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Three-quarters of Universal Credit claimants unaware of missed rent consequences
Three-quarters of Universal Credit claimants are unaware that their housing cost payments can be cut if they miss the rent.
A government survey of people using the full-service Universal Credit system published today revealed that just 25% of claimants knew their payment could be reduced by up to 20% if they regularly fail to pay the rent on time.
The survey, carried out by Ipsos MORI on behalf of the Department for Work and Pensions (DWP), also found that 76% of claimants knew they are required to inform the Jobcentre about changes to their rent, while 60% were aware they had to report rent-free weeks.
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Inside Housing reported yesterday that DWP has agreed to allow landlords to process information about rent changes on behalf of tenants in bulk.
“Claimants who paid rent knew they needed to keep the Jobcentre informed about changes, but they were much less clear about what would happen to their Universal Credit payments if they regularly missed their rent payments,” the authors of a report on the survey noted.
They said people using the new welfare system had a better understanding of their requirements about rent changes than in the previous survey, but that knowledge about the consequences of missed rent had not improved.
A summary of the survey said: “Over a period of six months, this research has shown high and improving levels of understanding about [Universal Credit] among recent full-service claimants, including how to make a claim for it and what would happen to [Universal Credit] payments if what’s been agreed in the Claimant Commitment is not fulfilled.”
It added: “Most are able to identify at least some of the reasons that would result in their [Universal Credit] being reduced or stopped.
“However, the large majority are still unaware of how a sanction would impact their [Universal Credit] payments.
“More information is required to address this gap in knowledge, which has not improved over the past six months.”
The government has also published an analysis of its decision to stop mixed-age couples from being allowed to claim pension credit and pension age housing benefit today.
This policy, which affects couples where one partner is working age and the other is a pensioner, will take effect in May, having been quietly announced in January.
DWP expects it to affect 60,000 households over the next five years, saving £385m – or £6,416.67 each.
