Friday, 11 November 2011

Landlords and Tenants Quiz DWP on Direct Benefit Payments

Social landlords and tenants were given an opportunity to voice their Universal Credit concerns to the Department for Work and Pensions (DWP) at a seminar in Manchester. The bulk of Universal Credit claims will be made online with claimants likely to be paid calendar monthly in arrears. The Government has said certain groups will continue to see their benefit paid directly to their landlord, such as pensioners and “vulnerable people”. It has previously estimated the latter to stand at around 10% of social housing tenants. At the event the DWP said that the proportion of vulnerable tenants was “likely to be higher” than the 10% estimated and that the department was close to defining the criteria that would class a tenant as vulnerable. A spokeswoman said the department was weighing up a decision to either define it in "black and white terms" so it could be automated during the claim, or whether it would leave it to human discretion - i.e. for social landlords or the Government to apply. She also said the Government was considering whether to financially support tenants with transitional payments – either via loans or grants – in the first month of their claim, as Universal Credit is “likely to be paid monthly in arrears”. Almost every landlord at the event said directing payments to tenants would see them having to increase their rent collection teams at an added cost. Read more on 24dash.

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