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<p>Claimants may find themselves in rent arrears for a variety of reasons, many of
which can pre-date their claim to Universal Credit. The Department encourages people
out of work, or on a low income, to consider whether claiming Universal Credit could
provide them with additional support before issues, such as debt, spiral out of control.
We promote Universal Credit through various external channels, including through the
‘Understanding Universal Credit’ website, to help people navigate the range of support
available and provide information about how to apply.</p><p> </p><p>Our own analysis
shows that Universal Credit in fact reduces debts, such as rent arrears. Supporting
research carried out by the National Federation of Arm's-length Management Organisations
(ALMOs), shows over three quarters of their tenants come onto Universal Credit with
pre-existing rent arrears. It also shows that arrears tend to increase prior to making
a claim for Universal Credit, and that Universal Credit actually appears to be helping
to clear arrears over time.</p><p> </p><p>Recent changes to Universal Credit include
temporarily increasing the standard allowance by up to £1,040 per year and increasing
the Local Housing Allowance rates, including the Shared Accommodation element, so
that it covers the lowest 30% of local market rents benefiting over one million households
by £600 a year on average. These measures form part of an unprecedented increase to
welfare spending of £9.3 billion following the outbreak of COVID-19.</p><p> </p><p>The
Department has also delivered a number of improvements to support claimants during
their first assessment period, such as removing waiting days and paying those claimants
moving from Housing Benefit on to Universal Credit a two week ‘transitional housing
payment’. Since July 2020, an additional two-week run has been introduced to assist
eligible claimants moving from Income Support, Employment and Support Allowance (IR)
and Jobseeker’s Allowance (IB). Advance payments are available so nobody has to wait
five weeks for payment.</p>
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