Preventing wider access of direct payments will be detrimental to UC tenants

by CARIDON LANDLORD SOLUTIONS

9:23 AM, 5th June 2020
About 4 months ago

Preventing wider access of direct payments will be detrimental to UC tenants

Make Text Bigger
Preventing wider access of direct payments will be detrimental to UC tenants

This week, Secretary of State Thérèse Coffey took questions from the Economic Affairs Committee on the economics of Universal Credit.  As part of this she told MPs that she does not want to see a return to the widespread use of direct rent payments to landlords with tenants in receipt of housing benefit, despite praising the new online Alternative Payment Arrangement system which makes setting up direct payments much quicker.

Caridon Landlord Solutions, which worked alongside The Department for Work and Pensions (DWP) to pilot the new online system says this is not only disappointing for landlords but will be detrimental to tenants in receipt of Universal Credit.

Sherrelle Collman, Managing Director of Caridon Landlord Solutions, comments:

We fully understand that one of the key objectives of the introduction of Universal Credit was to simplify the system and make work pay, giving those in receipt of Universal Credit a monthly payment, mimicking how many people in full-time employment receive their salary and preparing them to manage their finances.

“However, we know from experience that rent arrears have not only increased since the introduction of UC, but also a large proportion of claimants are falling into arrears within the first couple of months. Whilst it is important to empower tenants and provide support into independent living, making direct payments to landlords more difficult to access puts the most vulnerable tenants at greater risk.

“Without the confidence to let to tenants in receipt of Universal Credit, landlords will turn their backs on this sector and a time when there is a record number of people in receipt of Universal Credit and rising unemployment as a result of the global pandemic, we should be doing all we can to help make managing finances easier.

Contact Sherrelle for offline Universal Credit advice

Sherrelle is an independent consultant and is recommended by Property118 for landlords who require professional advice and assistance in regards to dealing with Universal credit related matters

Share this article

Twitter Facebook LinkedIn

Comments

Lindsay Keith

10:49 AM, 5th June 2020
About 4 months ago

Is this not a simple denial of basic economics? For the very best of reasons, T may say rent is back of queue, well after food on table. But, to put it crudely, that does not need to be best steak and premier cru to go with it? Rent punted to next month's payout, next...?
Common sense suggests to pay rent direct, then T can enjoy perhaps not best steak but (my favourite) shepherd's pie and a glass of decent beer. And the rent never gets a muddling place in the queue?

Mick Roberts

10:54 AM, 5th June 2020
About 4 months ago

She's on another planet.
We need a DWP Secretary/MP who has been there/done it, come up through the ranks, knows it inside out, has talked to Housing Benefit HB who in 2008 was LOVING it that Landlords wasn't going to be paid automatically when LHA came in. Boy, did they change their tune by 2012 when they realised so many tenants were loving this FREE money at the expense of the Taxpayer & FREE holidays to Spain ensued.
HB know how this works but not once have they been asked for advice.
UC know nothing of renting houses. I have Job Centre Managers 2 years after dealing with me & UC & my tenants say 'U can't believe it can u Mick these tenants'. After initially saying 'Why would tenant say she not in arrears?' To them now saying 'We get it now Mick, they say they not in arrears so they can have the FREE rent money'.
I can't believe I've had to educate these responsible people who are in charge of a lot of staff to what me & other HB Landlords view as normal. Everyone is different. Some are tempted. Some aren't.
I've said it 1000 times, What is the worst that can happen if u pay the Landlord direct? Oh, I see, rent gets paid, tenant don't come homeless. Gees these Govt Ministers haven't an ounce of common sense.

David Price

12:26 PM, 5th June 2020
About 4 months ago

Com on Mick get up to date, 30 gm of common sense, although I suppose it does not matter what measuring system you use, common sense is sadly lacking when it coemes to housing. I have yet to see anything which the government has done in the last decade which has improved the situation for tenants or landlords, with the possible exception of the recent increse in Housing Benefit. Too little, too late, and what an admission that claimants have been severely underfunded in the last decade.

Old Mrs Landlord

15:29 PM, 5th June 2020
About 4 months ago

Reply to the comment left by David Price at 05/06/2020 - 12:26
I agree with you David, but was alarmed to read that according to research by the Joseph Rowntree Foundation featured in Property Industry Eye this morning ("A ticking timebomb for the Rental Market") the increase in LHA and UC housing element to the 30th percentile is only a temporary measure.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Winter Economy Plan leaves landlords out in the cold

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More