20% benefit deduction for tenants who fall into arrears
- 17 Nov
The government has announced that landlords will be able to recover 20% of universal credit payments from tenants who fail to pay their rent.
The Department for Work and Pensions has said that they will now be able to deduct 20% of a tenant's universal credit payment, if the claimant falls into rent arrears. This 20% would then be paid directly to the Landlord, reports Inside Housing.
The department could previously deduct 5& of the universal credit payment. However landlords have expressed concern that tenants will struggle to pay their rent under this new policy.
Lord Freud, welfare reform minister, said: "Universal credit is now available in one in 10 jobcentres and will be in almost 100 by Christmas, with national roll-out beginning early next year, so now is the ideal time to boost preparation activity. For the first time many tenants will be paid their housing benefit directly and I would encourage landlords to think about identifying tenants who need support to prepare for this, and put those who are ready onto a direct payment early."
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