4th
Jun 2014
The DWP announced recently that alongside the four existing Universal Credit councils in the North West, a further twelve authorities will be implementing the Universal Credit scheme.
Universal Credit is the new system of benefit payments that means that instead of receiving four or more benefits payments throughout a calendar month, the recipients will be paid in one monthly sum. There has been coverage within the media about how the system has fallen flat on its face due to technical and management errors, however the government is determined with it going ahead.
The twelve North West authorities that are coming on board this month are:
Salford City Council
Wirral Borough Council
Preston City Council
St Helens Borough Council
Cheshire East Council
Cheshire West and Chester Council
Trafford Borough Council
Bolton Borough Council
Bury Borough Council
South Ribble Borough Council
Sefton Borough Council
Knowsley Borough Council
The existing four North West Authorities already operating Universal Credit are:
Oldham, Tameside, Warrington and Wigan.
At the moment the once monthly system of payments will only be for those people who are jobseekers, however throughout the year the net will be widened to couples and eventually those who are on low income wages.
Richard Merrick PIMS comments: "The majority of "suppliers" in the rented housing market who are most likely to be affected are Housing Associations, however if you are privately renting to tenants who are not employed then it is always best to be safe and talk to your local council.
"The government has conceded that in some cases the received rent may at times not be paid to the landlord and if this happens for two months, then the payment agreement can be changed to being paid directly to the landlord.
" One thing for sure is that "Universal Credit". in one form or another, is here to stay no matter who is in power, as it can be said that it makes economic sense with the cost of payment transactions being cut.
"Putting things into perspective, there are approximately 2.4 million unemployed, however there are at least a further 9 million people who are employed and come under the £16,000 per annum, who receive "top-ups" and a large number will be living in private rented accommodation and paying their rent on time.
"We recommend that landlords renting their properties in these areas should just contact the councils to clarify matters."
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