FREUD FIBS? -- Universal credit under control Universal credit is up and running in 39 areas across the country and, as the rollout continues, it brings changes to the way social landlords collect rent. With all our welfare reforms we are working closely with local authorities and local organisations to ensure a smooth transition for all claimants. We have made £345m in discretionary housing payments available to councils since our reforms were introduced. We are continuing to work closely with the social sector to ensure the right protections against rent arrears are in place and will continue to support landlords and claimants as the rollout of universal credit progresses. Communications and best practice are an important part of the support process and this is something that we will continue to do. This summer we sent our 10 key points to social landlords in the north west outlining what they need to know about universal credit. The benefit will roll out to Jobcentres in the north west until the whole region is covered. In total 90 Jobcentres - equivalent to one in eight in Britain - will offer the service once the north west expansion has been completed by the end of 2014. Direct help This latest guidance gives practical advice to landlords to help them engage with tenants early on. The guidance outlines how support can be given to tenants to prevent them from falling into rent arrears when they make the switch to monthly, direct payments. It includes basic information about monthly payments of universal credit. As with wages and salary from paid employment, universal credit is paid monthly in arrears into the claimant’s account, including housing costs. Landlords are responsible for collecting rent from their tenants and the Department for Work and Pensions for paying appropriate housing costs as part of the universal credit calculation. The guidance outlines how landlords can support their tenants to manage their rent payments effectively. It is important to ensure that landlords make tenants aware of their responsibilities to make up any shortfall in their rent. Claimants will receive their payments monthly, based on the date that they make their claim. This means the payment day may not align with the tenant’s rent due date. We are asking landlords to work with their tenants early on to decide how best to manage this. This could include moving rent due dates to align with universal credit payment, ensuring that a direct debit is in place, or arranging for a tenant to pay rent early, as soon as their universal credit is received. We have been working closely with the Money Advice Service, which can offer guidance to both claimants and landlords. We have also provided a dedicated telephone number and email address specifically for landlords who have concerns about a tenant’s ability to pay their rent. Ongoing communication between landlords, tenants and the department is vital so that everyone understands why universal credit is paid monthly and directly to claimants. We will continue to communicate with landlords and tenants to ensure that they are clear about the support and protections we have put in place to enable tenants to make their rent payments on time. Lord David Freud is minister for welfare reform Readers comments (1) Rexroth | 22/08/2014 10:20 pm Now I know what a parallel universe is. I appear to be living in one. Unsuitable or offensive? Report this comment insidehousing.co.uk/home/blogs/universal-credit-under-control/7005279.article
Posted on: Sun, 24 Aug 2014 12:38:49 +0000
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