Housing associations will be put at financial risk from
the direct payment of housing costs to tenants under universal credit, the DWP’s
own research has revealed. The final report into the Direct Payment
Demonstration Projects calls for "mitigating action to be taken"
after analysis showed that tenant arrears had risen, on average, by 33% during
the migration process onto the new benefit system. While the amount of rent owed dramatically
reduced over time, the report concluded that direct payments "did have a
financial impact on landlords" with a total of £1.9 million of rent owed
to the six participating landlords at the end of the 18-month study period.
Download the report from the DWP website.
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