Universal Credit, Council Tax Reduction scheme and rent arrears in Wales: final report

The report focuses on the impact of Universal Credit on the Council Tax Reduction Scheme, council tax reduction awards, council tax arrears and rent arrears in Wales. The report also considers the experience of Universal Credit claimants and stakeholders.

Conclusions show Universal Credit is a significant change in welfare support for low-income households. The report provides evidence that the move to Universal Credit is having an impact on household resilience and debt levels of low-income residents in Wales. 

There is evidence of lower council tax reduction awards, higher council tax arrears, and higher rent arrears, as households move to Universal Credit. There is also evidence that all forms of arrears could accumulate once households have moved to Universal Credit.

Aspects of Universal Credit, such as the five-week wait, monthly payments and levels of support, risk causing financial difficulty and debt for some claimants. However, it is worth noting that a minority of participating households preferred the control of their claim offered by Universal Credit.