December 2014 Deductions from Universal Credit for Rent Arrears

Universal credit claimants who fail to pay their rent could have up to 20 per cent of their standard allowance deducted to meet the arrears, the DWP has announced.

Launching a 'support pack' for social landlords, the DWP says that the amount that can be deducted from a claimant’s universal credit if they fail to pay their rent has been increased from 5 per cent to a maximum of 20 per cent of the universal credit standard allowance with a minimum deduction of 10 per cent.

Introducing the support pack which 'has been designed to give social landlords practical advice on how to ensure their tenants are prepared for universal credit', Minister for Welfare Reform Lord Freud said -

‘Universal credit will begin a national roll-out early next year – so now is the ideal time to boost preparation activity.

For the first time many tenants will be paid their housing benefit directly and I would encourage landlords to think about identifying tenants who need support to prepare for this, and put those who are ready onto a direct payment early.'


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