Jayne M

Registered with Property118.com
Saturday 24th February 2018

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Total Number of Property118 Comments: 1

Jayne M

11:48 AM, 9th July 2019
About 2 years ago

Universal Credit - End of payment arrangement?

Reply to the comment left by CARIDON LANDLORD SOLUTIONS at 08/07/2019 - 23:48
It is another example of the stupidity that is Universal Credit, if a tenant as in the case of a friend is in receipt of the housing element of Universal Credit. The assessment date being the 19th (using your figures instead) and running to the 18th, payment date being the 25th. The tenancy end date is the 5th the calculations do not correspond to the actual liability that has arisen taking into account accruals, prepayments and the the date that they actually left (does not follow accountancy principles). It is simply where the tenant is on the assessment date, and are they entitled to the housing element? It is based on the whole month which is either paid or it's not, with no apportionment. If a tenant finishes a tenancy a day prior to the assessment date with no Alternative Payment Arrangement being in force and so Housing Element not being paid to the landlord. As in my friend's case going from Housing Element to no Housing Element the DWP would then class it as an overpayment of the Housing Element and if notified after payment date, they would then reclaim the money by a deduction from benefit and can issue a £50 civil penalty Because they have said they were notified of a change in circumstances after the payment date resulting in an overpayment. However the housing costs would have been the 1 month less 1 day the DWP would argue it was a months overpayment as no Housing Element should be paid. They would stop at the assessment despite the fact that housing costs continued to accrue after that date until the tenancy actually ended. The Housing Association would then chase the tenant for money which they were never given and do not have. Whilst the poor tenant is blamed for the arrears as any benefit claimant is obviously spendthrift and unable to budget. When the landlords are complaining about tenants on Universal Credit and arrears as you can see from the above situation it is often the DWP that is at fault. Now you have more APA's it is going to be more apparent that the fault is due to Universal Credit as many of the landlords have been blaming the tenants for simply not paying. The problem is often not that people on Universal Credit cannot budget but that the rules governing UC do not follow accountancy principles and have no basis in either reasonableness or logic. The first tenancy above would simply end officially on the 5th but would only be paid up to the 19th which precedes the tenancy end date and leaving outstanding rent relating to that tenancy from 19th to the 5th (17 days). As they use whole months, the tenant is at another property on the next assessment date if entitled to UC and Housing Element, they would receive a full month despite the tenancy not having been in operation for that long. The full stupidity of Universal Credit thus becomes apparent and there is no wonder that there are arrears and increased homelessness. The whole month rule is apparently for simplicity and cost however it is blatantly both stupid and wrong.... Read More