Current Universal Credit arrangements could see rent arrears among Swadlincote council house tenants surge to a level which would usually see homes repossessed.

The alarming observation from South Derbyshire District Council has been published in papers to be discussed at the authority's scrutiny meeting on Wednesday, January 15.

While Universal Credit – or UC – has been in the process of being introduced for several years, the major roll-out in South Derbyshire took place in November 2018.

The council says that rent arrears for new UC claimants, who already have issues paying for their accommodation, either to the council or privately, can see their arrears grow by £720 while they wait for their claim to be finalised.

It says this would usually see council officers seek to repossess the property through the courts.

It says, in those cases, the repossession would "likely prove unsuccessful" but points out the apparent teething problem is already having an impact on its tenants.

It says that 302 of its council house tenants receive UC and that current rent arrears among those tenants who receive the new benefit system has more than doubled within a year.

The amount in rent arrears had been £60,471 but now stands at £126,785.

Universal Credit aims to move all forms of benefit payments such as disability and housing benefits rolled into one payment in a bid to streamline the process, but it has seen substantial delays in payments for many people across the UK.

The district council says residents often accrue further debt while they wait for their claim to be processed.

A spokesperson for the district council said: "The amounts quoted in the report are for current tenants that are in rent arrears and on Universal Credit (UC).

"Some of the increased arrears may be accrued through the delays in payment of UC mentioned in the report.

"There may, however, be other reasons for arrears and in some cases tenants may not have been on UC for the entire period.

"Not all council tenants who are in receipt of UC are in rent arrears.

"SDDC and other members of the District-wide Welfare Reform Group provide support and advice to maintain tenants' rent accounts without going into arrears.

"The vast majority of council tenants are not in rent arrears and the council performs well in collecting council house rents and other charges.

"There is a multitude of reasons why people fall behind with their rent, including unemployment, bereavement and illness.

"The council aims to provide advice and support which is tailored to the specific needs and circumstances of all households that may be at risk of falling into rent arrears.

"We would encourage any tenants that are worried about their rent to contact us as soon as possible."