Monday, 17 August 2015

Landlords Use Little-Known Regulation to Swerve Bedroom Tax

Social landlords are understood to be using a little-known Universal Credit regulation to protect their income from the impact of the bedroom tax. A number of landlords have spotted a clause in complex benefit regulations that allows them to collect the rent shortfall resulting from the bedroom tax for tenants in arrears.  Using the regulation alongside an ‘alternative payment arrangement’ (APA) means landlords can receive the full gross rent, without a bedroom tax deduction. The move does not protect tenants from the bedroom tax, as the money is still deducted from their overall Universal Credit award. But it means that landlords do not have to collect the shortfall in benefit from the affected tenants. Read more on Inside Housing.

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