SFHA Policy Paper urges Chancellor to reform 'broken' social security system to tackle tenant hardship

The UK and Scottish Government must take urgent action to tackle unprecedented levels of hardship facing Scotland’s social tenants, according to a new report from SFHA.

According to its latest policy paper, Tackling Tenant Hardship, 79% of Scotland’s social tenants struggle with ‘unexpected’ expenses and around a third ‘often’ had to delay or miss paying bills. More than half feel their financial circumstances are worse now than a year ago, with the majority worried about finances over the next few years. 

It comes as the Chancellor, Rachel Reeves MP, prepares to set out the UK Government’s spending plans in next week’s Autumn Statement. 

With social tenants more likely to receive part of their income from social security, SFHA is calling for the Chancellor to reform the UK’s ‘broken’ social security system and ensure that Universal Credit at least provides enough money to afford household essentials. Its report has warned that five in six low-income households on Universal Credit are already going without these household basics. 

The housing body said the UK and Scottish Government must also take urgent action on fuel poverty with over 70% of Scotland’s social tenants struggling to heat their homes. It added that the situation in rural Scotland was particularly severe and said both governments needed to work together to introduce energy market reforms. This includes the introduction of a social tariff - a discounted, targeted tariff designed to support social tenants and low-income households.  

Rachel Reeves has previously said she may consider some form of targeted energy support and SFHA has said the Scottish Government must also continue to influence decisions on the Energy (Social Tariff) Bill and a revised Fuel Poverty Strategy.  

Annabel Pidgeon, SFHA Policy Lead, who authored the report, said: “Good housing is the basis of everything. It allows people to work or study, play, learn, socialise, and care for others in a space we can call home. It helps us weather the difficult times in any person’s life and build futures.  

“Rents in social homes already average half the amount in the private rented sector, a level of affordability which already lifts 20,000 children across Scotland out of poverty. However, efforts to eradicate poverty are being hampered by a broken social security system which does not even provide enough to cover life’s essentials.  

“With 4 in 5 social tenants unable to meet an unexpected bill, it’s clear that Universal Credit is in urgent need of reform. The Chancellor must use next week’s budget to put an end to policies like the two-child limit and the five-week wait for Universal Credit which needlessly pushes families into poverty. These reforms would allow people living in Scotland’s social homes to flourish.”