A CONTROVERSIAL new benefits system has been cited as an increased factor in instances of petty crime.

The new Universal Credit (UC) digital system, which was introduced in the county in April, has seen rent arrears rise and private landlords taking steps to evict tenants who are on it.

A report to East Lothian Council said the impact of the new system, which pays claimants all their entitlements in one payment and no longer pays housing benefit direct to landlords, had seen many tenants fall into debt.

Council leader Willie Innes challenged the Scottish Government to “man up” and tackle the problem now.

East Lothian Council became the first local authority in Scotland to introduce the new digital rollout of the single payment benefit earlier this year.

However, reports to council have revealed how delays in receiving the new payments and changes to the claims had pushed those receiving them into debt as they found themselves waiting at least six weeks for money.

A report to the council on Tuesday this week said the amount of crisis grants awarded had risen by 20 per cent above expected demand since the new benefits were introduced and East Lothian Foodbank had, as a consequence, had an increase in referrals.

It added there was now a growing reluctance of private landlords to let to tenants on the UC system, with some already taking legal action to evict those tenants they had.

And council officials said the desperate situation for some claimants was causing them to break the law.

Their report said among key impacts from the rollout of the new system was “early indications of UC becoming an increasing factor associated in instances of petty crime”.

The council agreed to contact the Scottish and UK Governments, urging them to step in and help with the problems by tackling some of the issues which were causing the most hardship.

Mr Innes pointed to the fact that powers to have the housing element of the new credit paid directly to landlords had been devolved to Holyrood in September this year, and called on the Scottish Government to give East Lothian Council the power to have rent payments made directly to landlords.

He said: “I think direct payments will make a huge difference. The Scottish Government has had that authority since September.

“People do not like getting into debt. We are calling on the Scottish Government to man up and take hold of its responsibility.”

Council officials said part of the issue was that some of the benefits were being devolved to the Scottish Government at a different pace than the Universal Credit was being rolled out by Westminster’s Government.

Councillor Stuart Currie, SNP opposition group leader, said the Scottish Government had to make sure that when it introduced devolved benefits it had to ensure it was done properly to avoid the issues caused by the current system. He said: “There are issues and it is really important that the Scottish Government gets it right first time.”

Last week, Scottish Greens MSP Alison Johnstone raised concerns about the UC rollout in East Lothian at a meeting of Holyrood’s social security committee.

She said: “The DWP rollout of Universal Credit in East Lothian is clearly causing serious problems. The DWP might call it a test and learn environment but this is affecting vulnerable people and putting a huge strain on council staff.

“We need to see some compassion from the UK Government, who are driving these ill-considered changes. The DWP say they are listening to East Lothian Council, where staff are clearly stretched. The DWP must improve their systems, as there is very little confidence left in Universal Credit.”

The council agreed to 10 recommendations from their officials, including asking the Scottish Government to take immediate steps to use its powers to have the housing cost element of Universal Credit paid direct to landlords, and to seek recompense from the UK Government for the loss of council house rent income as a result of the new system, as well as council tax, which has also been affected by it.

The council also agreed to ask the UK Government to reconsider the proposal to exclude 18-21-year-olds from receiving housing benefit, which is due to be introduced in April.