22nd
Feb 2021
Landlords who have tenants receiving Universal Credit are experiencing major problems in setting up Alternative Payment Arrangements (APA) as the Universal Credit landlord portal has been closed to new claimants.
It is believed that this is due to the onrush of new applicants for benefits that the DWP just cannot cope with, however many landlords are having to take the decision on whether to serve notice on their tenants.
The research comes from a trade body and its managing director Sherrelle Collman, said: “It is an extremely difficult situation.
“The pressure that DWP must be under due to the rise in claimants is enormous, but when tenants are struggling to meet their rent payments, we know that APAs not only have a significant impact on limiting arrears, they also help to sustain the tenancy.
“The government wants landlords to support tenants, but there has to be a middle ground.
“The landlords we are speaking to say they are going back and forth on the phone, only to be told they will be called back by a case manager, then hearing nothing.
“We’ve seen a 20% uplift in landlords wanting our assistance to set up APAs, and all were at the point where they were considering serving notice to their tenants because they had no other choice.”
In 2020 the DWP introduced its new online landlord portal system to initially allow social rented sector landlords to provide proof of rent and apply for being paid direct, this system was deemed as being far more effective and quicker than the original email request.
Upon acceptance their tenant’s rent would then be deducted at source and paid direct to the landlords, which helped many tenants who were getting to grips with the once monthly benefits payment.
Since last year’s start of the pandemic, the number of Universal Credit recipients across the UK has increased a staggering 100% since February 2020 when it was 2.9 million to 5.9 million at the end of January 2021.
Many of these people are tenants who were given tenancies because of their income levels but of course the pandemic has caused and will continue to affect changes in employment and wages.
Ever increasing numbers of Universal Credit tenants are finding it increasingly difficult to be able to pay their rent.
A trade body’s spokesperson, said: “Universal Credit faces heavy criticism from landlords and tenants at the best of times.
“If landlords are now confronted with yet another barrier to access direct payments, it is inevitable that many more landlords will be encouraged to serve notice on tenants in receipt of Universal Credit, which goes against the government’s intentions.
“Clearly the government needs to provide more resource to facilitate the onboarding and management of the Universal Credit system so that landlords and tenants can work together.
“Many landlords with tenants who have suddenly had to start claiming Universal Credit are aware that their tenants cannot meet previous rental payments, but if a portion of it is allocated to the landlord then that provides a temporary solution for both parties, helping to sustain the tenancy for longer.”
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