Tuesday, 18 June 2013

Universal Credit Docked To Recover Rent Arrears

A mechanism to automatically recover rent arrears is to be introduced alongside the direct payment of housing benefit to tenants. Details released by the government explain that under its universal credit reform landlords will be able to contact the DWP to request benefits designed to cover housing costs are paid to them once a prescribed level of rent arrears is reached.

At this point the department will also start to recover the arrears by docking universal credit payments.  In its response to a select committee report on the implementation of universal credit, the government says deductions can be up to 5 per cent under existing laws, but it ‘is considering whether this level is appropriate for universal credit, or if it should be increased in the future’.  Download a copy of the government’s response from the DWP website.

No comments: