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Housing associations urge benefit claimants to pay extra rent in advance
The instructions to people on housing benefit, which are causing alarm among tenants and charities, reflect concern among housing providers that people will default on payments when they have to pay rent themselves, a month in advance, under the new system. At present most rent payments for people on housing benefit are sent direct to landlords. But when universal credit is introduced nationally between now and 2017, tenants will receive one lump sum covering all their benefits and be expected to meet their housing costs themselves, a month in advance.
Clts are confused. And the phrase ‘in advance’ is inaccurate, I think.
HB is currently paid one month in arrears; that’s just the way it’s done. Most private landlords who accept tenants who are in receipt of HB, know this before agreeing to rent accommodation to them.
Does this mean that tenants who are in receipt of HB will suddenly have to come up with an additional months rent out of hand to fit this description of ‘one month in advance’?
To make rent payments current every tenant would need to come up with one month’s rent out of pocket.
Only at that point would any HB received actually be rent ‘in advance’.
Under UC, if no additional rent money is included in the beginning-of-the-month lump sum, then rent is, in actuality, still paid one month in arrears.
Will Housing Association tenants have to cough up the extra money to put themselves in advance?
here’s a link to the guardian story
http://www.theguardian.com/society/2014/aug/16/housing-benefit-claimants-rent-universal-credit
I believe the answe to this can be found here
In a statement, Town & Country said: “Tenants can choose to pay their rent weekly, fortnightly or monthly. The rent is due in full on the first day of that period so that their rent account does not fall into arrears. This applies to all tenants whether they are on housing benefit or not.
“We understand that this will be difficult for anyone who is likely to be on full housing benefit, in which case we ask for the minimum of £14.60 per month.
“Over time this will make sure that their rent account is in line with their tenancy agreement. It will also help to ease the transition when Universal Credit is introduced and residents will be responsible for paying their own rent from the credit they receive.
And most housing associations wont and the courts would take a very dim view of those who do in these circumstances and who then go for repossession for defaulters.
Inside Housing reports the Chartered Institute for Housing as warning social landlords against putting ‘unfair pressure’ on tenants to pay extra rent ahead of roll out of universal credit -