Commons Sense

House of Commons · Ministers' Questions

Welfare Benefits: Rent Arrears

Monday 14 September 2020 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Alternative payment arrangements are available for private landlords through a new online system.
  • Landlords, tenants, or work coaches can request direct payments from tenants on universal credit to landlords.
  • There is no wait for universal credit; people can get an advance immediately.

Topics (select to filter)

Questions & Answers

Context

Rent arrears are increasing, with an estimated 125,000 people in rental arrears. Many receive universal credit or housing benefit.

Question

What steps her Department is taking to ensure that welfare benefits for rent are paid to landlords to prevent rental arrears building up. I thank my hon. Friend for his answer. He is a passionate and knowledgeable advocate on housing issues, and alternative payment arrangements can be requested by the tenant, landlord or work coach.

Answer from Will Quince

Alternative payment arrangements are available for private landlords. A new online system was introduced in May for direct payments from tenants on universal credit to their landlords. Landlords can request this directly, but further exploration is possible if more steps are needed.

Partly answered

Not addressed: Did not address the specific issue of 125,000 people in arrears and the £440 million gap between what landlords believe they are owed and what tenants have paid.

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Context

Rent arrears are increasing, with an estimated 125,000 people in rental arrears. Many receive universal credit or housing benefit.

Question

What steps can he take to ensure that rent will be paid to landlords and prevent spiralling debts that are impossible for people to repay?

Answer from Will Quince

Alternative payment arrangements such as direct payments can be requested by tenants, landlords or work coaches. The Minister regularly meets with the Ministry of Housing, Communities and Local Government to discuss these issues.

Partly answered

Not addressed: Did not address specific steps to prevent spiralling debts for people in arrears.

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Context

Many tenants on universal credit experience a net fall of income by 40% when starting claims. One in eight tenants have built up arrears, with a £440 million gap between what landlords believe they are owed and what tenants have paid.

Question

What immediate steps can the Minister take to deal with these structural problems, particularly the waiting period for universal credit?

Answer from Will Quince

There is no wait for universal credit; people can get an advance immediately. Over £9.3 billion has been injected into the welfare system, recognising the difficult time for those on low incomes.

Partly answered

Not addressed: Did not address structural problems or waiting period issues in universal credit leading to arrears.

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