Landlords asking tenants to pay rent in advance who will be subject to Universal Credit

It emerged over the weekend that some housing providers (below) are asking tenants to pay extra money into their rent accounts, in preparation for welfare changes being phased in over the next few years.

Under universal credit benefit for housing costs will be packaged together with other benefits and paid monthly direct to tenants, rather than to landlords. It will also be paid a month in arrears, so tenants have to wait a month before getting universal credit. Landlords therefore have an interest in making sure tenants have money in their account to pay their first month’s rent.

Sam Lister, policy and practice officer at CIH, said tenants should not have extra payments imposed on them.

He said: ‘It should be a choice for the tenant to make and organisations shouldn’t be putting unfair pressure on people.

‘If organisations do decide to go down that route, they need to give tenants a clear explanation of why it’s being offered to them and also make it clear that it is optional.’

Sixtown Housing, which operates in Bury, initially told tenants on its website that they ‘need to make additional rent payments now if you are affected by the introduction of universal credit’. Following criticism over the weekend, this has now been softened to stress the payments are not compulsory.

The note now says: ‘It would be helpful to consider making additional rent payments if you are able.’

Another landlord, Town & Country is asking tenants in arrears to pay an extra £14.60 a month to ensure their accounts are in credit.

‘It will help ease the transition when universal credit is introduced,’ said a spokesperson.  It also keeps housing benefit refunds in rent accounts where there have been incorrect calculations of benefit, including in once case a £362 bedroom tax refund.