The York Council has agreed to pay some of the fees involved in setting up and running a budget bank account at the Credit Union shop at 8 Acomb Court off York Road (tel.03030 300010) .
Details of budget and other accounts available at the branch can be found on the SYCC web site
The Council is taking the action to encourage those reliant on the Universal Credits benefit package to budget to avoid debts. Univeral Credit is paid in arrears and can be difficult to manage.
A report to a recent meeting says,
“A recent article on the Association of Retained Council Housing site indicated that:
- 86% of universal credit (UC) claimants living in council owned homes are in rent arrears (compared to 79% at March 2016).
- 59% of universal credit claimants living in council owned homes have arrears that equate to more than one month’s rent.
- Although 63% of UC tenants in arrears had pre-existing arrears before their UC claim only 44% of them are on APAs (alternative payment arrangements with direct payment from DWP)
- The average value of arrears tenants owed across UC households has almost doubled to £615 since 31 March 2016 when average amount was £321.
A research article expressed concern about rent arrears.
“Not only are numbers of households increasing as UC is rolled out, but the percentage of households falling into rent arrears and experiencing financial difficulty is critically high.
If this trend is not reversed it will have significant impact on local authorities’ rental income streams and the long term ability for housing departments to provide essential services to their communities.
Use of the SYCU budget account and related services by customers could be one way of helping them manage their money effectively, prevent debt and help manage debt where this is accrued”.
Council officials will now help to promote the budget account to qualifying residents.