The government has issued a support pack to help social landlords prepare their tenants for the introduction of Universal Credit early next year. The support pack contains information and links to useful documents, including debt advice locaters.
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The government hopes that this will help to ease the pain of a new benefits system and reduce the number of landlords and tenants who end up with problems as a result of the change.
Changes to Housing Benefit
Many landlords are unhappy about the loss of direct payments of housing benefit. Under the current system, housing benefit is paid straight to landlords, but once Universal Credit is rolled out across the whole country, tenants will receive the money as part of a single benefit payment and will therefore be responsible for paying their rent.
“Universal Credit brings together 6 benefits and tax credits into 1 monthly payment, helping people to get into work quicker and ensuring that work pays. It closely mirrors the world of work, encouraging financial responsibility and prepares people so that they do not suffer a shock when they move from benefit payments.”