Monday 18 August 2014

Housing Associations Urge Benefit Claimants to Pay Extra Rent In Advance

People on benefits are being told by housing associations to make extra rent payments in advance from now on, to avoid ending up in financial difficulties and then in court once they are transferred to the new system of universal credit.  The instructions to people on housing benefit, which are causing alarm among tenants and charities, reflect concern among housing providers that people will default on payments when they have to pay rent themselves, a month in advance, under the new system.  The Town and Country housing association, which provides 9,000 affordable homes in 22 local authority areas has told its tenants who receive housing benefit to hand over £14.60 extra a month until they are a month in credit, so they can meet the first rent payment once they are on universal credit. If they do not, their tenancies could be in doubt. Read more on the Observer website.

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