This one slipped under even MY radar.
The Department for Work and Pensions (DWP) announced on 10th April that Universal Credit rent arrears deductions have been suspended amid the coronavirus pandemic.
Third-party deductions, which typically see claimants have money they owe taken from their monthly benefit allowances, will be scrapped until 10 May.
Universal Credit claims have increased sharply as Covid-19 batters the economy.
More than 1.4 million have applied for the benefit in recent weeks, according to the government, which recently took the decision to suspend evictions until June.
A spokesperson for the DWP said: “We have received an unprecedented number of new benefit claims and have streamlined our operations to make sure people get the support they need during this time.
“As part of this, we have temporarily paused third-party deductions from [Universal Credit] – these will recommence on 10 May.
“We are in the process of explaining the changes to claimants via their online journal and to third parties, including housing providers who collect arrears via this method.”
The question is, How will this effect tenants who have been granted suspended possession orders on terms they pay the arrears and were having these deducted directly from their benefits.
Although this is only suspended for 1 month, this could have a huge impact on the tenants who have yet to be informed ( as DWP have said they are still in the process of informing both claimants and landlords) that the direct arrears payments have been stopped and are not aware they need to pay the deducted amount themselves
With courts suspended until at least the end of June, will this impact on the number of eviction applications that are submitted to court?
Sadly the DWP have not thought this action through and risk jeopardising tenants security of tenure in their homes through no fault of their own
Source LandlordToday.
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