Friday, 30 May 2014

New DWP Proposal Will Trap People in Their Homes, and in Debt.

New DWP proposals to protect landlords’ rental incomes are in danger of trapping people in their homes, creating a modern day version of a debtor’s prison.  Last year Lord Freud committed to protecting landlords’ rental incomes under Universal Credit by proposing that tenants in rent arrears have 40% of their core benefits deducted until rent arrears are cleared – that’s 40% taken from JSA, Income Support or  Standard Allowance under Universal Credit. DWP have not put forward a rationale for the 40% rate. But the 40% rate should definitely ring a bell, because it’s the same punishing rate people are sanctioned by if Jobcentre Plus decide they aren’t trying hard enough to get a job. So is it the case that people in rent arrears simply aren’t trying hard enough to pay their rent? Read more on the Shelter website.

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