Wednesday, 21 September 2011

Direct Payments Dropped If Tenant in Arrears

Housing benefit payments will be switched to landlords if tenants fall into arrears once the universal credit is introduced. Welfare minister Lord Freud unveiled the move at the National Housing Federation’s annual conference, and announced a series of demonstration projects that will test how the new approach will work. Universal credit, which will combine various welfare payments including housing benefit into one sum, will be paid direct to tenants. At present many tenants have their housing benefit paid to their landlords, and there have been concerns in the housing sector that the switch to universal credit could result in an increase in arrears. Read more on the NHF website.

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