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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Responding to the DWP Consultation: Housing Benefit Reform - Supported Housing "It was well-run, in a good location, and very useful. I've only one suggestion; as the session went on it would perhaps have been useful for bullet points of general agreement about what should be in the sector response to be displayed and added to as the session went on, maybe on a flip chart. Regarding your response paper, I particularly like the answer you give to question 9. In fact the general: "if it ain't broke don't fix it" response could be pushed harder." M.P. - Adref Ltd