COUNCIL tenants who are part of a trial rollout of the government’s new welfare reforms are in arrears by 10 times as much as people on the old system.

Islington Council finance chief Andy Hull said the figures were a “damning indictment” of the government’s implementation of its flagship universal credit programme. “The system is fundamentally not working,” Councillor Hull added.

Universal credit is a new benefit for working-age people, replacing six benefits, including housing benefit, and merging them into one payment. The single universal credit payment is paid directly into a claimant’s bank account, but only after waiting six weeks.

In Islington, mainly single people have been switched to the new system, which is being gradually rolled out.

As of September, there were 261 universal credit claimants in council housing in Islington. More than 80 per cent of them are now in rent arrears, compared to 29 per cent of tenants who receive the old benefits.

Of those on the old system, the average arrears are £122, but for those on universal credit, arrears are an average of £1,058.

“This amounts to punishing people for being poor,” Cllr Hull added. “By 2022, we will have 29,000 housing benefit claimants on universal credit. That is something that fills me with dread.

“We are calling on the government to pause and fix universal credit. Whatever you think of the principles behind it, its implementation so far has been universally discredited.”

Councillors were set to discuss the impact of universal credit, as well as other government welfare reforms, last night (Thursday). The council has written to the government with its concerns.

A Department for Work and Pensions spokeswoman said: “Universal credit is getting more people into work than the old system. It mirrors the way most people in work are paid, helping to ease the transition into employment.

“The majority of claimants are comfortable managing their budgets, and for people who need extra support, advance payments are available.”