NFA Floats Switch To Monthly Rent Collection

The National Federation of ALMOs (NFA) is gathering the views of its members on moving from weekly to monthly rent collection. This is in response to research which found more than a third of tenants on Universal Credit are in rent arrears. The six-week waiting period before a tenant receives their first payment was cited as “frequently a factor” for causing arrears. Although Universal Credit is paid monthly, most social landlords collect rent weekly. Following a meeting with Lord Freud, minister for welfare reform, the NFA has said it will consult its ALMO members to find out if they would support moving from weekly to monthly rent collection to bring Universal Credit and rent payments in line. Any final decision on changes to rent collection would be up to individual local authorities. Read more on Inside Housing.

Almost Four Million Families Could Be Just One Paycheque Away From Losing Their Home

Millions of working families in the UK could not pay their rent or mortgage for more than a month if they lost their job, according to new figures from Shelter. A survey of working adults who pay rent or a mortgage found that, with little or no savings to fall back on, 3.8 million families could be just one paycheque away from losing their home. Worryingly the research also found that more than a third of families would not be able to make their next rent or mortgage payment if they were to lose their job this month. Mirroring Shelter’s research are the latest government figures on savings, which reveal that 15 million working age adults in the UK have no savings at all. Read more on the Shelter website.

Claimants Could Keep Fortnightly UC Payments for Two Years

Welfare reform minister Lord Freud says Universal Credit claimants could keep fortnightly payments for up to two years with their cases reviewed periodically.  Delivering a speech at the Centre for Responsible Credit Annual Conference the minister said the Government was still developing guidance on exceptions to monthly payments – following concerns claimants would struggle to move from fortnightly payments.  Lord Freud said: “Some claimants could be made an exception to the Universal Credit monthly payment rule for a period of time, whilst they tackle their debts and learn to manage their finances better. Our guidance on exceptions to monthly payments is still being developed but the most likely scenario is that claimants’ financial circumstances will be reviewed periodically on a case by case basis, with a minimum and maximum review period - ranging from six months and two years.”  Read more on 24dash.