Universal Credit pilots scaled back

Universal Credit pilots scaled back

The government is to scale back some of its plans to test a radical new reform to the welfare system.

The governments original plan would have seen people able to claim the new Universal Credit in four areas of the North West of England from April 2013, but it has now emerged that 3 of the pilot programmes will not start until July now.

Welfare Reform | Benefit Changes Timetable

As a private landlord, letting agent and/or tenant it is extremely important to understand that Housing Benefit is currently paid to the landlord but this option will be abolished under Universal Credit; primarily because ministers believe it will help tenants manage their finances better.

An open letter to the mainstream media

At LandlordReferencing.co.uk we believe that the Government’s “flagship” welfare reform via Universal Credit will only make thousands more tenants homeless in the UK, as well as heaping even more debt onto the country and the taxpayer (especially if the option of Housing Benefit being paid directly to the landlord is abolished) e.g. Failed UC Pilots.

The DWP now says this pilot programme will start only in one area in April – Ashton-under-Lyne.

The other three job centres – in Wigan, Warrington and Oldham – will not now start handing out Universal Credit until July.

A work and pensions spokesperson said there was no delay and the gradual testing was designed to make sure that the scheme was ready for everyone later this year.

“Our plan has always been to test Universal Credit in a safe and controlled way during Pathfinder to ensure we get it right for the start of the national rollout in October.”

However, Labour criticized this decision saying that it showed the scheme was in crisis and that the IT side needed for it was not ready.

At Landlord Referencing we believe 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.

Technology limiting how benefit payments are spent could ease UK’s troubled economy.

The majority of private landlords and housing associations are also extremely concerned, with many also predicting an increase in rent arrears that could damage their ability to borrow from lenders at favourable rates.

Direct payment pilots reveal rent arrears increase

Landlord claims Universal Credit will cost £8 million a year!

As a landlord, letting agent OR tenant if you agree that tenants should have the right to decide if their rents are paid directly to their landlord then please SIGN THIS PETITION and share it with your colleagues, peers and anyone else that might be interested.

On the other hand, if you support the abolition of direct payments of rent to landlords LRS would love you to share your views with the rest of the community as to why this is.

Prepare yourself for the welfare reform and potential rent arrears COMPLETELY FREE here. (<<click)

Author: News @ Tenant Referencing

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