Universal Credit a few top tips…

This won’t apply to everyone but I thought I’d share a few top tips we’ve found on the government website regarding: Universal Credit. As...

This won’t apply to everyone but I thought I’d share a few top tips we’ve found on the government website regarding: Universal Credit.

As you’re all aware Universal Credit is replacing housing benefit and several other benefits – rolling these into one single payment. Which is causing nightmares to landlords and letting agents alike.

It’s incredibly difficult to get information from the Department for Work and Pensions (DWP) and direct payment requires endless phone calls rather than the old system which only required proof of arrears.

Anyway here are a few top tips from the government website:

• Ensure your tenants have accurate documents that prove their liability to pay rent and their occupancy of the property they’re claiming for. Missing or inaccurate evidence could delay their first payment.
• Encourage your tenants to open a bank, building society or credit union account will make sure they’re ready for their first Universal Credit payment, and allow them to arrange direct debits or standing orders for their rent.
• Remind your tenant that if they can’t manage until their first payment they can apply for an advance. The maximum amount they can get will be the same as their first estimated Universal Credit monthly payment. They will need to pay this back from future Universal Credit payments, usually over 12 months, although this will be extended to 16 months in 2021.

What this is basically saying is before you move a tenant in get your “ducks in order”; we visit the tenant and ensure they have all the correct paperwork and also speak extensively about their claim before they move-in.

Also you’re unlikely to get payment direct straight away so you need a few payment solutions in your locker – we use recurring card payments (can’t be cancelled without cancelling the card) or direct debits (told same day if a payment hasn’t gone through) to be all over universal credit from day one. This just helps us to help the tenant pay their rent and manage their finances.

If you’re having any problems with universal credit drop me an email.