Friday, 22 February 2013

Universal Credit: More Tenants Face Eviction and Rent Arrears

More housing benefit claimants will fall into arrears and face eviction as a result of the shift to monthly direct payments under Universal Credit, findings from a pilot scheme set up to test the proposed reforms suggest.  Southwark council, which is one of six areas piloting the change, says that arrears have soared since it started testing direct payments. It is advising ministers that however laudable the ideals, in practice the policy could be disastrous for many vulnerable tenants, and could leave landlords handling debts of millions of pounds.  Southwark found that of out of 850 tenants on the pilot, which started in July, 10% have had to have their housing benefit payment switched back to the landlord because they found it difficult to keep up with rent payments.  Read more on the Guardian website.

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