Birmingham City Council recorded a huge increase in the number of people seeking help to pay their rent in the first two weeks after government welfare reforms came into effect.
The council says almost 2,000 applications were made for Discretionary Housing Payments (DHP) in the first two weeks of April – 50% more than for the whole of the first quarter of 2012-13.
Fraud and error in the benefit system stands at £3.5bn or 2.1% of total benefit expenditure, latest figures from the Department for Work and Pensions (DWP) show.
Preliminary estimates for fraud and error in 2012/13 show £1.2bn of benefit spending is lost due to fraud, £1.6bn due to claimant error, and £0.7bn due to official error.
Housing benefit payments will be sent directly to landlords after tenants have gone into two months of arrears during the Universal Credit (UC) pathfinders.
A circular published by the Department of Works and Pensions (DWP) said: “Landlords can refer rent arrears cases to Universal Credit; those which are under two months’ rent will trigger Universal Credit to contact the claimant to discuss their non-payment as part of the Personal Budgeting Support process, where as those with over two months arrears will be switched to direct rent payment automatically and relevant budgeting support activity arranged subsequently.”
Universal credit will lead to an average increase in rent arrears of £180 for each tenant, according to law firm Winckworth Sherwood.
A major shake-up of the benefits system began yesterday with a pilot involving new claimants in Ashton-under-Lyne in Greater Manchester. Universal credit will merge several benefits and tax credits, including housing benefit, into one monthly payment.
The government's new Universal Credit (UC) system has begun to be rolled-out today, in four North West towns.
The reformed benefit programme will be introduced in four jobcentres in parts of Oldham, Ashton-under-Lyne, Wigan and Warrington.
Housing charity Shelter has reported a surge in demand for its homelessness advice services.
In the last year, the charity has recorded a 40% rise in the numbers of callers in England needing help with housing costs, arrears and other debt issues, while in the last six months, visitors to its online housing costs advice service have doubled.
Edinburgh Council has adopted a ‘no eviction’ policy for tenants affected by the ‘bedroom tax’.
The local authority agreed that ‘where the director of services for communities was satisfied that tenants who were subject to the under-occupation charge had done all they reasonably could to avoid falling in to arrears, then all legitimate means to collect rent arrears should be utilised except eviction’.
Bedroom tax protestors have hit the homes of Poole councillors with 'eviction notices' and police tape.
Only Conservative members of Borough of Poole Council were targeted in the protest, which is being investigated by the police.
The first four councils to test the government’s new benefit cap have warned they have not received enough money to implement the changes.
Enfield, Croydon, Haringey and Bromley councils on Monday became the first local authorities to implement the £26,000-a-year benefit cap. The councils must identify who is eligible for the cap and administer the new system.
Housing benefit tenants looking for private rental properties have soared over recent months, with demand heavily outstripping supply.
Searches on a specialist website, Dssmove, have increased by 400% in three months for properties in London and the home counties, but demand is also up elsewhere.