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Housing Associations Urge Benefit Claimants To Pay Extra Rent In Advance

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People on benefits are being told by housing associations to make extra rent payments in advance from now on, to avoid ending up in financial difficulties and then in court once they are transferred to the new system of universal credit, the Observer has learned.

The instructions to people on housing benefit, which are causing alarm among tenants and charities, reflect concern among housing providers that people will default on payments when they have to pay rent themselves, a month in advance, under the new system. At present most rent payments for people on housing benefit are sent direct to landlords. But when universal credit is introduced nationally between now and 2017, tenants will receive one lump sum covering all their benefits and be expected to meet their housing costs themselves, a month in advance.

The Town and Country housing association, which provides 9,000 affordable homes in 22 local authority areas in Kent, Sussex, Surrey and south London, has told its tenants who receive housing benefit to hand over £14.60 extra a month until they are a month in credit, so they can meet the first rent payment once they are on universal credit. If they do not, their tenancies could be in doubt. "This will ensure that when you transfer to universal credit you will not be in arrears which could put your tenancy at risk," the association has said in local newsletters. [more at link]


http://www.theguardian.com/society/2014/aug/16/housing-benefit-claimants-rent-universal-credit

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Yep,somebody needs to tell them that UC is never coming in for families with children.They might try to keep it going for single unemployed to save some face but even thats unlikely nationwide.

The question iv always said should be asked and answered by IDS and the DWP is simple.

When will all families with children who are now on tax credits be moved onto UC in 1 Jobcentre area.When?.The answer is never.Journos should be pushing that question all the time to get a date.A small Jobcentre area would have roughly 10,000 tax credit claims and 2000 job seekers allowance claims.So IDS when will it happen?.

They are still saying everyone will be on by 2017.No they wont.

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Housing Associations are at enormous risk of financial collapse when HB ends and UC takes over. The guaranteed rent income from HB which pays the majority of HA income will be replaced by the need to collect individual rent payments from thousands of tenants, many if whom have never had to pay rent and may struggle to budget their seemingly much higher monthly income correctly. HAs already are and will need to spend far more money collecting rent and assisting tenants than has previously been the case.
Like it or not, tenants need to take responsibility for paying their rent in line with the tenancy they signed. Paying 4 weeks rent into their rent account before they switch to UC is to everyone's advantage surely?

.

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Housing Associations are at enormous risk of financial collapse when HB ends and UC takes over. The guaranteed rent income from HB which pays the majority of HA income will be replaced by the need to collect individual rent payments from thousands of tenants, many if whom have never had to pay rent and may struggle to budget their seemingly much higher monthly income correctly. HAs already are and will need to spend far more money collecting rent and assisting tenants than has previously been the case.

Like it or not, tenants need to take responsibility for paying their rent in line with the tenancy they signed. Paying 4 weeks rent into their rent account before they switch to UC is to everyone's advantage surely?

I hope the Housing Associations do collapse- they have long since abandoned any effort to deliver the 'affordable housing' they were created to deliver- they are now merely vehicles of wealth extraction for those in control of them.

There is a simple solution to their core problem- the fact that so many of their tenants cannot afford their rents- they can reduce their rents to an affordable level, and if that means the CEO has to take one less holiday a year then so be it.

Many of the homes they rent out were inherited from local councils and have repaid their build costs many many times over- yet every year they raise the rents on these properties, many of which are falling apart due to lack of maintenance.

HA's are now just another wealth extraction scheme for the few at the top- they need to go away and be replaced with something better.

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Fat cat salaries to protect....?

More than 50 executives at housing associations – which provide council houses at taxpayers’ expense – earn more than the Prime Minister.
Based on figures from last year, the highest paid executive at a housing association was John Belcher, at £391,000. He was chief executive of Anchor, which provides affordable homes for the elderly. David Cowans, at Places for People, earned £297,000.
At least six executives, including Keith Exford at Affinity Sutton; Mark Rogers at Circle Anglia and David Bennett at Sanctuary; and David Montague at London & Quadrant, earned more than £200,000, it has emerged.

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Housing Associations are at enormous risk of financial collapse when HB ends and UC takes over. The guaranteed rent income from HB which pays the majority of HA income will be replaced by the need to collect individual rent payments from thousands of tenants, many if whom have never had to pay rent and may struggle to budget their seemingly much higher monthly income correctly. HAs already are and will need to spend far more money collecting rent and assisting tenants than has previously been the case.

Like it or not, tenants need to take responsibility for paying their rent in line with the tenancy they signed. Paying 4 weeks rent into their rent account before they switch to UC is to everyone's advantage surely?

.

And does the tenancy they signed state they have to overpay? Would you overpay on your utilities or council tax if someone called up and said it was a good idea incase you lost your job?

What happens to the overpayments if a HA goes bust before UC arrives? Is it protected in any way?

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Yes it`s obvious what`s happening, HA big wigs are protecting their salaries and pensions.

I wonder why rents have to go up so much, shouldn't they just go up by 1.6%....the same rate as inflation and not the current rate of 5 or 6 % for rents?

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Housing Associations are at enormous risk of financial collapse when HB ends and UC takes over. The guaranteed rent income from HB which pays the majority of HA income will be replaced by the need to collect individual rent payments from thousands of tenants, many if whom have never had to pay rent and may struggle to budget their seemingly much higher monthly income correctly. HAs already are and will need to spend far more money collecting rent and assisting tenants than has previously been the case.

Like it or not, tenants need to take responsibility for paying their rent in line with the tenancy they signed. Paying 4 weeks rent into their rent account before they switch to UC is to everyone's advantage surely?

.

I hope they do, as well as the ALMO's. Nothing more than State backed BTL wannabee's. Need to get back to core of business which is low cost housing for the masses.

The alternative is of course Land Reform, which is an issue the establishment have managed to duck for over one thousand years and I suspect would require an almost Zimbabwean civil war, to prize the land owners from their stolen lands.

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