After analysis of government data, the homelessness charity Crisis claims 100,000 low income tenants will be two or more months in arrears when the planned cut to Universal Credit happens next week.
The cut to Universal Credit Universal is equivalent to £1,040 over a year and is a reversal to an equivalent increase given at the start of the COVID pandemic. The charity claims the cut is another blow to low income households who are already struggling with rising prices, a freeze on housing benefit which isn’t keeping up with rising rents, and the possibility of further redundancies with the closure of the furlough scheme at the end of September.
Crisis has raised fears that thousands of tenants will be at risk of being pushed into homelessness as they struggle with lower household income.
Crisis chief executive Jon Sparkes says: “We know that when people have somewhere stable to live, they are in a better position to find work, build their careers and contribute to the economy as it re-opens.”
“Taking this vital lifeline away risks undermining all of this.”
“If we are truly serious about levelling up the country and rebuilding our economy so it works for everyone, then the UK government must change course and keep the £20 uplift so that people don’t needlessly lose their homes this winter and we have a fighting chance at recovery.”