‘Cull Claimants’ Comments Overshadow End Of Benefits Freeze

As a Tory candidate is exposed calling for a ‘cull’ of benefit claimants, government is slammed for cynicism in confirming the widely expected end of the benefits freeze ahead of a general election. The announcement of the thaw found a frosty reception when set against would-be Gower MP Francesca O’Brien saying the claimants she saw on TV’s Benefits Street should be ‘put down’.  O’Brien’s Facebook comments have still to be condemned by the government as pressure increases for her to be removed as a candidate for the marginal seat she was selected for last month. O’Brien wrote in January 2014: “Benefit Street..anyone else watching this??  My blood is boiling, these people need putting down.” Read more on 24housing.

https://www.24housing.co.uk/news/cull-claimants-comments-overshadow-end-of-benefits-freeze/

UK Housing Crisis Deepens As Benefit Claimants Priced Out By High Rents

Britain’s housing crisis has hit a new low with not one of the single rooms available for private rent in large parts of London and Greater Manchester within the budget of people on housing benefit. None of 87 rooms for rent in outer south-west London – which includes areas such as Feltham and Hanworth – were affordable for people relying on local housing allowance (LHA) and neither were any of the rooms in the southern Greater Manchester area, including Stockport and Wythenshawe, according to analysis of official 2018 data by London Councils, the local government association for the capital. Read more on the Observer website.

https://www.theguardian.com/society/2019/jul/07/uk-housing-crisis-deepens-as-benefit-claimants-priced-out-by-high-rents

MPs Hear Evidence On 'No DSS' Adverts

The Work and Pensions Select Committee heard from three panels of witnesses on the subject of the ‘No DSS’ adverts in the private rented sector. The Committee, made up of cross-party MPs, questioned industry experts, consumers and representatives of mortgage providers. In a response to media reports in late 2018 that mortgage lenders were restricting buy-to-let landlords from letting their properties to tenants in receipt of benefit, the Committee began the inquiry into No DSS: discrimination against benefit claimants in the housing sector in March 2019. Read more on the ARLA website.

https://www.arla.co.uk/news/may-2019/mps-hear-evidence-on-no-dss-adverts/

Most Buy-To-Let Lenders Refuse Loans When Tenants Are On Benefits

Urgent action is needed to tackle discrimination against benefit claimants by mortgage providers, according to the Residential Landlords Association (RLA), which has found lenders representing 90% of the buy-to-let market refuse a loan where a tenant is on housing benefit. Research carried out by the RLA’s mortgage consultants found that two-thirds of lenders representing 90% of the buy-to-let market did not allow properties to be rented out to those in receipt of housing benefit. About 4.2 million people in the UK claim housing benefit. The RLA has called on the government to use the influence it has in banks in which it has shares to end these discriminatory practices. Read more on the Guardian website.

https://www.theguardian.com/money/2018/oct/21/buy-to-let-90-percent-of-lenders-refuse-loans-to-benefit-claimants

‘True Impact’ Of Universal Credit On The Rental Market

Research finds 73% of landlords still lack confidence in renting to tenants on the benefit due to uncertainty that they will be able to recover rent arrears. Brandon Taylor from Lowestoft provides homes to rent to around 130 Universal Credit claimants, of which 70% are struggling to pay their rent in full and on time. In one extreme case, a tenant who was on Universal Credit accrued £2,848 in rent arrears. When he has applied for Alternative Payment Arrangements, Taylor has found requests to the DWP have been ignored. Taylor warns that landlord confidence in UC has been damaged and that it will take years to regain that confidence back. Read more on 24housing.

Gap Between LHA And Cheapest Rents Making Housing Unaffordable For Under-35s

The gap between Local Housing Allowance (LHA) rates and rents has widened to the point where private rented housing is “out of reach” for under-35s. This is the finding from the latest research into LHA rates by the CIH, which focused on areas with the biggest gap between the set rate and actual market rents. LHA rates should allow applicants to claim enough benefit to pay the rent on a home in the cheapest 30% of the private rented sector. But the CIH’s research found that in 46 areas, less than a quarter of private rented properties are affordable to young benefit claimants. Read more on Inside Housing.

Housing Scam Reaps Millions

Thousands of unemployed benefit claimants are being “warehoused” in small rooms in terraced houses that landlords are presenting as flats in order to obtain the highest possible housing benefit, a Sunday Times investigation has revealed. Council officials say the bogus flats, which have been found in London, the West Midlands and Leeds, are costing taxpayers tens of millions of pounds in wasted housing benefits. A two-bedroom terraced house can be divided into up to six rooms with lavatories without planning permission. Landlords say the units are single rooms for the purposes of avoiding planning enforcement, yet insist they are flats when claiming housing benefit.  Read more on the Sunday Times website.

Universal Credit Flaws Pushing Claimants Towards Debt And Eviction

Thousands of benefit claimants are facing debt, rent arrears and eviction as a result of policy design flaws in universal credit, according to landlords and politicians, who are demanding an overhaul of the system. They have warned that UC rules that require claimants to wait at least six weeks for a first benefit payment mean many are going without basic living essentials, forcing them to turn to food banks and loan sharks. Ministers are being urged to slow down the national rollout and to increase support for vulnerable claimants who are struggling to cope with the demands of monthly payments and an increasingly online-only system. Read more on the Guardian website.

Landlords Slam ‘Shambolic’ Universal Credit Scheme

Universal Credit payments could have a disastrous impact on the Private Rented Sector, with more and more landlords saying they will refuse to rent to tenants on benefits. Research carried out by the Residential Landlords Association showed that landlords are frustrated with the new system, which sees benefits paid directly to claimants, who are then responsible for paying their own bills, including rent. Landlords have criticised the way the DWP has handled their enquiries and say that the process for requesting direct payments from the Government is too long. The transfer from Local Housing Allowance to Universal Credit has also been slammed, with complaints about missing and delayed payments leaving tenants in arrears. In fact the problems are so extreme many landlords say they will no longer rent to any benefit claimants. Read more on the RLA website.

Sanctions Link to One in Five Benefit Claimant Deaths

One in five benefit claimants whose deaths were subject to official reviews had been sanctioned by the DWP, it has been revealed. In response to a freedom of information request from Anita Bellows, a researcher with Disabled People Against Cuts, the DWP admitted that of the 49 peer reviews carried out into benefit claimant deaths, 10 had received a sanction "at some point in their claim". At the same time as the response to the freedom of information request was published, the DWP issued a press release showing how the number of benefit sanctions issued against claimants had gone down. Read more on 24dash.

Get a Free Council House for Coming off Benefits

Millions of houses would be “given away” to low-paid workers under Tory plans to reward people who come off benefits. Iain Duncan Smith, the work and pensions secretary, is pushing for a pledge to “gift” tenants their council home after a year in work to be included in the Tory manifesto. Such tenants would cease to be eligible for housing benefit and would have to pay 35 per cent of the sale proceeds in tax if they sold their property within three years, according to one model under discussion. Read more on the New Statesman website.

Tenant Anger over Plan to Share Personal Details

Plans to share a host of data on benefit claimants, including health records and IT literacy, with landlords and charities have been condemned by a national tenant organisation. Michael Gelling, chair of TAROE, said the government’s proposals for Universal credit claimants went ‘too far’ and were ‘very, very dangerous’. The DWP is consulting until 12 January on measures to allow sharing of information about claimants between the department, councils, housing associations, Citizens Advice bureaux, credit unions and charities. This is to enable organisations to provide support to claimants to stop them falling into arrears or struggling with debt. Data to be shared includes details of debts, benefits, health conditions, qualifications, and level of digital skills. Read more on Inside Housing.

IDS Goes After Benefit Fraudsters, But What About These 3 Bigger Costs To The Taxpayer?

Iain Duncan Smith's DWP has launched a new advertising campaign encouraging people to phone a hotline if they suspect somebody they know is fraudulently claiming benefits. The government estimates that £1.1 billion is lost a year due to benefit fraud. However, there are three other issues that, from the government's own figures, are bigger problems;

·         The tax gap, charting the estimated amount of taxes unpaid thanks to evasion, avoidance, error and criminality, soared to £34 billion

·         £1.4 billion in benefit overpayments, an increase of nearly 6%

·         Unclaimed tax credits, with childless families missing out on £2.3 billion worth.

Read more on the Huffington Post website.

Housing Associations Urge Benefit Claimants to Pay Extra Rent In Advance

People on benefits are being told by housing associations to make extra rent payments in advance from now on, to avoid ending up in financial difficulties and then in court once they are transferred to the new system of universal credit.  The instructions to people on housing benefit, which are causing alarm among tenants and charities, reflect concern among housing providers that people will default on payments when they have to pay rent themselves, a month in advance, under the new system.  The Town and Country housing association, which provides 9,000 affordable homes in 22 local authority areas has told its tenants who receive housing benefit to hand over £14.60 extra a month until they are a month in credit, so they can meet the first rent payment once they are on universal credit. If they do not, their tenancies could be in doubt. Read more on the Observer website.

Majority of UK Landlords Reject Tenants on Benefits

New research shows that eight out of 10 landlords in the UK refuse tenants whose rent is paid by local authorities with just 18% happy to let to this group. The study, conducted by the Online Letting Agents, also reveals that 82% of landlords believe LHA tenants do not care for the property in the same way as private tenants and 80% believe that LHA tenants are much more unreliable than private tenants, when it comes to rent arrears. ‘Growing numbers of the 1.4 million private landlords in Britain are increasingly refusing to let property to tenants on benefits. Mortgage lenders and insurers are also growing wary,’ said Eleanor Carroll, director of the Online Letting Agents. Read more on the Property Wire website.

Sanctions and Homelessness

The government has published statistics revealing the number of sanctions imposed on benefit claimants, but what do these statistics tell us and what is the impact on homeless people?  The number of people being sanctioned during the first three quarters of 2013 rose steadily. Although numbers dipped slightly in Q4 2013, figures were still 7% higher amongst Jobseeker’s Allowance (JSA) claimants than Q4 2012. The most notable increase has been amongst Employment Support Allowance claimants, which was 188% higher in Q4 2013 compared to Q4 2012. These figures show that sanctions are affecting a growing number of claimants. This is particularly concerning for homeless people, as research has shown that they are more likely to be sanctioned than the general population. Read more on the Homeless Link website.

Smith Defends Welfare Reforms

The work and pensions secretary has defended changes to the welfare system, including disability benefit reforms. Iain Duncan Smith said the raft of changes should save the taxpayer £50bn by the end of this Parliament. He said the reforms - including tougher criteria for people seeking disability allowances - would "help and benefit" those who wanted to return to work. The Disabilities Trust charity said the reforms were part of a "triple whammy" of factors hitting disabled people. Speaking on BBC One's Andrew Marr Show, Mr Duncan Smith said the new regime would see disabled benefits claimants assessed on a regular basis to determine whether they need more support with their ailments or help to get work. Read more on the BBC website.

Top Tips for Letting to Benefits Tenants

Britain's welfare reforms have been accompanied by a fair amount of bad press. Criticisms of wasted millions, poor value for money and abandoned targets have left many landlords (and tenants) worried and sceptical. Paying rent to the tenant rather than directly to the landlord has led to a significant drop in the number of landlords willing to let to tenants on benefits. Landlords need to know that there are options open to them before a blanket ban of benefits tenants. Actions a landlord can take include,

1. If currently letting to a tenant on benefits, talk to them about it. One survey found that 86% of social tenants believe "strongly" that it is better for housing benefit to be paid directly to the landlord.

2. Consider making the setting-up of a direct debit for rent a condition of the tenancy agreement.

3. Make the day rent is due close to the day the tenant receives their universal credit.

Read more on the Mortgage Solutions website.

£50m More for Claimants Hit By Bedroom Tax – in London

The Government has promised more than £50 million extra to help London benefit claimants affected by the so-called "bedroom tax".  But ministers said they were determined to push on with the reform, which they claim is needed to unclog the social housing system. To drive home their point they gave out figures showing how hundreds of thousands of London families are either living in cramped homes or languishing on council waiting lists. The extra £51.6 million comes on top of £56.6 million being spent this year to ease tenants’ moves into more suitably sized properties. Read more on the Evening Standard website.

Social Landlord's Survey Reveals Tenants' Issues

One of England's biggest social landlords has revealed the results of a tenant survey that was designed to find out about the issues affecting residents' lives. Affinity Sutton says its findings offer key insights into the challenges tenants are facing. The report reveals that:

·         Internet access amongst tenants has increased from 69% in 2012 to 74% in 2013, still below the national figure of 83%.

·         72% of those in receipt of benefits (other than pensions) were unaware of the introduction of universal credit in 2012. In 2013 the figure fell to 38%.

·         43% of tenants used prepayment meters to pay for energy, the most expensive way to pay for energy, compared to 14% and 16% UK-wide for gas and electricity respectively.

Read more on 24dash.