Universal Credit and Rent Arrears
According to a survey of people on Universal Credit who are in ALMOs like Wolverhampton Homes, over three quarters of those receiving Universal Credit are in arrears, compared to less than one third of tenants overall.
Most of the people surveyed said that the following things were reasons households in receipt of Universal Credit got into arrears:
• the six week wait for a tenant’s first Universal Credit payment
• DWP not notifying landlords promptly when a tenant goes on to Universal Credit
• tenants already being in rent arrears before going on to Universal Credit
• UC payments not being made on time and/or correctly
• tenants already having difficulty with money management before going on to Universal Credit and/or using Universal Credit to pay off other debts
• mismatches between rent due dates and Universal Credit payment dates (ie: tenants paying rent when they receive Universal Credit, not when it is due)
• tenants not recognising that they havetopay rent because their rent was previously covered by housing benefit
• delays in DWP processing applications
• tenants who require support going on to UC before they are ready
• tenants having difficulty managing variable income
• tenants not realising that their final payment from job they are leaving can be considered savings to live on for the next month.
you can read more from the report by downloading it here>>