Mar

BREAKING: Landlords win ministerial apology over UC rent arrears problems

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The benefits minister has apologised for contradicting experienced landlords about how rent arrears from Universal Credit (UC) are paid and has moved to improve the system.

Benefits landlord Mick Roberts had long been frustrated by the fact Third Party Deductions – taken from a tenant’s Universal Credit payment to cover rent arrears and prevent them from being evicted – has been paid to landlords at completely different days and dates to the Housing Element, which is paid at the same time as Universal Credit.

But when his MP wrote to Minister for Welfare Delivery David Rutley (p i c t u r e d ) in November, Rutley insisted Roberts had got it wrong, despite having bank statements to prove it.

Rutley, who is responsible overall for the management and delivery of Universal Credit, has now written to MP Alex Norris to clear up the muddle, saying: “I sincerely apologise for any confusion and inconvenience the previous reply caused…I share your constituent’s frustration and have worked with my officials to get clarity on the situation.”

Aligned

Roberts called for the payments to be aligned and the Minister has announced that from March, new applications for rent arrears from PRS landlords will receive deductions directly via the Universal Credit system – ensuring they are calculated, deducted and paid to landlords following each assessment period. Existing arrangements will not change.

In the letter, he explained how a third-party payment system paid out the arrears based on a different time-frame, rather than the Universal Credit system.

Rutley added: “Officials are looking at how Universal Credit will operate when legacy payment systems are retired, including how deductions for rent arrears can be paid to landlords in the most efficient and sensible way.”

Roberts (pictured) says he’s not happy with the response because Universal Credit and the third-party teams don’t talk to each other and simply pass the buck.

“It’s taken three years to get a reply and it doesn’t change my situation,” he tells LandlordZONE. “Let’s hope the new system will be better for new claims.”

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