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Government attempts to tackle growing rent arrears under Universal Credit
The government will attempt to tackle a sharp increase in rent arrears under Universal Credit by rolling out initiatives that give landlords more control over their tenants’ rental payments.
In response to a parliamentary written question last Friday, Damian Hinds, Department for Work and Pensions (DWP) minster, said in order to “address the issue of rent arrears in Universal Credit” DWP will roll out two initiatives that have recently been piloted – the Trusted Partner scheme and the landlord portal.
More landlords will be included in the schemes from October, starting with the largest landlord groups “in order to ensure the highest possible number of tenants are able to benefit from the schemes, as early as possible”, Mr Hinds said.
Inside Housing has asked DWP how many landlords will be included in the roll-out.
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Universal Credit is paid directly to the recipient, with the intention of giving people in receipt of benefits more control over their finances. But it has been criticised by landlords because since its introduction there has been a sharp increase in rent arrears.
The DWP has been piloting two schemes: the Trusted Partner scheme and the landlord portal service. The Trusted Partner scheme allows landlords to identify vulnerable tenants and be paid rent directly before they fall into arrears.
The landlord portal service allows landlords to submit information to the Universal Credit online system, instead of tenants.
The next stage of the roll-out will allow all Trusted Partner landlords to access the landlord portal. There were 33 landlords in the Trusted Partner pilot, including A2 Dominion, Sanctuary Housing Association and Hammersmith & Fulham Council.
At a Work and Pensions Select Committee hearing last week, Fiona Colley, cabinet member for finance modernisation and performance at Southwark Council, said all councils should be given Trusted Partner status to help address the growing arrears problem.
