Many Housing Benefit Tenants in Wales Now Subject to Universal Credit

Yesterday, many housing benefit tenants across Wales became subject to the Government’s new welfare system, Universal Credit.

Under the new scheme, claimants are paid one monthly payment, rather than up to six individual payouts. As housing benefit is included within the Universal Credit system, landlords must be aware of the changes.

Additionally, while housing benefit was previously paid directly to the landlord, tenants are now responsible for paying their rent each week or month. You must communicate effectively with your tenants to ensure that you are aware of their financial circumstances.

Since January, many areas have moved onto the Universal Credit scheme, and we have been devoted to providing you with weekly updates of where the system is now in place. For the previous areas, see last week’s story: /universal-credit-rollout-continues/

We will continue to provide information for landlords on financial changes within the housing sector.

If you have rental properties in the following postcode areas of Wales, be aware that as of yesterday, any housing benefit tenants you have will now be in receipt of Universal Credit:

• CF15 7, CF15 9, CF35, CF37, CF38, CF39, CF40, CF41, CF42, CF43, CF44, CF45, CF48 2, CF72 and CF83 1 in Cardiff.
• SA11 5 of Swansea.

As your tenants move onto the new system, be aware that some claimants are being forced into debt by long waiting times or changes to their finances.

It is important to communicate with your tenants in order to avoid rent arrears. If you are concerned about your tenants struggling to pay the rent, the best way to protect your investment is with rent guarantee insurance, which ensures you still get paid if the tenant defaults.

For all of the latest advice for landlords, remember to visit LandlordNews.co.uk.