UK government urged to clear Highland Council's benefits costs
- Published
The Department for Work and Pensions says it is delivering "flexibilities" in universal credit
The UK government has been asked to reimburse a local authority for the costs it has incurred as a result of implementing universal credit.
Highland Council said it was facing costs of almost £2.5m due to the benefit change.
It said causes of this debt included increased council tenant rent arrears and less grant funding from the Department for Work and Pensions (DWP).
The council and MP Drew Hendry have called on the government to step in.
The DWP said rent arrears were "complicated", and that it was "delivering flexibilities" in universal credit payments in Scotland.
In 2013, Inverness became the first place in Scotland to introduce universal credit.
'Put right the failings'
Highland Council's costs burden of almost £2.5m relates to the implementation of universal credit full service in Inverness in June 2016, and across the rest of the Highlands in July 2017.
Margaret Davidson, the council's leader, said the UK government should fully reimburse local authorities for the additional costs and loss of income attributable to universal credit.
She said: "It is only right that such costs be funded by the UK government rather than being met through Highland council tax and rent payers.
"These costs include increased rent arrears for current council tenants, additional housing benefit and council tax reduction administration costs arising from the manual processes that DWP introduced when designing universal credit, and reductions to the council's grant funding from DWP."
Ms Davidson said the DWP needed to "put right the failings" of the current system.
Scottish choices
SNP MP Mr Hendry, who obtained the figure through Freedom of Information, said: "Day in, day out, Highland Council staff have to deal with a system littered with inefficiencies, and a host of process failures - costing, not only more time for officers, but lots more money from the council's budget."
A DWP spokesperson said: "Our research shows that many people join universal credit with pre-existing arrears, but the proportion of people with arrears falls by a third after four months on universal credit.
"Anyone moving to universal credit from housing benefit is paid an additional two weeks of payment.
"In addition, in Scotland, we are delivering flexibilities in universal credit payments known as Scottish choices on behalf of the Scottish government, where people can choose if they want to be paid twice monthly or to have the housing element of their universal credit award paid directly to their landlord."