06/07/2012 
lrs_keeper
Following the recent petition ” Universal housing benefits to be paid to landlords ” the Employment Minister has said that the DWP will have the capability to make payments to landlords for social and private tenants.
Responding to questions from shadow Work and Pensions Minister Stephen Timms and written questions in parliament, Chris Grayling also announced that the government would use an agreement with Citibank to make universal credit payments to people who do not have bank accounts.
The Universal Credit system goes live in October 2013, whereby payments will be made directly to tenants; leaving it up to them to pay their rent or not.
We believe that all tenants should have the right to decide if their rents are paid directly to their landlord – to help those on low incomes avoid debt and arrears.
Landlord Referencing Services recognise that this is positive step in the right direction but until something is written in stone we remain sceptical.
Are you aware what Universal Credit will mean for you and your tenants? Click HERE for all the info.
Are you aware how Credit Unions will be able to offer the best solution to rent arrears and evictions, if Chris Grayling doesn’t stick to his word? Click HERE for all the info.
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I will make a prediction. The ability to make direct payments of rent will be used for local authorities and RSL’s if it is used at all. Government have been made aware that payments to tenants means increasing rent arrears and at a time when they are reducing the budgets of local authorities they would be crazy to increase rent arrears which also increases their costs while reducing their income.
My question is this. Where a tenant/family have reached the caps of £18,200 (for singles with not dependants) and £26,000 max for families what money will they use to pay rent? The first benefit to be reduced/removed to reduce the benefits to below the cap is Housing Benefit/LHA, if the tenant is not entitled to housing benefit because of this will Government make an additional payment? – I think not because that will blow the cap our of the water. Where the benenfit has been reduced to less that the rent due, will Government make up the shortfall?
Chris Grayling said that they “will have the capability” He did NOT say that direct payments to landlords will happen.