The DWP (Department for Work and Pensions) has just announced that if tenants on Universal Credit get into rent arrears, then 20% of their benefits will be paid directly to their landlords.

This is definitely a step in the right direction, as the DWP would only have diverted just 5% of the recipients benefits to landlords, if tenants failed in paying their rent.

The government is on a mission to change people's mindsets receiving benefits to become "personally resilient" (adaptable to change) and to assume financial responsibility - after all those who work, in the main, have to budget their own incomes.

The government is admitting that some tenants will find it hard to adapt and may get themselves into financial difficulties, and of course the largest "chunk" of their outgoings will be for rent.  It has received strong criticism from Housing Organisations that Universal Credit will increase rental arrears and that some of the population should be provided with help by having their rent paid directly to the landlord.

The DWP said: "The amount that can be deducted from a claimant’s universal credit if they fail to pay their rent, has been increased from 5% to an amount of up to 20% of the universal credit standard allowance, which will ensure claimants are back on track with payments quicker. The minimum amount that will be deducted is 10%."

Universal Credit tenants who fall behind with their rent  by the equivalent of two months, will have the rent element of the benefits paid to the landlord and can, on occasions if requested, hold back further amounts from the monthly benefit to pay off the arrears.

“For the first time many tenants will be paid the time many tenants will be paid their housing benefit directly and I would encourage landlords to think about identifying tenants who need support to prepare for this, and put those who are ready onto a direct payment early.”

Universal Credit has experienced major  IT problems and was 'reset' by the Major Projects Authority (MPA) in April.

Communities Minister Kris Hopkins said: “UC helps claimants and their families to become more independent through simplifying the welfare system. I welcome this initiative to help social landlords and tenants prepare for UC.

Richard Merrick, PIMS.co.uk said: " Why doesn't the government admit that they should from day one that the rent should be paid direct to the landlord ? We understand the financial savings made by issuing the one single payment but it may cost the UK even more in resource time in staff and partners to sort out the problems.

"We welcome the quite major improvement of allotting 20%, rather than the previous 5%, of Universal Credit tenant's deductions from their monthly payment going direct to landlords if they get into rent arrears. However we question if this is enough as 20% in many cases will not pay the full amount of the rent.

"If this does happen then it could lead to evictions and homelessness, and will undoubtedly cost the public purse more in having to re-house in Social Housing properties or private bedsits/hotels."