8 weeks arrears and Universal Tax Credits

Will the ruling of Doncaster -v- Coventry CC still be relevant when UTC is invoked please?

For example, if a tenancy requires a payment of 8 weeks in advance which creates 8 weeks rent arrears, the LA can (and in this case does) make payment direct to the landlord.

Will this provision still exist for new tenancies and existing ones when UTC is implemented please?

Thank You

Ray Guselli

seems the answer is within here in case anyone else needs to know…

http://www.upad.co.uk/blog/2011/03/changes-to-lha-that-will-affect-landlords/

The Department for Work and Pensions has published new guidance, regarding the Local Housing Allowance (LHA) that will impact tenants and landlords in England and Wales. Effective from April 2011, the new rules mean that LHA can be paid directly to landlords where they agree to lower rents that tenants pay. It’s complex. Eyes down. Look in.

In general, LHA will continue to be paid directly to tenants, but some new exceptions can now be made. At the discretion of a local authority, payments will be made to landlords if they judge that it will assist the claiming tenant, in securing or continuing a tenancy agreement. The local authority must also judge if the rent is affordable.
In any case, an affordable rent level must be agreed. This will most probably be the LHA rate, but it can be more if a tenant has other sources of income. When it comes to existing tenants, a local authority must be satisfied that there is a genuine reduction in rent, for payments to be made to the landlord directly.
For new tenants, a landlord must persuade the local council that the rent has been reduced and is affordable to the tenant. Otherwise, landlords must state that the let would have been impossible without direct payment and a reduction in the rent.
Landlords who already let to housing benefit tenants at what can be considered to be affordable rents, are unlikely to see a change. In those cases LHA will continue to be paid to the tenant directly. This measure is most likely to affect landlords in London and the South East, most keenly where rents are probably above LHA levels or what might be considered “unaffordable”.
It must be stressed that this is a temporary measure, that seeks to act as an incentive to landlords to lower rents. There is no intention that this will continue, despite the fact that many landlords would welcome that. The policy is intended to help landlords find new tenants and retain existing tenants under the current climate, but watch this space. If it works well, Grant Shapps might well extend it. Plenty of landlords would like to see direct payments to them rather than tenants, after all.