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.
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