Struggling council tenants in Aberdeen owe the local authority nearly £7.5 million in rent- with a shake-up of benefits thought to be behind rising debt.
A new report to Thursday’s operations committee has revealed a big increase in the arrears for this financial year, with around £1.7 million more owed this year than at the end of 2018.
Increasing the number of housing officers is said to be helping to reduce the problem, but only slowly.
The introduction of Universal Credit in the city in 2018 is thought to be the reason for many slipping behind with their payments.
The system combined a number of existing benefits into a single payment – aiming to streamline and make paying claimants easier.
But many have claimed they have been hit with long delays, forcing them to use food banks and borrow money before receiving their payments.
Despite the multi-million pound figure, Aberdeen’s arrears are still lower than most other Scottish council’s in percentage terms.
A report to councillors reads: “Universal Credit Full Service went live in October 2018 in Aberdeen and figures now include the impact of more than a full year of UC Full Service.
“With the increase in housing officers we are in the process of reducing the number of tenancies managed per officer, which enables housing officers to provide enhanced levels of support and assistance to tenants, therefore helping prevent and reduce rent arrears.
“Neighbourhoods with highest levels of arrears with be prioritised for resource allocation.”
Yesterday opposition SNP operations spokeswoman Jackie Dunbar also pointed the finger at the new benefits system.
She said: “It is no coincidence that since the the Tory Government moved our tenants onto Universal Credit, the rent arrears have spiralled out of control, with rent arrears debt now sitting at over £7 million.
“This is money lost from the housing account – our tenants money – and it is having an impact on the council’s ability to provide upgrades to kitchens and the like.
“This is the ruling Labour and Tory Administration failing to getting the debt under control and as a result it will be tenants who pay the price ”
But operations convener John Wheeler said that arrears changed throughout the year and the council was now more involved with helping tenants.
He said: “There will always be various points throughout the year where arrears fluctuate depending on the calendar of benefit payments.
“We have also working in a new way with our tenants and are now trying to keep people in their homes where possible.”
