Universal credit: a U-turn

Universal credit: a U-turn

Universal credit, a policy that has come under much criticism since its launch, is set to undergo an overhaul that will initially benefit 15,000 households. Amber Rudd, the work and pensions secretary, has now scrapped plans to extend the benefits cap on families of more than two children.

The U-turn reveals that minor adjustments and tinkering will no longer do and is clear acknowledgment from the government that much is needed as reliance on food banks increases and landlords become increasingly cautious on taking people on universal credit.

So will the changes ease pressures on the private rented sector? To an extent, with Ms Rudd suggesting that her department would build an online support system for private landlords where they’ll be able to request the rent be paid directly to them. However, it will still fail to address other chronic issues such as wage stagnation and household debt problems, which continues to add further pressure to the private rented sector.

Author: News @ Tenant Referencing

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