Universal Credit Changes Set to Pay Landlords Directly
The introduction of Universal Credit has caused a lot of issues for the lettings industry, but it's finally getting something right with the inclusion of a new online system where private landlords can get rent paid directly to them. The news was among many reforms announced a week ago by Amber Rudd, Work and Pensions Secretary of State.
Vice chair of the Residential Landlords Association (RLA), Chris Town, said: "Our most recent research has shown that 61 per cent of landlords with tenants on Universal Credit have seen them go into rent arrears, up from 27 per cent in 2016.
"Improving, and speeding up, the process by which payments can be made directly to the landlord has been a central part of the RLA's campaign on Universal Credit.
"Anything that helps this will give landlords much greater confidence in the system and ensure tenants have greater security in the knowledge that their rent payments will be met."
It was also announced that the cap that meant families could only get UC for two children would not be extended to children born before the rule came into place. The restriction was due to be extended this February and would have meant new applicants would have had benefits limited to two children whenever they were born.