Council house rent arrears increasing by £20,000 a week

Rent arrears for Tenants - How to avoid them - Slater & Brandley

The Council is considering making further help available to Council tenants who find themselves in financial difficulty as a result of the heath crisis.

 A report to a meeting next week says, “Along with a sympathetic and supportive approach to rent and arrears collecting the hardship fund will enable substantial (up to £500 in most cases) help to individuals and families that most need it.

 The cumulative impact of reduced public spending and welfare reform including the roll out of Universal Credit has seen an increase in rent arrears in York over the last few years.

The impact of the CV19 pandemic has exacerbated this with arrears rising at £20k per week.

 As lockdown restrictions are lifted it is expected that many will return to work and obtain financial stability. There has been an increase in Universal Credit claims and delays of up to 8 weeks in processing these.

The hardship fund – which will be paid for out of the housing revenue account – will cost £80,000.

The council has already refunded the first 13 weeks of the annual rent increase for 2020 / 2021 to anyone who did not have this covered by increases in welfare benefit.

Details of the fund can be found by clicking here