28^th Nov 2017

At long last the government has listened to growing concerns from the private rented sector and has just confirmed some good news for landlords. From now on tenants who are signing up to Universal Credit will continue to have their housing benefits paid direct to their landlords, instead of letting them be responsible for paying their rent.

David Gauke, the Work and Pensions secretary, has just announced the government's about turn on making tenants responsible for paying their rent, in light of the increasing numbers of tenants on Universal Credit getting into personal debt. 

Gauke issued a statement to the Commons that said: “Those people who already have an alternative payment arrangement, the presumption will be that will continue and the money will therefore go to the landlord rather than the tenant.”

The latest change to Universal Credit payments now means that instead of landlords having to apply for the rent being paid direct to them usually if they are in rent arrears, claimants will have to opt out of their landlords receiving the rent directly, if they wish to do it themselves. The Budget also announced another helping hand for housing benefit claimants just starting on Universal Credit, as their rent will be paid for the first two weeks when starting their initial claim.

According to recent data nearly one in three housing benefit claimants are having their rent paid direct to landlords which is approximately 1.3 million people.

A spokesperson for an industry organisation wholeheartedly supports the new government stance and said: “This is a welcome change and will mean that tenants, who choose, can be secure that their rent has been paid and landlords have the confidence to rent out housing to those claiming benefits.

“It is good to know that ministers have clearly listened to the concerns of landlords and tenants.”

Richard Merrick of PIMS, said: "It would seem strange if Universal Credit tenants wished to be responsible themselves and be seen to pay the rent direct to their landlords, rather than carrying on as normal.

"It could suit new tenants who don't want their landlords to know that they are on housing benefits."


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