Universal Credit now puts the onus of responsibility upon the recipients to pay their own rent as those on benefits will now receive one monthly payment into their accounts, rather than receiving weekly payments.
Many landlords are sick to their back teeth of the new scheme as it results in late rent payments as councils are no longer operating the Local Housing Allowance direct payments.
From recent research carried out amongst landlords, there is a sharp increase of those who will not accept any new tenants that are on housing benefits.
One landlord responded to the survey by saying: “The Universal Credit system is mysterious, unresponsive and devoid of communication. I have made three applications. I received one payment, but no statement and I have no idea what the payment was for. I have not received any communication in response to the other applications. There are very long delays which are unacceptable as arrears mount and I still have to pay the mortgage with no rent income. This is a disaster and will result in increased homelessness.”
Glenn Greatwood of Key-Data Systems says: 'Longer term we do not know what the future of Universal Credit will be, and initial teething issues may well be ironed out, but however the situation develops, Key-Data Gold clients will be well catered for with the highly flexible account management procedures offered by our system'.