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The effect of Universal Credit on landlords

Under Universal Credit claimants will be given a lump sum once a month to manage themselves. In this blog Jessica Page looks at how the direct monthly payments under Universal Credit will affect landlords.

Council Tax Support - one year on

In April 2013 the Government made dramatic changes to the way they helped households in Great Britain with low incomes pay their Council Tax. After more than 20 years of providing help through the centrally controlled Council Tax Benefit system, powers of support were localised. Each local council was required to devise its own scheme that would reduce the council tax burden on those residents that needed help. Most councils call this Council Tax Support (although some call it Reduction or Rebate).

Benefit changes in 2014

To help you understand what changes are happening to benefits in 2014 we have put together a guide which summarises changes throughout the year.

Benefit changes in 2013

Benefit changes have been happening on an unprecedented scale in 2013. Depending on where you live and your personal circumstances, you might have very different entitlements in this benefit year than you would have had previously. You can find out how you are affected personally using the entitledto calculator.

What is Universal Credit?

Universal Credit is one of the biggest changes to the benefits and tax credits system in the Government’s welfare reform programme. Universal Credit will change the way people receive help with living and housing costs. It will affect the amount of benefit paid to customers, the conditions of receiving that benefit and the way payments are made. The entitledto benefits calculator now includes universal credit comparisons so you can work out how you will be affected.

Benefits cap - key information

The government have set a limit on the total amount of benefit a household can receive. For working-age households, total household welfare payments will be limited to £500 per week for couple and lone parent households, and to £350 per week for single person households where no children are present. The benefits cap is being phased in gradually across the country. It was introduced in Bromley, Croydon, Enfield and Haringey in April 2013 and is being introduced in other parts of Great Britain between 15th July and 30th September 2013.

Payment of Universal Credit direct to landlords

Last week the Government made an announcement about protection for people receiving Universal Credit who receive help with their rent. Under the new Universal Credit system people will receive one monthly lump sum payment to cover help with general living expenses and help with their housing costs (such as rent).

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