Highland Council shouldn't have to shoulder cost of Universal Credit introduction, argues MP

Inverness and Nairn MP Drew Hendry is calling on the UK government to meet the additional burden and is also seeking an urgent meeting with Work and Pensions Secretary Esther McVey.

It follows a similar demand from council leader Margaret Davidson who says the costs should not be met by Highland council tax and rent payers.

Inverness was first chosen in 2013 as the only place in Scotland to trial the much-criticised welfare reform which was implemented in the city two years ago and in the rest of the Highlands last year.

Despite tales from claimants facing a tide of debt and difficulties – many of which were highlighted in the Inverness Courier – it is also being rolled out across the UK.

But Mr Hendry described the move as “shambolic” and said people in the Highlands were having to subsidise the government for its failed project.

“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,” he said. “In addition to meeting administration costs, Highland Council is also having to burden the cost of rent arrears which have shot through the roof because of the length of time people and landlords have to wait for payments. It simply cannot go on.”

According to figures obtained by Mr Hendry, the council spent £669,719 between 2016-18 to administer universal credit but only received £244,962 from the government, leaving a gap of £424,747.

The figures also showed more than half the council’s £2.5 million in rent arrears was directly attributable to the new system.

Mr Hendry warned with nearly 14,000 people in the Highlands still to be transferred to universal credit the bill would continue to rise.

Councillor Davidson also wrote to Ms McVey in August seeking full reimbursement of the costs but is still awaiting a reply.

“The council continues to support claimants who are impacted by universal credit as a result of flaws in the system,” Cllr Davidson said.

But the council’s Conservative leader Andrew Jarvie said lessons had been learned and issues ironed out.

“It is easy to look at headline figures and see the situation gets blown out of all proportion,” he said. “Prior to universal credit, housing rent arrears were about £1 million.”

A spokesman for the Department of Work and Pensions said support was provided for claimants as they moved to universal credit while a flexible payment system had been introduced in Scotland.

“Rent arrears are complicated and they cannot be attributed to a single cause,” he 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.”

- Drew Hendry will hold a welfare surgery on Friday for anyone struggling with benefit or welfare issues as part of the Poverty Alliance’s Challenge Poverty Week.

It will take place between noon and 1pm at Merkinch Community Centre.

Other organisations taking part include Highland Council, Citizens Advice Bureau, Inverness Cathedral, Advocacy Highland, Employability Skills and Welfare Project, and MFR Cash for Kids.