Universal Credit Threatens Eviction Amnesty

Councils that have pledged not to evict tenants who run up arrears as a result of the government’s ‘bedroom tax’ could struggle to keep their promise once universal credit is introduced.  Dundee Council had agreed that no tenant in arrears due to the under-occupation penalty would be evicted if they are doing what they can to avoid falling behind on payments, and several other councils are considering similar promises.  However it has now emerged that such schemes could only last a few months because the introduction of universal credit later in the year could make it impossible to implement. Dundee’s policy will only run until April 2014 with a need to review the policy in nine months because of universal credit, and the level of arrears that the council may build up. Read more on Inside Housing.

Footnote: it is possible the scheme outlined above may not be practicable because: “HB (and LHA) is only paid on the basis that a commercial basis exists, or put simply, if the tenant fails to pay the rent would the landlord evict. If the answer to that is no and the landlord would not evict then the arrangement is not on a 'commercial' basis and the entire HB claim would be disallowed.”