Councils forced to commit ‘valuable resources’ to cope with UC roll out

Local authorities are being forced to commit ‘valuable resources’ to tackling the effects of Universal Credit (UC), Labour has said.

Freedom of Information requests from the opposition party revealed councils are committing scarce funds towards preparing for the impact of UC over and above discretionary housing payments provided by the Department for Work and Pensions (DWP).

The rollout of the new benefits system, which consolidates six benefit payments into one, has been widely criticised - despite the announcement in November of a £1.5bn support package to help address concerns about the welfare reforms.

Labour’s research revealed councils are having to provide additional rent arrears support and increase staffing, as well as working with food banks and Citizens' Advice to offset the impact of UC.

Previous research by the DWP found UC recipients who seek advice on managing their money were more likely to turn to local authorities for help than government agencies.

Newcastle City Council, for example, is spending nearly £400,000 supporting UC claimants while Tower Hamlets LBC has put aside £5m over three years to help those affected and Barking and Dagenham LBC is budgeting £50,000 to support UC claimants.

Shadow communities secretary Andrew Gwynne said: 'Local government is in an impossible position of trying to meet growing needs while balancing ever reducing budgets. 

'The Government’s chaotic roll-out of UC is forcing councils to commit resources from already-stretched budgets to offset the impact of this failed scheme and to prepare for the damage its rollout could cause.

'This is yet more evidence that the Government should immediately pause the rollout of UC.'

Labour’s shadow minister for employment, Margaret Greenwood, added councils were being expected to 'pick up the pieces'.