New Tenant Rules for Universal Credit

The government is introducing new rules that would allow housing associations to help prevent tenants claiming universal credit from falling into arrears. The DWP will be rolling out a pilot undertaken by Golden Gates Housing Trust, in which job centres can seek permission from tenants to inform their social landlord if they make a new claim for universal credit, across England. Under the Golden Gates pilot, when someone makes a new claim for universal credit they are asked by the job centre to take a form to their landlord to verify their housing costs or to give consent for the job centre to contact the landlord. Read more on Inside Housing.

Universal Credit’s Disastrous Figures for Social Landlords and Social Housing

Recently, there was an article in the Independent about the first year of Universal Credit in Warrington entitled Universal Credit isn’t working. The reason I am commenting here is that I suspect THE major issue has been missed although stated in the article – the cost to landlords of about £1300 per tenant per year. Yes I did say £1300 per tenant per year!…oUCh! oUCh! oUCh!

Peter Fitzhenry Director of Golden Gates Housing  was rightfully scathing over the policy and the article featured:-

Payments have been so haphazard that 92 per cent of those on Golden Gate’s books using the new benefit are in rent arrears, and two have been evicted since moving on to it.

Because of the small scale of the pilot, only 40 of Golden Gate’s 8,700 tenants are on universal credit, but the housing trust has had to dedicate two full-time staff to chasing DWP payments for those on it. Whoa!….40 tenants on UC  yet the landlord has needed to take on TWO ADDITIONAL FULL TIME MEMBERS OF STAFF TO DEAL WITH THIS. Read more on the Speye blog.