Concerns over Universal Credit
By |Published On: 29th August 2012|

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Concerns over Universal Credit

By |Published On: 29th August 2012|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

With the introduction of newly proposed benefits scheme Universal Credit set for October 2013, landlords are beginning to express a number of concerns. Primarily, landlords are concerned that the new scheme will lead to an increase in tenants’ rent arrears.


At present, housing benefit is paid directly to landlords. Under Universal Credit however, this payment will instead be paid directly to tenants. Landlords have expressed that they are most worried about this part of the scheme, believing that not having a guaranteed payment from the Department for Work and Pensions (DWP) will lead to more missed payments. In addition, opponents to the scheme believe that some tenants will struggle further with budgeting and face a number of arrears.

Another concerning change proposed under Universal Credit is that unemployed tenants that find work will not receive any support until they receive their first wage packet. This has again led to an increased worry of spiraling non-payments.

Housing associations have also expressed their concerns. They believe that tenants in arrears, perceived or otherwise, may damage their credit rating.

However, the Government seems likely to keep their proposed plans for Universal Credit, believing that tenants will be able to take more control of their own finances as a result.


About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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