Council Gives Advance Rent To Landlords Backing Homelessness Scheme

Private landlords are to be given a month’s rent upfront and 12 months’ membership of a trade body if they sign up to a local council’s new scheme to combat homelessness. The scheme, run by Stroud council, is similar in principle to others that exist - the landlord agrees that the council lets their property to a homeless or vulnerable tenant in return for a guaranteed rent, and the pledge that the property will be returned to the landlord in the same condition at the end of the tenancy. Read more on the Letting Agent Today website.

https://www.lettingagenttoday.co.uk/breaking-news/2019/9/council-gives-advance-rent-to-landlords-backing-homelessness-scheme

Letting Agent 'Demanding Money To View Properties'

A letting agency has been demanding hundreds of pounds in payment before prospective tenants are allowed to view properties for rent. The practice, by Flintons, breaches guidelines and could be unlawful. Shadow housing minister Melanie Onn said renters needed more rights and the case was the "tip of the iceberg". Flintons, in London, denied any wrongdoing and said it did not charge any fees for viewings. Read more on the BBC website.

https://www.bbc.co.uk/news/business-46111015

Universal Credit – Parliamentary Written Answer

David Simpson: To ask the Secretary of State for Work and Pensions, how many claimants of universal credit have accepted an advance payment of that benefit.

Alok Sharma: Our latest national internal data for number of advances awarded indicates that, for eligible new claims to Universal Credit Full Service that were due a first payment in January 2018, 60% received either a ‘new claim’ or ‘benefit transfer’ advance.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2018-06-05/149983

Committee Publishes 'Damning' New Universal Credit Evidence

Commons Select Committee Chair Frank Field MP calls evidence submitted to the Committee by Halton Housing Trust the "most damning" he has ever read on what he describes as DWP "maladministration."  The Trust has accumulated over £400,000 of arrears as a direct result of the rollout of Full Service Universal Credit. This means that just 18% of its tenants owe 55% of all its arrears. Over the last 12 months the number of referrals the Trust has made to local food banks has more than doubled. Those claimants who were offered Advance Payments were offered a New Claims Advance that had to be paid back within 6 months: the submission details the even bigger financial problems this caused for families. Read more on the Parliament website.

DWP Guidance On Advance Payments

The DWP has issued revised guidance on advance payments to claimants of Universal Credit. Download it from the DWP website.

Universal Credit – Parliamentary Written Answer

Steve McCabe: To ask the Secretary of State for Work and Pensions, what assessment he has made of the effect of further advanced payment loans on financial security in cases were the universal credit recipients roll-out has caused financial hardship.

Damian Hinds: Advances of Universal Credit are advance payments which are then recovered over an agreed period. They are in place to ensure those in need are able to receive financial support and are not reliant on illegal and high-cost lenders. Advances are recovered over a maximum of six months, although exceptionally this period could be deferred by up to three months to prevent hardship. No interest is charged.

Universal Credit – Parliamentary Written Answer

Frank Field: To ask the Secretary of State for Work and Pensions, what proportion of people repaying a universal credit advance are asked to repay within (a) three and (b) six months; how many of those people have other sums deducted from their monthly payment; and in how many of those cases that total deduction exceeds the maximum recommended amount.

Damian Hinds: Claimants choose the periods of repayment. Some 77% of claimants have chosen to repay in 6 months and 8% within 3 months. Deductions for arrears are made in a priority order and can never exceed 40% of the personal allowance.

Universal Credit Rollout Going Ahead As Planned

Work and pensions secretary David Gauke has suggested that the universal credit rollout will continue despite warnings from Conservative colleagues that the social security system overhaul should be delayed. A dozen Tory MPs have raised concerns with Gauke’s department that claimants were being forced to use food banks because of the mandatory six-week wait to receive money. Speaking at a Conservative conference fringe event, Gauke gave a clear hint there would be no delay in the rollout, suggesting people needed to be more aware that they could claim emergency advance payments instead of waiting for six weeks. Read more on the Observer website.

Universal Credit - Parliamentary Written Answer

Stephen Timms:  To ask the Secretary of State for Work and Pensions, how long it takes for the average claimant to receive a first payment of universal credit from the time they became unemployed in those areas where universal credit has been introduced.

Priti Patel: Universal Credit entitlement is assessed and paid in arrears. Payment is made on a fixed date 7 days after the end of the monthly assessment period. Where a claimant’s earnings or income is insufficient to meet their living costs and in order to safeguard against financial hardship before the first UC payment, an advance payment of up to 50% of their UC award may be made. Personal Budgeting Support advice is also available to all claimants.