Freud: UC Switch Will Be Simple For Most – But We Must Prepare Early

The early findings from the DWP Direct Payment Demonstration Projects reveal 54 per cent of tenants surveyed said they were confident receiving their Housing Benefit payment directly to their own bank account.  This shows projects are starting with a good foundation but more work is needed to get tenants ready.  Minister for Welfare Reform Lord Freud said "These findings show most people on low incomes manage their money well and for most tenants the switch to direct payments under Universal Credit will be straightforward.”  So far the key lessons for social housing providers include:

    *Social landlords need to contact and work with tenants early

    *Tenants prefer a range of payment options to take control of the budgets

    *Most tenants prioritise the payment of their rent but some could imagine a situation when their housing benefit could be spent to cover unexpected expenses.

    *People on low incomes often budget on a fortnightly or weekly basis.

    *Accounts that allow customers to separate several 'pots' of money are likely to be helpful.

    *Close working between local authority housing benefit departments and landlords has been crucial for effective implementation.

The Projects are also helping to identify tenants at risk who may not be suitable for direct payments at the start. Read more on the DWP website.