Universal Credit cuts hit landlords

Universal Credit cuts hit landlords

9:03 AM, 21st January 2022, About 4 months ago 3

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9% of private landlords renting to Universal Credit claimants have experienced at least one tenant having difficulties paying their rent post the Government cut to Universal Credit by £20 a week following a temporary increase in response to the pandemic.

Following this announcement, a new YouGov poll of private landlords across England and Wales for the National Residential Landlords Association shows the extent of the cut’s impact on tenants in receipt of benefits.

According to official statistics, of those private rented households in England and Wales receiving support through Universal Credit to pay their rent, 55% had a gap between the support they received and their rent payments.

The NRLA is warning that this will only become worse as a result of the Government’s decision last year to freeze in cash terms housing cost support.  As a result, in the years ahead the level of benefit support available will be able to cover the rent on ever fewer numbers of properties.

As many households face a cost-of-living crisis, the NRLA argues that a benefits system which property supports tenants is of critical importance. To that end, it is calling on the Government to reverse its damaging decision to freeze the Local Housing Allowance rate and ensure it properly reflects market rents.

 Ben Beadle, Chief Executive of the National Residential Landlords Association, said: “Benefit payments are failing to give tenants or landlords confidence that they will be able to cover rents. This basic problem lies at the heart of a broken system in desperate need of reform.

“With households facing a cost-of-living squeeze, it is vital that the benefits system gives the protection that tenants deserve. That is why the Chancellor needs to end the housing benefit freeze as a matter of urgency. Without this many tenants and landlords face an uncertain future about how to keep tenancies going.”



Comments

by nekillim200

14:24 PM, 21st January 2022, About 4 months ago

That is a surprise !!!! Not!

by Monty Bodkin

16:29 PM, 21st January 2022, About 4 months ago

And they claim "No DSS" is discrimination.

by Old Mrs Landlord

15:57 PM, 23rd January 2022, About 4 months ago

There's never any mention of the tenants who have not been migrated to UC and still receive the old LHA from the local authority. For them there never was any additional £20 to lose so they have always been in a worse position, though at least they have escaped the problems inherent in the DWP's system of administration of benefits.


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