Eleventh Hour Rent Solution for Landlords

Government officials have set up a temporary solution for social landlords facing delays and confusion over how to handle rent increases under universal credit. Housing associations, councils and the DWP were facing administrative turmoil under the prior arrangements for increasing benefit costs in line with rent increases under the government’s landmark welfare reform policy.  However, DWP officials have notified social landlords of a solution, which will only apply for this year. Landlords had feared they would be left facing benefit payment delays and increased rent arrears. The department is considering a longer term extension. Currently, when social landlords increase rents – usually every April – they inform the local council, which increases the tenant’s housing benefit in line with the rent growth. Read more on Inside Housing.