answer text |
<p>We have not made an assessment of this nature, as any change in rent arrears is
not solely attributed to Universal Credit. The initial analytical work we have carried
out with a single housing provider suggests that many tenants are arriving on Universal
Credit with pre-existing rent arrears, supporting by the research carried out by the
National Federation of ALMOs which shows over three quarters of their tenants come
onto Universal Credit with pre-existing rent arrears.</p><p>This initial analytical
work also shows that arrears tend to increase prior to making a claim for Universal
Credit, and that Universal Credit actually appears to be helping to clear arrears
over time. We are currently extending this analysis to include a number of housing
providers. It will be published when completed.</p><p>We have responded to concerns
in this area by putting a number of safeguards in place – 100 per cent advances repayable
over 12 months, increasing to 16 months in October 2021; a two-week Transition to
Universal Credit Housing Payment; a new Help to Claim service; and Managed Payment
to Landlord Arrangements, which allow for payments direct to the landlord if the tenant
is likely to have difficulty in managing their rent payments, is unlikely to pay their
rent or is in rent arrears equivalent to two months.</p><p>We are aware that for many
who are self-employed, particularly those with seasonal businesses, earnings often
fluctuate from month to month, and they need to budget and plan for this. Self-employed
Universal Credit claimants are no different in this regard.</p>
|
|