Landlord groups and charities are warning of rising rent arrears and dire consequences for families as Universal Credit is cut by £20 a week from today.

Anti-poverty campaigners and voices from across the rental sector have urged ministers to urgently rethink the move to scrap the temporary uplift to Universal Credit, which was brought in during the pandemic.

Research by Citizens Advice suggests that 2.3 million people or 38% of those receiving Universal Credit (38%) would be pushed into debt following the benefit cut.

The National Residential Landlords Association says the move will significantly worsen the levels of rent arrears that tenants are shouldering.

According to the 2019/20 English Housing Survey, 14.4% of privately rented households in receipt of benefits were behind on rental payments. The NRLA says that over the course of the pandemic, the proportion of privately renting households in arrears tripled. 

It says that many more households will be forced into a “perilous financial position” due to the impact of the end of the furlough scheme and today’s cut.

The landlord body warns that there is also a strong likelihood that tenants’ credit scores will be damaged, reducing their access to housing in the future.

NRLA deputy policy director Meera Chindooroy says: “During the pandemic we have found that many renters have built high levels of arrears, which they will struggle to pay off in future. 

“With this in mind, today’s cut to Universal Credit is a short-sighted move that will only serve to worsen this ongoing rent debt crisis.

“Most landlords have offered flexibility where tenants have faced the financial impact of the pandemic, but they cannot absorb these losses indefinitely.

“Practical steps to address this problem can and should be taken to ensure those tenants in receipt of benefits can cover their rents. 

“It is our view that not only must the government end the five-week wait for the first payment of Universal Credit, it should also ensure they can choose to have the housing element of their Universal Credit payments sent directly to their landlord.”

Many charities have blasted the government’s decision to slash the benefit just as energy bills and other costs are rising.

Action for Children director of policy and campaigns Imran Hussain says: “While today is a big day for the Prime Minister, it’s a grim day for working families hit by the cut to Universal Credit.

“The Prime Minister talks about having the guts to tackle big societal problems. “We want this government to have the guts to cancel the cut and throw working families a lifeline.

“Make no mistake, families on modest wages keeping their heads above water are going to be pushed under by this; we’re talking about hairdressers, care workers and shop workers.

“They’re being squeezed by a £20-a-week cut and squeezed by soaring food, fuel and energy prices. 

“Three quarters of children living in poverty in the UK are in working families and as our recent research shows this cut will compound previous benefits losses from the past decade.

“There’s no road to levelling up the country that starts with making more children cold and hungry this winter.”

Citizens Advice chief executive Dame Clare Moriarty says: “Cutting Universal Credit as we head into a very tough winter is a recipe for disaster.

“With household budgets already being squeezed from all sides, families on the lowest incomes simply cannot afford to lose £20 a week. 

“If the government is serious about ‘levelling up’ it must change course. “Otherwise our frontline advisers could see many more facing desperate choices between heating and eating in the months ahead.”

Christians Against Poverty social policy manager Rachel Gregory, says: “This is a decision which will devastate millions of low income households and it’s simply not right. 

“The price of many basic essentials, such as food and energy, is on the rise but many people will also now lose £20-a-week from their basic entitlement.”

CAP says that in recent weeks,over 1,100 church leaders have written to the Prime Minister, raising their concerns. 

More than 2,700 of CAP’s supporters and those directly affected also wrote to their local MPs to urge the government to maintain the uplift.