One of the biggest social landlords in the private sector has voiced his
concerns to the BBC about the roll out of the new Universal Credit payments to
tenants. The combined benefit payment has been introduced as part of
government reforms to the whole benefits system. At the moment claimants
receive up to six separate benefits payments, including Housing Benefit, but
once the change over has been completed, these separate payments will be
merged into one. The changeover has already begun in a few areas.
Self-Made Social Entrepreneur
Kevin Green owns more than 700 homes in the private sector and approximately
60% of them are let to tenants claiming benefits. Mr Green is fearful that
tenants will soon fall behind on paying their rent once Universal Credit kicks
in. He thinks many tenants will find it hard to budget their money and benefit
payments normally earmarked for the rent could end up being swallowed up by
other expenses.
Tenants Lack Budgeting Skills
At least one trial run of the new system seems to indicate that this is
exactly what will happen once Universal Credit becomes standard practice.
Figures showed that tenants living in social housing in Torfaen definitely had
a problem managing their money once their benefits were streamlined into one
single payment. Rent arrears shot up from £20k to £140k over seven months. Mr
Green makes the point that he may be forced to pull out of the social housing
sector if he ends up dealing with major rent arrears, which could lead to a
shortage of homes.
Are you a social landlord? Are you worried about the introduction of the new
Universal Credit payments? If so, let us know in the comments.
