Universal Credit will do more Harm than Good says Tenant Eviction Firm

12 October 2012 Categories: News

Universal Credit will do more Harm than Good says Tenant Eviction Firm

Landlord Assist, one of the biggest tenant eviction and referencing firms in England and Wales, has spoken out about the potential harm that the new Universal Credit benefit scheme will do to landlords in terms of late and missed rent payments.

The new scheme, which is due to be introduced during October 2013, will roll all of a claimant’s benefits into a single payment, so making it easier to keep track of who is being paid what. So for example, a claimant may currently receive income support, housing benefit, council tax benefit and child tax credits as separate payments, however the Universal Credit scheme will see one large payment being made instead.

This means that every private tenant who receives some form of housing benefit will be responsible for their rent payments, even in cases where a tenant is already in arrears. Landlord Assist believes that for some tenants the temptation not to pay their rent will become too much, and it is only landlords that will suffer.

Commercial director at Landlord Assist, Stephen Parry, said “We are concerned that claimants may struggle to budget for monthly rather than weekly or fortnightly payments, and this will lead to situations where many will spend housing benefit payments at the start of the month on costs other than the rent, leading to increased arrears a landlords and evictions.”