Benefit changes are coming

From April 2021, the Government is due to remove the enhanced benefit payments it issued to assist people during Covid-19

We always knew this was a temporary measure and the additional income was a lifeline for many on benefits who were struggling to make ends meet.

Many landlords look advantage of this temporary increase, by rising rents, which was coupled with the lift on the benefit freeze, saw an increase in the Local Housing Allowance rate across the UK

However, these landlords may fall foul of this forward thinking when rates are due to return to original levels in April.

There is a little light at the end of the tunnel, the Government has announced that there will be an increase in benefit levels from April, but only against the original figures, which is some cases could see tenants losing over £100 pm in benefits.

This could see an unpredicted rise in rent arrears when benefit rates are reduced, landlords are advised to check what their tenants benefit levels will be come April 2021

The new rates are here, note the figures in brackets are the original payments not the Covid enhanced rates.

Universal Credit (Monthly rates shown)

Standard allowance

Single

• Single under 25: £257.33 (from £256.05)

• Single 25 or over: £324.84 (from £323.22)

Couple

• Joint claimants both under 25: £403.90 (from £401.92)

• Joint claimants, one or both 25 or over: £509.91 (from £507.37)

  
  

  Housing Benefit

  • Under 25: £59.20 (from £58.90)

  • 25 or over: £74.70 (from £74.35)

  • Entitled to main phase ESA: £74.70 (from £74.35 )