Rent Arrears ‘Much Worse Than Feared’ Ahead Of UK Cost Of Living Crisis

 The number of universal credit claimants at least two months behind on rent soared by 70 per cent in the first half of this year, according to new analysis. Official figures show around 190,000 people in England who receive universal credit were in severe rent arrears by May this year. This compares to just over 110,000 people at least two months late on rent payments as of December 2020. This does not take into account people who have been behind on their rent for just one month or those who have fallen into arrears since May. Read more on the Big Issue website.

https://www.bigissue.com/news/housing/rent-arrears-much-worse-than-feared-ahead-of-uk-cost-of-living-crisis/

Universal Credit Cut ‘Puts 100,000 Renters At Risk Of Homelessness’

THOUSANDS of renters could be made homeless due to the £20 cut to Universal Credit, a housing charity has warned. More than 100,000 low income people in England will be at least two months behind on their rent when the benefit is reduced. Research by Crisis found that the cut, which coincides with the end of other financial support schemes, could be a disaster for thousands of families who rent their homes. Universal Credit was boosted by an extra £20 a week during the pandemic, amounting to £1,040 a year. Read more on the Sun website.

https://www.thesun.co.uk/money/16309553/universal-credit-renters-risk-homelessness-your-rights/ 

Government Must Tackle Rent Debt Crisis

Propertymark, along with other organisations, has called on the Government to complete and publish a full assessment on how its decision to freeze Local Housing Allowance and cut Universal Credit has impacted renters. During the pandemic, the Government took steps to prevent a housing debt crisis – which included the restoration of LHA rates and increasing the UC Personal Allowance. However, the number of private rented households in receipt of UC increased by almost 107 per cent between February 2020 and February 2021. Additionally, the Government confirmed that where households are struggling to make ends meet they have an average £100 per month gap between the housing support received and the rent they must pay. Read more on the NRLA website.

https://www.nrla.org.uk/news/warning-issued-over-impact-of-benefit-cuts-on-renters 

Four In Five Social Housing Tenants On Universal Credit Struggle To Pay For Essentials

Four out of five social housing residents (79%) claiming Universal Credit have struggled to pay for at least one essential item such as heating, council tax or clothes, a survey has found. Nearly half (43%) have struggled to afford food, according to the National Housing Federation (NHF) study, which it claims is the largest of its kind to date. As well as reporting difficulties meeting basic living costs, 84% of respondents said they had borrowed money from friends and family, applied for loans or visited food banks while claiming the benefit. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/four-in-five-social-housing-tenants-on-universal-credit-struggle-to-pay-for-essentials-71967?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60 

HA Rent Arrears Could Rise By £330m After Universal Credit Switchover

 Rent arrears among housing association tenants in England could rise by £330m after the switchover from legacy benefits to Universal Credit is complete, the National Housing Federation (NHF) has warned. A survey of housing associations found that the number of tenants claiming Universal Credit for help with their rent costs increased by 83% between June 2019 and September 2020 amid the coronavirus pandemic. The increase means households claiming Universal Credit accounted for 28% of all occupied general needs homes owned by housing associations as of September last year. Of these, 60% had fallen behind on rent compared with 36% paying by other means including housing benefit. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/housing-association-rent-arrears-could-rise-by-330m-after-universal-credit-switchover-nhf-warns-70420?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

DWP Abandons Universal Credit Rent Change ‘Bulk Uploads’

Ministers have abandoned plans to allow social landlords to update the DWP about changes to tenants’ rents in bulk after testing the system for 18 months. The ‘bulk upload’ system, intended to save providers the massive administrative task of verifying each tenants’ rent change individually, has been deemed unsuitable for deployment across the sector. Housing associations have said the news is “disappointing”. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/dwp-abandons-universal-credit-rent-change-bulk-uploads-69441#:~:text=DWP%20abandons%20Universal%20Credit%20rent%20change%20'bulk%20uploads',-News05.02.21&text=The%20'bulk%20upload'%20system%2C,the%20news%20is%20%E2%80%9Cdisappointing%E2%80%9D

Universal Credit: Housing – Parliamentary Written Answer

 Lord Bird: To ask Her Majesty's Government what plans they have to ensure that the Universal Credit housing allocation adequately supports recipients to pay their rent.

Baroness Stedman-Scott: In April we increased Local Housing Allowance (LHA) rates so that they cover 30 per cent of local rents in the Private Rented Sector. This significant investment of almost £1 billion will mean over one million households will see an increase, on average, of £600 this year. A decision on LHA rates from April 2021 will be taken prior to the start of the financial year. For those living in the Social Rented Sector, maximum housing costs support is based on actual rent and eligible service charges less any deductions for under-occupation. For those who require additional support Discretionary Housing Payments (DHPs) are available.  http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Lords/2020-10-21/HL9408

Half A Million Tenants In The UK Battle To Pay Rent Due To Benefit Cap

Almost half a million low-income tenants who are claiming universal credit – many of whom were forced to apply for the benefit during the pandemic – are struggling to pay rent because it only covers the cheapest third of rents in each part of the country. New analysis by Generation Rent suggests 474,000 tenants in the UK currently face a shortfall between their universal credit housing payments and their actual market rents, including 91,904 people in the north west of England which has particularly badly hit by coronavirus. Read more on the Observer website.

https://www.theguardian.com/world/2020/nov/01/half-a-million-tenants-in-the-uk-battle-to-pay-rent-due-to-benefit-cap

DWP Spent Nearly £200,000 Fighting Single Mothers Over Universal Credit Change

In June, the Court of Appeal ruled that Universal Credit payment period regulations that caused some working claimants’ benefit awards to fluctuate wildly from month to month were “irrational” and “unlawful”. Effectively, the bug meant that claimants were treated as having earned double if they received two pay cheques in the same monthly Universal Credit assessment period and nothing if they did not get paid the next month. In response to a Freedom of Information Act request, the DWP said it spent £188,190.82 fighting the cases. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/dwp-spent-nearly-200000-fighting-single-mothers-over-universal-credit-change-68315#:~:text=DWP%20spent%20nearly%20%C2%A3200%2C000%20fighting%20single%20mothers%20over%20Universal%20Credit%20change,-News26%2F10&text=In%20June%2C%20the%20Court%20of,irrational%E2%80%9D%20and%20%E2%80%9Cunlawful%E2%80%9D.

Universal Credit Change For Social Landlords To Be Introduced

Universal Credit systems will be changed so that social landlords receive direct rent payments on the same day that tenants are paid the rest of their benefits from next month, the government has announced. The change is expected to save housing associations and councils thousands of hours in administrative work. Some Universal Credit claimants – usually those struggling to pay their rent – agree to have the housing cost element of their benefit entitlements paid directly to their landlords, rather than into their personal bank accounts as is standard. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/admin-saving-universal-credit-change-for-social-landlords-to-be-introduced-next-month-67123?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Universal Credit Rent Arrears Deductions Suspended

Third-party deductions – which see Universal Credit claimants have money they owe taken directly from their monthly benefit awards – have been halted until 10 May. The move is intended to help streamline the Universal Credit system amid huge demand arising from the impacts of the coronavirus crisis. Deductions for rent arrears, service charge arrears and council tax arrears will not be taken during the pause. Claims in which rent is paid directly to landlords through Alternative Payment Arrangements are not affected by the change. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/universal-credit-rent-arrears-deductions-suspended-66228?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Budget 2020: Housing Measures At A Glance

·         A new Affordable Homes Programme of £12bn

·         A £1bn Building Safety Fund to remove unsafe cladding from buildings

·         £650m of funding to help rough sleepers into permanent accommodation

·         £400m for ambitious regional mayors to build homes on brownfield sites

·         Promise to announce measures to change the planning system tomorrow

·         A 1% cut on the Public Works Loan Board interest rate, used by local authorities to fund housebuilding

·         A temporary removal of the minimum income floor (which calculates assumed earnings for self-employed people) in Universal Credit as part of the government’s response to coronavirus

·         £200m for communities in areas that repeatedly flood

Read more on Inside Housing.

https://www.insidehousing.co.uk/insight/budget-2020-the-housing-bits-of-sunaks-speech-in-full-65395?utm_source=Ocean%20Media%20Group&utm_medium=email&utm_campaign=11390639_IH-BUDGET-SPECIAL-11-3-2020-GR&dm_i=1HH2,6S52N,8CKJV9,R4PA8,1

£12m A Year On Tackling Housing Benefit Fraud

The government has announced extra cash to help local authorities crack down on housing benefit fraud and error, as part of the housing announcements in the Budget. Council resources to tackle fraud and error associated with the benefit will be bolstered by an extra £12m a year. But the Office for Budget Responsibility (OBR) said the policy is likely to see “diminishing returns”. The OBR noted that housing benefit is being replaced by Universal Credit for working-age claimants but government is providing the same funding – £12m – each year, despite fewer people claiming housing benefit as a result of the switch. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/government-to-spend-12m-a-year-on-tackling-housing-benefit-fraud-65394?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Universal Credit: Landlord Guidance Update

The Department for Work and Pensions (DWP) has refreshed the guidance on Universal Credit to help landlords understand how to manage tenants who are reliant on the payments in order to meet their rental obligations. The guidance provides landlords with a summarised overview of how they can navigate issues relating to Managed Payment to Landlord (MPTL), Discretionary Housing Payments (DHP) and recovering rents arrears from a Universal Credit claim. For landlords, the guide is a one-stop shop that can help them deal with issues that can arise from different stages of a tenancy and it signposts them to various resources that can help them support their tenants. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/universal-credit-landlord-guidance-update

Benefits Cap Affects 77,000 Households

The Department for Work and Pensions has published the figures for households that have had their benefits capped between 15th April 2013 and November 2019. In total:

·         77,000 households had their benefits capped: 37,000 had Housing Benefit capped and 40,000 had Universal Credit capped at November 2019.

·         3,000 fewer households had their benefits capped: 6,600 (15%) fewer households had Housing Benefit capped, whilst 3,600 (10%) more households had Universal Credit capped at November 2019 compared to August 2019.

·         290,000 households have been capped: 220,000 have had Housing Benefit capped and 77,000 have had Universal Credit capped at some point between April 2013 and November 2019.

Read more on the DWP website.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/863805/benefit-cap-statistics-november-2019.pdf

Universal Credit Inquiry

The House of Lords Economic Affairs Committee has launched an inquiry into the economics of Universal Credit. The committee will examine whether Universal Credit is meeting its original objectives and whether the policy assumptions reflected in its design are appropriate for different groups of claimants. It will also examine the extent to which Universal Credit meets the needs of claimants in today’s labour market and changing world of work. Read more on the RLA website.

https://news.rla.org.uk/today-in-politics-universal-credit-inquiry-and-rla-research/

Social Landlords To Get Direct Payments Of Benefits Under UC Changes

The Department for Work and Pensions has confirmed they are testing a new system to pay social landlords direct payments of benefit. This would see landlords receiving money from the DWP at the same time the tenant receives their Universal Credit payment. Third Party Deductions for outstanding arrears will still be channelled through the four-weekly Third-Party Creditor schedule.

The idea that is the test is successful, it would be fully rolled out to all social landlords in early 2020. Read more on 24housing.

https://www.24housing.co.uk/news/social-landlords-to-get-direct-payments-of-benefits-under-uc-changes/

DWP Guidance On Understanding Universal Credit

The Department for Work and Pensions (DWP) has released a Housing Queries Routeway to help landlords resolve issues regarding Universal Credit. The document includes links to online information and telephone numbers for special support.

The online support information provides:

·         General information for landlords

·         Alternative Payment Arrangements and deductions

·         Third party payments guidance

·         Newsletter

Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/dwp-guidance-on-understanding-universal-credit

Abolishing Section 21 Could Have Serious Impact On Private Rented Sector

The private rented sector could shrink by 20% if Section 21 ‘no-fault’ evictions are abolished, according to a new economic analysis report. The report by Capital Economics also forecasts a reduction in housing available to tenants on housing benefit or Universal Credit. But it suggests a possible solution, namely a reformed court process that made dealing with Section 8 cases faster and cheaper could nullify the removal of Section 21 for many landlords. However, the PRS would still see a likely reduction of between 180,000 to 390,000 homes, between 130,000 and 300,000 fewer homes available to benefit claimants, and rent increases for between 110,000 to 240,000 properties. Read more on the Property Wire website.

https://www.propertywire.com/news/uk/abolishing-section-21-could-have-serious-impact-on-private-rented-sector/

Universal Credit: Labour Pledges To Scrap Welfare Scheme

A future Labour government would scrap universal credit - which merges six benefits into one payment, the party's leader Jeremy Corbyn has announced. He promised an interim benefit payment after two weeks, across the UK, to replace a five-week waiting period. Labour has branded universal credit "cruel and inhumane". The government said Labour's plans were "reckless" and amounted to "political point-scoring", but acknowledged there was work to do to improve the system. Read more on the BBC website.

https://www.bbc.co.uk/news/uk-politics-49855479