DWP Universal Credit Cut Triggers Eviction Warning For Thousands Of Tenants – Todayuknews – Todayuknews

Posted: September 20, 2021 at 8:36 am

Around half a million people could slide deeper into rent debt and face eviction from their homes as a result of the Universal Credit cut, a charity has warned.

The DWP will remove a UC top-up of just over 80 a month equivalent to 20 a week from October, saying it was only a temporary measure during the pandemic,

But the reduction in benefit payments will mean a 360 million wall of rental debt built up during the coronavirus crisis is set to get worse, its claimed.

READ MORE: DWP benefit fraud: 7 things theyre checking your bank account and social media for

About 500,000 private tenants are now trying to stay on top of rent arrears across the UK, according to calculations from StepChange Debt Charity.

Private renters in arrears said they were behind by just under 800 on average.

The charity said cutting Universal Credit will escalate entrenched difficulties.

It highlighted the case of a 61-year-old from Essex in 2,000-worth of rent arrears, who said: I have recently managed to get some help from the council regarding my rent and am just about managing to pay it in full, but Im still not really able to pay anything towards the arrears.

Luckily the landlord seems fine with this at the moment, but obviously that could change at any time.

READ MORE: DWP Universal Credit cut: Six essential facts including exact date top-up ends

StepChanges research suggests around one in 10 renters who are in work expect to be evicted from their homes as a result of their debts within the next 12 months.

In another case, a woman who works for a travel company and is in 2,000 of rent arrears told StepChange: My husband is suffering with long Covid and although he is at work, the stress of not hitting his targets is really affecting his mental health.

He is just about earning enough to pay the rent, but not enough to be able to contribute towards the arrears.

Phil Andrew, chief executive of StepChange, said: Covid support schemes, while a lifeline for many, havent been able to help renters address their arrears and with cuts to Universal Credit and the end of furlough imminent, there is a real danger of thousands losing their homes.

Thats why StepChange is calling for a dedicated financial support to help ensure renters can safely wind down Covid rent debts and keep their homes.

By establishing a dedicated rent debt fund, and by scrapping the planned Universal Credit cut, the Government can avert the threat of a rise in evictions, problem debt and homelessness that will compound financial and social problems and hamper economic recovery.

More than 8,600 people were questioned as part of the research.

Chris Norris, policy director for the National Residential Landlords Association, said: Many tenants and landlords have struggled throughout the pandemic.

The end of furlough combined with cuts to benefits creates a perfect storm as those affected face the prospect of rent arrears getting worse.

These are debts that landlords cannot afford to sustain indefinitely. The Chancellor needs urgently to follow the examples set in Scotland and Wales and come forward with transitional support to get Covid-related arrears paid off.

A Ministry of Housing, Communities and Local Government spokesperson said: Our 352 billion support package has helped renters throughout the pandemic and prevented a build-up of rent arrears.

We also took unprecedented action to help keep people in their homes by extending notice periods and pausing evictions at the height of the pandemic.

As the economy reopens it is right that these measures are now being lifted. We will bring forward further proposals in due course to create a fairer and more effective private rental sector that works for both landlords and tenants, including the abolition of Section 21 no fault evictions and further support for landlords where repossession is necessary.

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Universal Creditis thebiggestchange to thewelfare system in a generation.

But what exactly is it and how does the system work? Heres all you need to below. Follow the links below to find out more.

1. What is Universal Credit?

Universal Credit is a new social security benefit that was approved in the Welfare Reform Act 2012 and first appeared in 2013. By the end of 2018, it was rolled out to all jobcentres.

It replaces six existing benefits, now known as legacy benefits. Find out more by clicking on the link above.

2. Universal Credit calculator how much you will get

The amount you are given is calculated according to various factors.

The Government says if you have children, a disability, or you need help paying for your rent, you may be entitled to extra amounts on top of the standard allowance. Find out more by clicking on the link above.

3. Universal Credit eligibility and how to apply

Among the qualifying criteria, you must be on a low income or out of work.

And its important to bear in mind your partners income and savings will be taken into account, even if they themselves are not applying for the benefit. Find out more about eligibility by clicking on the link above.

4. How often is it paid and how the online account works

To get Universal Credit, TWO accounts are needed.

One is a Universal Credit online account where your details (such as the date of the next payment) are available to look at, the other is a payment account at a bank or building society where the Government pays in your money. Find out more by clicking on the link above.

5. Universal Credit contact numbers if you need help

There are some special helpline numbers to call if you want assistance. They have been changed to freephone numbers so there is no charge for calling. Find out more by clicking on the link above.

6. How to change your payments if youre struggling

Claimants need to be aware the first payment doesnt come through until five weeks after a claim and then every month after that.

If youre not used to waiting a whole month for your payment, it can prove difficult. But there is a little-known way around that. Find out more by clicking on the link above

7. What to do if your Universal Credit payments are cut

There are occasions where the Department for Work and Pensions imposes sanctions on claimants if they appear to have broken the rules, for instance by not showing up at jobcentre appointments.

In such cases, Universal Credit can be cut or stopped altogether. Find out what to do by clicking the link above.

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DWP Universal Credit Cut Triggers Eviction Warning For Thousands Of Tenants - Todayuknews - Todayuknews

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