‘parents no longer willing or able to accommodate’ which accounts
for 14% of all duties."
What is being done?
Wirral council have responded the the rise in rough sleeping by securing £127,000 of Government funding, in partnership with Birkenhead YMCA to deliver a rough sleeper ‘Assertive Outreach’ project.
This provides support to rough sleepers during evenings and weekends and will run alongside an existing day time outreach service to identify their needs.
They are also in the process of appointing consultants to complete a comprehensive Homelessness Review by autumn 2019, which they say will help them achieve a more targeted local response to the crisis.
Meanwhile the local community have come together to feed, cloth and provide advise for rough sleepers in Birkenhead , by putting on a street kitchen in Hamitlon Square twice a week.
A spokesperson from the DWP also insisted people threatened with homelessness could seek advice from their local job centre.
He said: " With Universal Credit, housing costs can be paid directly to landlords to help people manage their money, and many people take up this support.
“We regularly look at ways to improve Universal Credit and earlier this year we committed to increasing the support available for private landlords, such as allowing them to update us online on rent changes so we can amend benefit payments and avoid arrears.
“We also offer tailored support and guidance in all jobcentres for those at risk of homelessness or living in temporary accommodation.”
