UNIVERSAL Credit is amongst the biggest threats to the operation of Scotland’s housing associations, a sector group says.

The 63-member Glasgow and West of Scotland Forum of Housing Associations (GWSF) says the ongoing rollout of the controversial welfare reform is “threatening the income of housing associations” as tenants’ bank balances are hit.

The claim comes in a new paper produced in advance of the 2019 rent review process, which “most” member associations are now beginning.

Universal Credit is due to be fully rolled out in Aberdeen city and Glasgow’s Partick and Springburn areas this month, with the process continuing in West Dunbartonshire and Edinburgh’s High Riggs, Leith and Wester Hailes communities in November.

Further areas are affected in the run up to Christmas.

Under the change, those eligible for rent-related benefit payments will have the sum paid to their own accounts, rather than directly to housing providers.

In regions where the shift has happened, councils and housing associations have reported steep rises in rent arrears, and last week a report by Citizens Advice Scotland (CAS) said problems with the system were to blame for the rise in the number of tenants now falling behind on rent.

Spokesperson Rob Gowans said there was “no doubt” that “flaws” in Universal Credit are causing difficulties.

Yesterday GWSF chair Helen Moore warned there was no room for “complacency” on the rent charges issue: “The rollout of Universal Credit is gaining momentum, adding pressure to the income of tenants and housing associations alike.

“This is coming on top of a number of growing operational pressures, such as how to repair and improve mixed tenure blocks where owners can’t pay their share, and filling the gap as council environmental services decline.”

She went on: “The impact of Universal Credit may be the most obvious preoccupation but there are many others, such as the demands of fire safety, energy efficiency, investing in older stock, addressing homelessness and dealing with the decline of public services.”

The Department for Work and Pensions says its research shows many of those joining Universal Credit are already in arrears. However, it says the proportion of those still behind dropped by one third after four months.

The department is rolling out support to social landlords, which is helping it to “target support for vulnerable people” and “minimise the risk of claimants failing to pay their rent”.